Qantas is a reopening play. Revenues crunched by COVID, that fades, ergo better outlook for profits, which look similarly squashed.
But airlines are not normally highly cash generative businesses, even those operating in comparatively cosy oligopoly-like markets.
And given that cyclicality, you don’t typically want ones that are highly geared (even if it isn’t their fault, in any moralistic way).
They are also normally negatively exposed to movements in the price of oil.
So you’ve got a situation of modest travel reticence from those who can, complications from those who can’t, gearing, and a skyrocketing price of oil.
Easier money to be made elsewhere, we’d suggest.
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