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The Qantas Airways Ltd (ASX:QAN) the stock price is in the red on Tuesday.
Qantas shares are down 1.85% at the time of writing, currently trading at $4.505 each. On the other hand, the S&P/ASX 200 Index (ASX:XJO) is 0.19% higher.
Let’s take a look at what’s going on at Qantas.
What’s going on at Qantas?
Qantas shares are falling today, but they are not alone in the travel business. The Webjet Ltd (ASX:WEB) stock price is down 2.16% today, while Flight Center Travel Group Ltd (ASX:FLT) stocks are 4.43% lower.
In today’s news, it emerged that a baggage handling company used by Qantas and other airlines has warned of “a number of incidents” which have resulted in “damage to aircraft ” and “serious damage” to ground support equipment, news.com.au reported. Ground workers at Dnata are reportedly considering a strike and have been warned to “politely but firmly reject” any “pressure from airline representatives” to cut corners.
However, a Qantas spokesperson told the publication that the airline would work with Dnata to reduce any strike disruption.
Meanwhile, Monash University professor Greg Bamber has described Qantas’ current woes as “a debacle”, according to an ABC report. He added:
Some would say we are approaching the tipping point.
On the one hand, Qantas markets itself as a full-service airline that provides top-notch service to its loyal, long-term frequent flyers. On the other hand, Qantas prioritizes a different set of stakeholders – trying to maximize profits and prioritize the interests of shareholders and management over its people and customers.
Bamber said “airlines are struggling around the world” and “the aviation industry is in chaos”, pointing to rising fuel prices due to the war in Ukraine. He said:
It’s no longer a perfect storm [than previous difficulties that have faced Qantas] because we have things happening at the same time.
Qantas share price overview
Qantas’ share price has fallen nearly 2% in the past year, compared to a 10% drop year-to-date.
For perspective, the ASX 200 has fallen more than 8% in the past 12 months.
Qantas has a market capitalization of approximately $8.5 billion based on the current share price.