Why is the Qantas share price beating the ASX 200 on Wednesday?

Qantas' performance on the market today may have something to do with recent updates from Flight Centre and Webjet.

| More on:
a young man rests back into his hands behind his head with a wide smile and his eyes closed as he sits with two large suitcases in what looks to be an airport or transit destination.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Qantas share price is outperforming the ASX 200 today
  • Recent updates from Webjet and Flight Centre may be contributing to the strong momentum in the Qantas share price
  • The upward trend of online travel bookings bodes well for the Qantas share price

The Qantas Airways Limited (ASX: QAN) share price is outpacing the ASX 200 today, but what's causing this superiority?

Qantas shares are currently trading hands at $5.34 apiece, up 0.95% on yesterday's closing price, while the S&P/ASX 200 Index (ASX: XJO) is down 0.2% at the time of writing.

Since releasing its FY22 results last Thursday, the Qantas share price has risen almost 10% and continues to gather pace.

Today's momentum may have been propelled by updates provided by Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Ltd (ASX: WEB).

Webjet announces strong growth in bookings

As reported by my colleague Mitchell Lawler, Webjet disclosed plenty of positive results for the first half of FY23.

Webjet advised today that bookings are currently tracking at 95% of pre-pandemic levels and all three of its business segments are profitable for the FY23 trading year to date. This bodes well for Qantas as the upward trend of travel bookings means more flights.

Webjet management also flagged that tourism is returning to Australia and New Zealand, which is another great sign for Qantas.

Interestingly, the Webjet share price is 9% higher at the time of writing while the Flight Centre share price is up 3% today.

Flight centre responds to media speculation

Yesterday, Flight Centre addressed rumours of possible merger and acquisition activity, as covered by my colleague Brooke Cooper.

The Australian reported that US travel management giant Altour could be a takeover target for Flight Centre. Altour recorded more than $3 billion in sales in 2019 before the pandemic hit.

In response to the rumours, Flight Centre is keeping details close to its chest, advising it will not respond to any media speculation.

Management, however, did advise they would consider acquisition opportunities to support organic growth.

Qantas share price snapshot

Despite recording a massive loss of $1.9 billion in FY22, the Qantas share price has managed to rise by 10% since the figure was revealed.

Unlike many other ASX growth stocks, the Qantas share price has risen by 5% in the last year and is rallying almost 17% higher across the past month. In contrast, the S&P/ASX 200 Index (ASX: XJO) has fallen by 7% in the last year and declined by 0.03% in the past month.

It seems like generally positive news for online travel agencies has flowed onto Qantas, however, investors ought to be mindful that airline stocks tend to be cyclical.

Qantas' current market capitalisation is around $10.1 billion.

Motley Fool contributor Raymond Jang has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Travel Shares

Bored woman waiting for her flight at the airport.
Travel Shares

Why is the Flight Centre share price falling today?

What's going on with this travel agent's shares?

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

A 'once in a lifetime' opportunity for Qantas shares?

Can this stock fly higher?

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Act fast if you want to receive the next Flight Centre dividend

It won't be long until this travel agent pays its next dividend.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Why is the Webjet share price racing to a 52-week high today?

Webjet has been busy talking up its WebBeds business this morning.

Read more »

A businessman points a finger in accusation, indicating a share price or ASX company in trouble
Travel Shares

Qantas shares hit turbulence amid $250,000 fine for 'shameful' conduct

ASX 200 investors are bidding down the Qantas share price on Wednesday.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Flight Centre shares plunge 7% despite return of the interim dividend

ASX 200 investors are sending the Flight Centre share price spiralling lower on Wednesday.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Earnings Results

Flight Centre share price on watch amid 565% half-year profit surge

Flight Centre shares could see some sizeable moves today after the ASX 200 travel stock reported on its half-year results.

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Own Flight Centre shares? Here's what you need to know ahead of its results

The travel agent giant is releasing its results on Wednesday next week.

Read more »