The US government has tentatively approved Qantas’ proposed expanded alliance and revenue pooling agreement with American Airlines. The arrangement will mean the two carriers co-ordinate flight schedules, pricing and capacity and share revenue on international routes between the US, Australia and New Zealand.
This is expected to underpin stronger returns on the Qantas trans Pacific operations. Deutsche Bank maintains a Buy rating and $6.40 target.
Sector: Transportation.
Target price is $6.40.Current Price is $5.47. Difference: $0.93 – (brackets indicate current price is over target). If QAN meets the Deutsche Bank target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
