If you'd invested $10,000 in Air New Zealand Ltd (ASX: AIZ) and Qantas Airways Ltd (ASX: QAN) shares three years ago, which investment would have returned more?
And would either of the ASX travel stocks have beaten the 23.5% gains delivered by the S&P/ASX 200 Index (ASX: XJO) since 22 September 2023 as of Monday afternoon trade?
I'm glad you asked!
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Buying $10,000 worth of Qantas shares
Three years ago, you could have bought Qantas shares for $5.31 apiece.
So, for $10,000, you could have picked up 1,883 shares in the ASX 200 airline stock.
On Monday, shares were changing hands for $8.80 each.
Meaning the 1,883 shares you bought on 22 September 2023 are worth $16,570 today.
But wait. There's more!
As you may recall, Qantas suspended its dividend payouts in 2020 after the global pandemic slammed the door on air travel and saw Qantas' profits dry up. However, as COVID came under control and air travel lifted off again, Qantas recommenced its twice-yearly dividend payments, starting in April 2025.
If you'd owned Qantas shares for the last three years, you would have received (or shortly will) the past four dividend payments, totalling 92.4 cents a share.
If we add that back into Monday's share price, then the accumulated value of the Qantas shares you bought three years ago is now worth $18,310. Or a gain of more than 83%, with some tax benefits from those franking credits.
So, we know that Qantas flew ahead of the ASX 200 over the last 36 months. But how about Air New Zealand stock?
How have Air New Zealand shares fared over three years?
Air New Zealand has had a more difficult time of it since 2023.
Three years ago, you could have bought shares in the Kiwi airline for 68 cents apiece. So, your $10,000 investment would have netted you 14,705 Air New Zealand shares.
On Monday, shares were swapping hands for 33 cents each.
Meaning the 14,705 shares you bought for $10,000 are worth $4,853 today.
Now Air New Zealand also suspended its dividend payments in 2020, resuming them in 2023.
If you'd owned the shares for the last three years, you would have received the past four unfranked dividend payments, totalling 4.7 cents a share.
Adding that back to the recent share price, the accumulated value of the Air New Zealand shares purchased on 22 September 2023 for $10,000 is now $5,544. Or a loss of 44.6%.
Which makes Qantas shares the clear winner in the three-year returns delivered from the two ASX airline stocks.
