Qantas share price unimpressed despite $15m solution to ‘well-publicised challenges’

The Qantas Airways Limited (ASX: QAN) share price is slightly in the red today.

The travel company’s shares are down 0.43% and currently trading at $4.67. For perspective, the S&P/ASX 200 Industrials Index (ASX: XNJ) is falling 0.85%.

Let’s take a look at what is happening at Qantas.

Plan to resolve challenges

The Qantas share price is not the only ASX travel share struggling to take off today. The Flight Centre Travel Group Ltd (ASX: FLT) is descending 1.28%, while Webjet Limited (ASX: WEB) shares are down 0.23%

Qantas has reportedly sent a note to major corporate clients acknowledging its well publicised challenges.

The airline has plans to spend $15 million on technology, hire more staff, roster more workers, modify the schedule and improve baggage.

In quotes cited by The Australian, Qantas chief information office Sam Charmand said:

Since the pandemic we have seen a huge jump in customers choosing to use technology when travelling, which is why we’re investing more in our app and airport technology.

These upgrades will also make things easier for our airport teams, who have done a
phenomenal job in recent months under challenging circumstance.”

Meanwhile, Qantas engineers are considering a strike as soon as Monday relating to pay, 9 News reported yesterday. The Qantas staff are seeking a 12% pay rise.

Recently, news emerged Qantas has a plan to recruit 100 managers to work as ground handlers.

Qantas share price snapshot

The Qantas share price has climbed more than 3% in a year but lost nearly 7% year to date.

In comparison, the ASX 200 Industrials benchmark has jumping 1.35%, while it has fallen 2.5% year to date.

Qantas has a market capitalisation of about $8.8 billion based on the current share price.

The post Qantas share price unimpressed despite $15m solution to ‘well-publicised challenges’ appeared first on The Motley Fool Australia.

(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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Better ASX travel buy: Flight Centre or Webjet?
• Why did the Qantas share price fly higher today?
• Why is the Qantas share price beating the ASX 200 today?
• It’s gained 60% in 2 years, does the Webjet share price still have room to grow?
• Are we flying first class with Flight Centre shares?

Motley Fool contributor Monica O’Shea 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 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.

from The Motley Fool Australia https://ift.tt/hc0HwW7