What's impacting the Regional Express (ASX:REX) share price this week?

The airline's shares are falling as Omicron fears impact travel plans

| More on:
A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today

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

The Regional Express Holdings Ltd (ASX: REX) share price is having a tough start to the week.

The airline's shares are down 1.07% at the time of writing to $1.39. That means they are now down 1.77% on Friday's closing price.

Let's delve into what might be impacting the company's shares this week.

Survey reveals travel fears

The Regional Express share price may be falling amid wider market Omicron fears and border closure threats impacting travel.

One clue may lay in a survey released this week on the summer travel plans of Australians.

Four out of five Australians have either cancelled or are unsure about their summer holiday travel plans, Tourism and Transport Australia found.

Meanwhile, one in two people has no confidence about travelling interstate.

The Regional Express share price fall comes amid the company completing its first flight from Sydney to Brisbane on Monday afternoon. The company first informed the market of this flight route in November.

The airline is now flying three times a day between the two cities on Monday to Friday and twice a day on weekends.

Commenting on the news, Rex Airlines deputy chairman John Sharp said:

This is a great way to end what has been an extraordinary year for both Rex and the whole aviation industry.

Despite the obvious difficulties I am extremely proud of what we have been able to achieve. It's always nice to prove the sceptics wrong and the big plans we have for 2022 means next year promises to be even more exciting.

It's not been all bad news for travel shares this week though. The Qantas Airways Limited (ASX: QAN) share price is currently up 0.84% to $4.82 after closing flat yesterday.

Regional Express share price recap

The Regional Express share price has plunged 29% in the past 12 months and 32% year to date. During the past month, the company's shares have dropped by more than 6% and 3% in the past week.

Rex Airlines has a market capitalisation of roughly $154 million based on its current share price.

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 Travel Shares

Happy couple looking at a phone and waiting for their flight at an airport.
Travel Shares

Flight Centre share price higher on acquisition news

The travel agent is betting big on cruises. Here's what you need to know.

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Is now the time to cash in some gains on Qantas shares?

After a stellar year of gains, are Qantas shares flying into headwinds?

Read more »

Couple at an airport waiting for their flight.
Travel Shares

What big news is driving Qantas shares higher on Friday?

The Flying Kangaroo has provided the market with an update today. Let's see how it is performing.

Read more »

A young girls clings in fright to a big red slide.
Travel Shares

Should you buy the 43% October slide on WEB Travel shares?

Is this an opportunity or a trap?

Read more »

Man waiting for his flight and looking at his phone.
Travel Shares

The Flight Centre share price just hit a 52-week low, is it a buy?

Is this stock about to take flight or keep dropping lower?

Read more »

A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.
Travel Shares

Big ASX news: Qantas share price hits record high

Qantas is defying the market to fly to new heights this Wednesday...

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

Qantas share price U-turns amid danger of a $150 million bill

The airline could be up for another hefty bill.

Read more »

Paper aeroplane going down on a chart, symbolising a falling share price.
Travel Shares

Why did the Flight Centre share price just crash 17%?

Flight Centre shares are getting hammered on Friday. But why?

Read more »