We looked at some of the reasons why investing in the company is a good idea and how you can get about it.
Where to Buy Qantas Shares
You can invest in the company through ASX. Brokers work on all sorts of platforms, so investing anywhere would be possible. These include IOS, iPadOS, macOS, Windows, Android, and Linux.
This is the best broker for buying Qantas shares in Australia:
eToro Disclaimer: AFSL 491139. High risk to capital.
Qantas offers special privileges as it’s Australia’s flag carrier. Not only is it popular down under, but it’s the country’s largest airline by fleet size, international travel destinations, and flights abroad.
It was founded in 1920 and is the world’s third oldest airline, right behind Avianca and KLM. It initially flew passengers between Queensland and the Northern Territory. International flights began in 1935.
|Company information||Qantas Group|
|Head quarters||Sydney, Australia|
Qantas is headquartered in Sydney. We mentioned that it’s a major airline in Australia, but how much of the market does it command? By 2014, it was responsible for 65% of domestic flights, and 14.9% of flights to and from Australia. With 2020 coming to an end, this number has not changed much. The company commands 63% of the Australian domestic market.
It is a good company to invest in as it has many subsidiaries, all falling under the QantasLink banner. One of the major names it owns is Jetstar. It offers affordable trips across the country and abroad and is responsible for 8.5% of all the flights going in and out of the nation.
It also has a stake in many of Jetstar’s sister lines. This includes Jetstar Japan and Jetstar Asia Airways.
The success of Qantas
Qantas hasn’t always been successful, though. In 2006, it took part in a failed bid to merge with British Airways, which fell through.
However, it has many achievements under its belt. For the first time ever, Qantas offered a non-stop commercial flight from Australia to Europe. It flew passengers from Perth Airport to Heathrow, London.
The airline was also responsible for the longest commercial flight to date. It flew from New York City to Sydney.
If that’s not impressive enough, know that it was a founding member of the Oneworld alliance – a group of airlines that aimed to become the leading names in international travel. It includes giants like Qatar Airways, British Airways, American Airlines, Royal Jordanian, and Japan Airlines to name a few.
How to Buy Qantas Shares?
To buy its shares, you will need to work with an online broker, a platform that lets you trade stocks through the Australian Securities Exchange. You can also invest in a range of other assets.
There are countless brokers available online. Be careful with who you work with, as you want one that is heavily authorized. The agency would set rules and regulations so that your cash within the platform would stay safe. As an Australian, you want one that is regulated by the Australian Securities and Investment Commission.
Most brokers for Australians also work with Kiwis. You want a site that’s authorized by the New Zealand equivalent of ASIC.
Considering how there are so many options, aim to work with a name that has a good resource center, and you’ll soon become an expert. It should be one that gives you access to market trends and news. You’d know when it’s the perfect time to invest.
The next step
Let’s say you’ve found a broker you’re interested in. Here’s what you need to do:
- Create an account. Creating a brokerage account might take a bit of time. You need to verify your identity as well as include proof of where you live.
- You can fund your account in several ways. The most common are bank transfer, e-wallet, and credit or debit card. You might have to make a minimum deposit. This sum depends on the site.
- Look for Qantas. If the site lets you buy and sell shares from the ASX, it’ll have Qantas Airways stocks. However, finding it might be tricky, unless you search for its ticker symbol, which is QAN.
- Make a move. Do you want to trade now or later? Buying shares now would be a market order, and doing so later would be a limit order. You need to do this depending on how the market and company are doing.
- Keep an eye out. How are your shares? If the airline has been successful, its value would rise.
Why Should You Buy Qantas Shares?
There are some pros and cons to investing in the airline. Let’s take a look at them.
The Corona Virus
The global pandemic has affected the airline industry greatly. Qantas Airlines made a total revenue of 14.26 billion Australian dollars by the end of 2020 – a significant drop from A$17.97 that was made the year before.
Thankfully, a vaccine is on the way. Once it becomes freely available, air travel will return to normal. Qantas stated that passengers would only be allowed to board if they provided proof of vaccination, though.
Before COVID-19, the group’s revenue saw a steady increase each year. It was A$17.97 billion in 2019, A$17.13 billion in 2018, and A$16.06 billion in 2017.
Qantas took drastic measures to make capital once the pandemic hit. 6000 jobs were cut, raising A$1.9 billion in revenue.
A Giant Marketshare
The airway dominates much of the Australian domestic market. It’s also responsible for a major chunk of international flights to and from the nation. What’s more, it has a considerable presence worldwide. After all, it is a founding member of the Oneworld Alliance.
Throughout the years, Qantas has been acquiring other names. It owns Jetstar Airways, which is not only a leading affordable airline in Australia but around the world. Qantas also owns Qantas Freight, Jet Connect, and previously owned Australia Asia Airlines as well as Impulse Airlines.
The many sponsorships it takes part in helps its popularity grow. You’re probably aware that it is the official sponsor of Australia’s national rugby union team. From 2010 to 2012, it was one of the sponsors of the Formula One Australian Grand Prix and is currently the official carrier of the country’s national cricket team.
Jetstar’s Sister Airlines
Not only does Qantas own Jetstar, but it has a major stake in Jetstar’s sister airlines which operate in the Asia and Pacific region. This gives Qantas a major reach in the Asian airline market.
The giant is a leading name in the game, but it has a few rivals. Read ahead to find out if they’re worth investing in.
Virgin Australia is probably the airway’s biggest domestic competitor. It’s owned by the giant multinational, the Virgin Group – the airline is the group’s largest branded airline by fleet size.
It came into being in 2000 and was first known as Virgin Blue. It offers flights to 33 different destinations domestically. The airline doesn’t fly to many international locations, though– there are only 12 at present.
It has successfully taken over some of its counterpart’s sponsorships. In November 2010, the AFL terminated their contract with Qantas and opted for Virgin Australia instead.
The company has sponsored several AFL clubs, including the Greater Western Sydney Giants and the Gold Coast Suns. It took over sponsorship of the Carlton Football Club, from 2017 and will do so until 2022.
If you’re interested in the airline, you’ll have to invest in its parent company’s stocks. It’s a British conglomerate that’s not available on the ASX. However, you can buy and sell the Virgin Group’s shares if the broker you’re working with lets you trade global stocks.
Since it’s a multinational conglomerate, it has successfully infiltrated many markets. This includes Media, Radio, Mobile, and Travel.
Although the airline was affected greatly by government restrictions, the group was safe due to its countless avenues of generating revenue. Unfortunately, it hasn’t released its 2020 annual reports as yet.
Air New Zealand
Air New Zealand is not listed on the ASX. That being said, you can invest in it as you would with Virgin Australia.
It is a leading name in the industry. The airline first flew passengers to and from the Tasmanian sea, and it now offers international flights. Like Qantas, you’re looking at a flag carrier. You can fly to 20 destinations across New Zealand, and 32 international ones in 20 different countries.
It is not a member of the Oneworld Alliance. However, it’s a part of the Star Alliance, and is the larger of the two, with a 726.27 million passenger count. Its counterpart only boasts 528 million users.
Air New Zealand has one subsidiary, but it used to own two others in the airline industry; they are Air Nelson and Mount Cook Airline. Its current subsidiary is only Air New Zealand Cargo.
The country’s rugby team is sponsored by the airline. All of the country’s wine awards are also sponsored by the group.
Due to government restrictions, it took a hit. Compared to Qantas, it lost a lot more cash. It made NZD 87 million by the end of 2020, which is a stark contrast to the NZD 387 million made in 2019. The airline reported that it lost 74% of its passengers due to restrictions.
The airline is the flag carrier of Singapore. It’s more popular than Air New Zealand and Virgin Australia, giving Qantas the biggest run for its money. It has been ranked as the world’s best airline several times by Skytrax. The airline has also consistently been at the top of Travel & Leisure’s best airlines list for over 20 years now.
It owns over 20 subsidiaries. Two of them, SilkAir and Scoot, are especially popular. Considering that it’s much newer than Qantas, which was founded in 1972, its achievements are impressive.
It’s not a member of the Oneworld Alliance. Instead, it’s a part of the Starworld one like Air New Zealand.
Singapore Airlines travels to 132 destinations in 32 different countries, across 5 separate continents.
Due to government restrictions, it lost 96% percent of its passengers from April 2020 to July. During this period, revenue was down 22%. In the year’s first quarter, a net loss of USD 1 billion was reported.
Similar to Qantas and its counterparts, you’ll need proof of the COVID-19 vaccine to board its flights.
Should You Buy Qantas Shares?
Considering the above points, investing in Qantas stocks is advantageous. It commands a major share of the domestic market and is responsible for most domestic and international flights in the country. What’s more, it owns Jetstar, which contributes heavily to its overall revenue. Jetstar is a leading name in the affordable flight game, and also provides many flights to and from Australia.
Yes, the coronavirus has affected most airlines around the world. However, it is only a matter of time before the vaccine will be released. Global travel will soon return to normalcy. Even with the pandemic, the airline has still generated revenue. Recently, it raised A$1.9 billion in capital by cutting its staff.
The fact that it’s a part of the Oneworld Alliance is also noteworthy. Its members are all major names and do not compete with each other. So, Qantas doesn’t have to worry too much about this factor.
This doesn’t mean that it has no rivals, however. We took a closer look at Singapore Airlines, Air New Zealand, and Virgin Australia. Virgin Australia is probably Qantas’ biggest competitor and is owned by the giant Virgin group.
Would you consider buying stocks in the airline? It is a leading name in the game, so you have a very good reason to invest in it. Domestically, Virgin Australia is its biggest competitor. Investing in Virgin Australia might be the better choice, as it’s owned by the supergiant Virgin conglomerate.
Whatever stocks you buy, you’ll be investing through online brokers. Be mindful of the name you work with. You want one that is well authorized and offers good educational resources.