It's no secret that ASX travel and media shares have been smashed in 2020. The coronavirus pandemic has affected many areas of the economy, but these two sectors were hit hard and hit early.
One of the first restrictions brought into place was a global restriction on air travel. Countries have locked down their borders to try and prevent a rapid spread of COVID-19. That appears to have worked on the public health front, but there was always going to be a big cost.
As domestic and international travel ground to a halt, earnings for ASX travel shares like Corporate Travel Management Ltd (ASX: CTD) and Webjet Limited (ASX: WEB) did too.
With businesses pivoting to virtual meetings and nowhere to go on holidays, it's easy to see why these ASX shares have fallen 51.69% and 73.19%, respectively, in 2020.
It's a similar story for the ASX media shares like oOh!Media Ltd (ASX: OML) and Southern Cross Media Group Ltd (ASX: SXL). With fewer people out and about, outdoor advertising has certainly lost its value-add for clients.
That's sent these 2 shares plummeting lower in March as fears of the economic impacts grew.
But amid all the panic and the uncertainty, could ASX travel and media shares be back in the buy zone this year?
Why ASX travel and media shares could be bouncing back
The Corporate Travel share price rocketed 9.41% higher yesterday despite the S&P/ASX 200 Index (ASX: XJO) slumping 0.16% lower.
One of the biggest drivers is growing optimism around the coronavirus response and potential relaxation of restrictions. Given some of the doomsday predictions in February and March, ASX travel and media shares may have been oversold.
Many investors were pricing in these companies struggling to return to trade for many, many months. However, if we see workers returning and more travelling allowed, that could open up opportunities for the likes of Webjet and Corporate Travel sooner than expected.
Similarly, ASX media shares could benefit from a pickup in earnings as advertisers rush to get customers thinking about their products.
Foolish takeaway
No one knows what's going to happen in the next month or two, and there is still plenty of uncertainty. However, there are some positive signs for ASX travel and media shares right now.
