Helloworld Travel shares have taken flight after the ASX-listed firm announced it had extended its travel management contract with the federal government by at least another two years.
Helloworld announced on Tuesday its wholly owned subsidiary QBT would continue as the Australian government's travel services provider until June 2021, extending the initial four-year deal signed by the company in July 2015.
The Department of Finance retains an option to extend the contract by a further year beyond 2021.
Shares in Helloworld rose by as much as 4.6 per cent to $4.80 following the announcement, and were still 3.27 per cent higher at $4.74 by 1320 AEST.
The company made headlines in February when the friendship between chief executive Andrew Burnes and Australian ambassador to the US Joe Hockey came under scrutiny.
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Mr Hockey, the former federal treasurer who remains one of the top 20 shareholders in Helloworld, rubbished suggestions he had pushed for favourable treatment of the company as it pursued government contracts.
Mr Burnes is the honorary treasurer of the federal Liberal Party.
Australian Foreign Affairs officials said they were confident Mr Hockey had met the rules required of him in declaring his links to the company.
Helloworld shares slumped nearly 10 per cent after it reported its first-half results in February, with investors seemingly unimpressed with group's dividend increase and 5.4 per cent increase in first-half profit.
