What's going on with the Qantas share price today?

It's shaping up to be a good day for the ASX 200 travel giant.

| More on:
A jet plane takes off representing the qantas share price rising on the ASX this week

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 today, trading flat at $6.55 compared to the ASX 200's 0.3% slump
  • It comes as the travel giant's takeover target, Alliance Aviation, posted a return to profit for the first half
  • Meanwhile, a United Nations agency tips demand for air travel to recover to pre-pandemic levels this year

The Qantas Airways Limited (ASX: QAN) share price is above the S&P/ASX 200 Index (ASX: XJO)'s clouds on Thursday amid what could be exciting news for the airline.

First up, its takeover target Alliance Aviation Services Ltd (ASX: AQZ) has posted a return to profit.

Meanwhile, the United Nations' International Civil Aviation Organization (ICAO) has forecast demand for air travel will make a complete recovery this year, returning to pre-pandemic levels.

Right now, the Qantas share price is trading at $6.55, flat with its previous close.

For comparison, the ASX 200 has dropped 0.35% at the time of writing.

Let's take a closer look at what might be going right for the flying kangaroo this morning.

Qantas share price gains amid takeover target's profitability

The Qantas share price is outperforming amid the release of Alliance Aviation's half-year earnings. Here are the key takeaways from the takeover target's results, released after the market closed on Wednesday:

The Alliance Aviation share price is down 0.87% to trade at $3.40 at the time of writing.

Qantas put forward a successful $4.75 per share bid for the aviation services provider in May 2022, valuing it at $764.5 million.

However, the Australian Competition & Consumer Commission (ACCC) is proving hard to convince. It's concerned the acquisition could have a negative impact on competition in the aviation sector.

Demand for air travel tipped to grow in 2023

Qantas might also be front of mind today after the ICAO stated it expects passenger demand for air travel to reach pre-pandemic levels by the first quarter of 2023.  

Demand is tipped to be around 4% stronger than it was in 2019 this year, translating to a compound annual growth rate of 0.7% between 2019 and 2024.

It also tips airlines to return to profitability in the final quarter of 2023, ending three years of losses, as long as risks impacting international air transport don't escalate.

Qantas expects to beat that prediction. The ASX 200 airline upgraded its first-half guidance in November, tipping a $1.35 billion to $1.45 billion underlying profit before tax for the period.

Motley Fool contributor Brooke Cooper 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 Alliance Aviation Services. 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

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

Could Qantas shares be poised to catch some Chinese tailwinds?

Qantas shareholders will be watching Australia’s latest diplomatic developments with China.

Read more »

A pilot stands in an empty passenger cabin smiling with his arms crossed looking excited
Travel Shares

Why are ASX investors so excited by the Qantas share price?

Investors' sentiment is positive on the airliner.

Read more »

Teenager holds model plane in the air against the background of a blue sky.
Travel Shares

Qantas share price lifts after nabbing remaining TripADeal stake

The airline continues to mine the acquisition pipeline.

Read more »

A smiling woman looks at her phone as she walks with her suitcase inside an airport.
Travel Shares

3 big reasons to buy Qantas shares now

Goldman Sachs thinks big returns could await buyers of this stock.

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Here's where I see the Qantas share price ending in FY 2025

It could be a solid year if Qantas stays on its current runway.

Read more »

A young woman holds her hand to her mouth in surprise as she reads something on her laptop.
Travel Shares

Why Qantas could be one the best shares to buy in the Asia-Pacific

Goldman Sachs thinks this could be one of the best investment opportunities around.

Read more »

A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.
Travel Shares

ASX 200 shares are still cheap! Here's one to consider buying now

Growth and dividends are the two vital ingredients, according to one broker.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Qantas shares maintain altitude amid 'historic' $5 billion deal

Perth is Qantas’ next growth focus.

Read more »