ASX travel shares descended today on a tough day for the market.
The Flight Centre Travel Group Ltd (ASX: FLT) slid 2.74%, Webjet Limited (ASX: WEB) gravitated 2.86%, and Qantas Airways Limited (ASX: QAN) descended 1.96%.
Meanwhile, the Helloworld Travel Ltd (ASX: HLO) share price fell 2.40%, while Corporate Travel Management Ltd (ASX: CTD) dropped 2.54%.
Let's take a look at why these travel companies had such a shocking day.
Travel chaos predicted
ASX travel shares followed the pattern of their US counterparts. The American Airlines Group Inc (NASDAQ: AAL) fell 2.58%, United Airlines Holdings Inc (NASDAQ: UAL) descended 3.67%, and Delta Air Lines Inc (NYSE: DAL) dropped 3.69% in Wednesday's trade in the US. US airlines fell amid rate rise fears.
News from the White House that the USA has no plans to scrap COVID-19 testing requirements may also have weighed on travel shares. In a video shared on Twitter by The Post Millennial, Whitehouse COVID-19 advisor Jeff Zients said: "There are no plans to change the international travel requirements at this point."
ASX travel shares Flight Centre, Webjet and Qantas all have a presence in the USA market.
Travel chaos in the lead up to Easter may also be concerning travel shareholders. Hundreds of international flights are being cancelled due to COVID-19 travel shortages, CBS News reported. Australian passengers were recently warned to arrive at the airport at least two hours early for domestic flights amid airline staff shortages, the Daily Mail reported.
Rising oil prices may also be impacting ASX travel shares. International benchmark Brent crude oil is up 1.45% to US$102.57 per barrel at the time of writing, Trading Economics data shows. Fuel is a major cost for airlines, and the oil price impacts the cost of fuel.
ASX travel share recap
In the past year, Qantas shares have fallen 7.41%, Webjet shares have fallen 2.86%, while Flight Centre shares have leapt 4.96%.
Helloworld Travel shares have soared 10.41%, while Corporate Travel shares have exploded 22.35%.
In contrast, the S&P/ASX 200 Index has returned more than 7% in the past year.
