To the surprise of some, the Regional Express Holdings Ltd (ASX: REX) share price is surging higher on Monday. This is despite the regional airline announcing further extensions to suspensions of services and staff stand-downs.
At the time of writing, shares in the domestic airline are fetching $1.47, up 5% for the day.
Further delays not hitting the Regional Express share price
Regardless of the company’s latest announcement, investors are bidding up the Regional Express share price today.
Certainly, the company is not alone in the optimistic exuberance on display during the session on Monday. Indeed, much of the ASX travel sector is buoyed with growth to kick off the new week.
It appears not even the company’s latest announcement can dampen investor sentiment. According to its release, Regional Express has been left with no other option but to extend its suspension of domestic services and reduction of regional services. As a result, staff stand-downs will also need to be extended.
This marks the company’s second such extension. Originally, the airline expected the measures to be in place until 12 September. However, due to lockdowns across Greater Sydney, on 1 September this was extended to 10 October 2021.
Unfortunately, the lingering of lockdowns across multiple states means the airline has now had to push these suspensions out until at least 31 October 2021. This date aligns with when Regional Express expects all of its customer-facing staff to be fully vaccinated against COVID-19.
Light at the end of the tunnel
In lieu of these setbacks, onlookers might be scratching their heads as to why the Regional Express share price is pushing higher today.
It seems positive reopening commentary from government officials has boosted travel shares. NSW Premier Gladys Berejiklian has released her plans to open up the state after achieving an 80% vaccination level.
The news has sent numerous ASX-listed travel shares flying higher at the start of the week. These include Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Ltd (ASX: QAN), and Corporate Travel Management Ltd (ASX: CTD)