Regional Express (ASX:REX) share price takes flight despite extended stand-downs

A bit of turbulence isn't disrupting the Regional Express share price today…

| More on:
A group of four young kids run along a beach at sunset with the kid in front holding aloft a toy aeroplane that is zooming through the air.

Image source: Getty Images

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

To the surprise of some, the Regional Express Holdings Ltd (ASX: REX) share price is surging higher on Monday. This is despite the regional airline announcing further extensions to suspensions of services and staff stand-downs.

At the time of writing, shares in the domestic airline are fetching $1.47, up 5% for the day.

Further delays not hitting the Regional Express share price

Regardless of the company's latest announcement, investors are bidding up the Regional Express share price today.

Certainly, the company is not alone in the optimistic exuberance on display during the session on Monday. Indeed, much of the ASX travel sector is buoyed with growth to kick off the new week.

It appears not even the company's latest announcement can dampen investor sentiment. According to its release, Regional Express has been left with no other option but to extend its suspension of domestic services and reduction of regional services. As a result, staff stand-downs will also need to be extended.

This marks the company's second such extension. Originally, the airline expected the measures to be in place until 12 September. However, due to lockdowns across Greater Sydney, on 1 September this was extended to 10 October 2021.

Unfortunately, the lingering of lockdowns across multiple states means the airline has now had to push these suspensions out until at least 31 October 2021. This date aligns with when Regional Express expects all of its customer-facing staff to be fully vaccinated against COVID-19.

Light at the end of the tunnel

In lieu of these setbacks, onlookers might be scratching their heads as to why the Regional Express share price is pushing higher today.

It seems positive reopening commentary from government officials has boosted travel shares. NSW Premier Gladys Berejiklian has released her plans to open up the state after achieving an 80% vaccination level.

The news has sent numerous ASX-listed travel shares flying higher at the start of the week. These include Flight Centre Travel Group Ltd (ASX: FLT), Qantas Airways Ltd (ASX: QAN), and Corporate Travel Management Ltd (ASX: CTD)

Motley Fool contributor Mitchell Lawler 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 owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Tuesday

Another good session is expected for Aussie investors today. Here's what you need to know.

Read more »

A businessman hugs his computer and smiles.
Opinions

If I were 40, I'd buy these ASX shares in 2024 for the long-term

These investments look very compelling to me as buy-and-hold investments.

Read more »

Young woman in yellow striped top with laptop raises arm in victory
Broker Notes

Buy this ASX 300 stock for 20% upside and a 6% yield

Analysts at Bell Potter think investors should be buying this stock before it's too late.

Read more »

IPO written in dark blue with a yellow background.
Financial Shares

ASX fintech stock backed by Mastercard slumps 9% on debut

Meet the ASX's newest fintech company.

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors kicked off the trading week in style today.

Read more »

young woman reviewing financial reports at desk with multiple computer screens
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Share Fallers

Why Bell Financial, IPD, Megaport, and Resolute Mining shares are falling today

These shares are starting the week in the red. But why?

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Liberty, Lovisa, Novonix, and SG Fleet shares are storming higher today

These shares are starting the week strongly. But why? Let's find out.

Read more »