- NZ is reopening to the world in 5 phases and will remain open till October 2022 for people with valid visitor visas.
- Air NZ has removed vaccine and testing needs for domestic passengers.
- AIA witnessed a strong rebound in traffic from Australia as NZ reopened to Australian visitors on 13 April, resuming trans-Tasman travel.
New Zealand reopened its borders to the first set of visitors from Australia and Kiwis residing abroad on 13 April after remaining closed since March 2020. Foreign arrivals in the country have begun to show recovery after self-isolation requirements were removed for visiting Australians and residents returning home.
NZ is reopening to the world in 5 phases and will remain open till October 2022 for people with valid visitor visas. It will reopen its borders to visa-waiver countries like the US, Singapore, Japan and the UK from 2 May. The country is anticipated to open to all visitors from October this year.
Amid this background, let’s see how these 3 travel stocks are faring.
Source: © 2022 Kalkine Media®
Air NZ has relaxed its travel requirements. The airline has removed vaccine and testing needs for domestic passengers while allowing the unvaccinated for international flights from 1 May. However, masks will still be needed under orange light settings.
To meet demand, the airline aims to add 96 more trans-Tasman flights from April to June. On 6 April, Air New Zealand announced the start of their $1.2 billion Rights Offer.
On 20 April, at the time of writing, AIR was trading flat at $0.84.
AIA’s international passenger demand rose 172% on pcp in March due to border reopening while domestic passenger volumes fell in the month amid the Omicron outbreak.
AIA witnessed a strong rebound in traffic from Australia as NZ reopened to Australian visitors on 13 April, resuming trans-Tasman travel.
Scott Tasker, AIA’s general manager, stated that 15 April was the biggest travel day with over 10K international passengers arriving or departing from the airport on that day amid Easter and the school holiday period.
On 20 April, at the time of writing, AIA was trading at $7.76, up 0.91%.
Serko Limited (NZX:SKO)
Serko notified last month that it had seen a minimal impact with no supply-chain exposure directly to the Russia-Ukraine war.
The Group continued to see positive transaction growth since its February guidance update with Australian volumes growing to nearly 60% of the 2019 volumes and NZ volumes remaining repressed. Revenues from Booking.com for business volumes have also been rising every week since late January.
Serko expects FY22 revenue between $18 million and $20.5 million.
On 20 April, at the time of writing, SKO was trading at $4.5, down 1.1%.
It is yet to be seen how border reopening works out for NZ as the country is still facing Omicron prevalence.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)