What’s going on with the Qantas share price?
Investors seem to be continuing to react positively to the news that the border between Australia and New Zealand will soon by fully open. There’s going to be a travel bubble between the two countries where travellers won’t have to quarantine to visit either country.
That should mean a lot more flights from Australia to New Zealand. It may also mean more flights to Australia because Kiwis won’t have to quarantine when they go back.
Qantas will reportedly fly up to 122 return flights each week to New Zealand once the bubble opens. Qantas and Jetstar will resume the previous 13 routes that were done before COVID-19, as well as two new routes, which will connect Auckland, Cairns and the Gold Coast. Flights will also be available for the whole year between Queenstown, Melbourne and Brisbane.
Qantas believes the New Zealand routes will increase its operating capacity to 83% of pre-COVID-19 levels, which the airline says “reflects a high level of expected demand for what will be Australia’s only international destination for at least the next six months”.
The Guardian quoted Qantas executive Andrew David, he said: “Restarting flights to New Zealand is about more than starting to rebuild our international network, it’s about reconnecting families and friends and getting more of our people back flying again. We know Australians are keen to head overseas again, so we expect strong demand for flights to New Zealand and there are many Kiwis who can’t wait for a winter escape to warmer weather in Australia.”
The Qantas share price is exciting investors again, but its profit still has a long way to go to fully recover. It could be one to watch, if the bubble leads to a lot of passengers.
There may be other ASX growth shares even closer to a recovery though.