Five NZX travel stocks to look at amid border closure and paused travel bubble

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Five NZX travel stocks to look at amid border closure and paused travel bubble

 Five NZX travel stocks to look at amid border closure and paused travel bubble
Image source: Peshkova, Shutterstock.com

Highlights

  • New Zealand will keep its borders closed at least till the year-end to safeguard its country from the resurgence of COVID-19 cases emerging in other parts of the world.
  • Air New Zealand defers its capital raise until next year.
  • Auckland International Airport reveals its plan to build a new domestic facility, which would be merged with the international terminal.

According to the latest update, New Zealand's Prime Minister, Jacinda Ardern, has announced the closure of the country’s borders till the end of 2021. She also emphasised on vaccinating the nation's entire population by the year-end.

Related Read: Will new COVID-19 outbreak in Australia hit New Zealand’s tourism industry?

Moreover, for quarantine-free travel, the Kiwiland will witness a new individual risk-based model, which would kick start in 2022.

It is noted that in July 2021, NZ suspended its quarantine-free travel arrangement for a minimum period of eight weeks, considering the resurgence of many COVID-19 cases in Australia.

As per Stats NZ latest data, the disturbance in the AU-NZ travel bubble has affected the total movements through the NZ border standing at 175,500 (85,400 arrivals and 90,200 departures) in June lesser than May, which noted 189,500 total movements (91,300 arrivals and 98,200 departures).

Amid this backdrop, let us now take a glance at the five NZX-listed travel stocks. 

Source: Copyright © 2021 Kalkine Media

Air New Zealand Limited (NZX:AIR; ASX:AIZ)

Air New Zealand Limited has deferred its plan to complete a capital raise before September, as announced in April 2021 to Q1 of 2022, as the country’s Finance Ministry has urged the Company that considering the prevailing uncertainties in the market, the Crown will not be able to support AIR’s planned equity raise currently.

However, the Crown will maintain a majority shareholding position in the proposed capital raise at the relevant time.

At the end of the trading session, Air New Zealand was up by 1.02% at NZ$1.485, on 13 August.

Must Read: Which are the top 10 transportation stocks in New Zealand?

Auckland International Airport Limited (NZX:AIA; ASX:AIA)

Auckland International Airport Limited has revealed its plan to reset its infrastructure plan by constructing a new domestic facility, which will be merged into an international terminal. Site preparation, including the first stage of the project, will begin early next year and is likely to cost NZ$30 million.

These changes would provide a smooth journey experience to its travellers between major NZ destinations and international air connections.

Also, the next phase of the development would commence depending upon the speed of the aviation sector’s recovery.

On 13 August, at the end of the trading session, Auckland International Airport climbed up by 0.76% at NZ$7.285.

Related Read: Auckland International Airport (NZX:AIA): Is it on track to deliver robust results?

Tourism Holdings Limited (NZX:THL)

Offering holiday vehicles for rent and sale globally, Tourism Holdings Limited has recently appointed a new Chief Technology Officer, Jo Hilson.

Hilson would be overseeing THL's global IT operations, pricing, telematics products as well as fleet management.

At the end of the trading session, Tourism Holdings was up by 0.83% at NZ$2.42, on 13 August.

Do Read: 5 tourism stocks that New Zealand investors should look out for

Serko Limited (NZX:SKO)

Operating in the travel booking space, Serko Limited has disclosed the appointment of a new independent director, Jan Dawson, who would take charge of her role after the conclusion of the 2021 Annual Meeting, which would be held on 18 August.

Dawson will also head the Company’s Audit and Risk Committee.

On 13 August, at the end of the trading session, Serko rose by 2.20% at NZ$6.960.

Related Read: Look at 5 popular stories making the rounds at NZX

Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK)

Millennium & Copthorne Hotels New Zealand Limited had recently announced its 2021 interim results, delivering unaudited PBT amounting to $41.36 million and group revenue of NZ$98.36 million for the half-year period ended 30 June 2021, majorly on account of the sale of its Copthorne Hotel Christchurch Central land in May 2021.

Considering the prevailing uncertainties pertaining to the trans-Tasman bubble, the Company has enough resources to endure during the period.

With the global economic recovery underway, MCK is confident and will take advantage of the market growth and is focusing on the projects and initiatives being undertaken this year.

On 13 August, Millennium & Copthorne Hotels New Zealand was down by 0.43% at NZ$2.330, at the end of the trading session.

Interesting Read: Why are 6 NZX stock prices fluctuating?

Bottomline

With the initial shock of the pandemic in 2020 is over, the global economic environment has improved and hence the travel sector too became confident about its revival.

However, as the pandemic continuous to wreak havoc in some parts of the world, closing its borders till the year-end seems an appropriate step, as New Zealand is one of the few countries, which had successfully curtailed the pandemic within its country.

Also, NZ’s travel sector is optimistic about its domestic demand and has sufficient resources to sail through the prevailing conditions.

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