Qantas Airways Ltd (ASX: QAN) shares have been flying high this past year.

How high?

Well, twelve months ago, you could have snapped up shares in the S&P/ASX 200 Index (ASX: XJO) airline stock for $5.22 each. On Monday, Qantas stock ended the day trading for $8.86 apiece.

That sees the share price of Australia's biggest airline up a very impressive 69.7% in just 12 months. Or more than three times the 20.5% gains posted by the ASX 200 over this same period.

Remarkably, Qantas shares are now trading 36% higher than they were on 21 February 2020. That was right before the global pandemic knocked the stuffing out of travel shares and, indeed, almost every stock the world over.

Following the past year's strong run, the ASX 200 airline now commands a market cap of $13.9 billion.

But Kelli Meagher, a portfolio manager at Sage Capital, said the company still looks cheap (courtesy of The Australian Financial Review).

Qantas shares could keep gaining altitude

"For investors looking to pick up a bargain in a market that is looking increasingly expensive, the travel sector currently provides a compelling hunting ground for value," Meagher said.

She pointed to beaten-down ASX travel stocks like Flight Centre Travel Group Ltd (ASX: FLT), down 9% in a year, and Corporate Travel Management Ltd (ASX: CTD), down 25% in a year, as potential bargains.

As for Qantas shares, Meagher isn't put off by the company's recent bull run.

"Another option to consider if thinking about investing in travel stocks is Qantas," she said.

Meagher added:

Unlike the other travel names, the airline has had a stellar run – up 50% since August. The series of Senate enquiries, customer service issues and bad press it faced last year appear to be dealt with.

The industry structure is in the best shape it's been in for a long time and earnings growth has begun to flow through.

Trading on a four-times EV/EBITDA [enterprise value / earnings before interest, taxes, depreciation & amortisation] multiple, below its global peers, we still believe it is cheap despite the run it's had and maintain it as one of our key long positions.

What's been driving ASX investor interest?

Qantas shares have benefited from falling fuel costs and increasing revenue.

For its FY 2024 results, released on 29 August, the Flying Kangaroo reported a 10.7% year on year increase in revenue to $21.9 billion.

Investors have also been enthusiastic about the $400 million on-market share buyback running in the current half.