- NZ will fully reopen its borders to international travelers from 31 July.
- Air NZ and Auckland Airport shares ended in the green on Monday.
- The opening up of tourism will provide the needed boost to the sector.
NZ will be fully reopened to international travelers on 31 July, resuming the travel 2 months ahead of schedule. PM Jacinda stated that the move will help in opening tourism, filling skill shortages and also in securing the economic future of the country.
Though NZ has been widely appreciated for its approach to tackling the COVID-19 pandemic, the hard-imposed COVID-19 lockdown has inflicted a heavy blow on industries like tourism, leaving several Kiwis trapped overseas.
On this backdrop, let’s skim through the performance of these 2 NZX-listed aviation stocks.
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The national carrier of NZ, Air NZ, has a market cap of $2.37 billion and its shares have fallen 25.2% YTD. AIR ended the day flat to close at $0.7.
Air New Zealand issued an update to its investors for March 2022. The number of passengers carried by the Group increased from 481K in February to 624K in March 2022.
Across the airline's global network operations, international passenger numbers increased from 6K in February to 20K in March. The numbers are expected to rise as New Zealand steadily opens its doors to overseas visitors.
The biggest airport of NZ, Auckland Airport, has a market cap of $10.94 billion and its shares have fallen 5.6% YTD. AIA ended the day 1.23% in the green to close at $7.39.
The Group provided its monthly traffic update for March and a preview for April 2022. AIA’s total passenger volumes fell nearly 15% in March 2022 compared to March 2021, while international passengers were up 330% in the month.
In April 2022, total passenger volumes increased 4.2% against April 2021. International passenger demand increased substantially by nearly 95% in April 2022 due to school holidays and the loosening of border curbs.
The opening up of tourism will provide the needed boost to the sector and in turn, also help in lifting agriculture and hospitality businesses. However, the tourism sector will take a few years to get back to pre-COVID-19 levels.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)