It was a soft start to the week for ASX travel shares as coronavirus fears appeared to spark a small sell-off.
The Webjet Limited (ASX: WEB) share price closed the day down 3.8% at $4.77 per share while Qantas Airways Limited (ASX: QAN) shares fell 1.7%.
Why did ASX travel shares fall lower on Monday?
The big news on Monday afternoon was the temporary suspension of the Trans-Tasman Travel Bubble (TTTB).
The TTTB has been in operation since late 2020 which allows New Zealanders to travel into Australia without quarantining, with plans to make it a two-way arrangement in the near future.
All of those arrangements are on hold for now. Australia will now require all arrivals for the next 72 hours to enter mandatory hotel quarantine. New Zealand detected the more contagious South African COVID-19 strain which sparked the latest move.
A woman who reportedly visited 30 venues in New Zealand tested positive for COVID-19 and the South African strain. All arrivals into Australia from New Zealand since January 14 need to get tested and self-isolate.
The news hit ASX travel shares on Monday with many big names slumping lower.
Alongside Webjet and Qantas, the Corporate Travel Management Ltd (ASX: CTD) share price fell 1.1% lower. Flight Centre Travel Group Ltd (ASX: FLT) slumped 3.3% to $15.10 at the close.
What else happened on Monday?
The latest setback for international travel came as Australian regulators approved the first COVID-19 vaccine for use in Australia. The Therapeutic Goods Administration (TGA) approved the Pfizer-BioNTech vaccine for use in Australia.
However, supply disruptions mean the vaccine rollout has been delayed by a fortnight until late February.
The S&P/ASX 200 Index (ASX: XJO) had a quiet session ahead of the Australia Day public holiday. The benchmark index climbed 0.4% to 6,824.70 points as Wesfarmers Ltd (ASX: WES) shares closed at a new record high.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of Wesfarmers 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.
The post Why ASX travel shares like Webjet (ASX:WEB) fell lower on Monday appeared first on The Motley Fool Australia.
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