Qantas just sent a message to the rest of the ASX with its oil driven price hike
The airline became the first major Australian company to act decisively in response to higher fuel costs from the Iran crisis. And investors cheered the move.
Qantas’ move to pass on higher fuel costs to its passengers this week may have infuriated its customers — but the ensuing spike in its share price suggests companies willing to respond decisively to ongoing turbulence in global oil markets will be rewarded by their investors.
And if the crisis drags on, there’s little doubt more companies will be put in that position.
“I think we will start to see a lot of ASX companies come out and update market expectations,” Wilson Asset Management investment analyst Hailey Kim told Capital Brief. “By that I don’t mean earnings downgrades, but just in terms of how we should think about their revenue and earnings.”
Qantas’ shares which have fallen 14% in the days since the first major US-Israeli attack on Iran on 28 February, bounced more than 3% on Wednesday.
