AIR, THL, SKO: 3 NZX Travel stocks to explore as NZ uncovers reopening plans

Highlights

• The NZ govt announces the nation’s phased border reopening plans.
• Air NZ to release its 2022 interim results next month.
• Tourism Holdings signs a purchase agreement to acquire MaxiTRANS.

The NZ government has revealed its phased border reopening plans from 27 February onwards.

The first group to enter Kiwiland will be fully vaccinated NZers and eligible travellers from Australia. Two weeks later, travellers from all other countries can enter the nation’s borders, including critical and skilled workers.

Then, from 12 April onwards, international students and other eligible temporary visa holders can travel to the Kiwi country, followed by visitors from anywhere across the world to cross the nation’s borders in October.

It is noted that the spread of the Omicron variant had derailed NZ’s earlier border reopening plans.

The said news on the country’s reconnect to the outer world has been hugely welcomed by the NZ travel and tourism industry, hoping for a boom in their business operations.

With this backdrop, let us take a quick peek at the 3 NZX stocks worth looking at.

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Air New Zealand Limited (NZX:AIR)

Air New Zealand Limited, the national carrier of the country, has announced to publish its 2022 interim results on 24 February.

Related Read: Air NZ (NZX:AIR): Why did it defer equity raise until Q1 2022?

Air NZ notified this week that it would be operating a test-to-return policy for workers to lower flight interruptions due to staff becoming close contacts of Omicron cases. Nearly 15 Air NZ flights have been named as locations of interest where people on those flights, including crew, had to self-isolate and get tested.

At the closing bell on 4 February, Air New Zealand jumped by 1.92% at NZ$1.59.

Tourism Holdings Limited (NZX:THL)

Tourism Holdings Limited is the country’s premier tourism company, providing holiday vehicles. The Company has signed an agreement with Australia Trailer Solutions Group New Zealand Limited to buy MaxiTRANS’s NZ business and assets.

Also Read: Would 4 NZX travel stocks see a turnaround this year?

It is noted that MaxiTRANS is an established firm, focused on the heavy transport manufacturing industry.

The transaction amount is fixed at NZ$5.7 million, and the said acquisition will be finished by February end.

At the closing bell on 4 February, Tourism Holdings ended the trading session flat at NZ$2.840.

Serko Limited (NZX:SKO)

Focusing on corporate travel and expense management, Serko Limited has revised its trading guidance.

Owing to the ongoing volatility arising from the Omicron spread, the Company has adjusted its revenue guidance for FY22 to NZ$18 million-NZ$20.5 million, from the earlier given range of NZ$21 million and NZ$25 million.

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Further, it anticipates its average monthly cash burn for the half-year period ended 31 March 2022 to be about NZ$4 million.

At the closing bell, on 4 February, Serko ended the trading session up by 1.17% at NZ$5.2.

Bottom Line

Travel stocks which bore the maximum brunt of the pandemic, are now looking optimistic with the country’s border reopening announcement.