Qantas Airways Ltd

QAN: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$5.10	Mfkbx	Cjmjjhtxn

Qantas: Another Upgrade but Profits Unreasonably Elevated and Good News Baked Into the Price

Angus Hewitt

May 23, 2023

We maintain our AUD 5.90 fair value estimate for Qantas shares with another positive trading update. Demand still outstrips supply, and jet fuel prices have moderated recently, partly offset by unfavourable currency movements. Full planes, high ticket prices, and an easing fuel bill see Qantas set for record profitability. We lift our fiscal 2023 pretax profit forecast by 6% to AUD 2.5 billion, the midpoint of company guidance.

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