AUS
NZ
UK
CA
USA
IND
Highlights
- The US has moved New Zealand to a high-travel risk country amid a surge in COVID-19 cases across the country.
- Air NZ posts a HY22 performance, which has been substantially impacted by the pandemic.
- Tourism Holdings agrees to Com Commission’s request to extend the statutory timeframe on its proposed merger application with Apollo Tourism.
With the daily number of COVID-19 cases escalating across New Zealand, the US Centers for Disease Control and Prevention has put the country into its highest travel risk group.
Currently, Kiwiland is at level 4 in the US’ list, reflecting a very high level of COVID-19 infections across the country and travelling here should be avoided as of now.
It is pointed out that the countries which are considered low risk by the US and are at Level 1 include China, Taiwan, Benin, Kenya, Rwanda, and Sierra Leone, among others.
That said, let us walk through the three NZX-listed travel stocks which might get impacted by the said move.
Source: © 2022 Kalkine Media® data source- EODHD/Others
Air New Zealand Limited (NZX:AIR; ASX:AIZ)
First on the list is Air New Zealand Limited, which has recently released its HY22 results, wherein it incurred a statutory loss before taxation of NX$376 million, reflecting the significant impact of the pandemic over the airline.
Further, operating revenue slumped by 9% on pcp, due to a decrease in passenger revenue owing to an extended period of travel restrictions for the Auckland region.
Do Read: From AIR to THL, 4 travel stocks on investors' watchlist as NZ reopens
However, Air NZ saw a 29% growth in its cargo revenue, which was well supported by Government freight support schemes.
While the airline is looking positive as it prepares for the reopening of the country’s borders to the world, it anticipates that it would incur a loss before taxation for FY22, the amount of which might exceed NZ$800 million.
At the time of writing on 8 March, AIR was down by 4.78% at NZ$1.395.
Tourism Holdings Limited (NZX:THL)
Coming up next is Tourism Holdings Limited, offering holiday campervans for rent and sale across the country. Recently, the Company has disclosed that it had agreed to the Commerce Commission’s request for extending the statutory timeframe on its clearance application w.r.t. its proposed merger with Apollo Tourism & Leisure Limited.
Interesting Read: Why is Tourism Holding’s (NZX:THL) stock flying despite dip in profits?
The tourism-based company is complying with the competition regulators across New Zealand and Australia to get necessary approvals for the above-mentioned merger.
At the time of writing on 8 March, THL was declining by 2.32% at NZ$2.530.
Serko Limited (NZX:SKO; ASX:SKO)
Topping off the list is Serko Limited, which has revealed that the rapid spread of Omicron and related restrictions had severely impacted its business travel volumes in December and January in its key markets.
As a result, for the year ending 31 March 2022, SKO has changed its guidance to NZ$18 million-NZ$20.5 million.
Meanwhile, the Company continues to operate on its strategy and expects a recovery in booking volumes as the Omicron effect dampens.
At the time of writing on 8 March, SKO was down by 1.11% at NZ$4.450.
Bottom Line
NZ travel companies have been significantly impacted by the pandemic in the last two years. They were looking optimistic for the country's border reopening; however, the surge in COVID-19 cases has again spooked the travel sector.