The Strategic Elements Ltd (ASX: SOR) share price has opened 5% higher today.This comes after the company announced that it successfully demonstrated the potential of its automation & robotics platform (AxV) to be leveraged for the multi-billion dollar global agriculture sector.

At the time of writing, the Strategic Elements share price has retreated slightly and is currently trading at 44 cents. Below, we take a closer look at the developments. 

Strategic Elements announces potential of weed detection automation 

Strategic Elements are working to achieve early-stage validation for the detection of weeds. For this project, they are working alongside the Australian Herbicide Resistance Initiative and the University of Western Australia School of Agriculture and Environment. 

Advanced weed detection technologies typically use RGB cameras and different forms of imaging. This technology makes it possible to distinguish weeds and crops via colour. Strategic Elements highlights the ‘serious limitations’ of the technology in some scenarios. Particularly, in broadacre cropping where weeds are often the same colour as crops. Due to the similarities in colour, this form of detection often results in the excessive use of chemicals and production losses.

The company notes that the estimated cost of weeds in Australian cropping systems alone is at ~A$3.3 billion.  Comparatively, the annual cost of weeds in the United States is estimated at ~US$34.5 billion. 

Strategic Elements is taking a different approach to the issue. Their strategy involves leveraging its sophisticated sensor, mapping, and utilising localisation technology. This technology is already built and is used in its Autonomous Security Vehicle collaboration with US Fortune 100 company, Honeywell. 

The company has collected logistics and in-field scoping data from a large scale broadacre farm in Western Australia. This data allows Strategic Elements to enable detection of weeds protruding above the canopy of a barley crop. Weed detection prototype hardware was later developed and installed onto a combine harvester during harvest.

Algorithms were then developed, tested, and validated during the harvest. This occurred by comparing the location of weeds detected by the technology with known locations of weeds with visual confirmation. Although the testing was completed on a limited data set, the technology was able to detect 100% of weeds. The specifications included a height threshold of 20 cm above the crop canopy. 

Management commentary

Managing director, Charles Murphy commented on the company’s versatile automation technology: 

Our strategy to build a platform that had applications across multiple industry sectors is starting to fulfill its promise. Our commercialisation strategy is to collaborate closely with end users to solve a real, existing problem with automation. From an Australian domestic market context other sectors like logistics and mining also have attractive opportunities and we are very active in seeking the right partners with which to collaborate.

The future of Strategic Elements

Looking ahead, the company targets further optimisation of the weed detection technology by 2Q21.

This will be followed by further product engineering in the third and fourth quarter. Further development will evolve the product into a versatile and easy to use package. This package will then be installed by farmers on a wider range of farm equipment.

Finally, the company aims to have a program running to deploy the weed detection technology to at least 10 potential end customer reference sites. Strategic Elements believes this will be operational in the November 2021 harvest. 

More reading

• Why the NSW floods failed to push ASX agriculture shares under water
• Is the Affirm share price dragging ASX BNPL shares lower?
• Suncorp (ASX:SUN) share price sinks today after floods update
• Why the Netwealth (ASX:NWL) share price is sinking 15% lower today
• Here’s why the Piedmont Lithium (ASX:PLL) share price is crashing 17% lower

Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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If you thought that the terrible floods afflicting the New South Wales central coast would be bad news for ASX agri shares, think again!

The “rain bomb” that is hammering prime agriculture land doesn’t seem to be hurting ASX shares exposed to the sector.

In fact, one leading broker thinks it’s a boon and the update that sent the Graincorp Ltd (ASX: GNC) share price surging adds to the argument.

NSW floods not without costs

This isn’t to say that farmers that have been hit by the deluge aren’t suffering. For instance, the price of blueberries is likely to surge as crops are damaged.

The NSW central coast accounts for 75% of blueberry production in the country, reported the Australian Financial Review.

The article also highlighted cattle farmers who have been badly affected by yet another 100-year natural disaster.

Luck smiles on ASX agriculture shares

There are clearly those who will be doing it tough, but the pain isn’t widespread thanks in part to good timing.

“We note that flooding, at this point, has not been observed within NSW’s main row-crop (grain) production regions, which are located further inland,” said UBS.

“We also highlight that planting for the main east coast winter crop does not usually begin until April/May, meaning recent rainfall in farming regions could be supportive of improved soil moisture content levels, following the drought conditions observed in recent years.”

Double tailwind

If anything, the broker believes the agriculture sector is set for a big recovery even with the NSW floods. Subsoil and topsoil moisture levels point to a decisive break in drought conditions that have gripped the region in the last three years.

Talking about good timing, any bumper crop will coincide with soft commodity prices.

For instance, wheat makes up around 60% of Australian crop production and prices are up by approximately 50%, added UBS.

ASX shares best placed to benefit

A number of ASX agribusiness shares are well placed to benefit from the recovery. One of UBS’ key picks in the sector is the Incitec Pivot Ltd (ASX: IPL) share price.

The broker’s “buy” recommendation on Incitec is driven by a strong outlook for international fertiliser prices and improving conditions for its local fertiliser business.

Another stock the broker is bullish on is the Nufarm Ltd (ASX: NUF) share price.

“We are also Buy-rated on Nufarm, where recovering agriculture conditions, reversal of cyclical input cost pressures and the re-basing of the group’s cost base are driving a significant earnings recovery,” said UBS.

The broker’s 12-month price target on the Incitec share price is $2.85 and Nufarm share price is $5.70 a share.

More reading

• Why Alcidion, GrainCorp, Premier Investments, & Xero are storming higher
• Why the GrainCorp (ASX:GNC) share price is on watch today
• Risk posed to Graincorp (ASX:GNC) share price following ACCC verdict
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: Inflation fears hold ASX down

Motley Fool contributor Brendon Lau owns shares of Nufarm Limited. 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 Bruce Jackson.

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ASX-listed buy now, pay later (BNPL) shares have opened lower across the board on Thursday. Whilst the S&P/ASX All Technology Index (ASX: XTX) is slumping 1.16% lower at the time of writing, some ASX BNPL shares are faring considerably worse.

Could the overnight performance of the Affirm Holdings Inc (NASDAQ: AFRM) share price be partially to blame?

Why does the Affirm share price matter? 

Global equity markets have the tendency to move in tandem and be affected by each other’s performances. For example, a significant sell-off in the US market overnight will typically see ASX futures lose ground or open weaker than expected.

Shares that are listed in different markets but operate in the same sector or with similar business models can also have a tendency to exhibit similar movements. 

Affirm is one of the top three largest BNPL players in the United States with a market capitalisation of US$18 billion. Despite its size, the company only has regional exposure to North America compared to most ASX BNPL shares that have more diversified geographic exposure. 

Affirm is a relatively new listing, making its debut on the Nasdaq on 13 January at an initial public offering (IPO) price of US$39 per share. Its shares exploded on open and in the following days, ran as high as US$146.90. 

The Affirm share price has more than halved since its peak, closing almost 8% lower on Wednesday night (our time) to a record low of US$72.63. 

ASX BNPL shares sink on Thursday 

The stars have aligned for ASX-listed BNPL shares to fall on Thursday.

The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) slumped 2% overnight compared to the Dow Jones Industrial Average Index (DJX: .DJI) that finished flat and S&P 500 Index (SP: .INX) finishing just 0.55% lower. 

The weakness in tech, arguably combined with the Affirm share price diving 8%, has seen the following performances from ASX-listed BNPL shares so far this morning: 

• Afterpay Ltd (ASX: APT) share price down 3.05% to $104.22.
• Zip Co Ltd (ASX: Z1P) share price down 3.52% to $7.67.
• Sezzle Inc (ASX: SZL) share price down 0.87% to $7.445.
• Splitit Ltd (ASX: SPT) share price currently flat at 84 cents after having dropped as low as 82.5 cents in earlier trade. 
• Openpay Group Ltd (ASX: OPY) share price down 3.6% to $2.41. 
• Humm Group Ltd (ASX: HUM) share price up 2.08% to 98 cents following a positive update. 
• Laybuy Holdings Ltd (ASX: LBY) share price down 3.33% to $1.015.

ASX-listed BNPL shares are all slumping to 2 to 4-month lows with the exception of Laybuy, which is faring even worse.

In a similar fashion to the Affirm share price, Laybuy has hit an all-time record low following its ASX debut on 7 September 2020. From peak to trough, Laybuy shares have lost more than 50% in value from $2.30 to their current level. 

More reading

• 5 things to watch on the ASX 200 on Thursday
• Macquarie sees near-term pain for the Afterpay (ASX:APT) share price
• Why Zip (ASX:Z1P) and this growth share are in the buy zone today
• Airtasker (ASX:ART) share price cools after explosive IPO
• Why the Xero (ASX:XRO) share price is outperforming today

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited and Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Suncorp Group Ltd (ASX: SUN) share price is slipping this morning, as the insurance and banking company reiterated its presence in flood-impacted NSW, having received more than 5,400 claims so far.

NSW is currently experiencing its worst flood event in 60 years. The ABC News reported at least 18,000 people had been evacuated from their homes in Western Sydney and the mid-North Coast. Victoria and South-East Queensland have also faced extreme rain conditions in recent days.

At the time of writing, the Suncorp share price is down 0.8%, trading for $9.91.

Let’s look closer at the company’s announcement this morning.

Boots on the ground in Port Macquarie

Suncorp advised today that it expected the number of flood claims to increase over the coming days.

The insurer said it would update the market on repair costs once incoming claims stabilised. Only then would it be able to give an accurate estimate.

Of all claims received by Suncorp so far, more than 85% relate to property damage. In terms of location, the company confirmed that NSW residents made 80% of claims.

Words from the management

Suncorp CEO Steve Johnston commented on the challenges facing residents of flood-affected areas and comforted those with Suncorp’s insurance.

Our teams are on the ground in Port Macquarie, where we have seen the most claims to date, and we will deploy to other regions when it is safe to do so.

The next few weeks will be challenging for residents as they return to their homes, assess the damage and start the clean-up.

Our Customer Support Team will provide face-to-face support by arranging emergency repairs, organising temporary accommodation for customers whose homes have been severely damaged and providing cash payments for emergency purchases.

Mr Johnston also commended the federal and state governments’ speed in classing tradespeople and insurance workers as essential. Doing so has enabled Suncorp to support flooded communities without worrying about border restrictions.

 We are committed to getting our customers back on their feet as soon as possible so it is important that we can get assessors and repairers on the ground to affected regions quickly given the magnitude of this event.

Suncorp share price snapshot

The Suncorp share price is up 0.71% year-to-date and has increased by 16.75% over the last 12 months.

The insurance and banking giant has a market capitalisation of around $12.7 billion, with approximately 1.2 billion shares outstanding.

More reading

• 8 ASX 200 shares rated as ‘outperform’ by brokers
• How are ASX insurance share prices performing during NSW’s floods?
• Why the Suncorp (ASX:SUN) share price is tumbling lower today
• Morgans just added this ASX 200 share to its model portfolio

Motley Fool contributor Brooke Cooper 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 Bruce Jackson.

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The Netwealth Group Ltd (ASX: NWL) share price is crashing lower on Thursday morning.

At the time of writing, the investment platform provider’s shares are down over 15% to $13.50.

Why is the Netwealth share price crashing lower?

Investors have been selling Netwealth’s shares this morning following the announcement of changes to its deposit arrangement.

Netwealth notes that as a result of COVID-19 and current global economic conditions, the Reserve Bank of Australia (RBA) has reduced and maintained official interest rates at a lowly 10 basis points. It has also provided substantial liquidity to the Australian Banking sector at historically low rates and credit spreads.

In light of this and the reduced cost of funding for banks, the company revealed that its agreement with Australia and New Zealand Banking GrpLtd (ASX: ANZ) in relation to the interest payable on the total pooled cash transaction account is to be terminated in 12 months. This is pursuant to the terms of the agreement.

At present, the agreement provides a margin of 95 basis points above the overnight cash rate and will continue for 12 months.

Investors may be concerned that this could have an impact on funds under management inflows and margins.

What now?

Netwealth advised that it is currently in negotiations with ANZ and other banks to establish an alternate facility and deposit rate.

Furthermore, it notes that previously announced reductions in the RBA overnight rate, which reduced its cash administration margin by 40 basis points, will be progressively recovered when rates increase in the future.

It also reminded the market that it remains debt free and in a strong financial position.

HUB24 shares hit hard

Elsewhere, although rival HUB24 Ltd (ASX: HUB) has not commented on the matter, investors appear concerned that it will also have its arrangements terminated and have been panic selling its shares.

At the time of writing, the HUB24 share price is down a disappointing 13.5% to $20.97.

More reading

• Is CBA (ASX:CBA) the best bank for dividends in 2021
• Top brokers name 3 ASX shares to buy today
• The ANZ (ASX:ANZ) share price is Macquarie’s top big four bank pick
• How to counter the ASX 200’s Achilles heel
• ASX 200 up 0.4%: Bank shares lower, Xero shares upgraded

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Piedmont Lithium Ltd (ASX: PLL) share price is among the worst performers on the All Ordinaries index on Thursday morning.

In early trade the lithium developer’s shares were down as much as 17% to 90.5 cents.

However, despite this decline, the Piedmont Lithium share price is still up a massive 145% since the start of the year.

Why is the Piedmont Lithium share price crashing lower?

Today’s decline appears to be a delayed response to the completion of its US$122.5 million capital raising earlier this week.

Overnight on Wall Street, Piedmont Lithium’s Nasdaq-listed shares fell a sizeable 16.4%.

Capital raising

Piedmont Lithium raised the US$122.5 million at an issue price of US$70.00 per American Depositary Share (ADS), which equates to 90.9 Australian cents per ASX-listed share.

The latter was a 15% discount to the Piedmont Lithium share price before its trading halt.

After costs, the company expects to receive proceeds of approximately US$114.5 million.

What are the funds for?

Piedmont Lithium intends to use the net proceeds from the offering to continue the development of the Piedmont Lithium Project in North America.

This includes definitive feasibility studies, testwork, permitting, further exploration drilling, mineral resource estimate updates, and ongoing land consolidation.

In addition to this, some of the proceeds will be used to fund its investment in fellow lithium developer Sayona Mining Ltd (ASX: SYA) and other possible strategic initiatives.

In respect to its Sayona Mining investment, the company intends to acquire up to 19.9% of Sayona Mining and 25% of Sayona Quebec.

After which, the Sayona Quebec business will ultimately supply Piedmont Lithium with the greater of 60,000 tonnes per annum or 50% of its spodumene concrete production.

In light of the above, it certainly look likely to be a busy 12 months for Piedmont Lithium and its shareholders.

More reading

• Piedmont Lithium (ASX:PLL) successfully completes US public offering
• Piedmont Lithium (ASX:PLL) shares in trading halt after proposed US public offering
• Victoria to tax electric vehicles? What this could mean for ASX lithium shares
• These are the top performing ASX lithium stocks in 2021 so far
• Why the Piedmont Lithium (ASX:PLL) share price is zooming 9% higher today

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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Shares in ASX technology company Bigtincan Holdings Ltd (ASX: BTH) enjoyed a stellar run over the latter half of 2020. In fact, by late October, the Bigtincan share price had reached a record high of $1.60. But since then, the company’s shares have well and truly come off the boil, retreating by almost 44% to just 88.5 cents at the time of writing.

Currently, the Bigtincan share price is trading at its lowest level since August of last year, reversing more than 6 months worth of gains.

Company background

Bigtincan develops sales and marketing software for business clients. It services a range of different industries from healthcare and life sciences to manufacturing and financial services. Bigtincan’s software is designed to automate manual processes, improving customer and stakeholder engagement. Additionally, the software helps boost productivity, and drive better sales and marketing outcomes.

Bigtincan’s flagship Sales Enablement Automation Platform is a centralised, integrated software solution. The platform is designed to support businesses throughout their entire sales and marketing lifecycle. This starts from onboarding, training and coaching new staff, and assists in engaging with customers and providing accurate, dynamic reporting.

What drove the Bigtincan share price gains in 2020?

Despite the challenges posed by the COVID-19 pandemic, FY20 was an exciting year for the company. Bigtincan made three key strategic acquisitions during FY20. The most in its history. It also delivered some strong results in tough market conditions.

Revenues surged 56% higher in FY20 to $31 million, with a great deal of that uplift coming from subscription revenue. Consequently, subscription revenue increased by 57% to $29.5 million. Customer retention rates also increased by 2% to 89%, indicating significant brand loyalty among Bigtincan’s client base.

More recent news

Bigtincan released its first-half FY21 results to the market last month. It was another strong result, with revenues increasing by 33% versus the first half of FY20 to $18.4 million. It also delivered annualised recurring revenues that were up 50% on the prior corresponding period to $48.4 million.

The company also kept up its rate of M&A activity, making two additional acquisitions during the half. Its most significant acquisition was of sales enablement software developer Clearslide. Clearslide is an international industry leader with over 500 customers on multiple continents.

Outlook for Bigtincan

The company also reaffirmed its FY21 guidance. Annualised recurring revenue is expected to come in at the upper end of the $49 million to $53 million band. Statutory revenue is anticipated to be in the range of $41 million to $44 million. This would imply year-on-year growth of at least 32%.

However, this news did little to buoy the Bigtincan share price. Shares fell almost 9% the day of the company’s first-half results announcement, and they have only increased marginally since then. With all signs pointing to another year of solid growth, it will be interesting to watch Bigtincan shares perform over the remainder of FY21.

More reading

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Rhys Brock owns shares of BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Incannex Healthcare Ltd (ASX: IHL) share price is climbing on the back of a positive update regarding its therapy, IHL-675A.

At the time of writing, the healthcare company’s shares are up 5%, trading at 21 cents.

What did Incannex announce?

The Incannex share price is on the move today as investors appear pleased with the company’s progress.

In its release, Incannex advised that it has been granted a pre-IND meeting with the United States Food and Drug Administration (FDA). The meeting follows the company’s submitted information package, which contained details of IHL-675A and its medical benefits.

IHL-675A is a novel therapy that comprises hydroxychloroquine (HCQ) and cannabidiol (CBD) for the potential treatment of Acute Respiratory Distress Syndrome (ARDS) and sepsis-associated Adult Respiratory Distress Syndrome (SAARDS).

Incannex stated that the FDA is scheduled to provide feedback on the development proposal for IHL-675A by 21 April 2021. Once received, the company will seek to finalise clinical development plans with suggestions from the FDA.

The purpose of the pre-IND meeting is to explore the fastest pathway for IHL-675A to be given its registration stamp.

ARDS is a type of respiratory failure which collects fluid into the air sacs of the lungs. This is often caused by infection or trauma and can result in death if not treated. It is estimated that 10% to 15% of patients admitted to intensive care suffering from ARDS.

SAARDS, caused by infection, is associated with lung, urinary tract, stomach, skin infections and COVID-19 viral infections.

Management commentary

Incannex CEO and managing director Joel Latham welcomed the positive outcome, saying:

The United States is the largest pharmaceutical market in the world, so being granted a Pre-IND meeting review with FDA represents an important milestone for our company and a strong foundation for the clinical development of IHL-675A.

Our preclinical studies have demonstrated that IHL-675A has the potential to be a platform drug applicable to the treatment of multiple indications. We anticipate that the work completed on the FDA information package for IHL-675A for ARDS and SAARDS will assist us with hastening submissions to FDA for the other indications being pursued.

About the Incannex share price

The Incannex share price has gained more than 500% in the past 12 months and is up almost 30% year-to-date. The company’s shares reached a multi-year high of 29.5 cents in the last month.

Incannex commands a market capitalisation of around $211 million, with roughly 1 billion shares on issue.

More reading

• Here’s why the Incannex (ASX:IHL) share price is up 10% today.
• Up 300% in 1 year, what’s driving the Incannex Healthcare (ASX:IHL) share price?

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

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The Accent Group Ltd (ASX: AX1) share price is pushing higher on Thursday morning.

At the time of writing, the footwear focused retailer’s shares are up 1.5% to $2.35.

Why is the Accent share price rising?

Investors have been buying Accent shares this morning following the release of an analyst day presentation.

While the presentation didn’t include a trading update, it did come with some valuable information for investors and shareholders.

Store network growth

Accent is continuing to grow its store network and expects to add 90 stores across its numerous brands during FY 2021.

This will bring the total stores in its network up to 609. Given how many retailers have closed down over the last 12 months, this store growth appears to demonstrate the strength and resilience of its business.

New store brand

The company has been busy launching new store brands over the last couple of years. This includes Pivot, Stylerunner, and Subtype (Sneaker LAB).

Management isn’t resting on its laurels and has announced a new store brand launch this morning – 4 Workers.

The presentation explains that 4 Workers, which will open its first store in May, is designed to appeal to workers such as nurses, chefs, tradies, among others. It will stock footwear and clothing that caters to the healthcare, hospitality, construction, and corporate sectors.

Management believes there is a significant opportunity to capture share in a fast growing market segment.

Loyalty programs

Accent also spoke about the success it is having with its loyalty programs.

It now has over 3.3 million MyFit members and has recently launched the Skechers Insider program. The latter has been a huge success, with 188,000 members joining the program within two weeks of launch.

Accent share price performance

Following today’s gain, the Accent share price is now up 49% over the last six months.

One broker that thinks it can go higher is Bell Potter. Last month its analysts put a buy rating and $2.65 price target on its shares.

More reading

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• ASX retail shares beware: Aldi e-commerce is coming
• 3 under-appreciated income stocks yielding 4-9%: Motley Fool CIO Scott Phillips, on ausbiz
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Qantas Airways Limited (ASX: QAN) share price is lifting slightly today after the competition watchdog approved its alliance with American Airlines Group Inc.

The co-operative agreement needed permission from the Australian Competition and Consumer Commission (ACCC) because it otherwise risks breaching competition laws.

The new 5-year approval allows Qantas and its budget brand Jetstar to collaborate with American Airlines on trans-Pacific routes. These include flights to and from the US, Canada and Mexico.

The Qantas share price fell 1.54% on Wednesday, while American Airlines lost 2.07% overnight.

ACCC commissioner Stephen Ridgeway said the alliance was approved because the public benefits outweighed any anti-competition potential.

“Passengers travelling on trans-Pacific routes are likely to benefit through enhanced products and services, including a greater likelihood of increased capacity and new routes, increased connectivity and improved schedule choice.

“Loyalty program benefits and improved lounge access, cost savings and efficiencies are also likely to be a result.”

The ACCC conceded that the fruits of the alliance won’t be seen until international travel picks up after the COVID-19 pandemic.

Great deal for Australians travelling to North America

The deal allows the airlines to synchronise on marketing and sales, pricing, scheduling, freight, inventory, frequent flyer schemes, airport lounges, procurement and service standards.

“The alliance is unlikely to result in any significant public detriment,” said Ridgeway.

“The ACCC considers that American Airlines would be unlikely to operate its own trans-Pacific services or materially expand its trans-Pacific capacity and frequency without its alliance with Qantas.”

The commission first approved the alliance back in 2011 for a 5-year term, then renewed it in 2016. Qantas and American approached the ACCC in October for another 5-year term.

The ACCC authorisation gives the airlines legal protection for actions that might otherwise get them in trouble for their anti-competitive nature.

Qantas last estimated that international flights might resume by the end of October, while New Zealand travel may restart in July.

At the time of writing, the Qantas share price is trading at $5.13.

More reading

• The Regional Express (ASX:REX) share price has fallen after fresh Qantas challenge
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• Will the Qantas (ASX:QAN) share price soar 20% higher from here?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. 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 Bruce Jackson.

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