ASX travel shares are back in the spotlight now that COVID-19 has stepped back into the shadows.
The industry got a vote of confidence today after Regional Express Holdings Ltd (ASX: REX) announced a 10-year agreement with Flight Centre Travel Group Ltd (ASX: FLT).
Additionally, Rex revealed it has also signed agreements with ASX travel shares Helloworld Travel Ltd (ASX: HLO), Webjet Limited (ASX: WEB), and Corporate Travel Management Ltd (ASX: CTD), plus Consolidated Travel.
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ASX travel shares team up
Revealing its "multiple agreements with major travel agency groups", Rex picked out one deal for special mention.
"In particular, Rex has signed a landmark 10-year agreement with Flight Centre which ensures that Rex will be Flight Centre's partner of choice over the next decade," it said.
Rex said all the agreements will be in effect at the start of the new financial year beginning July 2023.
The ASX travel share expects the deals to result in a "more than doubling of Rex's annual domestic jet revenues in FY2023 compared to its current annualised domestic jet revenues with no increase in fleet size".
It also expects its regional revenue to be improved.
Speaking on the announcement, Rex's general manager of sales Ann Elliott said the new partnerships were "critical to success".
"These new partnerships are a testament to our growing reputation as a safe, reliable and affordable full-service airline which is enjoying ever-increasing passenger support," she added.
Share price snapshot
At the time of writing, the Rex share price is up 0.99% at $1.02. It is down almost 28% this year to date and 18% over the past year.
The Flight Centre share price is currently down 1.15% today at $17.24. It has fallen 7% since the start of the year but is up 15% over the past 12 months.
