What’s boosting the Qantas share price on Monday?

The Qantas Airways Ltd (ASX: QAN) share price is trading largely in the green today.

At the time of writing, shares of the Flying Kangaroo are swapping hands for $5.26 apiece, up 0.38%.

Whilst there’s nothing price sensitive out of the airline’s camp today, there’s been plenty that’s led us to this point.

What’s up with the Qantas share price?

Qantas shares have been on a round-trip journey themselves over the past few months.

The ‘fasten seatbelt’ sign has been on for investors, with shares plunging from $5.61 on 30 May to 52-week lows of $4.24 on 12 June, only to retrace most of that downside again, as seen below.

The $9.9 billion company by market capitalisation has certainly copped its fair share of headlines over the past few years, beginning with the pandemic.

As reported by The Motley Fool last week, Qantas has been struggling amid the global reopening, hit by labour shortages that are impacting businesses across the board.

Most recently, CEO Allan Joyce’s 15% year-on year-remuneration increase – bringing his pay package to $2.3 million for the year – caused a stir. This comes amid ongoing calls for his resignation.

With all options on deferred pay included, Joyce’s statutory pay was printed at an eye-watering $5.5 million.

Qantas also announced a $400 million buyback of its own shares (following a $1.9 billion loss for the 12 months to 30 June 2022).

The airline also continues to face criticism over its decision to outsource ground handling during the pandemic, axing its entire ground handling crew to do so.

Unsurprisingly, ground operations have suffered as a result, so much so that CEO Joyce was obliged to apologise for the calamity, and promised better from the company.

Meanwhile, the share buyback has copped mixed reviews from analysts familiar with the company. One said it represents “excess working capital being returned to shareholders [and] not excess profitability”.

Despite the negative press, Qantas chairman Richard Goyder last week came in to bat for Joyce, labelling him the “best CEO in Australia” in an interview with The Age.

Nevertheless, the Qantas share price has tipped its wings in recent weeks, climbing from lows of $4.54 on 24 August to its current price.

It now trades back in line with its June 2022 ranges, and, despite climbing 5% this year to date, is down less than 1% over the past 12 months.

The post What’s boosting the Qantas share price on Monday? appeared first on The Motley Fool Australia.

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More reading

• Qantas share price ends week in the red despite green update
• Qantas share price edges lower amid Alan Joyce’s $2.3 million FY22 pay packet
• Could you be holding onto ‘zombie’ ASX shares hoping for new life?
• ‘Reckless?’ Why the $400 million Qantas share buyback is dividing experts
• Qantas share price falls alongside ASX 200 despite surging airfares

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 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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