Qantas Airways Ltd (ASX: QAN) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed yesterday trading for $6.08. In early afternoon trade on Tuesday, shares are swapping hands for $6.11 apiece, up 0.5%.
For some context, the ASX 200 is down 0.7% at this same time.
If Qantas shares can hold onto these gains at market close, it will mark the fourth consecutive day of gains for the company.
Image source: Getty Images
What's happening in the Aussie airline industry?
Qantas shares closed up 0.5% yesterday, a day that saw junior rival Regional Express Holdings Ltd (ASX: REX) enter a trading halt.
Regional Express shares remain in a trading halt today, frozen at 56 cents apiece. That sees the Rex share price down a painful 50% over 12 months.
Why the trading halt?
Well, as the Motley Fool reported yesterday, Rex requested the trading halt pending an announcement "in relation to a news article" published over the weekend. Shares are expected to recommence trading tomorrow, unless the airline releases that update within trading hours today.
The article in question appears to have been published in The Australian. That article conjectured that Rex possibly "invited a turnaround team from Deloitte to rifle through its books and try to stop the proverbial plane from crashing into the mountain".
Rex reportedly has struggled to expand into the lucrative Sydney, Melbourne, and Brisbane triangle, where airlines like Virgin and Qantas already hold dominant market share positions.
Rex has yet to respond to the specifics in the article. But citing sources familiar with the matter who wished to remain anonymous, The Sydney Morning Herald reported today that Rex is likely to appoint Ernst & Young as administrators.
Transport Minister Catherine King told ABC TV, "We are treating this very seriously and being very vigilant about what is happening and keeping an eye on the situation hour by hour."
King added, "There is a range of reasons why trading halts are put on companies, it does happen, but we will get some further information."
King addressed the collapse of budget airline Bonza in late April this year, noting that Rex was in a stronger position as it owns its own planes rather than leasing them like Bonza.
Tomorrow, we should know more about what's happening with Rex and whether Qantas could see another junior rival go under.
How have Qantas shares been tracking?
Qantas shares have enjoyed a strong rebound in 2024, up 14% year to date.
