The Qantas Airways Limited (ASX: QAN) share price finished in the red today amid a second mid-air incident.
Qantas shares fell 0.46% today to close at $6.54. For perspective, the S&P/ASX 200 Index (ASX: XJO) climbed 0.57% today.
Let's take a look at what is going on with Qantas.
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Flight turmoil
Qantas shares fell today despite multiple ASX 200 travel shares rising higher. The Webjet Limited (ASX: WEB) share price leapt 1.80% today, while Flight Centre Travel Group Ltd (ASX: FLT) shares jumped 0.89%.
In news today, a Qantas flight bound for Fiji had to return to Sydney after pilots received a "fault indicator", the ABC reported. A Qantas spokesperson cited by the publication said:
Our Sydney to Fiji flight has returned to Sydney as a precaution after pilots received a fault indicator about a potential mechanical issue.
The pilots followed standard procedures and the aircraft has landed normally in Sydney.
This follows a pilot flying from Auckland to Sydney having to issue a 'mayday' alert when one of its two engines shut down.
A Qantas spokesperson quoted by CNN Travel said:
While inflight engine shutdowns are rare, and would naturally be concerning for passengers, our pilots are trained to manage them safely and aircraft are designed to fly for an extended period on one engine.
The mayday alert, which can signal a life-threatening emergency, was later downgraded to PAN, meaning possible assistance was needed before the plane landed safely. Some passengers reportedly heard a "bang" during the flight.
The Australian Transport Safety Bureau has launched an investigation into this flight, The Australian reported. In light of the incident, Australian and International Pilots Association vice-president Mark Hofmeyer highlighted single pilot operations are "not going to be viable for a long time". He added in quotes cited by the publication, "Pilots work as a team for a safe outcome".
Broker Goldman Sachs is positive on the Qantas share price and believes the company can deliver a huge profit in FY 2023 and 2024. Goldman said:
With the market capitalization 10% above pre-COVID levels and EV (based on last reported net debt) 8% below pre-COVID, we believe the stock is not appropriately pricing QAN's improved earnings capacity. Specifically, our FY23e EPS forecast is 58% above FY19a levels with group capacity still 21% below pro-COVID levels.
Qantas share price snapshot
The Qantas share price has soared nearly 29% in the last year.
Qantas has a market capitalisation of about $11.88 billion based on today's share price.
