AIR, AIA: 2 stocks in news as AU-NZ travel resumes ahead of Easter

Be the First to Comment Read

AIR, AIA: 2 stocks in news as AU-NZ travel resumes ahead of Easter

 AIR, AIA: 2 stocks in news as AU-NZ travel resumes ahead of Easter
Image source: stockphoto mania, Shutterstock.com

Highlights

  • Vaccinated Australians and permanent residents entered NZ without undergoing any quarantine on Wednesday.
  • Air NZ announced that domestic passengers would not have to show vaccination proof or a negative COVID-19 report from Thursday.
  • AIA’s International passengers demand picked up in March 2022.

Vaccinated Australians and permanent residents entered NZ without undergoing any quarantine on Wednesday in the first stage of the country’s phased reopening. Australians set foot on NZ grounds after 9 months since the trans-Tasman bubble began in July 2021. NZ had planned to reopen its borders in early 2022 but its plans were disrupted by the Omicron outbreak.

All quarantine limitations were done away with for returning Kiwis in early March while all other international visitors will be permitted to enter NZ from October. Travelers from visa-waiver countries like the UK, the US, Germany, Japan, Singapore and South Korea will be able to enter NZ from 1 May without any isolation.

NZ also moved to orange light settings on Wednesday as community cases of COVID-19 experienced a dip.

Here is a look at the performance of 2 NZX aviation stocks.

Image source: © 2022 Kalkine Media®

Air New Zealand Limited (NZX:AIRASX:AIZ)

Air NZ revealed on Thursday that it had dropped its vaccine requirements for both domestic and international passengers.

Domestic passengers will not have to show vaccination proof or a negative COVID-19 report from Thursday while international flights will be opened to both vaccinated and unvaccinated from 1 May. Policy changes come as NZ moved to the orange light setting on Thursday. The airline has plans to put an additional 96 trans-Tasman flights from April-June to cope with the demand.

DO READ: AIR, AIA- 2 NZX aviation stocks in news as travel industry rebounds

Air NZ also announced the opening of its Rights Offer for raising $1.2 billion on 6 April.

On 14 April, at the time of writing, AIR was trading at $0.85, up 0.59%.

Auckland International Airport Limited (NZX:AIAASX:AIA)

AIA provided its monthly traffic update on Thursday. The Group’s passenger volumes fell 19.9% in February 2022 on pcp and dropped 14.8% in March 2022 on pcp.

International passengers demand picked up in March 2022 (+172% on prior month) due to border reopening to vaccinated Australians and returning Kiwis without self-isolation requirements. However, domestic passenger volumes decreased in March due to Omicron prevalence, but traffic improved in the last week of March.

DO READ: Interested in logistics stocks? 2 stocks to look at this month-FRE, MFT

On 14 April, at the time of writing, AIA was trading at $7.68, up 0.39%.

Bottom Line

Positive changes are likely to take place for airlines as NZ reopens its border throughout 2022 and moves to normality. However, airlines continue to face high fuel costs and wage inflation that is forcing them to charge higher fares from travelers.

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

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK