ASX travel shares have been flying higher over the past month. Here’s why

Travel shares are on the up. Why?

| More on:
A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Flight Centre share price has soared 20% in a month 
  • Webjet, Qantas, Corporate Travel Management and Helloworld have also surged 
  • Travel momentum appears to be building as restrictions lift 

ASX travel shares have taken to the skies in the past month.

Since the market open on 7 March, the Flight Centre Travel Group Ltd (ASX: FLT) share price has lifted nearly 20%. Shares in Webjet Limited (ASX: WEB) have climbed 9% in that time frame, while Qantas Airways Limited (ASX: QAN) shares have soared nearly 13%.

Meanwhile, the Helloworld Travel Ltd (ASX: HLO) share price is 17% higher, and Corporate Travel Management Ltd (ASX: CTD) shares have lifted 16% since this date.

Let’s take a look at why these travel companies had such a great month.

All aboard, restrictions lift

ASX travel shares have ascended amid building travel momentum as restrictions are lifted by governments around the world.

The upward trend began on 9 March amid news India would restart international flights from 27 March. Qantas is reportedly tapping into Australia’s huge Indian community and trade and investment market.

ASX travel shares had another stellar day on 10 March, as oil prices dropped as much as 17%. Oil prices, which impact the price of fuel, are a major cost for airlines.

On 16 March, the travel sector gained another boost when New Zealand announced it would open the border to Australian tourists earlier than expected.

Qantas shares went up 2.23%, Flight Centre shares gained 1.87% and Webjet shares climbed 3.28% on this day alone. Helloworld Travel also jumped 3.45%, while Corporate Travel Management surged 5.26%.

Also on this day, the United Kingdom advised that arrivals would no longer need to present a COVID-19 test to enter the country.

More good news

In another boost for travel, Health Minister Greg Hunt advised on 25 March that Australia’s biosecurity emergency would soon end.

This means a return to cruise travel, with the international cruise ship ban into Australian waters set to end on 17 April. Travellers will also no longer require a COVID-19 test on arrival into the country from this date. Mr Hunt said:

Following medical advice, the Biosecurity Emergency Determination relating to COVID-19 for Australia will not be renewed when it lapses on April 17.

In today’s trade, Qantas shares fell 1.35%, Webjet shares lifted 1.45% and Flight Centre shares climbed 3.55%. Helloworld Travel shares jumped 2.04% while Corporate Travel shares rose 2.22%.

The Webjet share price is Goldman Sachs’s top pick for the travel sector, my Foolish colleague James recently reported. The company has placed a $6.90 price target on the company’s shares, a 17% hike on the current share price.

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 recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Travel Shares

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today
Travel Shares

Qantas share price unimpressed despite $15m solution to ‘well-publicised challenges’

What's the latest at Qantas?

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Better ASX travel buy: Flight Centre or Webjet?

Let's scratch that travel itch and see how these two companies square up.

Read more »

A woman is laughing with joy as she pulls her luggage off the conveyor belt at an airport.
Travel Shares

Why is the Qantas share price beating the ASX 200 today?

The airline has faced a plethora of issues lately.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

It’s gained 60% in 2 years, does the Webjet share price still have room to grow?

The travel stock has blue skies ahead according to these brokers.

Read more »

A happy couple who are customers of Flight Centre wait for their flight at an airport lounge
Travel Shares

Are we flying first class with Flight Centre shares?

Analyst sentiment is mixed but tilted toward bullish.

Read more »

a corporate-looking woman looks at her mobile phone as she pulls along her suitcase in another hand while walking through an airport terminal with high glass panelled walls.
Travel Shares

‘Downside is less severe’: Why some brokers are still bullish on the Qantas share price

This airline could see its shares fly higher.

Read more »

a couple at an airline ticket counter have an angry exchange with the employee behind the counter. She is leaning forward in an aggressive manner as they hold a paper ticket in their hands.
Travel Shares

Qantas share price descends as management recruited for ground-handling work

We check the latest on the airline.

Read more »

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today
Travel Shares

Why did the Flight Centre share price underperform the ASX 200 in July?

Let's fly in and examine.

Read more »