Short-lived rise for ASX travel stocks after New Zealand holiday bubble deal

Travel shares soared on the ASX after Australia announced it was opening its borders to New Zealanders.

Australia will allow Kiwis to visit NSW and the Northern Territory from October 16 in a boost to the coronavirus-wrecked travel sector.

Kiwis will be exempt from quarantine when arriving in Australia, provided they have not come from a place with more than three cases over three days.

Investors snapped up travel companies such as Air New Zealand, Qantas, Sydney Airport and Webjet as the news broke earlier today.

Air New Zealand shares had a gain of about 5 per cent. They had traded at $1.29 at 11am but rose to $1.39 after Transport Minister Michael McCormack confirmed the plan.

Qantas shares went from $4.09 to $4.26, Sydney Airport sprung from $5.89 to $5.97 and Webjet climbed from $3.98 to $4.14.

The increased buying activity was short-lived, however, with most of the shares dropping by about 1pm.

The ASX200 has been lower since the start of trading and was down by 1.37 per cent to 5792.7 points at 1.25pm

Australians hoping to cross the Tasman will have to keep waiting, with the New Zealand government not yet satisfied with Australia’s infection rates.

AAP