The S&P/ASX 200 Index (ASX: XJO) gained 0.5% in June, but Qantas Airways Ltd (ASX: QAN) shares left those gains wanting.
Shares in the ASX 200 airline stock closed out May trading for $9.44. Yesterday, 30 June, shares closed the day trading for $10.62 apiece.
This saw Qantas shares up an impressive 12.5% over the month just past.
Here's what's been stoking investor interest.
Image source: Getty Images
Qantas shares lift on tumbling fuel prices
The biggest tailwind helping the flying kangaroo outperform in June was the fast-falling oil price. As you're likely aware, the oil price has come off the boil amid ongoing negotiations to end the Middle East conflict and fully reopen the Strait of Hormuz.
Indeed, on 1 June, the Brent crude oil price stood at US$95 per barrel. By 30 June, the oil price has tumbled to US$73 per barrel, according to data from Bloomberg.
That 23% fall in global oil prices will translate to a major reduction in jet fuel costs.
To give you an idea of how important fuel costs are to the profitability of Qantas shares, on 26 February – directly before the outbreak of the Iran war – Qantas said it expected to spend around $2.5 billion on jet fuel in the second half of the 2026 financial year.
But amid surging oil price, on 14 April, the amended its second-half year jet fuel cost guidance to be in the range of $3.1 billion to $3.3 billion. Or potentially $600 million more on jet fuel costs than it had expected just six weeks earlier.
But with the oil price now back to pre-war levels, investors look to be pricing in lower fuel costs as we kick off the first half of FY 2027.
What else happened with the ASX 200 airline in June?
Atop the tumbling oil price, Qantas shares look to have gotten a lift following a positive update on its 'Project Sunrise' flights.
Qantas said it will commence its non-stop flights between Sydney and London in October 2027. The history making service will be the first-ever non-stop commercial flights connecting Australia's east coast to the United Kingdom.
Project Sunrise will be serviced by Qantas' new Airbus A350-1000ULR – part of the airline's $15 billion fleet renewal program. The travel time from Sydney to London will be less than 22 hours.
"Qantas was built on the belief that Australia's distance from the rest of the world should never stand in the way," CEO Vanessa Hudson said.
Hudson added:
We made a commitment in 2017 that Qantas would conquer the final frontier of long-haul aviation and connect Australia's east coast directly to London, something that has never before been possible. From October 2027, that promise becomes reality.
