The Qantas Airways Limited (ASX: QAN) share price is a top performer on Tuesday, rallying 2.60% to a 6-month high of $5.52.
Global travel shares managed to edge higher overnight, with the US Global Jets ETF closing 0.62% higher.
The Jets ETF provides investors exposure to the global airline industry, including airline operators and manufacturers from all over the world. Some of its smaller allocations include Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas shares.
What’s driving the strength behind travel shares?
The Qantas share price and broader travel industry appear to be rallying in response to a sweep of changes to US travel policies.
According to Bloomberg, the White House announced on Monday that it will soon allow entry to most foreign air travellers, as long as they’re fully vaccinated.
The new policies will replace the US’s current outright ban on entry from most foreign nations including the United Kingdom, Southern Europe, China, India, South Africa and Brazil, regardless of vaccination status.
The new policy is expected to take effect in early November, but no specific date has been set.
US-listed airlines such as American Airlines and Delta Airlines welcomed the news, rallying 3.04% and 1.67% respectively on Monday.
Qantas share price tests 6-month highs
The Qantas share price has largely been range bound since November last year, struggling to break above $5.80 but finding plenty of bidders at the low $4 level.
Qantas has rallied strongly in the past three weeks, adding almost 30% since 20 August. At the time of writing, Qantas shares are trading for $5.50, up 2.32%.
Qantas said it plans to open services to London, Los Angeles, Singapore, Vancouver by 18 December, subject to pending border openings and vaccination targets.