Qantas share price slides as engineers plan strike action

The Qantas Airways Limited (ASX: QAN) share price closed down slightly today as news of worker strikes emerged.

Qantas shares dropped 0.22% today to $4.48 at market close. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell more than the airline today, slipping 0.53%. Flight Centre Travel Group (ASX: FLT) also slipped 0.29% but Webjet Limited (ASX: WEB) shares jumped 1.3%.

Let’s take a look at what is happening at Qantas.

Engineers could strike

Qantas aircraft engineers are considering strike action within weeks due to pay negotiations stalling, The Age reported.

A vote on potential strike action is earmarked for August if requests for a pay rise as high as 12% are not met, the publication reported. Australian Licensed Aircraft Engineers Association federal secretary Steve Purvinas said:

The airline has not taken negotiations seriously. There have been years of meetings and no progress.

However, in a statement, Qantas has expressed concern regarding planned action. The airline highlighted it has “contingency plans” to reduce disruptions. A Qantas Group spokesperson said:

With the industry still recovering from the impact of the pandemic, the last thing it needs is the threat of industrial action.

This action from the union is completely unnecessary.

Meanwhile, ASX travel shares have performed relatively well against the S&P/ASX 200 Index (ASX: XJO) benchmark today.

This comes amid new travel rules that apply from 6 July. A COVID-19 vaccine is no longer required for international tourists arriving in Australia. The digital passenger declaration form has also been ditched for now.

Commenting on the news, Health Minister Mark Butler said on Sunday:

The chief medical officer has advised it is no longer necessary for travellers to declare their vaccine status as part of our management of COVID

Share price snapshot

The Qantas share price has descended nearly 9% in the past year, while it is nearly 11% in the red year to date.

For perspective, the ASX 200 has shed nearly 9% in a year.

In the past five years, Qantas shares have lost 22%.

The post Qantas share price slides as engineers plan strike action appeared first on The Motley Fool Australia.

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More reading

• Why did the Qantas share price outperform the ASX 200 in FY22?
• How did ASX travel shares perform in June?
• ASX 200 travel shares leap as Australia scraps COVID-19 vaccine mandates for international arrivals
• Top brokers name 3 ASX shares to buy next week
• Why did the Qantas share price plunge 19% in June?

Motley Fool contributor Monica O’Shea 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.

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