Qantas Airways Limited (ASX: QAN) shares are tracking higher today, up 7.37% to $5.47 apiece.
Qantas shares may be rising after US airline carrier Delta Air Lines Inc (NYSE: DAL) spurred a rally of US airline stocks overnight.
What’s driving the Qantas share price higher?
Delta has made some bold and bullish projections about a rebound in summer travel. This sent airline share prices in the US higher overnight and Qantas appears to be following in their footsteps.
Bloomberg reported: “The carrier said strong summer bookings will help it offset fuel costs and a slow return of business travel.”
From its earnings report yesterday, Delta remarked:
Domestic consumer revenues are exceeding 2019 levels and the recovery in business travel, revenue has accelerated as offices reopen and business travellers rebuild face-to-face relationships.
Demand for long-haul international is growing, as travel restrictions lift, led by the Transatlantic. To date, we have not seen an impact to travel demand from the conflict in Ukraine, but we, of course, are monitoring this closely. Nearly all European countries have now removed entry testing requirements for vaccinated customers.
We continue to join the rest of the US travel industry, in urging the US government to lift pre-departure testing requirements.
What else is happening with Qantas?
Earlier in the week, Qantas faced allegations from consumer advocacy group Choice relating to its flight credit policies.
In the past 12 months, the Qantas share price has grown by just 5%. However, it has spiked 11% in the past month.
The post Why is the Qantas share price flying 7% higher today? appeared first on The Motley Fool Australia.
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More reading
- ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
- Qantas share price flies away from ‘unfair and unworkable’ flight credit claims
- What went so wrong for ASX travel shares today?
- Why did the Qantas share price have such a tough time of it today?
- ASX travel shares have been flying higher over the past month. Here’s why
Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Delta Air Lines. 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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