Qantas Airways Ltd
QAN: XASX (AUS)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| A$4.60 | Ybr | Ycqyhgmcc |
Competition is Weighing on Qantas' Profitability
Business Strategy and Outlook
The covid-19 pandemic has wreaked havoc on the global airline industry. Lockdowns, border restrictions, and social distancing measures have clipped Qantas' wings. Stringent Australian entry requirements for international arrivals and an effective ban on noncitizen, nonpermanent resident arrivals decimated passenger revenue, and despite aggressive cost-cutting, operating deleverage led to significant aftertax losses in 2021 and 2022.