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.
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.
The post Qantas (ASX: QAN) share price higher as US plans to open air travel appeared first on The Motley Fool Australia.
Should you invest $1,000 in Qantas right now?
Before you consider Qantas, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of August 16th 2021
More reading
- Qantas (ASX:QAN) share price gains amid $20 flights resting on domestic reopening
- How have these 3 ASX 200 travel shares performed since reporting results?
- Is it too late to buy Qantas (ASX:QAN) and other ASX travel shares?
- Qantas (ASX:QAN) share price lifts on oversubscribed bond refinance update
- Qantas (ASX:QAN) share price reverses day’s losses as first international flights scheduled
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.
from The Motley Fool Australia https://ift.tt/3CqSBAg
Leave a Reply