Why is the Qantas share price having such a top run this week?

rising airline asx share price represented by boy playing with toy plane

rising airline asx share price represented by boy playing with toy plane

It’s turning out to be a pretty top week for the S&P/ASX 200 Index (ASX: XJO) and ASX shares. So far this Friday, the ASX 200 has gained another 0.1%, putting the index at around 7,250 points. That’s at a six-month high. The ASX 200 has added value every day this week, bar Monday, and is up 1.3% since last Friday. But let’s talk about the Qantas Airways Limited (ASX: QAN) share price.

Although the ASX 200 is having a pleasing week, the Qantas share price is flying far higher. Qantas shares ended last week at $5.88. But yesterday, the airline hit a new 52-week high of $6.36 a share.

That was also a new post-COVID high for the airline, which, until this month, hadn’t seen a share price with a ‘6’ in front of it since early 2020.

Although Qantas shares have fallen today, down 0.73% so far at $6.14, the airline is still up a healthy 4.4% over just this week.

So why has the Qantas share price been having such a pleasant week?

Well, it probably has quite a lot to do with the update Qantas gave to investors on Wednesday. This update saw Qantas raise its guidance forecast for the first half of FY2023.

It was only last month that Qantas declared that it expects to make an underlying profit before tax of between $1.2 billion and $1.3 billion for the half.

But on Wednesday, just a month later, Qantas told investors that they can add another $150 million to those figures, with the new guidance range set for $1.35-$1.45 billion. This comes off the back of the insatiable demand for travel.

Qantas also declared that it expects net debt to fall to between $2.3 billion and $2.5 billion by the end of December. That represents an improvement of $900 million.

So understandably, investors were very impressed with this update. Qantas shares rose 6% on the day it was released, and remain elevated for the week, despite today’s mild falls.

The post Why is the Qantas share price having such a top run this week? appeared first on The Motley Fool Australia.

FREE Beginners Investing Guide

Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

For over a decade, we’ve been helping everyday Aussies get started on their journey.

And to help even more people cut through some of the confusion “experts” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

Yes, Claim my FREE copy!
*Returns as of November 7 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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Sebastian Bowen 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/w8edoDq

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