The Qantas Airways Limited (ASX: QAN) share price has breached the $6 mark for the first time since the pandemic hit in 2020.
In early morning trading, the ASX travel share is flying high, up 2.2% to $6.03.
The Qantas share price hit a new 52-week high of $6.075 shortly after the market open.
The share price gain comes despite no price-sensitive news being released by Qantas today.
Why is the Qantas share price up?
There’s been a buzz around Qantas following an update last week that sent its share price soaring 12%.
Qantas told the market it expects to report an FY23 half-year underlying profit before tax of $1.2 billion to $1.3 billion. According to The Australian, analysts expected this to be the company’s full-year result.
Qantas also expects net debt to drop to between $3.2 billion and $3.4 billion. This is big because it’s below the bottom of the target range of $3.9 billion.
These results are largely due to “strong” domestic travel demand and improving international demand.
Qantas said its revenue intakes for business purposes are above 100% of pre-COVID levels. Leisure intakes are above 130%.
The airline expects group domestic capacity to be 94% of pre-COVID levels in Q1 FY23 and 100% in Q2 FY23. Group international capacity is expected to be 61% in Q1 FY23 and 77% in Q2 FY23.
Before the COVID-19 market crash, Qantas hit an all-time high of $7.46 on 20 December 2019.
The Australian says the Bloomberg consensus 12-month target for the Qantas share price is $7.21.
What about other ASX travel shares?
Qantas shares are up 17% in the year to date.
The Air New Zealand Limited (ASX: AIZ) share price is up 2.2% today and down 23% in 2022.
The airline is vastly outperforming other ASX travel sector stocks.
The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 0.07% today and down 18% in 2022.
The Webjet Limited (ASX: WEB) share price is up 0.6% today and down 4.6% in 2022.
The post Qantas share price surges to post-COVID high appeared first on The Motley Fool Australia.
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More reading
- Has the Qantas share price finally left COVID in its contrail?
- Top brokers name 3 ASX shares to buy next week
- Why Jumbo, Origin, Qantas, and Woodside shares are racing higher
- Brokers name 3 ASX shares to buy today
- Is the Qantas share price fully valued following this week’s surge?
Motley Fool contributor Bronwyn Allen has positions in Flight Centre Travel Group Limited, Qantas Airways Limited, and Webjet Ltd. 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 recommended Flight Centre Travel Group Limited and Webjet Ltd. 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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