Vaccines have begun, what might this mean for ASX airport shares?

As of today, the figures show that 0.79% of the Australian population has been vaccinated against COVID-19. The Australian Government’s goal is to have most of the population vaccinated by October, meaning overseas travel could be back on the cards later in the year.

So, what does this mean for ASX listed airport shares Sydney Airport Holdings Pty Ltd (ASX: SYD) and Auckland International Airport Limited (ASX: AIA)?

Let’s take a look at how ASX airport shares could be impacted as more Australians receive vaccinations.

Here’s what happened to US and European airport shares when vaccinations began

Some insight into what we can expect for ASX airport shares once the vaccine rollout gains momentum can be gleaned from the United States and Europe. So far, 22% of US citizens have had their first dose of either the Pfizer or Moderna vaccines, while 12% have had both doses.

European countries differ in how quickly they’ve rolled out the Pfizer, Moderna and AstraZeneca vaccines. Politico reports that the United Kingdom is leading the race with more than 38% of its citizens having received a vaccine, but the median percentage of vaccinated people in European nations’ populations is around 11%.

Data on airport share prices is limited as, globally, very few airports are listed on stock exchanges. Though, the few that are seem to be showing promising gains since vaccinations began in their home countries.

European airport shares

Vaccinations began in Europe on 27 December 2020. Since that date, a number of airports listed on various global stock exchanges have posted gains, including:

Paris airport – Aeroports de Paris SA – which has had a share price gain of 7.1%.

Madrid airport’s management company – Aena SME – which has had a share price gain of 4%.

Copenhagen airport – Copenhagen Airports A/S – which has had a share price gain of 12.16%.

Zurich airport – Flughafen Zuerich AG – which has had a share price gain of 3.8%.

US airport shares

While the US share market doesn’t have any airports listed, there is one airport management company on the New York Stock Exchange.

Corporacion America Airports SA (NYSE: CAAP) operates more airports than any other operator in the world. Its shares are up by 16.75% since the US began vaccinating its population on 14 December 2020.

What this could mean for ASX airport shares

Vaccinations in Australia began on 22 February 2021, with around 200,000 Aussies having now received the jab.

Both Sydney Airport and Auckland International Airport saw increases in share prices during that week, and both have continued on a generally upward trajectory since. At the time of writing, Sydney Airport and Auckland International shares have increased by 14.54% and 13.54% respectively since the day the first Australian received the vaccine.

Currently, the Sydney Airport share price is down 24.5% from the first day of trade in 2020. Its latest Airport Traffic Performance report, which covered the month of January, showed passenger numbers were still down by more than 94% compared to the prior January. 

Auckland International shares are down 16.65% since the first day of trade in 2020.

We Australians love our international travel, and many of us are counting the days until we can next step foot in an airport. But, vaccination or no vaccination, international flights won’t resume until at least July 2021, according to SBS. That’s the earliest date airlines are taking bookings from.

There are even reports, like this one from Bloomberg, that international travel won’t return to semi-normal until 2023.

ASX listed airports do appear to be loosely following the upward trend displayed by their international counterparts following vaccination rollouts. However, unfortunately, there is no clear answer as to how this will continue to play out. 

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Moderna Inc. 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.

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