How is the Qantas share price avoiding today’s carnage?

The Qantas Airways Limited (ASX: QAN) share price is floating above a sea of red on Thursday despite no news having been released by the airline operator.

Though, the market is likely focused on the company’s 2022 annual general meeting (AGM), to be held tomorrow.

Meanwhile, the company’s response to 2022’s CHOICE Shonky Awards and word one of its major competitors could be considering an ASX float might be putting the spotlight on the airline.  

Right now, the Qantas share price is flat with its previous close, trading at $5.98.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has dumped a whopping 1.77%.

Let’s take a closer look at what might be going on with the national carrier’s stock today.

What’s buoying the Qantas share price today?

The Qantas share price is one of few ASX 200 shares not trading in the red on Thursday.

Meanwhile, the S&P/ASX 200 Industrials Index (ASX: XNJ) is one of the market’s best-performing sectors.

It’s down just 0.51% right now, leaving only the S&P/ASX 200 Communication Index (ASX: XTJ) outperforming it with a 0.39% gain.

It comes as the market awaits Qantas’ AGM. The meeting will kick off at 11am AEDT on Friday.

All eyes will likely be on shareholders’ response to the company’s remuneration report and share rights. Proxy advisor Institutional Shareholder Services is recommending investors vote against the matters, the Australian Financial Review reports.

The advisor is said to be disgruntled by Qantas CEO Alan Joyce’s pay packet and potential entitlements under the recovery retention plan, which could see him walk away with nearly 700,000 shares. That parcel would be worth over $4 million right now.

All other proxy advisors reportedly support the resolutions.

What else is happening with Qantas?

The airline could also be garnering attention after being crowned Australia’s most ‘shonky’ brand of 2022.

The award, provided by Choice, labels Qantas “the Spirit of Disappointment”. The consumer advocacy group says:

If there were ever a company that appeared deliberately to be going out of its way to win a Shonky Award, it’s Qantas. 

Choice references “delayed flights, tales of lost baggage and chaos at airports, and customer difficulties in using credits accumulated from travel cancellations during COVID lockdowns and restrictions”.

Qantas quickly clapped back in a statement, saying the awards are “clearly out of date” and using “shonky” data. Qantas continues:

We had several months of poor performance earlier in the year, but it’s improved significantly since August and we’re back to our pre-COVID level of service… Choice is using figures that are just wrong.

We’ve beaten Virgin for on-time flights eight out of the past 12 months… Our call wait times are less than half what Choice is claiming. Our customers have redeemed more than $1 billion in COVID-related flight credits.

Speaking of Virgin, Qantas might also be front of mind as reports emerge that the competing airline could re-list on the Aussie bourse. The airline entered voluntary administration in 2020.

After many moons of speculation, The Australian reports Virgin’s buyer Bain Capital’s board recently flagged a 2023 float in a move to profit from the airline.

Qantas share price snapshot

It’s been just over a fortnight since the Qantas share price reached its post-pandemic high of $6.075.

It’s currently 19% higher than it was at the start of the year. And 7.5% higher than it was this time last year.

Comparatively, the ASX 200 has fallen 7.8% year to date and 7.2% over the last 12 months.

The post How is the Qantas share price avoiding today’s carnage? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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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