Shares in Value Logo
Product Review Img Vertical

Date : 28/06/2021

Qantas Share Price dropped On New Travel Restrictions

The ASX 200 closed 0.1% lower today as Technology and Travel sectors weighed the market down. The Sydney and Darwin lockdowns, the growing clusters, and the widespread border closures resulted in travel stocks being sold off. Afterpay and Zip, always seem to be making headlines, and today was no different as both – APT shares and ZIP shares were dragged down by over 7% each. Among the travel sector, Qantas and Webjet led the losses with QAN shares sliding 4% and WBT shares going down 4.7%.

It wasn’t just investors looking for QAN news today, there have been a lot of travellers stranded with flight cancellations and travel restrictions now in place. Among the biggest winners today were Kogan and Redbubble – the stocks of the lockdown theme, gaining 6.6% and 8.2%, respectively.

Why is Qantas Share Price back down to 2020 levels?

Once regarded as one of the best dividend stocks on the ASX, QAN has had a tough time recently, however, the share price recovery has been good following the impacts of Covid-19. Amid the 4.4% slide today, QAN shares are now trading at levels we were used to in 2020. Since those lows, the company has been on track in its recovery. A sustained rebound in domestic travel demand, and the performance of its Freight and Loyalty divisions, drove QAN’s recovery from the impacts of COVID-19.

Based on trading conditions in March, Qantas expects the statutory free cash flow to be positive for the second half of FY21. Net debt levels peaked in February at $6.4 billion and are expected to be lower than they were in December ($6.05 billion) by the end of the financial year. At a statutory level before tax, Qantas is expecting a loss in excess of $2 billion, which includes the significant costs associated with previously announced redundancies, aircraft write downs and non-cash depreciation charges.

All this however will now be up in the air with Sydney’s growing cluster of coronavirus cases and lockdowns. NSW sees the most air traffic in the country and with flights now put on halt, Qantas’s ability to hit those guidance may now be hindered. As a result, QAN shares slid today, and there may be further downward pressure on the QAN share price if Sydney’s coronavirus positive cases continue to multiply. QAN shares currently trade $4.54 a share following today’s dip.

Looking for best dividend stocks to invest on the ASX?

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for the Top 3 Dividend Stocks to buy in 2021! Click here now!

 

Are You Looking To Buy The Best Stocks In 2022?

Stay on top of upcoming market trends! Whether you are an SMSF investor or a young investor with your portfolio, we cover a wide range of stocks across all sectors, including mining, financials, industrials, real estate, technology, health and biotech, etc. It will give you an edge to invest and trade ASX listed stocks across large, mid and small caps with an advantage.

Get stock tips with our Market Experts. We help self-directed investors and self-managed super funds (SMSF) make smarter investment decisions and get better returns. Fill in your details and download your free Report instantly for Top 3 Dividend Stocks to buy in 2022!

 

Top 5 ASX Stocks
to Buy for Capital Growth in 2022

asx landing page
The hardest part to finding growth stocks is having an ability to understand the finer details of these companies from their valuations through to first mover advantage and having key factors on hand to make informed investment decisions.

Our experts take the guesswork out.

Download Your Free Report

By downloading this report you agree to the TERMS AND CONDITIONS and our PRIVACY POLICY

Scroll to Top

Login

By submitting this form, I agree to the TERMS AND CONDITIONS and PRIVATE POLICY

Please fill in your details to download the free report.

We will send your report instantly please put your correct email address and phone number.