Recent macroeconomic changes have driven up the market sentiment and share prices of airline shares, including Flight Centre, Qantas & Air New Zealand.
One of these trends is the recent dramatic correction in oil prices. This downtrend is nothing but news for airline operators, with oil prices being the primary input for what these companies spend on fuel.
This has had a direct impact on the Qantas share price, which at the time of writing was up 3% to $5.08 a share. Further to this, any possible government relief for petrol prices will give a well needed boost to consumer sentiment and spending. With regards to Qantas specifically, they have also recently signed a new sustainable fuel deal to power flights from San Francisco, Los Angeles, and Australia.
Flight Centre have also benefitted from some macroeconomic news coming out of New Zealand. The NZ government announced today that as of the 12th of April, Aussie tourists will be able to visit the country without the need for isolation.
New Zealand Prime Minister Jacinda Ardern said:
“Reopening in time for the upcoming Australian school holidays will help spur our economic recovery in the short term and is good news for the winter ski season.”
At the beginning of trading today, FLT shares rose 5% to $19.75 a share.
While the sentiment for airline shares is not perfect, the clouds definitely seem to be clearing going forward.