Qantas share price lifts amid new sustainability partnership

A cute young girl wears a straw hat and has a backpack strapped on her back as she holds a globe in her hand with a cheeky smile on her face.

A cute young girl wears a straw hat and has a backpack strapped on her back as she holds a globe in her hand with a cheeky smile on her face.

The Qantas Airways Ltd (ASX: QAN) share price is lifting off in early trade, up 2.41%.

Qantas shares closed on Friday at $4.36 apiece and are currently trading for $4.465.

This comes as the S&P/ASX 200 Index (ASX: XJO) is just about flat in early trade.

It also comes amid a new $200 million sustainability initiative announced over the weekend.

Today’s morning boost will be welcome news for shareholders following a horror week for the airline last week, which saw the Qantas share price tumble 16% amid the wider market rout.

What new sustainability initiative was announced?

Qantas announced it will partner with Airbus to invest up to US$200 million to help establish a domestic sustainable aviation fuel (SAF) industry.

Qantas CEO Alan Joyce and Airbus CEO Guillaume Faury signed the Australian Sustainable Aviation Fuel Partnership in Doha yesterday.

Australia currently does not produce commercial quantities of SAF. That sees the nation exporting millions of tonnes of canola and animal tallow, which are then processed overseas into SAF.

The partners will invest in carefully selected, locally developed and produced SAF initiatives.

Qantas has previously committed to using 10% SAF in its overall fuel mix by 2030 to reduce its carbon emissions.

Joyce said the investment would speed up SAF development in Australia and create value for Qantas shareholders.

Commenting on the partnership with Airbus, Joyce added:

Aviation is an irreplaceable industry, especially for a country the size of Australia, and one that’s located so far away from so much of the world. Future generations are relying on us to get this right so they too can benefit from air travel.

This investment will help kickstart a local biofuels industry in Australia and hopefully encourage additional investment from governments and other business and build more momentum for the industry as a whole.

It makes a lot of sense for us to put equity into an industry that we will be the biggest customer of. We’re calling on other companies and producers to come forward with their biofuel projects. In many cases, this funding will be the difference between some of these projects getting off the ground.

The partnership is initially for five years with options to extend.

Qantas’ investment in the Australian Sustainable Aviation Fuel Partnership includes A$50 million it has already committed to research and development of domestic SAF.

Qantas share price snapshot

The Qantas share price has seen its share of ups and downs over the past year amid oft-changing sentiment around the domestic and global travel industry.

Following last week’s share selloff, the Qantas share price remains down 8% over the past 12 months. That compares to a full year loss of 12% posted by the ASX 200.

The post Qantas share price lifts amid new sustainability partnership appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Bernd Struben 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/nBcqiJv

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s