Travel shares on the S&P/ASX 200 Index (ASX: XJO) are ascending today amid strong travel demand.
Flight Centre Travel Group Ltd (ASX: FLT), Webjet Limited (ASX: WEB), and Qantas Airways Limited (ASX: QAN) shares are all in the green today.
Let's take a look at what is happening to ASX 200 travel shares on Monday.
Travel shares lift off
At the time of writing, Webjet shares are up 2.82%, Qantas shares are 2.06% higher while Flight Centre shares have climbed 2.24% today.
New data from National Australia Bank released today shows overseas travel spending is now higher than prior to the COVID-19 pandemic.
The insights showed NAB customers spent 600% more on overseas travel between 1 January and 1 May this year compared to the same period last year. In May 2022 alone, NAB customers spent $46 million on international flights, up from $43 million in 2019.
Commenting on the trend, Everyday banking executive Paul Riley said:
We've seen more and more holiday goals created as travel opens up. About 25% of all goals were holiday-related in May 2022, compared with about 15% the same month last year.
We expect to see spending on overseas travel continue with the school holidays starting later this week and the European summer now underway.
Meanwhile, a UBS survey of 1000 people between 18 May and 1 June has revealed international travel intentions "rose strongly", The Australian reported.
And the United States is seeing a similar trend, with 75% of Americans planning holidays in 2022, the Daily Mail reported. American Airlines Group Inc (NASDAQ: AAL) shares soared 6.41% on Friday. Delta Air Lines Inc (NYSE: DAL) shares jumped 2.3% while United Airlines Holdings Inc (NASDAQ: UAL) shares ascended 4.31%.
Qantas signs deal
In news overnight, Qantas and Airbus will invest US$200 million to drive the sustainable aviation fuel industry in Australia.
Qantas CEO Alan Joyce and Airbus CEO Guillaume Faury signed an agreement in Doha on Sunday. Qantas plans to use sustainable aviation fuel for 10% of its fuel needs by 2030.
Commenting on the news, CEO Alan Joyce said:
This investment will help kickstart a local biofuels industry in Australia and hopefully encourage additional investment from governments and other business and build more momentum for the industry as a whole
