Qantas Airways Ltd (ASX: QAN) shares are down 1.17% in late morning trade.
The S&P/ASX 200 Index (ASX: XJO) airline's shares closed yesterday trading for $6.40 apiece. Shares are currently swapping hands for $6.325 each.
This comes amid wider selling action today following some steep losses on US markets overnight, which sees the ASX 200 currently down 0.76%.
That's this morning's price action for you.
Now, what's this about Qantas' $100 million investment?
How is the ASX 200 airline investing $100 million?
In a potentially promising sign for the outlook of Qantas shares, the company said it is investing $100 million to upgrade its global airport lounge network as travel demand recovers faster than expected.
The investment will fund four new lounges, including a new flagship First Lounge at London's Heathrow Airport. Qantas will also upgrade many of its existing international and domestic lounges.
In Australia, that includes an updated and expanded International Business Lounge in Melbourne, a new Hobart Qantas Club, and a new Broome Regional Lounge with double the seats.
The airline said this is the biggest investment in its lounge network in more than 10 years. The $100 million expenditure will be phased over three years. Qantas reported this is already included in its existing capital expenditure forecast.
Commenting on the lounge upgrades, Qantas CEO Alan Joyce said:
Being back in profit means we're back to making long term investments for our customers. That started with the major aircraft order we announced last year and now we're building on that with a major investment in our lounges.
As for the London lounge plans, Joyce said, "London is one of the most important destinations on our network and it's the perfect location for a First Lounge, especially with our direct Project Sunrise flights on the way."
"Heathrow is one of the world's busiest airports so we're very pleased to be working with them to secure a great space in the terminal for an additional lounge," he added.
If you own Qantas shares, be sure to tune in tomorrow when the company reports its half-year earnings results.
How have Qantas shares been performing?
As you can see in the chart below, Qantas shares have been trending solidly higher since mid-July. Over the past 12 months, shares in the ASX 200 airline are up 22%.
