Did ASX travel shares do well in September?

How did travel shares fare amid interest rate hikes, recession fears, industry weakness, and travel chaos?

Monica O'Shea

Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.

Published October 3, 2022 4:19 pm AEDT

The S&P/ASX 200 Index (ASX: XJO) fell in September, but how did ASX travel shares perform in comparison?

Travel shares on the ASX include Qantas Airways Limited (ASX: QAN), Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT). More ASX travel shares with a market cap over $100 million include Regional Express Holdings Ltd (ASX: REX), Corporate Travel Management Ltd (ASX: CTD) and Helloworld Travel Ltd (ASX: HLO)

Let's take a look at how these travel companies performed in September.

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. — Image source: Getty Images

Travel shares fall

ASX travel shares struggled in September. Flight Centre shares slumped 20.56% between market close on 31 August and 30 September. The Qantas share price lost 5.64% in the same timeframe, while Webjet shares fell 13.77%. Meanwhile, the Regional Express share price shed 5.71%, Corporate Travel Management lost 13.71% and Helloworld Travel dropped 8.25%.

For perspective, the benchmark ASX 200 index shed 7% in September.

Travel shares appeared to struggle amid interest rate hikes, recession fears, industry weakness, and travel chaos.

United States travel shares also fell in September. For example, Delta Air Lines Inc (NYSE: DAL) shares lost nearly 10%, while American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holdings Inc (NASDAQ: UAL) shares both descended 7%.

However, Qantas did release some positive news on its performance in September. The company's on-time performance improved in the first two weeks of the month. Flight delays, cancellations and mishandled bag rates all dropped.

Qantas' annual report also shed light on the salary of CEO Alan Joyce. Joyce received a $2.3 million base salary and other benefits in the 2022 financial year, 15% more than FY21.

Flight Centre shares continued to be the most shorted share on the ASX in September. This was despite Goldman Sachs tipping upside for the Flight Centre share price. Goldman Sachs placed a neutral rating and $19.60 price target on the company's shares.

Webjet shares fell despite a broker upgrade. Webjet also provided a strategy update to the market in September. The company noted international flight bookings had improved in 2023. Webjet is planning to increase use of social media and video platforms, reduce paid search advertising and retain marketing spend at 1.5% of time to value (TTV).

Automatic Renewal

By taking up this offer, you will also be enrolled in our auto-renewal program, which is our way of making your ongoing subscription easier by ensuring uninterrupted service. Don't worry, though – you're not locked in, and can cancel your auto-renewal at any time before each 'anniversary' date without question or penalty.