ASX travel shares pushed ahead today despite fears of escalating fuel costs.
Four ASX travel shares that climbed were Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Ltd (ASX: FLT), Webjet Ltd (ASX: WEB), and Corporate Travel Management Ltd (ASX: CTD).
Let's take a look at what might have given these Australian travel shares a boost today.
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Why are ASX travel shares climbing today?
ASX travel shares had a day in the sun today despite fears fuel prices will continue to spiral amid the Russian invasion of Ukraine.
The Qantas share price closed 3.32% higher today and Flight Centre climbed 3.08%. Further, Webjet gained 3.5% and Corporate Travel finished up 3.42%.
One bright spot that may have helped ASX travel shares is news India will restart international flights on 27 March.
Qantas is tapping into Australia's huge Indian community and trade and investment market, Bloomberg reported. The airline is flying directly from Sydney and Melbourne to Delhi.
ASX travel shares have broadly followed the footsteps of United States airline shares. In the US on Tuesday, American Airlines Group (NASDAQ: AAL) surged 5%, United Airlines Holdings (NASDAQ: UAL) jumped 3% and Delta Air Lines Inc (NYSE: DAL) finished nearly 4% ahead.
Meanwhile, Flight Centre CEO Graham 'Skroo' Turner predicts the corporate travel recovery from COVID-19 may take a few years. As quoted in the Australian Financial Review, he said:
Within a couple of years, business travel globally will get somewhere close to 80 per cent or 90 per cent. It won't get back to pre-COVID levels straight away in the next few years.
Business travel never got back to the same level as pre-GFC, so I think this will have the same impact.
Share price recap
The Qantas share price has slid around 9% in the past year, Flight Centre has remained steady, dropping less than 1%, while Webjet has also dropped 9%. In contrast, Corporate Travel Management has managed a 3% climb in the past 12 months.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned about 4% in the past year.
