Auckland Airport (ASX:AIA) share price jumps 6% on travel bubble news

Auckland Airport taking flight on travel bubble news and Sydney Airport deals…

| More on:
woman in mask placing bag on airplane indicating travel

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Auckland Airport International Limited (ASX: AIA) share price is pointing towards the sky today.

In afternoon trade, the New Zealand airport operator's shares are going for $7.13 a piece, up 6.42%.

NZ travel bubble back open for some

It appears investors are more optimistic towards AIA shares today, driving the price higher. Considering there is no news published by the kiwi airport, the momentum might be coming from elsewhere.

Yesterday, the New Zealand government announced the resumption of quarantine-free travel from Australia. However, the government stipulated it would only be available to the ACT, South Australia, Tasmania, and Victoria.

Meanwhile, travellers from New South Wales, Northern Territory, Queensland, and Western Australia will stay on pause until 6 July 2021, at the earliest.

The New Zealand travel bubble was completely closed off from Australia on 26 June 2021.

This was in response to the growing number of locally acquired cases reported throughout the country. Astonishingly, this led to roughly a third of Australia's population being put into lockdown last week.

A rising tide lifting all airports

Another event that could be turning investor's eyes towards the AIA share price today is the proposed acquisition lobbed towards Sydney Airport Holdings Pty Ltd (ASX: SYD) this morning.

A consortium of infrastructure investors have made an offer at an indicative price of $8.25 a share to acquire 100% of Australia's largest airport. The investors include IFM Investors, QSuper, and Global Infrastructure Management.

Furthermore, the deal would value Sydney airport at $22.26 billion, 42% higher than the $15.69 billion market capitalisation at the end of last week.

The offer is only 6.9% off from the airport operator's record pre-pandemic high of $8.86. Whereas, Auckland Airport's share price is still roughly 23% off from its pre-COVID high of $9.32.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Travel Shares

Bored woman waiting for her flight at the airport.
Travel Shares

Why is the Flight Centre share price falling today?

What's going on with this travel agent's shares?

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

A 'once in a lifetime' opportunity for Qantas shares?

Can this stock fly higher?

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Act fast if you want to receive the next Flight Centre dividend

It won't be long until this travel agent pays its next dividend.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Why is the Webjet share price racing to a 52-week high today?

Webjet has been busy talking up its WebBeds business this morning.

Read more »

A businessman points a finger in accusation, indicating a share price or ASX company in trouble
Travel Shares

Qantas shares hit turbulence amid $250,000 fine for 'shameful' conduct

ASX 200 investors are bidding down the Qantas share price on Wednesday.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Flight Centre shares plunge 7% despite return of the interim dividend

ASX 200 investors are sending the Flight Centre share price spiralling lower on Wednesday.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Earnings Results

Flight Centre share price on watch amid 565% half-year profit surge

Flight Centre shares could see some sizeable moves today after the ASX 200 travel stock reported on its half-year results.

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Own Flight Centre shares? Here's what you need to know ahead of its results

The travel agent giant is releasing its results on Wednesday next week.

Read more »