Renowned value investor Warren Buffett described airline stocks as a “deathtrap for investors”. Many long term shareholders of Qantas Airways Limited (QAN) would agree. In the past ten years the QAN share price has fallen over 60 per cent, while the ASX 200 has increased over 50 per cent.
Figure: Qantas share price versus ASX200
Source: Google Finance
QAN operates in a challenging environment due to economic volatility, uncertain exchange rates, high fuel prices and intense competition.