Quick take: AirAsia at 3-month high on resumption of domestic travel

KUALA LUMPUR: Shares of AirAsia Group Bhd rose to its highest in three months in early trade Tuesday following the Government’s announcement to allow the domestic tourism sector to resume operations starting from Wednesday.

The budget carrier jumped 21.39%, or 18.5 sen to RM1.05, its highest since early March, with 189 million shares traded. AirAsia X rose 19.05%, or two sen to 12.5 sen.

Malaysia Airport Holdings Bhd also saw its shares trend higher, rising 41 sen, or 7.45% to RM5.91.

Prime Minister Muhyiddin Yassin announced on Sunday that the government would allow domestic travel and small-scale social activities, and reopen schools in stages under the recovery movement control order (RMCO) phase, which runs from Wednesday until Aug 31.

In a statement Monday, AirAsia said in recent weeks, countries around the world have resumed domestic travels and are gradually reopening international borders in recognition of the fact that air transport provides the connectivity that is essential for the resumption of economic activities.

“The formation and discussion of ‘travel bubbles’ and ‘green lanes’ with key economic partners which have low infection rates and proven pandemic curbing systems is a step in the right direction, ” it said.

The airline said air travel remains as one of the safest modes of travel, citing the International Air Transport Association’s (IATA) evidence which suggests that the risk of transmission of infections onboard is extremely low.

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