What's impacting the Regional Express (ASX:REX) share price this week?

The airline's shares are falling as Omicron fears impact travel plans

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The Regional Express Holdings Ltd (ASX: REX) share price is having a tough start to the week.

The airline's shares are down 1.07% at the time of writing to $1.39. That means they are now down 1.77% on Friday's closing price.

Let's delve into what might be impacting the company's shares this week.

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand.

Image source: Getty Images

Survey reveals travel fears

The Regional Express share price may be falling amid wider market Omicron fears and border closure threats impacting travel.

One clue may lay in a survey released this week on the summer travel plans of Australians.

Four out of five Australians have either cancelled or are unsure about their summer holiday travel plans, Tourism and Transport Australia found.

Meanwhile, one in two people has no confidence about travelling interstate.

The Regional Express share price fall comes amid the company completing its first flight from Sydney to Brisbane on Monday afternoon. The company first informed the market of this flight route in November.

The airline is now flying three times a day between the two cities on Monday to Friday and twice a day on weekends.

Commenting on the news, Rex Airlines deputy chairman John Sharp said:

This is a great way to end what has been an extraordinary year for both Rex and the whole aviation industry.

Despite the obvious difficulties I am extremely proud of what we have been able to achieve. It's always nice to prove the sceptics wrong and the big plans we have for 2022 means next year promises to be even more exciting.

It's not been all bad news for travel shares this week though. The Qantas Airways Limited (ASX: QAN) share price is currently up 0.84% to $4.82 after closing flat yesterday.

Regional Express share price recap

The Regional Express share price has plunged 29% in the past 12 months and 32% year to date. During the past month, the company's shares have dropped by more than 6% and 3% in the past week.

Rex Airlines has a market capitalisation of roughly $154 million based on its current share price.

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.

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