The Regional Express Holdings Ltd (ASX: REX) share price is taking off despite silence from the airline.
However, news of Australia’s borders has been hitting the headlines over the weekend, spurred by an announcement made by Prime Minister Scott Morrison on Friday.
Late last week, Morrison declared Australia’s international borders would reopen in November – one month earlier than expected.
While the news may not affect Rex, which only operates domestic flights, it’s good news for the broader travel sector.
Additionally, the reintroduction of home quarantine may have boosted the market’s confidence in the reopening of domestic borders, many of which remain firmly shut due to ongoing outbreaks in parts of Australia.
No matter the reason, Rex’s stock is soaring today. At the time of writing, The Rex share price is $1.73, 8.81% higher than its previous close.
That’s significantly better than the broader market’s performance today. Right now, the S&P/ASX 200 Index (ASX: XJO) is up 1%, as is the All Ordinaries Index (ASX: XAO).
Let’s take a closer look at the news that might be boosting the market’s sentiment in the travel sector.
Rex share price soars on Monday
The Rex share price is soaring today despite no news from the airline.
In fact, it’s a good day for the ASX travel sector broadly. Perhaps the market is responding to the recent news from Prime Minister Scott Morrison.
On Friday, Morrison announced Australia will move to Phase C of the government’s roadmap out of COVID-19 within weeks.
Phase C will see vaccinated Australians free to travel in and out of the country. Morrison anticipates returning vaccinated travellers and those unable to be vaccinated will be able to quarantine at home for 7 days on their arrival following a trial currently being conducted in New South Wales and South Australia.
Additionally, all travel caps will be abolished and the federal government will facilitate flights to states undergoing home quarantine trials.
Unsurprisingly, the Rex share price isn’t the only ASX travel share to be well and truly in the green today.
Right now, the Flight Centre Travel Group Ltd (ASX: FLT) share price is up 9.06%. While Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) shares are gaining 2.1% and 4.64%, respectively.
The post The Regional Express (ASX:REX) share price is booming 8%. Here’s why appeared first on The Motley Fool Australia.
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More reading
- Why has the REX (ASX:REX) share price gained 6% so far this week?
- Regional Express (ASX:REX) share price takes flight despite extended stand-downs
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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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.
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