The outlook for Qantas Airways Limited (ASX: QAN) shares seems to have improved, with investors driving the airline's share price 9% higher over the past month.
Today, the Qantas share price has climbed 3.13% to $5.60 amid strengthening conditions in the travel industry and a winding back of global pandemic restrictions, sources say.
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Qantas better positioned to fly high once again
In recent months, there's been a slew of macro catalysts weighing on global airline stocks, not least the extension of global pandemic restrictions. More recently, oil shocks have been a headwind.
However, airline stocks, including the Qantas share price, have rallied as oil prices begin to level off and global travel pathways remove COVID-19 mandates.
"Asian airline stocks follow their overseas peers higher after oil prices fell and most major US carriers dropped their mask requirements for domestic and some international flights," Bloomberg reported today.
Not only that, but Qantas' financial health appears to have improved as well, according to the credit rating agency Moody's.
The agency recently affirmed Qantas' long-term credit ratings and changed its outlook to 'stable' from 'negative' after two years, in a vote of confidence for the airline.
"Qantas is well-positioned to restore its credit profile over the next 12 to 18 months…The stable outlook reflects the rating agency's expectation that Qantas' leverage will revert to and be maintained within the range set for its rating," Moody's commented.
The significant reduction in leverage will arise as "domestic capacity increases" during 2023 to more than 100% of its pre-pandemic levels, Moody's said.
Qantas share price snapshot
Qantas shares have soared since mid-April, when a loosening of pandemic restrictions specifically relating to travel began to make its way around the globe.
As such, shares are up 10% in the past week, and four-week trading volume has crept up to more than 6.3 million shares on average.
In the last 12 months, the Qantas share price has gained almost 12%.
