Asia’s flight activity is gaining momentum because the region continues to ease Covid-19 travel restrictions, and the outlook for the region is now looking even brighter, in response to JPMorgan. That is after China announced last week that it will decrease quarantine time for international travelers. In a Nov. 11 note, JPMorgan said it’s bullish on the region’s airline industry, which it predicts could recuperate to around two-thirds of pre-pandemic levels by the top of the yr, with momentum going into 2023. “Asian countries including Japan, Thailand and other ASEAN countries are in a race to revive inbound tourism,” the bank said. It added that the uncertain economic outlook hasn’t yet eaten into leisure travel spending — with the International Air Transport Association continuing to see strong forward international air travel bookings. “Considering the high forward booking visibility and further upside arising from the ultimate leg of re-opening in parts of the region, we stay positive on the Asia airlines & airports sectors,” JPMorgan said. Airport stocks Although China’s domestic travel continued to be jeopardized by Covid outbreaks and lockdowns, its international flight activity has doubled since June and are poised to extend by 106% year-on-year during winter to spring, the bank said. The bank’s key picks to play the sector are Beijing Capital International Airport and Shanghai Airport. Airports of Thailand is one other stock that JPMorgan named. Tourism is the backbone of Thailand’s economy and it’s heading in the right direction to beat its 2022 goal of 10 million foreign tourist arrivals, said the bank. Tourism arrivals hit 7.56 million at the top of October, and the country is predicted to receive one other 3 million visitors for the remainder of 2022. Airline picks Singapore Airlines made JPMorgan’s list. The country’s national carrier reported record revenue within the second quarter, and bookings are expected to remain strong till the Lunar Recent 12 months holiday at the top of January, in response to Reuters. The airline’s shares have jumped nearly 10% year-to-date. Other airline stocks which are amongst JPMorgan’s picks include Air China and Qantas Airways . The Japanese government has an annual goal of 60 million foreign visitors a yr by 2030, while also announcing its goal for inbound tourism to rebound to pre-pandemic levels by 2025, JPMorgan noted. “Japan is seeking to revitalize the tourism sector with upcoming international events to be held in Japan including the 2025 Osaka Expo and the World Athletics Championships in Tokyo poised to spice up visitor volume,” JPMorgan said. Other stocks that would take flight Aside from airport and airline stocks, China’s reopening would also profit hotels, restaurants and leisure sectors , in response to a Goldman Sachs note from Nov. 6. These stocks include casino operators Galaxy Entertainment and Sands China , food chain Yum China , in addition to Trip.com . — CNBC’s Zavier Ong contributed to this report.
UK hedge fund Kernow says Saga’s share price could surge over 400%
A contrarian stock picker has said a U.K.travel, insurance and financial services company could see its share price rise greater...
