Key points
- ASX travel shares finished Wednesday in the green
- Prime Minister Scott Morrison has expressed optimism on international borders opening
- Citi analysts are optimistic about travel as COVID-19 Omicron cases peak
ASX travel shares finished in positive territory today amid renewed optimism on international borders.
The Webjet Ltd (ASX: WEB) share price closed up 1.97% while Qantas Airways Limited (ASX: QAN) finished 2.65% higher. The Flight Centre Travel Group Ltd (ASX: FLT) also edged 1.44% into the green.
Let's take a look at what may have lifted ASX travel shares today.
Renewed push on international borders
ASX 200 travel shares have been performing well since the market emerged from the Australia Day holiday. Since market open on January 27, Webjet is 12% higher, Qantas has gained 10% while Flight Centre is up 13%.
In a press conference in Sydney today, Prime Minister Scott Morrison expressed optimism the international border will open, Perth Now reported.
The key issue that I've tasked our health officials to advise me on in opening up the border to international arrivals is what impact that might have on the hospital system and the pressures that could come from additional people coming into the country at this time.
Morrison hailed the opening to backpackers and visa holders a success, the publication reported.
The comments follow Morrison telling radio on Friday the borders may "fully open" before Easter.
Other ASX travel shares seem to have been buoyed by the optimism today. Helloworld Travel Ltd (ASX: HLO) closed 1.27% in the green while Corporate Travel Management Ltd (ASX: CTD) was up 0.33% on the day
Earlier this week, Citi research analyst Samuel Seow found despite the COVID-19 Omicron scare, people continued to visit international travel sites in the past month. In comments reported in The Australian, he said:
Intentions to travel as measured by website visits remained relatively stable through the uncertain period. We expect this bodes well for travel as cases begin to peak.
Today, the Australian Tourism Export Council also backed calls for the international border to open. In a media release, managing director Peter Shelley said:
Opening our borders would bring in desperately needed workers, reconnect people with their families and provide a lifeline to our tourism industry which has copped a lot over the last two years.
In every way we have joined the rest of the world in taking on covid as part of our day to day lives and we now need to remove the last pretence of a barrier and accept that Australia has to re-engage with the global travel community by fully reopening or international borders.
ASX travel share summary
In the past 12 months, ASX travel shares have found themselves back in positive territory.
Webjet is 3.17% higher, Qantas has gained 7.39% while Flight Centre's share price has hiked almost 22% in the past year.
Over the same period, the S&P/ASX 200 Index (ASX: XJO) has gained around 4.85%.
