Qantas Share Closes Week in Red Despite Positive Update

  • Qantas’ 2022 sustainability report revealed the company’s steps to addressing climate change.
  • The firm plans to decrease emissions by a quarter come 2030 and eliminate them as of 2050.
  • Qantas will use multiple green strategies to achieve the goal.

Friday’s session saw the Qantas Airways stock dipping into the red, closing the day at $5.24, a 0.19% dip. That comes as the airline revealed its 2022 sustainability report. Rival airline Air New Zealand had its share closing the day 0.84% up, whereas the ASX/S&P 200 Industrial Index (of which QAN is part) closed 0.24% down.

Furthermore, Qantas revealed its 2022 yearly report last Friday. It indicated that the firm paid CEO Alan Joyce $2.3M last year, a 15% rise. Meanwhile, let’s check the sustainability report.

What Qantas Announced

  • 29M single-use plastics removal.
  • Leadership comprises 37.4% of women.
  • $200 Qantas – Airbus collaboration for domestic SAF (sustainable aviation fuel) production.
  • 24% improvement in TRIFR (Total Recordable Injury Frequency Rate).

Qantas confirmed incorporating ESG (Environmental, Social & Governance) policies into its monetary framework, with fleet de-carbonization as its long-term goal. The firm will partly achieve that by tying exec pay with the climate targets.

The airline implements several methods to tackle climate change. That involves fleet fuel efficiency, with hydrogen propulsion technology utilization as the end goal.

Another strategy is offsetting carbon emissions through investing in international and Australian projects to benefit local communities. It targets emission reduction by 25% come 2030. Also, Qantas aims to hit zero emissions as of 2050.

Management Remarks

Richard Goyder, the firm’s chairman, said that sustainability is among the company’s four vital foundations following the Qantas Group Climate Action plan. He confirmed a climate-connected target for executive remuneration.

CEO Joyce stated that Qantas became the 2nd airline to strategize zero-carbon emissions come 2050. He added that the firm drew the plan to achieve the goal, including 25% carbon reduction plus 10% SAF (sustainable aviation fuel) fuel mix by 2030.

Qantas Share Price Outlook

The Qantas share gained approximately 2% YTD. Meantime, the ASX/S&P 200 Index dropped nearly 9% within that timeframe. The airline boasts $9.92 billion in market cap.

Editorial credit: A Periam Photography / shutterstock.com