Here are the 5 best ASX transport shares of the 2021 financial year

Most listed companies involved in moving people and goods underperformed in FY21.

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It’s hard to believe another financial year has come and gone. Yet my calendar insists it’s so.

With that in mind, we bring you the 5 best performing ASX transport shares of the 2021 financial year (FY21).

As a benchmark to their performance, we use the All Ordinaries Index (ASX: XAO). From 1 July 2020 through to 30 June 2021, the All Ords gained 25%.

FY21 was a tough year for ASX transport shares, with many suffering from COVID driven border closures and social distancing measures. As you’ll see below, only 1 of our 5 top performers beat the benchmark.

Alliance Aviation Services Ltd (ASX: AQZ)

Topping the list – and the only ASX transport share to outperform the All Ords in FY21 – is Alliance Aviation Services. The company finished the year up 53.2% at $4.55 per share.

Based in Queensland, Alliance Aviation provides aircraft charter and group travel, including services to fly in, fly out (FIFO) workers in remote regions. Unlike larger airlines dependent on international and interstate travel, the company saw increased demand from the range of issues thrown up by the global pandemic.

With just under 160.5 million shares in circulation, Alliance Aviation has a market cap of $690.1 million. The company pays a 2.7% dividend yield, fully franked.

Qantas Airways Ltd (ASX: QAN)

The second best ASX transport share for the year, with a share price gain of 20.4%, is Qantas.

Founded in Queensland back in 1920, Qantas is the world’s third oldest airline still in operation. It runs 2 complementary airline brands – Qantas and Jetstar – offering regional, domestic and international services.

Despite international travel virtually grounded in FY21, and even much of its interstate routes jeopardised by rolling state border closures, investors appear to have faith in the airline’s longer-term value.

Qantas finished the year trading at $4.66 per share with a market cap of $9.1 billion. The airline pays a 3.1% dividend yield, 100% franked.

Air New Zealand Ltd (ASX: AIZ)

Coming in at number 3, we have Air New Zealand, which saw its share price lift 14.4% over the financial year gone by.

Founded in 1940, the company operates domestic and international services. It listed on the ASX in 1997 and is dual listed on the New Zealand Stock Exchange under the ticker (NZE: AIR).

While underperforming the benchmark, as with Qantas, investors appear to believe the ASX travel share has a strong future ahead of it once the pandemic is finally brought under control.

Air New Zealand ended FY21 at $1.44 per share with a market cap of $1.7 billion. It pays a hefty 7.3% dividend yield, unfranked.

Auckland International Airport Ltd (ASX: AIA)

Making the list as the fourth best performing ASX travel share is Auckland Airport, with shares closing up 13.2% in FY21.

As with our number 3 performer, Auckland Airport is also dual listed on the New Zealand Stock Exchange under the ticker (NZE: AIA). The company listed on the ASX in 1999, and with a market cap of $10.5 billion, it is among the largest listed companies in New Zealand.

Auckland Airport closed on 30 June at $6.76 per share. It pays a dividend yield of 1.4%, 43% franked.

Qube Holdings Ltd (ASX: QUB)

Finally, coming in at number 5, is Qube Holdings, which finished off the year with shares up 10.5%.

Now Qube differs from our first 4 ASX travel shares as the company’s not primarily involved with moving people, but rather things. Among its activities, Qube handles road and rail transport, and it has a 50% holding of Patrick Terminals, among the largest container terminal operators in Australia.

Qube finished FY21 with a share price of $3.17 and a market cap of $5.7 billion. The company pays a 1.6% dividend yield, fully franked.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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