Trans-Tasman Bubble: Does this mean take off for ASX listed airports?

The Auckland International (ASX: AIA) and Sydney Airport (ASX: SYD) share price might take off today over the Trans-Tasman Bubble today.

| More on:

ASX listed airports might be set to take off today after the trans-Tasman Bubble was announced this afternoon. The Sydney Airport Holdings Pty (ASX: SYD) share price has jumped slightly since the news was announced but the Auckland International Airport Limited (ASX: AIA) share price is experiencing some turbulence.

At the time of writing, the Sydney Airport share price is up 2.8% today, trading for $6.24.

While the Auckland International share price is $7.15, up 1.13%.

Here’s what we know so far about the implications of the trans-Tasman bubble for the ASX listed airports and their share prices.

What it means for the Auckland International and Sydney Airport share prices

The Trans-Tasman Bubble will see Australians and New Zealanders able to travel between the two countries without quarantining on arrival.

It will begin on April 19. Though, New Zealand’s prime minister Jacinda Ardern cautions that travel plans may change at short notice as a result of outbreaks.

Ardern also stated there may be deemed necessary for Australians to receive a COVID-19 test prior to travel to New Zealand and participation in the bubble may vary from state to state. With that said, Queensland is not expected to be participating on 19 April.

Airline input

Qantas Airways Ltd (ASX: QAN) has announced that it and Jetstar will operate up to 122 return flights over 15 routes between Australia and new Zealand per week, beginning on 19 April.

While the airline hasn’t announced how many flights will be taking off or landing at either Sydney Airport or Auckland International, it has stated it will initially be flying only to Auckland. There, Qantas and Jetstar will continue to operate its domestic schedules. There’s a potential that the Auckland International share price may fare better than that of Sydney Airport as there looks to be more flights landing and taking off there. 

Qantas will also launch two new direct routes from Auckland. It will be flying return to Cairns 3 times a week and daily to the Gold Coast. The two new routes are set to launch in time for the June long weekend.

Qantas says these flights will see its operating capacity increase to 83% of what it was before the pandemic. The statistic is good news for both ASX listed airports. 

Air New Zealand (ASX:AIZ) is also flying across the ditch, starting on 19 April. It will be operating 3 to 5 direct flights a day between Sydney and Auckland.

It will also be operating between 17 and 28 return flights from Wellington, Christchurch, and Queenstown to Sydney. Auckland will be receiving Air New Zealand flights from 8 other Australian airports, with between 25 and 31 flights a week landing and taking off from the city.

While it is likely flights to and from Auckland and Sydney will be land in or taking off from one of the two ASX listed airports, it hasn’t yet been confirmed.

Comments from Virgin

Virgin Australia has stated it won’t begin flights to New Zealand until September. Even then it will only fly into Queenstown until late October.

It commented:

While the airline remains committed to Trans-Tasman flying when the market fully recovers, we are mindful of evolving border requirements which add complexity to our business as we push ahead with plans to grow our core domestic Australia operations.

Sydney Airport share price in a nutshell 

The Sydney Airport share price is powering up on the ASX, having climbed 24% higher over the last 12 months. 

Though, even with today’s gains the airports share price is still down 2% year to date. 

It has a market capitalisation of around $16 billion, with 2.7 billion shares outstanding.

Auckland International share price snapshot

The Auckland International share price isn’t travelling as high on the ASX as its Australian counterpart today. It’s doing well in the long haul though. 

It has broke even year to date, and is up 43.78% over the last 12 months. 

Auckland International has a market capitalisation of around $10 billion, with approximately 1.47 billion shares outstanding.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Top 10 - asx shares today
Share Market News

Here are the top 10 ASX shares today

Today, the S&P/ASX 200 Index (ASX: XJO) fought back against the selling pressure throughout the day to finish in the green. …

Read more »

The word inflation written with a ticking time bomb.
Share Market News

Why is it when Jerome Powell sneezes, the ASX 200 catches a cold?

Key points The ASX 200 took a hit following comments from the United States Federal Reserve chair Jerome Powell Expectations …

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

These 3 ASX 200 shares are topping the volume charts this Friday

Finally, a day of green for ASX shares! The S&P/ASX 200 Index (ASX: XJO) is bouncing back strongly today, after a …

Read more »

Young boy wearing suit and glasses adds up on calculator with coins on table
Share Market News

This world-famous fund manager is ‘buying the dip’. Here’s why

Key points Bill Ackman is one of the most famous fund managers in the world He runs Pershing Square Capital …

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Share Market News

ASX 200 (ASX:XJO) midday update: ResMed and PointsBet disappoint

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a much-needed positive …

Read more »

A man activates an arrow shooting up into a cloud sign on his phone, indicating share price movement in ASX tech shares
Share Market News

Is the Betashares Nasdaq 100 ETF (ASX:NDQ) an opportunity in this market correction?

Could the Betashares Nasdaq 100 ETF (ASX: NDQ) be a good opportunity during this correction for both the global share …

Read more »

A woman shouts through a megaphone.
Share Market News

2 ASX growth shares to buy in February with 40% upside

If you’re looking to make some additions to your portfolio in February, then the two ASX shares listed below could …

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Friday

On Thursday, the S&P/ASX 200 Index (ASX: XJO) fought hard and was able to record a small gain. The benchmark index rose …

Read more »