• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Dividend Shares

Qantas Grounded with Coronavirus, Share Price Down (ASX:QAN)

Like 0

By Carl Wittkopp, Thursday, 19 March 2020

The Qantas share price has taken a hammering with the onset of the coronavirus. The virus has been impacting the world’s major airlines heavily. And now with the cut of international travel and grounding of their fleet the Qantas share price is at $2.53, at time of writing...

The Qantas share price has taken a hammering with the onset of the coronavirus. The virus has been impacting the world’s major airlines heavily. And now with the cut of international travel and grounding of their fleet the Qantas share price is at $2.53, at time of writing.

Qantas has taken the extraordinary measure of temporarily grounding more than 150 aircraft, suspending all international routes and 60% of domestic flights, this includes its subsidiary Jetstar.

ASX QAN - Qantas share price chart 1

Source: Optuma

The efforts to contain the spread of the coronavirus has led to a huge drop in travel demand, the likes of which we have never seen before. This is having a devastating impact on all airlines.

‘“We’re in a strong financial position right now, but our wages bill is more than $4 billion a year. With the huge drop in revenue we’re facing, we have to make difficult decisions to guarantee the future of the national carrier.

‘“The reality is we’ll have 150 aircraft on the ground and sadly there’s no work for most of our people. Rather than lose these highly skilled employees who we’ll need when this crisis passes, we are instead standing down two-thirds of our 30,000 employees until at least the end of May,” noted Group Chief executive officer Alan Joyce.’

[conversion type=”in_post”]

What does this mean for the Qantas share price?

With the pandemic now truly taking hold of the globe, Qantas has taken a beating. From the high in December 2019 of $7.46, it has fallen over 66% to $2.53, at time of writing.

Qantas Share Price Chart 2 - ASX QAN

Source: Optuma

Where to from here for Qantas?

Qantas is experiencing a significant fall with its share price closing below the historical support level of $2.65. With the announcements of grounding the international fleet, Qantas may fall even more with the next level of support being $1.85, this would represent a fall of over 75% should it continue to this level.

ASX QAN stock price chart

Source: Optuma

Alan Joyce also noted in his announcement that ‘No airline in the world is immune to this, with the world’s leading carriers making deep cuts to flying schedules and jobs. Our strong balance sheet means we’ve entered this crisis in better shape than most, and we’re taking action to make sure we can ride this out’.

Whist the short-term outlook for Qantas isn’t pretty, that may well change when the dust settles and normality resumes.

Carl Wittkopp

for Money Morning

PS: In this free report, Money Morning analyst Lachlann Tierney reveals two assets set to benefit as the ‘corona crisis’ worsens. Click here to claim your copy today.

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Carl Wittkopp

Carl’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • The US$2 Trillion Stablecoin Tsunami
    By Charlie Ormond

    These developments could transform the US$250 billion stablecoin market into a US$2 trillion juggernaut within years.

  • Trump Sparks Rare Earth Rally
    By Murray Dawes

    Murray and Callum pointed out three lithium stocks last week that surged 5–12% this week. Now they look at copper and rare earths.

  • Copper Breaks Out: Are You Positioned?
    By James Cooper

    Last week, James Cooper wrote about the need to be on high alert for a copper breakout. This week, copper is breaking out… James lays out the game plan from here.

Primary Sidebar

Latest Articles

  • The US$2 Trillion Stablecoin Tsunami
  • Trump Sparks Rare Earth Rally
  • Copper Breaks Out: Are You Positioned?
  • A radically innovative industry set to soar
  • Debt and declining demographics are a dangerous combination

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988