The Qantas share price has done well this year even as the company continued to attract criticism in Australia. The QAN stock price rose to a high of A$ 9.12 this month, up by 90% from the lowest level in 2023.
Qantas Airways is doing well
Qantas Airways, Australia’s flagship carrier, has had a tumultuous period as it became one of the most hated companies in the country. It has been criticized for the massive layoffs it implemented during the pandemic, poor customer service and flight cancellations, outsourcing workers, and higher fares.
Still, these issues have not held the company back this year as its stock surged to a record high. Most recently, it has risen in the last six consecutive months, the longest winning streak since 2017.
There are a few reasons why the Qantas stock price is firing on all cylinders. First, the company replaced Alan Joyce as the chief executive in 2023. Joyce was accused of executing large layoffs and working to maintain its near monopoly by blocking Qantas Airways in the country.
Joyce was replaced by Vanessa Hudson, who has vowed to boost the company’s reputation and undo some of Joyce’s mistakes. Her actions have helped to improve the company’s reputation.
Read more: Qantas share price: Flying kangaroo braces for turbulence
Qantas share price has done well in sync with other major airlines. In the United States, companies like United Airlines and Delta have surged this year, with the former rising by over 150%.
The same has happened in Europe, where IAG, the parent company of Iberia and British Airways has soared this year.
This performance is mostly because fuel costs have fallen, while demand for flying has jumped following the pandemic slump.
Qantas growth is continuing
The Qantas share price has done well as the company’s business has continued to do well. Its recent financial results showed that its underlying profit before tax rose to over $2.07 billion, while the statutory profit after tax has risen to over $1.2 billion.
This growth happened as its revenue jumped to over A$21 billion from $19.8 billion a year earlier.
The company has also continued to reward its shareholders. While it is no longer paying a dividend, it has spent millions in share buybacks. It repurchased stock worth $869 million. It is now implementing another $900 million share buyback program.
Share repurchases help a company’s shareholders by reducing the number of shares in circulation. By so-doing, the company hopes that these holders will have a higher earnings per share in the future.
Qantas share price has rallied because of the ongoing balance sheet improvement. It ended the last financial year with about $4.1 billion in debt, near the lower side of its guided range.
Further, the three components of Qantas are doing well. Its flagship Qantas International had a 12% revenue increase, while Jetstar Group and Qantas Loyalty’s revenue rose by 16% and 18%, respectively.
Qantas Airways share price analysis
The weekly chart shows that the QAN stock price has done well in the past few months and is now trading at a record high. It recently moved above the crucial resistance level at A$7.45, its highest swing in December 19.
The stock has jumped above the 50-week and 200-week moving averages. Most importantly, it has formed a bullish flag pattern shown in black. This pattern is made up of a vertical line and a small consolidation pattern.
Therefore, the stock will likely continue rising as bulls target the next key resistance point at A$10. This view will be confirmed if the stock rises above the crucial resistance level at $9.10.
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