Why are Qantas, Flight Centre shares on the rise?
Shares of Australia’s national carrier Qantas and travel agencies Flight Centre Travel Group and Webjet rallied strongly to start the week.
- Qantas Airways (ASX: QAN) share price rose to a high of A$5.88 on Monday (27 September)
- Flight Centre Travel Group (ASX: FLT) share price soared to A$21.70
- Webjet (ASX: WEB) shares hit a peak of A$6.50
- Victoria and New South Wales shared their cautious but optimistic reopening plans over the weekend
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Australia airline and travel stocks: what’s the latest?
Australian airline and travel stocks rallied on Monday morning, after the premiers of Victoria and New South Wales revealed plans to reopen their states from as early as next month.
Qantas shares jumped up as much as 4.3% while Flight Centre Travel Group shares skyrocketed by nearly 10% in the morning session.
Both Qantas and Flight Centre stocks have been performing well of late, with the former up 13% in the last one month and the latter up 25% for the same time period.
Elsewhere, online travel agency Webjet’s shares also rose some 5.5% on Monday. The stock has risen 17% since the start of September.
Reopening: what are the plans of each state?
For Victoria, the plan to a full reopening will begin with vaccinated economy trials from 11 October, roughly two weeks before the state is expected to hit a 70% double dose vaccination rate.
Up to 20 trial sites in local government areas with low cases counts and high inoculation rates, including venues and events, will be chosen to operate. The trials will allow authorities to study and improve upon vaccination status identification methods.
Victoria Premier Dan Andrews said he will not be making any changes to his state’s reopening roadmap, which is more conservative than neighbouring New South Wales.
‘The actuals will always beat whatever modelling you have done. We will be able to watch and see what happens, and that information will be important for us,’ he said.
Meanwhile, New South Wales is also working on a ‘step-by-step’ reopening plan, with Premier Gladys Berejiklian stating that ‘it must be done cautiously’.
‘So while we are all looking forward, (it’s) almost a gallop to the finish line in terms of the double dose, we need to make sure that what we do at 70% and 80% is done cautiously and also moderately’, she said last Friday.
Contrastingly, the premiers of Queensland and Western Australia are reportedly showing signs of reluctance to reopen their states.
Prime Minister Scott Morrison has responded by urging them to ‘honour the arrangement you’ve made with the Australian people’, adding that ‘when you get to 80% vaccination, it’s very clear that you can start opening up’.
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