The Qantas Airways Limited (ASX: QAN) share price is falling on Tuesday despite the release of an update from the airline operator.
In afternoon trade, the airline's shares are down 1.5% to $5.97.
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What was in Qantas' update?
Qantas has provided the market with an update on industry conditions. And despite what its share price performance today might indicate, things remain very rosy for its operations.
The company expects to carry more than 4 million passengers over the school holiday period, with top domestic leisure destinations including the Gold Coast and Cairns.
In addition, new international routes such as Sydney-Auckland-New York and Perth-Rome are heavily booked.
Pleasingly, despite the cost of living crisis, Qantas notes that travel demand remains strong and data shows that consumers continue to prioritise travel over other spending categories.
As a result, the company remains on track to deliver the financial performance for FY 2023 outlined in its May market update.
This will mean an underlying profit before tax of between $2.425 billion and $2.475 billion, which would mark a record for the Flying Kangaroo.
It will also mean a net debt position of between $2.7 billion and $2.9 billion, which is significantly below its target range of $3.7 billion to $4.6 billion.
Is the Qantas share price good value?
Analysts at Goldman Sachs continue to see a lot of value in the Qantas share price.
A recent note reveals that the broker has the airline on its conviction list with a buy rating and $8.50 price target. Based on its current share price, this implies a potential upside of approximately 42% for investors over the next 12 months.
To put that into context, if Goldman is on the money with its recommendation and valuation, a $20,000 investment could be worth $28,400 this time next year.
Time will tell if that is the case.
