The share prices of Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) could all go higher thanks to New Zealand.
What happened?
Yesterday we learned that New Zealand Prime Minister Jacinda Ardern plans to let Australians come into New Zealand and for it to be quarantine free by the end of March 2021, which means it could happen earlier than expected.
According to reporting by various media, Prime Minister Ardern said that there was still much more to be done before a firm announcement can be made: “It is our intention to name a date … in the new year, once remaining details are locked down. New Zealand currently has the lowest Covid-19 mortality rate and lowest number of active cases of OECD countries.”
One of the issues that New Zealand is thinking about is how to allow passengers from safe zones come into the country whilst keeping them separate from places that have heavy COVID-19 outbreaks.
From Australia’s side, the country is ready to start. Indeed, Australia is already accepting passengers from New Zealand quarantine free.
Before COVID-19, Australia was the biggest international visitor market to New Zealand and New Zealand was one of the biggest sources of passengers to Australia.
What does this mean for ASX shares?
There are plenty of ASX shares that will benefit from a return to normal travel between Australia and New Zealand. I’m thinking of businesses like Qantas, Flight Centre and Webjet.
Other ASX shares could also get a boost including Auckland International Airport Limited (ASX: AIA), Air New Zealand Limited (ASX: AIZ) and Sydney Airport Holdings Pty Ltd (ASX: SYD).
More passengers and visitors means more earnings for those businesses involved with getting passengers from A to B.
Air New Zealand CEO Greg Foran said: “Our teams are busy preparing for recommencing quarantine-free travel. Safety is obviously a big priority for our airline, and we’ve been working closely with governments, relevant agencies and airports on what is required to keep our customers and staff safe once travel opens up.”
I think quite a lot of the recovery has already been captured, so the rest of the recovery could depend on how quickly and effectively a COVID-19 vaccine is able to solve the spread of the disease in the northern hemisphere. However, there are other recovery ASX shares I’d rather go for such as A2 Milk Company Ltd (ASX: A2M).
