ASX travel stocks delivered some very mixed results this earnings season.
Those results reflect the outsized share price gains some top travel companies have delivered to shareholders over the past year, as well as the subpar returns dished out by others.
Looking to the year ahead, however, it may well be some of FY 2025's laggards that outperform in FY 2026.
Image source: Getty Images
Qantas shares may have reached cruising altitude
Qantas Airways Ltd (ASX: QAN) shares have been among the best-performing ASX travel stocks.
Shares in the S&P/ASX 200 Index (ASX: XJO) airline closed up 9.1% on 28 August following the release of the company's FY 2025 results. Highlights included an 8.6% year-on-year increase in revenue and other income to $23.82 billion. And the airline's underlying profit before tax of $2.39 billion was up 15% from FY 2024.
But with Qantas shares now up more than 71% in a year, currently at $11.66 apiece, leading brokers don't expect the same kind of outsized gains ahead.
Citi has a price target of $12.20 on Qantas shares, while RBC Capital Markets has a short-term price target of $12.00 (courtesy of The Australian Financial Review).
As for rival ASX travel stock Virgin Australia Holdings Ltd (ASX: VGN), which returned to the ASX on 24 June, Citi has a neutral rating with a short-term price target of $3.80 on Virgin shares.
Virgin shares are currently trading for $3.42 each.
Commenting on Virgin and Qantas shares, ECP Asset Management portfolio manager Andrew Dale said:
Historically, airlines have been complicated businesses with large capital bases and lots of volatility around fuel prices and costs, so it's just not the sort of return on investment we're looking for.
Two ASX travel stocks tipped to surge
Helloworld Travel Ltd (ASX: HLO) reported its FY 2025 results on 26 August. While revenue of $192.8 million was down 8.7% from FY 2024, the ASX travel stock achieved a 4.1% increase in profit after income tax to $33.2 million.
Helloworld shares are currently trading for $1.73 apiece, down 12.4% since this time last year.
But Jarden believes the stock is undervalued (courtesy of the AFR). The broker has an overweight rating on Helloworld shares with a short-term price target of $2.80. That represents a potential upside of 61.8% from current levels.
Which brings us to ASX travel stock Web Travel Group Ltd (ASX: WEB), which has also had a difficult year behind it.
As you're likely aware, the company spun off its online travel agency business, Webjet Group (ASX: WJL), on 30 September last year. That left the ASX 200 travel stock to focus on its B2B travel business, WebBeds.
Web Travel released a trading update on 26 August. Web Travel managing director John Guscic noted, "WebBeds continues to gain market share, TTV margins remain stable, and we are on track to deliver record EBITDA in FY26."
Web Travel shares are currently changing hands for $4.19 apiece, down 45.0% over 12 months.
But Citi forecasts a big rebound ahead for the ASX travel stock, with a share price target of $6.60. That represents a potential upside of 57.5% from current levels.
