‘Clear vote of confidence’: Qantas share price on watch following key updates

A Qantas pilot stands in an empty passenger cabin smiling with his arms crossed feeling excited about international travel resuming

A Qantas pilot stands in an empty passenger cabin smiling with his arms crossed feeling excited about international travel resuming

The Qantas Airways Limited (ASX: QAN) share price is on watch today following several key updates from the airline.

Qantas shares closed on Friday at $5.60 apiece.

What key updates did Qantas announce?

The Qantas share price is in the spotlight on Monday after the Aussie airline reported that domestic travel numbers were returning to levels not seen since the onset of the pandemic faster than expected. Both leisure and travel demand were said to be rebounding strongly.

The airline also said there is strong demand for international flights, but this segment remains hampered by travel restrictions persisting in some nations.

On the financial front, Qantas expects its net debt levels to fall to $4.5 billion by the end of April, which brings net debt back to pre-pandemic levels.

Looking ahead to the second half of 2022, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2H22 are forecast to come in at $450 million to $550 million.

In a separate announcement, Qantas revealed that the board has given the go ahead for ‘Project Sunrise‘, the airline’s long haul scheme. Qantas will order 12 new Airbus A350s that will fly direct from Australia to major overseas destinations like London and New York.

The flights – the longest operated by any airline in the world – will commence in 2025 out of Sydney.

Commenting on the move, Qantas CEO Alan Joyce said:

New types of aircraft make new things possible. That’s what makes today’s announcement so significant for the national carrier and for a country like Australia where air travel is crucial…

The Board’s decision to approve what is the largest aircraft order in Australian aviation is a clear vote of confidence in the future of the Qantas Group. Our strategy for these aircraft will see us generate significant benefits for those who make it possible – our people, our customers and our shareholders.

Qantas share price snapshot

The Qantas share price has gained 8.8% so far in 2022. That compares to a loss of 2.0% posted by the S&P/ASX 200 Index (ASX: XJO).

The post ‘Clear vote of confidence’: Qantas share price on watch following key updates appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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