AIR, AIA, SKO: Travel stocks on the watch as borders reopen in stages

Be the First to Comment Read

AIR, AIA, SKO: Travel stocks on the watch as borders reopen in stages

 AIR, AIA, SKO: Travel stocks on the watch as borders reopen in stages
Image source: Dany_cn,shutterstock.com

Highlights

  • NZ’s borders reopened to vaccinated visitors from 60 visa-waiver countries on 1 May, after opening up to Australians and returning Kiwis in April.
  • Air NZ launched a new inflight safety video on 5 May.
  • Serko expects its FY22 revenue to be between $18 million and $20.5 million.

NZ is reopening its border in stages after remaining closed for nearly 2 years as the country shut its borders to prevent the impact of the COVID-19 outbreak.

NZ’s borders reopened to vaccinated visitors from 60 visa-waiver countries on 1 May, after opening up to Australians and returning Kiwis in April. This vaccinated group can enter NZ and do a self-test when they arrive without undergoing any managed isolation if the test comes negative.

International visitors from other countries will be able to enter NZ in October if the government considers it safe to proceed with the move.

Amid this backdrop, let’s see how these 3 NZX travel stocks are doing in May.

Image source: © 2022 Kalkine Media®

Air New Zealand Limited (NZX:AIRASX:AIZ)

Air New Zealand is the national carrier of NZ that provides passenger and cargo transport services.

The airline launched a new inflight safety video on 5 May that has the theme of Tiaki, which means caring for people, places and cultures. The video will play on all its domestic and international flights from next week.

DO READ: Air NZ (NZX:AIR) concludes shortfall auction, equity raise, shares plunge

Air NZ shares resumed trading on 5 May post completion of the shortfall bookbuild under its rights offer. The Group raised $1.2 billion through its equity rights offer.

AIR ended the day 2.45% in red to close at $0.795.

Auckland International Airport Limited (NZX:AIAASX:AIA)

Auckland International Airport, founded in 1960, is the largest airport of NZ.

The airport’s total passenger volumes dropped 19.9% in February 2022 compared to the same month in 2021. The same figure fell by a lower 14.8% in March 2022 on the same month in 2021, as per the AIA’s monthly traffic preview for March.

ALSO READ: THL, AIA, AIR: 3 travel stocks to watch amid NZ border relaxation

International passenger demand increased in March as isolation requirements were removed for arriving Kiwis and permanent residents. Domestic traffic also showed improvement in the last week of March, delivering 40% of the pre-COVID-19 levels.

AIA ended the day 1.52% in red to close at $7.76.

 Serko Limited (NZX:SKO)

Serko is an online travel booking and expense management firm. The Group has been seeing positive transaction growth since 3 February 2022. Serko’s Booking.com business volumes have been rising consistently on a weekly basis since late January 2022.

DO READ: From GNE to WBC: 3 NZX stocks with over 7% dividend yield

Serko’s Australian volumes grew nearly 60% of the 2019 volumes while NZ volumes have stayed at subdued levels.

Serko expects its FY22 revenue to be between $18 million and $20.5 million.

SKO ended the day 1% in red to close at $4.95.

Bottom Line

Tourism was one of the worst-affected sectors due to measures taken to contain COVID-19. As NZ opened its borders, travel operators are expecting a boost in the sector after experiencing a difficult time in previous 2 years.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK