Travel stocks hurt by jab woe
THE federal government’s about-face on AstraZeneca vaccinations sent major travel stocks sliding on Friday as the likelihood of a return to international travel faded, at least for the foreseeable future.
The decision to advise people under the age of 50 years to refrain from taking the AstraZeneca jab confirmed that most Australians will not be fully vaccinated by October, as once flagged by Prime Minister Scott Morrison.
Flight Centre shares slumped 2.7 per cent, or 51c, to $18.42, while Corporate Travel Management lost almost 3 per cent, or 57c, to $18.77.
Online travel agency Webjet also lost momentum, with its shares retreating 2.5 per cent to $5.40.
Corporate Travel Management chief executive Jamie Pherous said he expected the share price drop to be shortlived.
“It’s more market sentiment on the AstraZeneca delay,” he said.
Brisbane-based Mr Pherous said negative publicity about the vaccine was taking away the confidence of the over-50s to have the jab.
“It is critical that this age group is vaccinated to enable the economy to fully open up,” he said.
Mr Pherous said his company’s global operations accounted for more than 80 per cent of the business and it was difficult to compete with other international operators in the current environment.
‘‘If other companies in the world are open and travel for business and Australia can’t open up, Australian companies will not be able to compete,” he said.
Flight Centre co-founder Graham Turner said that in the past month or so shares in the Brisbane-based travel agency had gone up and down depending on vaccination announcements.
“Obviously the investors think this is slightly negative about the AstraZeneca vaccination,” he said.
“If there is good news in the US, the shares go up ... it is generally 2-3 per cent up and down.
“What will make a difference is a speeding up of the vaccine rollout.”
Mr Turner said that he believed the government’s new advice on the AstraZeneca vaccine would not slow down the return of international travel.
“I don’t think this will slow international travel, (particularly) if they have the Pfizer vaccination or one of the other vaccines,” he said.
Travel and transport group Sealink did not suffer any share price plunges with its shares up as much as 20c during the day’s trading.