The outlook on Qantas has been cut to negative by Moody’s following its warning that rising oil prices could hit airlines’ credit ratings. Although analysts held Qantas at a buy after its latest efforts to offset soaring jet fuel prices, Moody’s still cut its outlook on the heightened uncertainty from natural disasters and declining demand from leisure travellers.
Qantas’s Baa2 rating from Moody’s is unchanged although the rating agency warned the airline could face further negative pressure should demand continue to fall and “materially higher fuel prices” persist.