Keen investors will monitor the share prices for a batch of ASX-listed companies on Monday after a two-way travel bubble between Australia and New Zealand started operating.
The agreement between the two countries took effect late Sunday night AEST. This means travellers from either side no longer have to undergo mandatory COVID-19 quarantine in either country.
Qantas Airways Limited (ASX: QAN) and its budget brand Jetstar on Monday resumed all of its pre-COVID flights to New Zealand, plus a new route between the Gold Coast and Auckland.
"Quarantine-free travel has been almost 400 days in the making," said Qantas chief executive Alan Joyce at Sydney Airport Holdings Pty Ltd (ASX: SYD).
"Reopening these flights across the Tasman is a very important milestone in the recovery from the pandemic for Australia and New Zealand but also aviation and tourism."
Joyce added the bubble is also a boon for family and friends reuniting after more than a year apart.
"It means we'll be able to get more planes back in the sky and more of our people back to work," he said.
"New Zealand was Australia's second biggest source of international visitors before the pandemic. Today, it's about to go straight to number one."
Oddly, Qantas shares were down 1.54% on Monday afternoon, to trade at $5.10. But that's still 64% up on its 52-week low of $3.12.
Sydney Airport stocks also dipped, trading at $6.08, which is 0.49% down on Monday.
Meanwhile, Air New Zealand Limited (ASX: AIZ) shares were faring much better, up 1.12% to trade at $1.80 on Monday afternoon.
Auckland International Airport Limited (ASX: AIA) stocks were also flying high, soaring more than 4% to trade at $7.73.
Air New Zealand stated earlier this month that trans-Tasman travel accounted for about 20% of the company's pre-pandemic revenue.
The Kiwi carrier resumed flights to 9 Australian destinations on Monday, with capacity at 70% of pre-coronavirus levels.
Joyce said New Zealand flights have been popular since the bubble was announced on 6 April.
"We've seen strong demand since the bubble was announced, with tens of thousands of bookings made in the first few days. We've also added more flights to Queenstown to meet expected demand during the peak ski season."
What if there's a COVID breakout somewhere in Australia or NZ?
With many people still shy about committing to a trans-Tasman trip due to the unpredictability of border closures, tourism companies have sought to provide flexible terms.
Qantas, for example, is offering unlimited zero-fee date changes for bookings made before 31 July for travel on or before 22 February 2022.
Budget brand Jetstar is allowing passengers to purchase an add-on to their tickets that would allow them to cancel for any reason.
Gold frequent flyers and Qantas Club members are also allowed into the First Class lounges in Sydney and Melbourne temporarily.
New Zealand prime minister Jacinda Ardern indicated earlier this month that any border restrictions might come on a state-by-state basis, depending on the severity of the outbreak.
