The Qantas Airways Limited (ASX: QAN) share price has travelled higher in the past week, nearing its 6-month high. This comes as the airline operator plans to kickstart international flights in December this year.
At Tuesday’s market close, Qantas shares edged 0.74% higher to $5.43. It’s worth noting that since August 20, the company’s share price has jumped around 25% in value.
What’s driving up Qantas shares this past week?
While local COVID-19 cases are climbing in the southern states, Australia’s accelerated vaccination program has been the focal point.
The federal government has signalled its intention to reopen the economy once COVID-19 vaccinations reached 80% of the population. In turn, this would see businesses resume under a post-pandemic world, with relaxed border restrictions for domestic and international travel.
During December 2019, Qantas shares were hovering above the $7.30 mark. If the company can get back on track, its shares could push past those levels. At present, this implies an upside of around 35%.
One of the first travel routes to restart is with Singapore, along with the United States, Japan, and the United Kingdom. Qantas is also hopeful that New Zealand will join that list in the near future.
However, flights to destinations such as Bali, Jakarta, Manila and Johannesburg aren’t expected until sometime around April 2022.
This means Qantas will recall some of its A380 aircraft that are parked in the Mojave Desert in California. The long-haul super jumbo jets have been there since mid-last year in deep storage.
No doubt, the company’s blueprint for resurrecting its services has investors excited.
Qantas share price snapshot
Since the start of 2021, Qantas shares have moved largely sideways, posting a gain of around 10%. However, zooming out to a longer time frame, its shares are up almost 40% in the last 12 months.
Qantas commands a market capitalisation of roughly $10.1 billion, making it the 54th largest company on the ASX.
The post The Qantas (ASX:QAN) share price is up 5% in a week. Here’s why appeared first on The Motley Fool Australia.
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More reading
- Why the Qantas (ASX:QAN) share price is in focus on Tuesday
- The Qantas (ASX:QAN) share price is having a great start to the week
- Leading brokers name 3 ASX shares to buy today
- If you invested $1,000 in Qantas (ASX:QAN) shares a decade ago, here’s what they would be worth now
- Qantas (ASX:QAN) share price falls while international ‘Points Planes’ considered
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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