The Qantas Airways Ltd (ASX: QAN) share price is in the red on Tuesday.
Qantas shares are down 1.85% at the time of writing, currently trading at $4.505 apiece. In contrast, the S&P/ASX 200 Index (ASX: XJO) is 0.19% higher.
Let's take a look at what is going on at Qantas.
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What's going on at Qantas?
Qantas shares are falling today, but they are not alone in the travel space. The Webjet Ltd (ASX: WEB) share price is down 2.16% today, while Flight Centre Travel Group Ltd (ASX: FLT) shares are 4.43% lower.
In today's news, it has emerged a baggage handling company used by Qantas and other airlines has warned of "quite a few incidents" that have resulted in "aircraft damage" and "serious damage" to ground support equipment, news.com.au reported. Ground workers for Dnata are reportedly considering strike action and have been warned to "politely but firmly dismiss" any "pressure from airline reps" to cut corners.
However, a Qantas spokesperson told the publication the airline will work with Dnata to reduce any strike disruption.
Meanwhile, Monash University professor Greg Bamber has described Qantas' current woes as "a debacle", according to an ABC report. He added:
Some would say we're getting close to the tipping point.
On the one hand Qantas advertises itself as being a full-service airline that gives premier service to its loyal and long-term frequent flyers. On the other, Qantas is giving priority to a different set of stakeholders – trying to maximise profits and prioritise the interests of shareholders and executives at the expense of its staff and its customers.
Bamber said "airlines are struggling around the world" and the "aviation industry is in chaos", highlighting rising fuel prices due to the Ukraine war. He said:
This is more of a perfect storm [than previous difficulties that have faced Qantas] because we've got things happening at the same time.
Qantas share price snapshot
The Qantas share price has slipped nearly 2% in the past year, while it has lost 10% year to date.
For perspective, the ASX 200 has fallen more than 8% in the last 12 months.
Qantas has a market capitalisation of about $8.5 billion based on the current share price.
