The Qantas Airways Ltd (ASX: QAN) share price just closed out a fantastic July.
Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock finished off June trading for $5.85 each.
When the closing bell sounded on 31 July, those same shares were changing hands for $6.46 apiece.
That put the Qantas share price up an impressive 10.4% over the month or more than double the 4.2% gains posted by the ASX 200 in July.
Here's what's been happening.
Image source: Getty Images
Qantas share price flies higher in July
There was no new price-sensitive news from the airline in July.
Instead, the Qantas share price broadly continued with the upward trend it entered in early March when shares hit a 2024 low closing price of $5.01.
That comes as Qantas continues to rebuild its battered brand image following some difficult months post the pandemic reopening.
In July, the airline also received positive broker and fund manager coverage, including from Shaw and Partners senior investment advisor Jed Richards.
Richards has a buy rating on Qantas and cited numerous reasons why he believes the ASX 200 airline is well-positioned for ongoing strong performance.
Among those, he said, "The company's loyalty business is expected to double earnings over the next five to seven years."
He also thinks the Qantas share price will "benefit from new and more fuel-efficient aircraft."
And atop the airline's solid balance sheet, Richards expects shareholders to benefit from the rollout of Project Sunrise, which will offer direct flights from Australia's east coast to New York and London.
July also saw Regional Express Holdings Ltd (ASX: REX) enter administration.
Rex's regional flights are continuing for now.
However, Rex has halted all flights between the Sydney, Melbourne, and Brisbane airports, and its fleet of Boeing 737s is grounded.
While that's unlikely to have an immediate material impact for Qantas, it could support the company's share price with yet another junior competitor hitting the skids in 2024, with Bonza having run into difficulties earlier this year.
In a statement, Qantas said it was "prepared to connect Rex employees with potential opportunities within the Qantas Group as they go through the process of voluntary administration".
Now what?
Well, the first three trading days of August haven't started with a bang.
To say the least.
The Qantas share price closed down 4.93% yesterday, ending the day at $5.78 a share.
That sees shares in the ASX 200 airline down 10.53% since the market close in July.
Of course, it's not just Qantas under pressure in August. The ASX 200 closed down 3.7% yesterday, putting the benchmark index down 5.47% in the new month.
As for what's next, I think that the longer-term outlook for the flying kangaroo remains strong.
With the past three days of selling, the Qantas share price is again down some 20% from its pre-COVID levels, despite domestic travel demand rebounding to 2019 levels and international travel demand also closing in on that milestone.
And with the oil price heading sharply lower in recent weeks, Qantas could enjoy some extra tailwinds from lower fuel bills in the months ahead.
