Can these NZX travel stocks be explored amid delayed border reopening?

Highlights 

• The NZ Govt has announced fresh border restrictions in response to growing Omicron cases.
• Tourism Holdings enters into an agreement to acquire all the shares of Apollo Tourism & Leisure.
• Serko announces the closure of its retail offer, shares to begin trading lately.

Amid an increase in the spread of the contagious Omicron variant, the NZ Government has delayed its non-MIQ international travel to February-end, which otherwise was scheduled to start from 17 January onwards.

The said move would enable Kiwi health authorities to roll out the country’s booster shot programme to strengthen its overall protection and to limit the infection spread.

It is noted that the time between the second COVID-19 vaccine dose and the booster shot has been lowered down to four months from six months; nearly 82% of New Zealanders would be eligible for the booster shot by February-end.

Furthermore, NZ authorities have given the go-ahead for Pfizer vaccines to be administered to the age group of 5-11-year olds, the rollout of which would commence on 17 January.

With this backdrop, let us take a glance at the five NZX travel stocks.

Source: © 2021 Kalkine Media® data source- EODHD/Others

Tourism Holdings Limited (NZX:THL)

Tourism Holdings Limited is the leading provider of holiday campervans for rent as well as sales across Australasia. A few days ago, the Company announced signing an agreement for the proposed merger with Apollo Tourism & Leisure Limited (ASX:ATL), wherein THL would take 100% ownership of ATLS’ shares.

Do Read: Tourism Holdings (NZX:THL): What are the latest merger terms all about?

Both the companies would benefit from the said merger, which would enable them deriving cost synergies and greater fleet efficiency.

However, the transaction is subject to the approval of ATL's shareholders and other regulatory approvals across NZ and Australia.

On 22 December, at the end of the trading session, Tourism Holdings dipped by 1.32% at NZ$3.000.

Serko Limited (NZX:SKO; ASX:SKO)

Serko Limited, the corporate travel management company, has recently announced the closure of its non-underwritten retail offer, the proceeds of which were around NZ$8.3 million.

The trading of shares pertaining to the retail offer would have begun today on the NZX and Thursday on the ASX.

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On 22 December, at the end of the trading session, Serko gained 0.30% at NZ$6.700.

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

Auckland International Airport Limited has recently provided its traffic update for October 2021. Its total passenger volumes saw a reduction by 92.5%, owing to Auckland being at Alert Level 3 throughout the month.

Must Read: AIR & AIA: How are airline stocks surviving the pandemic?

As a result, the passenger movement for both domestic and international flights was very limited.

Also, even in November 2021, AIA’s total passenger volumes fell by almost 89%, majorly on account of the above-mentioned alert level.

On 22 December, at the end of the trading session, Auckland International Airport rose 0.20% at NZ$7.625.

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

Air New Zealand Limited has revealed its revised Crown support package with an additional funding of NZ$500 million to better equip the Company amid its capital raise.

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

The revised support package now stands at NZ$2 billion.

Further, the Company has sought a waiver from the NZX to avail the said facility without the requirement of its shareholders’ approval.

On 22 December, at the time of writing, Air New Zealand fell by 0.33% at NZ$1.505.

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

Millennium & Copthorne Hotels New Zealand Limited has mandated the compulsory vaccination of all its guests staying or visiting its premises to ensure the safety of both its guests as well as staff members.

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

However, the above decision is only for those who can be vaccinated, and children under 12 years are exempted from it.

Moreover, MCK has made it compulsory for its entire staff to get fully vaccinated by 17 January next year.

On 22 December, at the time of writing, Millennium & Copthorne Hotels New Zealand was down by 2.14% at NZ$2.29.

Bottom Line

NZ authorities are trying their best to contain the spread of the new COVID-19 variant so that both its citizens and businesses are not impacted.