Qantas (ASX: QAN) share price higher as US plans to open air travel

Things are looking up for the travel industry.

| More on:

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 Limited (ASX: QAN) share price is a top performer on Tuesday, rallying 2.60% to a 6-month high of $5.52.

Global travel shares managed to edge higher overnight, with the US Global Jets ETF closing 0.62% higher.

The Jets ETF provides investors exposure to the global airline industry, including airline operators and manufacturers from all over the world. Some of its smaller allocations include Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas shares.

a tourist wearing a bright patterned shirt, straw hat and with a video camera has an excited look on his face.

Image source: Getty Images

What's driving the strength behind travel shares?

The Qantas share price and broader travel industry appear to be rallying in response to a sweep of changes to US travel policies.

According to Bloomberg, the White House announced on Monday that it will soon allow entry to most foreign air travellers, as long as they're fully vaccinated.

The new policies will replace the US's current outright ban on entry from most foreign nations including the United Kingdom, Southern Europe, China, India, South Africa and Brazil, regardless of vaccination status.

The new policy is expected to take effect in early November, but no specific date has been set.

US-listed airlines such as American Airlines and Delta Airlines welcomed the news, rallying 3.04% and 1.67% respectively on Monday.

Qantas share price tests 6-month highs

The Qantas share price has largely been range bound since November last year, struggling to break above $5.80 but finding plenty of bidders at the low $4 level.

Qantas has rallied strongly in the past three weeks, adding almost 30% since 20 August. At the time of writing, Qantas shares are trading for $5.50, up 2.32%.

Its performance has been propped up by an optimistic FY21 results announcement in addition to its plans to relaunch international flights by mid-December.

Qantas said it plans to open services to London, Los Angeles, Singapore, Vancouver by 18 December, subject to pending border openings and vaccination targets.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. 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.

More on Share Gainers

A service station attendant crosses his arms and smiles towards the camera with a backdrop of petrol bowsers and a drive-through facility.
Share Gainers

Ampol shares surge 50% to a two-year high: Buy, sell or hold?

Find out what upside analysts are tipping for Ampol shares next.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why 29Metals, Aurelia Metals, Codan, and oOhMedia shares are racing higher today

These shares are faring better than most on hump day. What's going on?

Read more »

A male ASX investor on the street wearing a grey suit clenches his fist and yells yes after seeing on his ipad that the Paladin share price is going up again today
Share Market News

If I'd put $6K in this ASX mining stock 12 months ago I'd have over $20k now

Analysts tip the ASX miner's share price to climbing higher over the next 12 months.

Read more »

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another rough one for investors this Tuesday.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Guess which ASX rare earths stock just leapt 68% on big acquisition news

Investors are piling into the ASX rare earths miner today after it emerged from a lengthy trading halt.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Share Gainers

Why Elsight, IperionX, Predictive Discovery, and Reliance shares are pushing higher today

Let's see why investors are bidding these shares higher today.

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing start to the trading week.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Atlas Arteria, Forrestania, Megaport, and WA1 shares are charging higher today

These shares are starting the week positively. But why?

Read more »