Australian travel companies were among those on the receiving end of a drop in share prices at the opening of the ASX200 this morning.
The S&P/ASX200 opened at 10am on Thursday with a drop of more than 120 points, or around 2 per cent. According to multiple reports, at time of writing, this represented a loss of around $38 billion from ASX boards.
The All Ords saw a similar drop of around 120 points, or around 2 per cent.
This came after an unprecedented fall in the Dow Jones of 800 points, or 3 per cent, which The Guardian reported represented the fourth largest decline in history. The S&P500 and tech-heavy Nasdaq were also down.
Qantas, Webjet and Flight Centre have been among the travel companies hardest hit by the fall in the ASX200.
Qantas opened trading this morning 2.05 per cent lower at $5.72, while Webjet opened trading 1.95 per cent lower at $13.04.
Flight Centre Travel Group’s share price opened 0.90 per cent lower at $44.73, and Helloworld opened trading 0.65 per cent lower at $4.55.
Off the back of suffering a huge drop in profit for the first six months of the calendar year, Sydney Airport’s share price opened 1.91 per cent lower at $8.37.
Meanwhile, Virgin Australia bucked the negative trading trend, opening 1.25 per cent higher at $0.160.
The Australian dollar opened at US$0.6748 this morning.
Last week, Flight Centre’s media and investor relations manager, Haydn Long, told Travel Weekly the dollar doesn’t tend to have too much impact on where people travel.
“The outbound travel market tends to grow every year, regardless of the dollar’s value against the US dollar,” Long said.
He told us that if people are concerned, they are more likely to adjust their spending at the destination, for example, they may stay one less day or opt for an apartment so they can eat in more.
You can read the rest of what he had to say here.