Sponsored What does the commencement of international travel mean for the markets?
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What does the commencement of international travel mean for the markets?

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Australia’s airports will soon emerge from hibernation, with airline shares also set to reawaken.

Qantas will take to the skies in December, resuming international travel with routes to highly vaccinated countries.

After enduring some of the worst economic impacts of the COVID-19 pandemic, the airline industry is finally set to get back to work.

It means investors could see good returns on Qantas shares in the future, said Tony Sycamore, City Index market analyst.

“The prospect of a partial reopening of domestic borders and a full reopening of international borders has generated huge interest in stocks such as Qantas,” he said.

“The Qantas stock price has rallied over 30 per cent in the past three weeks from $4.20 to above $5.40, in anticipation of a travel boom from pent-up demand from a nation of people who love to travel.

Australia’s airports will soon emerge from hibernation, with airline shares also set to reawaken. Photo: Getty

“The reopening dynamic should see the Qantas share price well supported on dips in coming months.”

The plans are in sync with the Morrison government’s four-phase plan for reopening Australia in line with vaccination targets.

As part of the national cabinet’s Phase C, state and territory governments will abolish caps on vaccinated Australians returning from overseas, and lift restrictions on outbound, vaccinated travellers.

Qantas will initially focus on flights to North America, UK, Singapore and Japan, with further plans to resume its busy Los Angeles and London service from mid-2022.

Qantas chief executive Alan Joyce said the airline was also working with the International Air Transport Association on a plan to help customers prove their vaccination status.

Joyce said a lot of preparation was going into the resumption of flights.

“It’s obviously up to government exactly how and when our international borders reopen, but with Australia on track to meet the 80 per cent trigger agreed by national cabinet by the end of the year, we need to plan ahead for what is a complex restart process,” he said.

“There’s a lot of work that needs to happen, including training for our people and carefully bringing aircraft back into service.

“We can adjust our plans if the circumstances change, which we’ve already had to do several times during this pandemic. Some people might say we’re being too optimistic, but based on the pace of the vaccine rollout, this is within reach and we want to make sure we’re ready.”

The QAN stock price is also enjoying share price growth, thanks to incentives offered by the national carrier.

These include a reward campaign encouraging people to get vaccinated.

Prizes on offer include a year’s worth of flights to 60 destinations, free accommodation and free fuel for 10 people.

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