The Whitehaven Coal Ltd (ASX: WHC) share price is expected to offer investors significant upside, according to one broker.

While coal may not be everyone’s favourite commodity, Morgan Stanley thinks the business could rise by more than 60% over the next year. The broker has a price target of $7.75 on the company.

Whitehaven describes itself as the leading Australian producer of ‘premium-quality’ coal.

Further, it says it’s the “dominant player” in Australia’s only emerging high-quality coal basin. North-west New South Wales is the focus of its capital investment and workforce presence.

It operates four mines – three open-cut mines and one large underground mine in the Gunnedah coal basin. It also has two near-term development assets. Vickery is near Gunnedah in New South Wales, and Winchester South in Queensland’s Bowen Basin.

Additionally, Whitehaven has customers across Asia including South Korea, Japan, Taiwan, India, Vietnam, Malaysia, the Philippines, Indonesia and New Caledonia.

What’s causing the bullishness for the Whitehaven Coal share price?

Morgan Stanley’s reason for the high price target is that it thinks the coal price will stay stronger for longer. That’s thanks to supply and demand factors.

Whitehaven is the broker’s pick of the coal sector and it likes the growth potential that the business has.

What’s more, Morgan Stanley is expecting a large increase in profit and dividends in FY23. Based on those numbers, the broker is implying the current Whitehaven share price comes with an FY23 dividend yield of 17.5%.

Latest business update

The coal miner said that in the three months to 31 March 2022, it achieved a record average coal price of $315 per tonne for the quarter.

For context, Whitehaven managing director and CEO Paul Flynn explains that coal prices remain well supported in an environment where there’s “strong demand and constrained supply”.

The three months to 31 March 2022 saw saleable coal production of 4.5mt. This is an increase of 50% on the previous quarter and up 5% year on year.

After buying back $67 million of shares and paying $80 million in dividends in March, it had $161 million of net cash at 19 April 2022.

The company says it’s on track to deliver on FY22 guidance. That’s despite a tight labour market and COVID-related absenteeism which impacted production and sales.

Outlook for Whitehaven and the coal price

The company points out that sanctions on Russia could mean that the 110 million tonnes of high calorific value seaborne coal from Russia could potentially be excluded from its traditional seaborne markets. That’s around 29% of the global market.

After the invasion of Ukraine, “many importing nations are reconsidering energy security and customers have become eager to lock in supply”.

Whitehaven says it expects both thermal and metallurgical coal prices to be “well supported” over 2022 and 2023.

Whitehaven CEO Flynn said:

As the developed world re-focuses on the critical importance of energy security, Whitehaven presents a compelling investment thesis.

The post This broker is eyeing off a huge 65% upside for the Whitehaven share price appeared first on The Motley Fool Australia.

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More reading

• Why Beach, Cooper Energy, Leo Lithium, and Whitehaven Coal are dropping
• Down 40% Tuesday, up 21% today, what’s going on with this ASX coal share?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why are ASX 200 coal shares having such a smoking session today?
• Are these coal miners shaping up to be underrated ASX dividend shares?

Motley Fool contributor Tristan Harrison 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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The Newcrest Mining Ltd (ASX: NCM) share price is sliding hard today, down 4.6% in late morning trade.

Newcrest shares closed Friday at $23.04 and are currently trading for $22.01.

But it’s not just the Newcrest share price under pressure.

Most of the ASX gold producers are deep in the red, as witnessed by the 6.9% intraday losses posted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD). Meanwhile, the All Ordinaries Index (ASX: XAO) is up 1.7%.

With today’s losses factored in, the Newcrest share price is down 23% from pre-pandemic levels, with 21 February 2020 the final pre-pandemic day of trading on the ASX.

So, what gives?

Why are ASX gold shares under pressure?

Sticking with 21 February 2020 as the final pre-pandemic day, the All Ordinaries is down 5% since that date while the All Ords Gold Index has tanked by 28%.

Looking at the gold price, the yellow metal was trading for US$1,643 per troy ounce pre-pandemic, significantly lower than the current US$1,832 per ounce.

So it looks to be more gold’s fall from a peak of US$2,050 in March this year that’s pressuring gold shares.

Over the past months investors have become increasingly nervous over the potential of a recession in the United States, the world’s biggest economy. Those concerns have seen the prices for copper, iron ore and most industrial metals tumble.

While the gold price has held up better, the Newcrest share price and other gold stocks have faced stiff headwinds from fast rising interest rates.

Aggressive tightening by the US Federal Reserve has seen a stronger greenback and an uptick in yields of US Treasuries. That’s of particular importance for gold stocks because both the US dollar and US government bonds are go-to haven assets in times of uncertainty. While gold, also a classic safe haven asset, doesn’t pay any interest.

Newcrest share price was post-pandemic positive two months ago

The real pressure on the Newcrest share price and the broader gold sector has really only come into play over the past few months.

In fact, on 19 April this year, Newcrest shares closed at $28.84, edging out the US$28.72 per share the company closed at on 21 February 2020.

The post The Newcrest share price is 23% below pre-pandemic levels, what gives? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Why are ASX 200 mining shares having such a dire week?
• 5 things to watch on the ASX 200 on Friday
• Stagflation and gold: Could it be an ideal match for ASX 200 gold miners?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Bernd Struben 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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It’s been a cracking start to the trading week so far for ASX shares and the S&P/ASX 200 Index (ASX: XJO). At the time of writing, the ASX 200 is up a pleasing 1.57% and approaching 6,700 points. But it’s ASX bank shares, like the Commonwealth Bank of Australia (ASX: CBA) share price, that are really hitting their straps today.

All four of the ASX 200 major banks are outperforming the market so far this Monday. Take Westpac Banking Corp (ASX: WBC). Westpac shares are presently up a healthy 2% at $19.87 each. Or National Australia Bank Ltd (ASX: NAB). Its shares are up an even more pleasing 2.37% at $27.66 each.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are powering ahead with a gain of 2.49% to $22.45 a share. But it’s CBA shares that are leading the pack. The ASX’s largest bank is now up 2.55% at $92.46 a share.

CBA shares are now up a pleasing 4.4% over the past five trading days. However, that still puts CBA at a loss of around 13% over the past month, and down almost 10% in 2022 thus far.

CBA and ASX bank shares light up the ASX 200

So what’s going on with these bank shares today?

There’s been no specific news out of any of the big four this Monday. So it seems like the market is just in the mood to give bank shares a run. These were some of the hardest-hit blue chip ASX shares over June, after all. Between 1 June and 17 June, for example, CBA shares fell more than 18%. The ASX 200 fell just 10.5% over the same period.

17 June actually saw three of the big four ASX bank shares hit new 52-week lows. NAB was the only big four bank not to see a new 52-week low share price on that day. So perhaps investors have decided that things went too far and have catapulted the valuations of the ASX banks further away from these lows today.

Whatever the reason for today’s rally, it’s certainly a good day to own ASX bank shares.

At the current CBA share price, this ASX 200 bank share has a market capitalisation of more than $157 billion, with a dividend yield of 4.07%.

The post CBA share price leads the big four as banks outperform ASX 200 on Monday appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Metcash and Imugene jump, Evolution downgrades guidance again
• Broker tips NAB share price to rise 24% from here
• 5 things to watch on the ASX 200 on Monday
• Brokers name 2 ASX dividend shares to buy next week
• 4 reasons to stick with battered small-cap ASX shares

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank Limited. 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 Westpac Banking Corporation. 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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The Australian Taxation Office has warned it will be watching a particular practice involving investors who dabble in ASX shares and cryptocurrencies.

In June, just before the financial year ends, many investors sell off badly performing stocks or crypto to reduce their capital gains tax liability.

This is called tax-loss selling which, in itself, is legitimate.

But the tax office will be watching out to see if those same investors re-buy those dumped ASX shares straight after the new financial year starts.

Because then innocent tax-loss selling becomes a ‘wash sale’.

“A wash sale is different from normal buying and selling of assets because it is undertaken for the artificial purpose of generating a tax benefit for the current financial year,” the ATO stated.

“The taxpayer disposes of and reacquires the asset for the deliberate purpose of realising a capital gains loss and obtaining an unfair tax benefit.”

Too good to be true? It probably is

Investors who are practising wash selling will face “swift compliance action” that may result in additional tax, interest, and penalties, the tax office warned.

The ATO also cautioned that following financial advice from social media influencers could get investors into trouble.

“If something seems too good to be true, it probably is,” stated the office.

“The clear advice from the ATO is to check the ATO website or check with an independent registered tax professional and not to rely on advice you may receive through media, social media, or advertisements.”

The ATO disclosed that it uses “sophisticated” data analytics to sniff out wash sales, with the assistance of information from share registries and crypto exchanges.

When a wash sale is identified, the capital loss is rejected, magnifying the loss for the investor.

“Don’t hang yourself out to dry by engaging in a wash sale,” ATO assistant commissioner Tim Loh said.

“We want you to count your losses, not have them removed by the ATO.”

Dob in investors who are wash selling

The ATO also warned of action against tax advice professionals who are promoting wash sales.

“Most tax advisors do the right thing, but a small number encourage this behaviour,” said Loh.

“Promoting a tax avoidance scheme will have serious consequences for the tax advisor and could leave their client with a large tax bill.”

Australians are encouraged to dob in investors who are practising wash sales via the ATO tip-off form or reporting the professional advisor to the Tax Practitioners Board.

The post ATO’s brutal warning to ASX investors appeared first on The Motley Fool Australia.

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• Why is the Northern Star share price sinking 9% today?
• ASX 200 midday update: Metcash and Imugene jump, Evolution downgrades guidance again
• The surprising reason why you should fight your own instincts in a bear market
• RPMGlobal share price jumps higher after breaking the $50 million contract barrier
• Why this ASX graphite share is a buy: fund manager

Motley Fool contributor Tony Yoo 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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It’s a rough day for the S&P/ASX 200 Index (ASX: XJO) gold miner Northern Star Resources Ltd (ASX: NST) share price.

It’s tumbling to its lowest point in nearly four years amid disappointing guidance from a peer and the struggling gold price.

At the time of writing, the Northern Star share price is $7.26, 9.14% lower than its previous close.

For context, the ASX 200 is currently up 1.53%.

Let’s take a closer look at what’s going on with the ASX 200 gold giant today.

What’s weighing on the Northern Star share price?

The Northern Star share price is slumping on Monday. Its downturn comes amid news the company’s fellow ASX 200 gold miner Evolution Mining Ltd (ASX: EVN) is expecting its full-year production to fall.

Evolution told the market it expects its financial year 2022 production to be around 6% lower than that of financial year 2021. It’s also expecting its production costs to be higher.

Such news might have weakened the market’s sentiment for ASX 200 gold miners on Monday.

Additionally, shares involved in the yellow metal currently make up today’s worst performers on the S&P/ASX 200 Materials Index (ASX: XMJ).

Shares in Evolution are down around 18% right now, while those in Newcrest Mining Ltd (ASX: NCM) have slipped 5%.

Fortunately, the materials sector is buoyed by its other constituents. It’s currently up 2.3%.

The tumble among ASX 200 gold stocks comes as the commodity’s price continues to struggle.

Gold futures rose just 50 US cents on Friday, less than 0.1%, to US$1,830.30 an ounce, according to CommSec. Meanwhile, the spot gold price closed Friday trading at US$1,826 an ounce, marking a second consecutive weekly drop. It fell 0.6% over the course of last week.

The Northern Star share price slumped 15.58% last week. It’s currently 22% lower than it was at the start of 2022. It has also fallen 28% since this time last year.

The post Why is the Northern Star share price sinking 9% today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Metcash and Imugene jump, Evolution downgrades guidance again
• Evolution share price plunges 20% as full year production expected to fall
• 5 things to watch on the ASX 200 on Monday
• Why is the Evolution share price tumbling 10% so far this week?
• The Northern Star share price has lost 7% so far this week. What’s happening?

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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 1.6% to 6,686.1 points.

Here’s what is happening on the ASX 200 today:

Metcash jumps on FY 2022 results

The Metcash Limited (ASX: MTS) share price is storming higher today after the wholesaler smashed the market’s FY 2022 earnings estimates. Metcash reported an 18.6% increase in underlying net profit after tax to $299.6 million. This compares favourably to the market consensus estimate of an underlying profit of $279 million. Solid growth from all sides of the business drove the strong result.

Imugene shares rocket on study results

The Imugene Limited (ASX: IMU) share price is rocketing higher today following the release of study results. This morning the immuno-oncology company revealed positive final overall survival data from its Phase 2 study of HER-Vaxx following the analysis of safety and efficacy data. This study was in Her-2/Neu overexpressing advanced/metastatic gastric/GEJ cancer.

Evolution shares crash on third FY22 guidance downgrade

The Evolution Mining Ltd (ASX: EVN) share price is having a day to forget. This gold miner’s shares have been crushed after it downgraded its FY 2022 guidance yet again. Evolution now expects FY 2022 gold production to be around 640,000 ounces. This compares to its original guidance of 700,000 to 760,000 ounces, which was then reduced twice, most recently to 650,000 ounces. Costs are also expected to be higher than expected and future production will be lower than guided to.

Best and worst ASX 200 performers

The best performer on the ASX 200 index on Monday by some distance is the Imugene share price with a 40% gain. This follows the release of positive study results. Going the other way, the Evolution share price is far and away the worst performer with a 20% decline. This has been driven by its bleak guidance update.

The post ASX 200 midday update: Metcash and Imugene jump, Evolution downgrades guidance again appeared first on The Motley Fool Australia.

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• Evolution share price plunges 20% as full year production expected to fall
• Metcash share price storms 8% higher on FY 2022 earnings beat
• 5 things to watch on the ASX 200 on Monday
• 4 reasons to stick with battered small-cap ASX shares
• Here are the top 10 ASX shares today

Motley Fool contributor James Mickleboro 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Fight or flight is a natural survival mechanism. But history tells us that holding through periods of volatility is the best way to compound wealth over time. It’s tempting to fight a bear market by shifting your investment strategy toward whatever is working in the moment, or to sell everything and clear your head.

Here’s why defying instincts is one of the hardest parts of investing, but why it can be an essential quality for patient long-term investors to master.

Drawbacks of the “fight” response

Actively fighting a bear market involves trying to trade your way through volatility by doing things that you normally wouldn’t do, such as rotating out of the worst-performing sectors (like consumer discretionary, communications, and tech) and into sectors that are doing well right now (like energy and utilities), or worrying more about the next quarter than the next five years.

Hedge fund managers may lose clients over a bad quarter. But as an individual investor, all you have to worry about is reaching your long-term financial goals — which takes the pressure off short-term market gyrations and makes it easier to hold through periods of volatility.

There’s a big difference between positioning your portfolio for long-term success and actively fighting a bear market. The former is a worthy exercise, no matter the market cycle.

For example, the long-term investment thesis for a company could change for several reasons. It could have a weak balance sheet, lack positive cash flows, or be making less money, which could force it to take on debt at a higher interest rate. Maybe the company is losing market share to a better-positioned competitor with deeper pockets. Consolidation is a common outcome of economic downturns, as companies with more resources have the means to gobble up smaller companies that are vulnerable to macroeconomic factors.

While an investor shouldn’t overhaul their entire approach just because the stock market is going down, now is definitely a good time to make sure you are invested in companies you understand, believe in, and that have a good shot at growing for decades to come.

Drawbacks of the “flight” response

For many investors, the growth stock bear market of 2021 and 2022 is the longest bear market of their investing careers. And now that the S&P 500, Nasdaq Composite, Nasdaq 100, and the Russell 2000 are all in bear markets (meaning a drawdown of at least 20% from the all-time high), and the Dow Jones Industrial Average is just one percentage point away from a bear market, fears of a prolonged bear market are mounting.

^SPX data by YCharts

Each passing down-day can take a toll on an investor and make the urge to sell and walk away look even more appealing. But history tells us that bear markets can create life-changing buying opportunities for folks who have the patience to ride out the storm.

It’s one thing to look at history and realize that selling during a bear market has so far never been the right long-term move. But when you’re in the thick of one, it helps to have some points to fall back on.

For me, the best approach is to simplify the situation: Does the business have the fundamentals to outlast several quarters of negative economic growth? Is it going to take market share during a recession or lose it? How vulnerable is it to the short-term challenges, and do those challenges affect the long-term investment thesis?

If you go through this exercise enough, chances are you’ll realize that many industry-leading companies look like compelling buys, while many smaller companies whose growth was largely attributed to inexpensive capital and rising stock prices that made for easier equity financing are in a precarious position.

The benefits of just standing still

One of the best approaches for most investors could be to pick their favorite name-brand companies and hold them. It’s a beautifully simple strategy that also helps you sleep at night. No matter how bad the sell-off gets, you can rest easy knowing that these large companies have been through a recession before and have often emerged stronger on the other side.

Despite decades of wisdom and access to a limitless treasure trove of information, many investors fail to beat the market mainly because they make a simple mistake, such as fighting or fleeing from a bear market. As difficult as it is to do nothing and just stand still in a bear market, it’s the most effective and simple way to compound wealth over time. Avoiding mistakes like selling an asset at a bargain-bin price are just as important as making good decisions.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The surprising reason why you should fight your own instincts in a bear market appeared first on The Motley Fool Australia.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The RPMGlobal Holdings Ltd (ASX: RUL) share price is roaring higher during Monday morning trade.

This comes after the mining software company announced a sales update on its software licences for the 2022 financial year.

At the time of writing, RPMGlobal shares are fetching for $1.70, up 3.98%.

What’s driving RPMGlobal shares higher?

Investors are bidding up the RPMGlobal share price following the company’s upbeat release to the market.

In today’s statement, RPMGlobal revealed its latest figures highlighting ongoing demand for its products and services.

Total Contracted Value (TCV) from software licence sales since the start of 2022 has broken through the $50 million barrier.

Currently, software licence sales are at $50.3 million. This also includes $1.7 million from its perpetual licence contracts.

Previously, management stated that it achieved $47.4 million in software licence sales on 14 June. The increase of $2.9 million in just two short weeks reflects the favourable trading conditions that RPMGlobal continues to experience.

In addition, Annual Recurring Revenue (ARR) from software subscriptions has increased from 14 June by $0.5 million to $31.6 million.

It’s worth noting that this does not include any annually recurring maintenance and support revenue from past perpetual software licenses.

Lastly, RPMGlobal stated that there is $90 million in non-cancelable software subscription revenue that has yet to be materialised. This is expected to deliver an earnings boost for years to come.

About the RPMGlobal share price

A choppy 12 months has led the RPMGlobal share price to register a loss of 2% for the period.

However, when looking at year-to-date, its shares are down 21%.

The company’s shares hit a 52-week low of $1.415 last month before rebounding higher.

Nonetheless, it’s still some way off its all-time high of $2.27 reached at the end of 2021.

Based on today’s price, RPMGlobal presides a market capitalisation of roughly $395.40 million.

The post RPMGlobal share price jumps higher after breaking the $50 million contract barrier appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. 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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ASX graphite shares have received increasing attention as the global energy transition picks up pace.

You may be more familiar with graphite in pencils. But it’s the metal’s ability to increase energy density in batteries and decrease charging times that’s drawn ASX investor interest.

The federal government lists graphite as a critical mineral because it’s “essential for the functioning of our modern technologies, economies or national security, and there is a risk that its supply chains could be disrupted”.

As it stands, China is responsible for some 60% of global graphite production.

But with a range of ASX graphite shares to consider, which one stands out?

According to global resources portfolio manager at Ausbil Investment Management Luke Smith, that company is Syrah Resources Ltd (ASX: SYR).

Not all graphite companies are created equal

Speaking to Livewire, Smith highlighted graphite’s critical role in the energy transition. “But not all graphite companies are created equal,” he said.

When it comes to ASX graphite shares, Smith said Ausbil prefers natural graphite:

Its main competitor in the space is synthetic graphite. You’ve seen energy costs go through the roof. That’s limiting output. You’ve seen petroleum products go through the roof, that feeds into the production of synthetic graphite as well. And that’s placing upward pressure on pricing within the graphite space.

Drilling into why Syrah is his preferred ASX graphite share, Smith said:

Syrah used to be the market darling a number of years ago… [They] created a mine, have approvals, have gone through the approval process in terms of selling into the battery supply chain. That process takes years.

They’ve got a major mine that’s producing below nameplate, and ultimately is going to be feeding into this higher price environment, and ultimately we’ll continue to see a re-rate of that story, from our perspective.

Nameplate, if you’re not familiar, refers to a mine’s full production capacity.

Syrah Resources share price snapshot

Over the past 12 months, the Syrah Resources share price is up 22%, handily outpacing the 10% full-year loss posted by the All Ordinaries Index (ASX: XAO).

The ASX graphite share has struggled in 2022, though, down 30% year-to-date.

The post Why this ASX graphite share is a buy: fund manager appeared first on The Motley Fool Australia.

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More reading

• ‘Considerable long-term potential upside’: So why is this key investor selling down Syrah shares?
• Why Appen, Cleanaway, Syrah, and Westpac shares are dropping
• Why is the Syrah share price crashing 14% today?
• Mineral Monday: What you need to know about vanadium and which ASX shares are cashing in on it

Motley Fool contributor Bernd Struben 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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The Qantas Airways Limited (ASX: QAN) share price is in the green today following an eventful few days for the airline.

Qantas shares are currently jumping 2.92% to $4.58. For perspective, the S&P/ASX 200 Index (ASX: XJO) is leaping 1.68% today

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

Speedy long-haul flight lands in Rome

Qantas’ inaugural flight from Sydney to Perth to Rome landed in Europe on Sunday morning. The flight is the first direct flight between Australia and Europe. Qantas CEO Alan Joyce and West Australian Premier Mark McGowan were among the special guests onboard the flight, the Australian Financial Review (AFR) reported. McGowan was quoted as saying, it is “exciting to reopen to the rest of the world”.

Recent figures show the number of Australians travelling overseas has nearly doubled since borders opened, according to the ABC. A total of 663,970 people left Australia in May, up from 335,240 in March.

In recent news, Qantas is cutting domestic flight capacity to schedules from July until the end of March 2023. This drop is designed to help the company recover high fuel costs.

Qantas said:

These reductions, combined with robust international and domestic travel demand, are expected to help the Group substantially recover the elevated cost of fuel indicated by forward oil prices.

The airline will also be providing 19,000 employees with a $5,000 bonus at a cost of $87 million. This will be paid once a new enterprise agreement is completed. Further, Jetstar CEO Gareth Evans will step down in December 2022. Jetstar is part of the Qantas Group.

Brent crude oil prices have fallen 1.33% at the time of writing, while WTI crude oil prices are down 1.51% today. Falling oil prices can help travel shares because fuel is a major cost for airlines.

Qantas share price snapshot

The Qantas share price has shed 3.17% in the past 12 months, while it has descended nearly 9% year to date.

For perspective, the benchmark ASX index has lost more than 10% so far this year and 8.5% in a year.

Qantas has a market capitalisation of about $8.6 billion based on today’s share price.

The post Qantas share price climbs as first direct flight to Europe touches down in Rome appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Qantas share price takes off following market update
• What’s dragging on the Qantas share price today?
• ASX 200 travel shares take off again on Tuesday. Here’s why
• What’s boosting the Qantas share price on Tuesday?

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 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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