Australia’s Qantas Airways (ASX:QAN) experienced a downward trend in share prices after analysts cut its price target following the airline’s caution over raised costs due to escalating fuel costs and future investments to enhance customer services.

The airline’s shares fell by as much as 3.3%, marking their lowest point since October 3 in 2022.

Brokerage Citi dimmed the price target from A$6.95 to A$6, all while maintaining a ‘neutral’ rating.

In the meantime, Jefferies decreased the price target from A$8.78 to A$7.79 despite a ‘buy’ rating.

Citi alluded that Qantas' acceptance of climbing costs may suggest impending public issues could infiltrate earning potentials.

The brokerage foresaw that the A$330 million surge in costs could lead to a year-on-year falter in earnings.

Nevertheless, Jefferies noted a ‘positive’ customer improvement program, coupled with continual strong demand hinting the damage to Qantas' brand is mendable and an increased profitability can be achieved from the second half of 2024 onward.

For the fiscal years 2024 - 2026, Jefferies cut the EPS forecasts by 14%, 4.4%, and 2.1% respectively.

As of the last closure, Qantas' stock has decreased roughly 13% this year.

Qantas Airways (ASX:QAN) is a leading Australian airline brand, offering domestic and international flight services and renowned for its strong customer demand.