Why are ASX 200 travel shares having a first-class end to the week?

The overnight performance of US travel stocks may be boosting ASX 200 travel shares today.

| More on:
a happy passenger sits in her airplane seat with boarding pass in hand smiling widely at the prospect of travelling with ASX 200 travel shares rise today

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

  • ASX 200 travel stocks are outperforming on Friday
  • They might be in the green due to rising investor sentiment in the Australian travel sector 
  • Additionally, many US-listed travel shares performed well overnight

It’s a good day on the market today, with ASX 200 travel shares among those leading the charge into the green.

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has gained 0.69%. Nearly all of the index’s travel-focused constituents are outperforming.

Let’s take a look at what might be driving ASX 200 travel shares higher on Friday.

Why are ASX 200 travel shares taking off today?

The ASX travel sector appears to be ramping up on Friday, with many of its biggest names outperforming the broader market.

Leading the pack is the Flight Centre Travel Group Ltd (ASX: FLT) share price. It’s currently 2.7% higher than its previous close. Meanwhile, Qantas Airways Limited (ASX: QAN) is boasting a 1.8% share price improvement. Shares in Corporate Travel Management Limited (ASX: CTD) and Webjet Limited (ASX: WEB) have each gained 2.2%.

The gains may reflect improving ASX investor sentiment in the Australian travel industry. After all, major airports in Melbourne, Sydney, Adelaide, Brisbane, Perth, Cairns, and the Gold Coast reported their busiest period since the onset of the pandemic this month. At the same time, the Federal Government has lifted its ban on cruise ships.

Today’s gains may also have something to do with the strong overnight performance of international travel stocks. Shares in Booking Holdings Inc (NASDAQ: BKNG) and Airbnb Inc (NASDAQ: ABNB) recorded gains of 2.5% and 4.9% respectively. Airline stocks Delta Air Lines Inc (NYSE: DAL), Southwest Airlines Co (NYSE: LUV), American Airlines Group Ltd (NASDAQ: AAL), and Ryanair Holdings Plc (NASDAQ: RYAAY) also gained between 1.5% and 2.5% in Thursday’s session overseas.

The year so far…

Overall, 2022 has been a good year for ASX 200 travel shares so far. The Flight Centre share price has gained a whopping 21% since the start of the year. Shares in Qantas, Webjet, and Corporate Travel Management have gained 8%, 11%, and 14% respectively.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Inc. and Booking Holdings. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Delta Air Lines. The Motley Fool Australia has recommended Booking Holdings, Corporate Travel Management Limited, 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 Scott Phillips.

More on Travel Shares

Paper aeroplane going down on a chart, symbolising a falling share price.
Travel Shares

What is holding back the Flight Centre share price today?

Flight Centre shares are slumping today...

Read more »

a young girl wearing a set of airplane wings stands on a tarmac with hands in the air and an excited look on her face as though she is about to take off.
Travel Shares

Why this smaller ASX travel share is locking horns with Qantas over regulation

Here's the latest on Regional Express' battle with Qantas over regional flight routes.

Read more »

An airport ground staff worker holds two red beacons in either hand crossed above his head on a vast airport tarmac.
Travel Shares

Own Qantas shares? Here’s why the $5K staff bonus could be up in the air

Qantas sounds alarm bell on $5K bonus to employees

Read more »

A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.
Travel Shares

Qantas share price climbs as first direct flight to Europe touches down in Rome

Qantas shares are taking off today.

Read more »

A smiling boy holds a toy plane aloft while an unhappy girl watches on from a car near an airport runway.
Travel Shares

2 ASX travel shares buy-rated by experts that could take off

Travel is booming. These two picks by experts could take advantage of that.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

When might Corporate Travel shares start paying dividends again?

It;s been two years since investors saw a dividend from this ASX travel share...

Read more »

A couple are running late for their flight as they rush to the gate.
Travel Shares

These 2 ASX travel shares are tying the knot for the next 10 years

Rex has signed agreements with a number of travel agency groups, most noticeably Flight Centre.

Read more »

qantas share price
Travel Shares

Qantas share price takes off following market update

Qantas shares are on the move on Friday...

Read more »