Why is the Qantas share price smashing the ASX 200 on Tuesday?

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

Qantas shares are climbing 0.65% today and are currently trading at $6.20. However, in earlier trade, the airline‘s shares jumped 1.3% to $6.22. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.03% in the green.

Let’s take a look at what could be impacting the Qantas share price.

What’s going on?

Qantas shares are outperforming other ASX travel shares on the market today. The Flight Centre Travel Group Ltd (ASX: FLT) share price is 0.38% in the red, while Webjet Limited (ASX: WEB) shares are descending 0.4%.

In news today, Qantas Frequent Flyer has launched thousands of points planes to coastal cities in the summer.

More than 3,000 flights will be turned into “points planes” where every seat can be booked as a classic flight reward.

The destinations include Byron Bay, Hamilton Island, Broome, Whyalla, Kangaroo Island and the Gold Coast.

Qantas states this is the “biggest ever release” of points plane flights. Qantas Loyalty CEO Olivia Wirth said:

While strong demand and higher fuel prices have seen the price of airfares for all airlines increase off historic lows over the past 18 months, the points required to book these seats haven’t increased in years.

Analysts at UBS have recently maintained a buy rating and lifted the price target on the Qantas share price to $7.60.

The broker was impressed with Qantas’ profit guidance update last week. The airline is forecast to deliver an underlying profit between $1.35 billion and $1.45 billion in the first half of the financial year.

Qantas share price snapshot

The Qantas share price has soared 26% in the past year, while it has climbed 5% in the last week.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 0.05% in the past year.

The company has a market capitalisation of about $11.7 billion based on its current share price.

The post Why is the Qantas share price smashing the ASX 200 on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• The Qantas share price is flying again. Why this fundie is concerned
• Top brokers name 3 ASX shares to buy next week
• Own Qantas shares? Guess what the airline is being accused of now
• 3 ASX 200 shares on the coveted Goldman Sachs conviction list
• Why is the Qantas share price having such a top run this week?

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.

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