ASX travel shares are taking off today amid news a decision on international borders could be "imminent".
Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) shares are climbing following rumblings tourists may soon be able to enter Australia.
Let's look at what is at play today.
Decision on international border expected
Travel shares on the ASX could be gaining today in anticipation of an announcement on Australia's borders.
Speculation is mounting that the Federal Government will reveal early this week when it will reopen borders to international tourists.
In an interview with ABC Insiders on Sunday, Home Affairs Minister Karen Andrews said:
The next phase is to open to tourists. We need to bring those back so as soon as we can, we will be opening to international tourists – it's imminent.
So, that is a priority for us now. And I know that the Prime Minister and I know that I have been working over the last few weeks in particular to make sure that we are ready to open to international tourists as soon as it is safe to do so.
Further, Prime Minister Scott Morrison said the reopening will be addressed in Parliament this week. This will come as welcome news to investors in ASX travel shares. In a press conference in Sydney on Sunday, Morrison commented:
As we go into this parliamentary week, there are many important matters that we'll be addressing. One of those we will be addressing very early on is the issue of the opening up of our international borders to international visitors again.
On Friday, the Qantas share price surged 4% after announcing changes to its frequent flyer program. The airline will cut the number of points required to book hotels or holiday packages. Also on Friday, Qantas CEO Alan Joyce compared the West Australian border restrictions to North Korea.
In comments reported on 7 News, Joyce said.
It's starting to look like North Korea.
It's going to be closed indefinitely at this stage unless we have a plan to start living with COVID and opening to up the rest of the country.
However, WA Premier Mark McGowan slightly eased restrictions on Saturday, despite the border reopening remaining on hold, the ABC reported. More compassionate exemptions for people with strong WA connections or medical reasons to travel are now in place.
Travel shares gain traction
At lunchtime on Monday, Qantas and Webjet shares are up 1.64% and 1.54%, respectively.
Meanwhile, ASX travel share Flight Centre is seeing the greatest surge on the back of the news, rising 4.5%. This continues a good run for the travel agent. Flight Centre was one of the best performers last week, gaining 10%.
As my Foolish colleague James noted, investors may be optimistic the travel market recovery is on the way.
