Why the Qantas (ASX:QAN) share price is flying 4% higher today

ASX 200 travel shares are eager to see more international borders reopen.

| More on:
Two travellers show their vaccinati0on status at the airport as international travel opens up

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 Qantas Airways Ltd (ASX: QAN) share price is flying higher today. Shares in the airline are up 4.09% to $5.85 per share at the time of writing.

And Qantas isn’t the only S&P/ASX 200 Index (ASX: XJO) travel share to be lifting off today.

The Webjet Ltd (ASX: WEB) share price is up 2.5% at this same time. And the Flight Centre Travel Group Ltd (ASX: FLT) share price is charging 4.8% higher.

This as the broader ASX 200 is struggling today, down 0.15%.

So, what’s helping lift the Qantas share price?

The world’s biggest economy throws open its doors

The United States, the world’s biggest economy, has just thrown open its doors to international travellers.

Well, sort of.

The US has announced that it will again allow entry to travellers from more than 30 nations. Aside from the European countries, those include India, China, Brazil and Australia.

That news looks to be driving interest in ASX 200 travel shares today, and providing welcome tailwinds for the Qantas share price.

But some caution remains in order.

As mentioned, the doors to international arrivals into the US have only “sort of” been fully reopened.

Though there may be select individual exemptions, only fully vaccinated travellers will be allowed to fly into the US. And surging COVID-19 cases across much of Europe in recent weeks has some market watchers worried new rounds of lockdown restrictions may be in the pipeline.

Then there’s the depressed demand from business travellers.

The pandemic saw most corporations turn to work from home settings, widely adopting video conferencing over any kind of face-to-face meetings. That drastic change in business modelling may well prove sticky, even as travel restrictions are lifted, as it costs a lot less to Zoom with US clients or colleagues than it does to fly your executive team across the world.

According to John Strickland at JLS Consulting in London (quoted by Bloomberg):

There’s definitely going to be pressure on ticket prices as airlines go after the same travellers. We’ve seen a surge in demand from people looking to visit friends and family, but although demand for premium leisure is encouraging, it will not likely be enough to offset the lack of business travel.

If Strickland’s right and ticket prices remain under pressure, that could in turn see the Qantas share price pressured as well.

Qantas share price snapshot

The Qantas share price has gained 19% so far in 2021. That compares to a year-to-date gain of 11% posted by the ASX 200.

Over the past month Qantas shares are up 5%.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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

a man stands with travel documents in hand with a roller wheel suitcase and extended handle next to him holding his forefinger to his lip as he ponders his next move in a deserted airport. as the Qantas share price falls
Travel Shares

Qantas share price slides as engineers plan strike action

Qantas is being impacted by potential industrial action.

Read more »

A pensive-looking woman sits on a chair with her chin on her hand looking into space with a large suitcase standing beside her as she contemplates travel to Europe and the Flight Centre share price
Travel Shares

Flight Centre completes turbulent journey in FY22

It was a choppy year for the travel share.

Read more »

Man in suit looks through binoculars in front of a control tower at an airport.
Travel Shares

The Corporate Travel share price hit major turbulence in June

The market punished this ASX travel share last month.

Read more »

A sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price falls
Travel Shares

Why did the Webjet share price fall 11% in June?

Did this weigh on the travel giant's stock last month?

Read more »

A Qantas pilot stands in an empty passenger cabin smiling with his arms crossed feeling excited about international travel resuming
Travel Shares

Why did the Qantas share price outperform the ASX 200 in FY22?

The future looks bright for the national carrier.

Read more »

A traveller sits slumped on the floor of an airport with ehr suitcase looking fed-up as other travellers walk past.
Travel Shares

How did ASX travel shares perform in June?

It hasn't been smooth sailing for ASX travel shares in the last month.

Read more »

Two adults and a child look happy as they walk through airport with child sitting on suitcase.
Travel Shares

ASX 200 travel shares leap as Australia scraps COVID-19 vaccine mandates for international arrivals

What positive news could be boosting ASX200 travel shares today?

Read more »

A mum lifts her daughter high into the air so she can fly.
Travel Shares

Here’s why I think the Webjet share price could fly higher in 2022

There are plenty of reasons why I think this ASX travel share is a good opportunity.

Read more »