Australia-based Qantas Airways Ltd. (QUBSF) plans to reduce its domestic capacity by another 10 percentage points to 60% of pre-pandemic levels in the fiscal third-quarter, ending in March 2022, following the Western Australia state’s decision to delay opening its border indefinitely, a report published by Reuters said.
The Western Australian authorities canceled the opening, which was planned for February 5, citing health risks due to a rise in Omicron cases in eastern states.
Qantas said, “The group retains the flexibility to adjust flying levels depending on demand and clarity on border re-opening in the weeks and months ahead.”
Based out of New South Wales, Qantas provides air transportation services. It is engaged in the international and domestic air transportation services; sale of worldwide and domestic holiday tours; and associated support activities, including catering, information technology, ground handling, and engineering and maintenance.
It is one of the largest airline companies in Australia by fleet size.
Wall Street’s Take
Last month, CLSA analyst Justin Barratt upgraded the rating on the stock to Buy and increased the price target to $4.2 (13.1% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 1 Sell. The average Qantas Airways stock forecast of $3.96 implies 6.7% upside potential. Shares have gained 8.2% over the six months.
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