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

Bored woman waiting for her flight at the airport.
Travel Shares

Why are Web Travel shares tumbling 6% today?

Its suspension is over. What's going on with this travel stock?

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Travel Shares

The Qantas share price has flown 66% higher in 2024, this top broker thinks it can gain more altitude

Qantas shares may not be finished rising.

Read more »

a man holds his arms out and shrugs his shoulders as if indicating he doesn't know the answer to a question he's been asked.
Travel Shares

Why is Web Travel stock such a hot topic today?

This travel stock isn't going anywhere today. Why isn't it moving?

Read more »

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

Why this ASX travel share is grounded two days before results

Investors now wait in anticipation.

Read more »

A corporate-looking woman looks at her mobile phone as she pulls along her suitcase in another hand while walking through an airport terminal with high glass panelled walls.
Travel Shares

This ASX travel share is 'going to take off' after falling 30%

Back your bags.

Read more »

A woman sits crossed legged on seats at an airport holding her ticket and smiling.
Travel Shares

Down 23% in a month, why this ASX 200 stock is an 'attractive opportunity'

After falling hard, a top fund manager is seeing an opportunity with this stock.

Read more »

A line of people sitting at a long desk in an annual general meeting
Travel Shares

Why today is a big day for Flight Centre shares

Why is everyone talking about Flight Centre shares today?

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Why this fund manager still thinks Qantas shares are a cheap buy

One expert still has a lot of belief in Qantas shares.

Read more »