Why is the Qantas (ASX:QAN) share price taking off this week?

Key points

• Qantas share price up 5% this week
• CEO Alan Joyce is calling for more tourists to be allowed to travel to Australia
• JP Morgan has included Qantas in a Super 7 list of shares to buy now

The Qantas Airways Ltd (ASX: QAN) share price is lifting this week amid hopes that tourists could soon be welcomed back into Australia.

In the week to date, the airline’s shares have soared by 5.07%. However, in early trading today the Qantas share price is currently down 1%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is also down 0.18% today.

Let’s take a look at what might be impacting the Qantas share price.

What’s happening at Qantas?

The Qantas share price is starting February in the green. In recent days, JP Morgan has listed Qantas in a ‘Super 7’ list of shares to buy now. My Foolish colleague Brendon noted the average return from ASX 200 shares on the Super 7 list is 30%, based on JP Morgan’s forecasts.

Looking at other ASX travel shares, the Webjet Limited (ASX: WEB) share price is up 6% so far this week. The Flight Centre Travel Group Ltd (ASX: FLT) share price has risen by 8%. Meanwhile, Regional Express Holdings Ltd (ASX: REX) has fallen 4%.

Qantas received attention from the highest levels of government on Wednesday, with Prime Minister Scott Morrison addressing the concerns of CEO Alan Joyce directly.

In a press conference at the Royal Australian Airforce Airbus facility in Richmond NSW, Morrison said:

We have had a very successful opening up already over the summer to backpackers and to those on the economic migration programs, and opening up to Singapore.

And we’ve already been open to New Zealand, Japan and South Korea. That has gone very well. And so the next step is opening up to international.

I totally empathise with the comments of Alan Joyce on this issue, and he knows my very strong commitment to getting to that point as quickly and as safely as we possibly can. So I’m looking forward to making progress on that issue.

The PM was referring to the Qantas CEO questioning why tourists are not allowed to come into Australia given there are more cases in Australia than in many overseas countries.

In comments aired by Sky News, Joyce said:

While we’re allowing Australians to come in and out it doesn’t make sense to me to not allow tourists.

It’s the same risk, so hopefully we will get there well before April and we can ease back on the testing requirements that are also there.

On Monday, Qantas launched a new pilot training centre at Brisbane Airport. The facility will train 900 pilots a year.

Qantas share price snapshot

The Qantas share price has gained about 6% in the past year. They have fallen 3.3% in the year to date.

In contrast, the broader ASX 200 index has returned about 3.6% in the past 52 weeks.

Qantas has a market capitalisation of roughly $9 billion based on its current share price.

The post Why is the Qantas (ASX:QAN) share price taking off this week? appeared first on The Motley Fool Australia.

More reading

• Are ASX travel shares finally emerging from the COVID storm?
• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• What is green shorting and which ASX 200 shares are being targeted?
• Why is the Qantas (ASX:QAN) share price gaining altitude today?
• Is Qantas (ASX:QAN) poised to smash its rivals once travel recovers?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 recommended Flight Centre Travel Group Limited and Webjet Ltd. 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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