Why did the Qantas share price have a lousy end to the week?

Why did Qantas slide today?

Key points
  • The Qantas share price fell more than 4% on Friday  
  • However, multiple ASX travel shares finished in the red 
  • This follows airlines in the US dropping overnight amid recession fears and Florida's hurricane 

The Qantas Airways Limited Limited (ASX: QAN) share price suffered on Friday.

Qantas shares dropped 4.2% and finished the day at $5.02. For perspective, the S&P/ASX 200 (ASX: XJO) fell 1.23% on Friday.

Let's take a look at what may have impacted the Qantas share price on Friday.

A sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price falls

Image source: Getty Images

Qantas shares fall

Qantas shares may have dropped on Friday, but they were not alone among ASX travel shares. The Flight Centre Travel Group Ltd (ASX: FLT) share price fell 4.44% today, while Webjet Limited (ASX: WEB) shares lost 4.23%.

ASX travel shares have struggled after airlines in the USA dropped overnight. Qantas, Webjet and Flight Centre all have operations in the USA. The Delta Air Lines Inc (NYSE: DAL) share price fell 3.56% in the USA, while American Airlines Group Inc (NASDAQ: AAL) dropped 3.92%. United Airlines Holdings Inc (NASDAQ: UAL) shares fell 2.98%.

Airlines fell amid Hurricane Ian in Florida, recession fears and pending interest rate rises. Interest rate rises increase the costs for households, potentially limiting spending on travel.

Meanwhile, closer to home, Flight Centre CEO Graham Skroo Turner has leapt to the defence of Qantas despite recent travel woes. In an article in The Australian, Turner said "most in the travel industry" blame border closures and lockdowns for Qantas' recent service issues. He said:

History will show or has already shown that shutting borders and dictating widespread lockdowns not only were ineffective in stopping COVID-19's spread but caused enormous societal and collateral damage.

Qantas recently revealed that CEO Alan Joyce received $2.3 million in base salary and other benefits in FY22, 15% more than in FY21.

Qantas share price snapshot

The Qantas share price has slid 11% in the past year, while it has gained 0.2% in the year to date.

In comparison, the ASX 200 has lost 11.7% in the past year and 13% in the year to date.

Qantas has a market capitalisation of nearly $9.5 billion based on the current share price.

Motley Fool contributor Monica O'Shea 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.

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