Qantas Leads Asian Airline Stocks in 2024

Qantas Airways Ltd. has become Asia’s best-performing airline stock, achieving a 68% surge in share value over the past year. The Australian flagship carrier has outperformed competitors in Bloomberg’s regional airline index, driven by lower fuel costs and reduced domestic competition.

Declining oil prices have benefited the aviation sector, but Qantas gained a unique advantage after regional rival Rex ceased operations. With Qantas and Virgin Australia now commanding 98% of Australia’s domestic market, airfare prices remain robust on key routes.

Under CEO Vanessa Hudson, who took the helm last year, Qantas has been recovering from past controversies, including canceled flights and unlawful dismissals. Investor confidence has surged, with consensus price targets increasing by 30% in the last quarter, according to Bloomberg data.

Analysts at Morgan Stanley highlight Qantas’ positive trading updates and expect the airline to resume franked dividend payments this fiscal year. This milestone boosts its appeal to income-focused and retail investors.

Despite a profit dip in the fiscal year ending June 30, results met expectations, and analysts are optimistic about Qantas’ growth in 2024. With strengthened market dominance and operational improvements, the airline is well-positioned to continue its upward trajectory.