Value Investor: Qantas flying into headwinds

The operating environment is not going to get any less challenging for the nation's largest airline.

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.

Graph for Value Investor: Qantas flying into headwinds

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.


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