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Why the Sydney Airport (ASX:SYD) share price rocketed 24% higher today

Flight Centre Travel Group Ltd (ASX:FLT) and Webjet Limited (ASX:WEB) shares are on form on Tuesday. Here’s why…
The post Why the Sydney Airport (ASX:SYD) share price rocketed 24% higher today appeared first on Motley Fool Australia. –

Sydney Airport

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price was a strong performer on Tuesday.

The airport operator’s shares were up as much as 24% to $7.49 in morning trade before giving back some of these gains.

The Sydney Airport share price ultimately ended the day a sizeable 9.5% higher at $6.62.

Why did the Sydney Airport share price take off?

Investors were flooding into the travel sector on Tuesday after US biotech company Pfizer provided an update on its COVID-19 vaccine candidate.

That update revealed that its vaccine candidate was found to be more than 90% effective in preventing COVID-19 in participants without evidence of a prior SARS-CoV-2 infection.

Given that Pfizer believed even 60% to 70% effectiveness would be a good result, these early study results have smashed expectations.

For context, according to the US Centers for Disease Control and Prevention, the overall estimated effectiveness of seasonal influenza vaccines is currently 45%.

Given the success of its phase 3 trials, there is optimism that travel markets could rebound quicker than anticipated. Especially with Pfizer expecting to produce up to 50 million vaccine doses globally in 2020 and then up to 1.3 billion doses in 2021.

The sooner that a working vaccine is successfully rolled out globally, the sooner that Sydney Airport’s terminals will be bustling with travellers again.

How did other travel shares perform?

Unsurprisingly, Sydney Airport wasn’t the only travel share charging higher today. Here’s how other travel shares performed:

  • The Corporate Travel Management Ltd (ASX: CTD) share price surged 16% higher to $19.83.
  • The Flight Centre Travel Group Ltd (ASX: FLT) share price rose 9% to $15.70.
  • The Qantas Airways Limited (ASX: QAN) share price jumped 8% to $5.07.
  • The Webjet Limited (ASX: WEB) share price stormed 13.5% higher to $4.86.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Sydney Airport (ASX:SYD) share price rocketed 24% higher today appeared first on Motley Fool Australia.

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