Why these top 4 ASX travel and airline stocks surged on Tuesday

With BioNTech and Pfizer announcing a potentially game-changing covid-19 vaccine overnight, ASX-listed travel and airline stocks surged when trade resumed on Tuesday.

The beginning of a sharp rotation?

Airline and travel stocks have been some of the worst hit as a result of the coronavirus pandemic.

Indeed, just a month ago, a bet on the recovery of airline stocks might have just been the ultimate contrarian play: planes have been grounded, cash flows have been squeezed and the outlook for the industry was marred by deep uncertainty.

That uncertainty appears to have diminished significantly almost in a flash, with biotech giants BioNTech (+13.91%) and Pfizer (+7.69%) overnight announcing that its coronavirus vaccine had proved to be more than 90% effective during its recent phase 3 study – conducted with more than 40,000 participants.

‘Today is a great day for science and humanity. The first set of results from our Phase 3 COVID-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent COVID-19,’ said Pfizer’s CEO Dr Albert Bourla.

Qantas, Webjet and Sydney Airport share prices surge on vaccine assumptions

The promise of an effective vaccine saw the Australian market split down the middle, as many of the stocks hyped up during the pandemic were sold off. On the one hand, investors bid up beaten down and out-of-favour stocks such as airline and travel stocks to new multi-month highs. Looking at the price action from the open:

Ultimately, while the prospect of a vaccine unlocking international travel sooner than previously expected would be a distinct positive for ASX-listed travel and airline stocks, it should be noted that BioNTech and Pfizer’s vaccine, though promising, still must be approved by the FDA. Both companies are currently collating the relevant efficacy as well as safety and manufacturing data to that end.

Despite that hurdle, it was noted that some 50 million vaccine doses could be produced by the close of 2020 and as much as 1.3 billion doses in 2021.

E-commerce stocks plunge

Of course, while airline and travel stocks were bid higher on the prospect of sooner-than-expected international air travel; ASX-listed ecommerce stocks, that proved so popular amongst investors during the height of the pandemic, were abandoned by the market.

By 11:10AM, art-focused online marketplace Redbubble had seen its share price fall 17.81% to $4.06 per share; online furniture dealer Temple & Webster had crashed a staggering 19.92% to $10.01 per share, and meals delivery company Marley Spoon was down 20.46%, to 2.06 per share.

How to trade ASX travel stocks

You can use CFDs to trade some of the airline and travel stocks we have discussed today – LONG or SHORT – through IG’s world-class trading platform now. For example, to buy (long) or sell (short) Sydney Airport using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘Sydney Airport’ or ‘SYD’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.