Qantas share price slips amid COVID’s continuing toll  

The Qantas Airways Limited (ASX: QAN) share price is falling amid news spiking COVID-19 cases are hampering the airline during one of its busiest periods.

The airline admitted the virus’ spread saw a high number of flights delayed or cancelled last week during the winter school holidays. And the airline’s still battling the impacts this week.

However, Qantas disputes a union’s claim that flight cancellations were related to staff shortages and poor management.

At the time of writing, the Qantas share price is $4.35, 1.36% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is currently down 1.69%.

Let’s take a closer look at the latest news from Australia’s national airline.

Qantas struggles through school holidays

The Qantas share price is in the red on Thursday amid news 15% of the company’s domestic flights were cancelled or delayed by more than an hour last week as Australian families travelled in the school holiday period.

The airline said its struggles were born from rising COVID-19 and influenza cases, as well as severe weather in NSW. And while it says conditions have improved this week, cases are still rising among staff.

It’s also preparing to fly 350,000 Australians across the nation over the next four days as school holidays come to an end in NSW, ACT, and WA. In a statement released today Qantas said:

Our on time performance isn’t where it needs to be but we’re continuing to make changes and are confident that we’ll continue to improve and get back to the levels we were pre-COVID.

To do so, it’s using larger planes normally reserved for international routes to carry domestic passengers this weekend. It has also placed more staff on standby.

However, some believe the airline is at fault for the chaos. The Australian Licensed Aircraft Engineers’ Association (ALAEA) is said to blame flight cancellations on staff shortages and poor management.

Qantas has hit back at such claims, saying spreading illnesses and a tight labour market are impacting other domestic and international airlines too.

Qantas share price snapshot

The Qantas share price is struggling on the ASX this year.

It has fallen nearly 15% since the start of 2022.

It’s also currently 6% lower than it was this time last year.

The post Qantas share price slips amid COVID’s continuing toll   appeared first on The Motley Fool Australia.

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More reading

• Own ASX travel shares? Here’s the outlook for FY23
• Here are the top 10 ASX shares today
• Here’s why the Qantas share price is taking off today
• ASX 200 travel shares slide amid travel chaos and cancellations
• How did ASX 200 travel shares go in FY22?

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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