One of the key issues for investors considering Qantas is to determine whether the airline’s recent woes are temporary or permanent. If they are permanent, that spells danger; but if the issues are temporary, it could provide opportunity.

Matt Williams, head of equities at Airlie Funds Management, says Qantas’ domestic flights and loyalty businesses are the most profitable in the group and the most highly rated by investors. Domestic flights accounted for more than 40 per cent of operating profit and the loyalty business generated $1 billion of free cash flow in the 2023 financial year.