Loyalty saves the day

‘Qantas is unlikely to part with its only cash-generating division until it’s gasping for air’

We expected little from Qantas going into the current crisis and the company has not disappointed. With borders locked, the airline is operating just 5% of domestic capacity and 1% of international. There’s only a trickle of cash coming in and lots going out.

The next few years don’t look much better. There’s the risk that the travel industry is entering a “new normal” of reduced flights, even after the Covid-19 crisis ends. It’s almost too easy to hate the company.

With the crowd so negative and the stock price less than half its December highs, is this an opportunity?

From the outside, Qantas