How did ASX 200 travel shares perform amid today’s sell-off?

Did ASX travel shares escape wider market carnage today?

| More on:
a man sitting in an aeroplane seat holds the top of his head as he looks at his airline ticket with an annoyed, angry expression on his face.

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

  • Qantas, Webjet and Flight Centre shares all descended today 
  • Multiple US travel shares also plunged overnight 
  • Wall Street and Nasdaq shares dived amid inflation fears 

S&P/ASX 200 Index (ASX: XJO) travel shares descended today amid a wider market sell-off.

The share prices of Flight Centre Travel Group Ltd (ASX: FLT), Webjet Limited (ASX: WEB) and Qantas Airways Limited (ASX: QAN) all plunged today.

So why did ASX 200 travel shares struggle on Tuesday?

Qantas share price takes a hit

Flight Centre shares dropped nearly 5%, Webjet shares fell almost 8% while Qantas shares descended 6%. For perspective, the S&P/ASX 200 Index (ASX: XJO) closed 3.55% in the red today.

ASX 200 travel shares appeared to follow the footsteps of US counterparts. In US markets on Monday, Delta Airlines Inc (NYSE: DAL) fell 8.29%, American Airlines Group Inc (NASDAQ: AAL) shares dived 9% while United Airlines Holdings Inc (NASDAQ: UAL) shares tumbled 10%.

Shares tumbled in the United States overnight amid higher than expected inflation figures and speculation that the US Federal Reserve would lift rates by up to 0.75%.

Sky high interest rates increase the cost of borrowing, potentially leading to higher costs for the airlines. Consumers could also have less money to spare for travel.

ASX2 00 travel shares could soon face more competition from Virgin Australia Holdings. The airline, not currently listed on the ASX, is planning direct flights between Gold Coast and Bali, Sunrise reported. Virgin is owned by Bain Capital.

In news on the weekend, Flight Centre is reportedly planning to take high achieving staff at the company to a Las Vegas conference, The Australian reported.

Meanwhile, Qantas has again faced accusations of “predatory” entry into the regional airline market. However, QantasLink CEO John Gissing hit back in comments reported in the Sydney Morning Herald. He said:

What Rex calls predatory behaviour is actually competition which provides these regional communities with choice, more services and lower fares.

Share price snapshot

Flight Centre shares have surged 17% in a year, while Qantas shares are up 3%. Meanwhile, Webjet shares have leapt 6% in the past year.

For perspective, the benchmark ASX 200 has shed 9% in the past 12 months.

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 Scott Phillips.

More on Travel Shares

A man sits nervously at his computer with his mouth resting against his hands clasped in front of him as he stares at the screen of his computer on a home desk.
Travel Shares

Qantas share price dips as ACCC raises acquisition concerns

What did the ACCC say?

Read more »

A man sits in the airport terminal with a laptop and credit card, ready to make a travel booking on the Flight Centre
Travel Shares

Corporate Travel share price slides despite earnings beat

This ASX travel share’s FY22 result wasn’t enough to stop a fall.

Read more »

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

What’s creating tailwinds for the Qantas share price today?

What’s going on with Australia’s biggest airline?

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.
Earnings Results

Corporate Travel Management share price in focus as dividends return

The company has revealed its return to positive full-year NPAT and a 5 cent dividend.

Read more »

A woman sits crossed leg on seats at an airport holding her ticket and smiling.
Travel Shares

Own Flight Centre shares? Here’s what to expect from its FY22 results

Here's what to expect from Flight Centre's FY 2022 results...

Read more »

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

What’s lifting the Qantas share price on Monday?

It's a good day for stock in Australia's national carrier.

Read more »

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

Do experts think the Flight Centre share price is ready for imminent takeoff?

We consider whether this ASX travel share has the ticket to growth.

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

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

What's the latest at Qantas?

Read more »