Are ASX travel shares like Webjet (ASX:WEB) set to soar?

ASX travel shares like Webjet Limited (ASX: WEB) are surging higher right now but is it the right time to buy for the future?

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ASX travel shares like Webjet Limited (ASX: WEB) are bouncing back strongly. The Webjet share price jumped 6.6% higher to close at $3.90 per share.

That’s good news for existing shareholders but is the Aussie travel company back in the buy zone?

Why the Webjet share price is surging

There are a couple of factors that I think are causing investors to buy into ASX travel shares right now.

The Webjet share price jumped as reports emerged of a potential Australia-New Zealand travel bubble by the end of the year. That’s good news for booking numbers if we see borders open across the Tasman.

Easing coronavirus restrictions across the state are also good news for domestic travel which could help boost Webjet earnings.

The Webjet share price is now up 58.9% for the year while the S&P/ASX 200 Index (ASX: XJO) has fallen 11.0% lower.

Is now the time to buy ASX travel shares?

I still think there are strong prospects for Aussie travel companies in 2020. The Webjet share price has jumped higher but it’s not the only one that I’ve got my eye on.

I think the fundamentals are there for the Corporate Travel Management Ltd (ASX: CTD) share price. Corporate Travel focuses on the business sector which could be more reliable than the leisure market in the short-term.

However, Corporate Travel does get a majority of its earnings from offshore which is a bit of a question mark.

I also think the Flight Centre Travel Group Ltd (ASX: FLT) share price could be one to benefit from an uptick in the leisure travel segment. 

Foolish takeaway

There’s still plenty of uncertainty ahead for ASX travel shares. However, I think those who wait until that uncertainty clears could miss out on gains.

There are some big risks with traffic numbers still near rock-bottom but that could offer rewards for value-minded investors.

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Motley Fool contributor Ken Hall 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.

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