Lens on 3 NZX travel stocks- AIR, AIA, THL

Highlights

• New Zealand reopened to Australia on Monday.
• Air NZ share price has fallen by 15.54% year-to-date after the airline reported losses amid the COVID-19 impact.
• Auckland airport's revenue and operational EBITDA declined 4% and 31%, respectively, in H1 FY22.

New Zealand reopened to Australia on Monday with the removal of MIQ obligations for kiwis returning from Australia. Trans-Tasman travel has resumed after over 4 months of pause in the travel bubble.

The first aircraft of AIR NZ will be bringing Kiwis from Sydney and is likely to land in Auckland at 5:15 pm.

However, the US CDC has shifted NZ into the second-highest travel risk group. NZ is currently facing a record number of coronavirus cases and has been to Level 3 "high risk" by CDC from Level 2 "moderate".

On this note, let’s see how these 3 NZX travel stocks are doing.

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Air New Zealand Limited (NZX:AIR)

AIR NZ posted a statutory loss of $376 million and a 9% reduction in operational revenue in the first-half of FY22 on pcp. This was due to reduced overseas travel, longer lockdowns, and travel restrictions in Auckland.

DO READ: AIR, THL: 2 important travel stocks amid Westpac’s gloomy tourism forecast

For FY22, the Group projects a loss of more than $800 million. AIA intends to recapitalize its balance sheet and conduct an equity issue by the end of March. The airline expects over 300 flights for Sydney, Melbourne, Gold coast and Brisbane in March as NZ reopens for Australia.

Air NZ shares declined 0.33% in trading on Monday to close at $1.5.

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

In the six months to 31 December 2021, Auckland airport's revenue and operational EBITDA fell 4% and 31% to $126 million and $60 million, respectively, owing to Omicron and border restrictions caused by the COVID-19 pandemic.

ALSO READ: HGH, GMT and 3 other dividend stocks to be considered in March

For FY22, the Group anticipates an underlying loss after tax of between $25 million and $50 million. Due to the necessity for self-isolation for vaccinated travelers, it anticipates foreign travel numbers to be low.

AIA shares declined 1.83% in trading on Monday to close at $6.99.

Tourism Holdings Limited (NZX:THL)

THL reported a statutory loss after tax of $4.4 million and revenue of $174.9 million for the half-year ended 31 December 2021 on pcp as the company got hit by the ongoing COVID-19 pandemic. However, vehicle sales margins continued to be higher than past standards.

ALSO READ: Why is Tourism Holding’s (NZX:THL) stock flying despite dip in profits?

The proposed merger of THL and Apollo was the most important event for the company, and the next steps are likely to be revealed in early April.  THL expects to report a net loss after tax in H2 FY22 also, but with an improvement on the loss of $12.7 million in H2FY21.

THL shares gained 5.26% in trading on Monday to close at $2.6.

Bottom Line

NZ Government has planned to reopen the country in five stages. NZ will begin to ease border controls with Kiwis worldwide to skip isolation requirements from 14 March, tourists from visa-waiver countries in July, before all border limits end in October.

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