The Qantas Airways Limited (ASX: QAN) share price is in the green today following an eventful few days for the airline.
Qantas shares are currently jumping 2.92% to $4.58. For perspective, the S&P/ASX 200 Index (ASX: XJO) is leaping 1.68% today
Let’s take a look at what’s happening at Qantas.
Speedy long-haul flight lands in Rome
Qantas’ inaugural flight from Sydney to Perth to Rome landed in Europe on Sunday morning. The flight is the first direct flight between Australia and Europe. Qantas CEO Alan Joyce and West Australian Premier Mark McGowan were among the special guests onboard the flight, the Australian Financial Review (AFR) reported. McGowan was quoted as saying, it is “exciting to reopen to the rest of the world”.
Recent figures show the number of Australians travelling overseas has nearly doubled since borders opened, according to the ABC. A total of 663,970 people left Australia in May, up from 335,240 in March.
In recent news, Qantas is cutting domestic flight capacity to schedules from July until the end of March 2023. This drop is designed to help the company recover high fuel costs.
These reductions, combined with robust international and domestic travel demand, are expected to help the Group substantially recover the elevated cost of fuel indicated by forward oil prices.
The airline will also be providing 19,000 employees with a $5,000 bonus at a cost of $87 million. This will be paid once a new enterprise agreement is completed. Further, Jetstar CEO Gareth Evans will step down in December 2022. Jetstar is part of the Qantas Group.
Brent crude oil prices have fallen 1.33% at the time of writing, while WTI crude oil prices are down 1.51% today. Falling oil prices can help travel shares because fuel is a major cost for airlines.
Qantas share price snapshot
The Qantas share price has shed 3.17% in the past 12 months, while it has descended nearly 9% year to date.
For perspective, the benchmark ASX index has lost more than 10% so far this year and 8.5% in a year.
Qantas has a market capitalisation of about $8.6 billion based on today’s share price.