ASX travel shares gained altitude today amid a global travel recovery.
The Flight Centre Travel Group Ltd (ASX: FLT) soared 5.79%, Webjet Limited (ASX: WEB) gained 4.83%, and Qantas Airways Ltd (ASX: QAN) climbed 2.68%.
Let’s take a look at what lifted the travel sector today.
ASX travel shares rise
ASX travel shares took off but they were not the only travel stocks taking flight. In the US, on Tuesday, American Airlines Group surged 8%, United Airlines Holdings jumped 7.56% and Delta Air Lines Inc finished 6% ahead.
And airlines weren’t the only companies in on the party. Cruise operators Royal Caribbean gained 4%, Carnival Corporation Corp jumped 6.65%, and Norwegian Cruise Line Holdings surged 6.92%.
Speculation that Russian president Vladimir Putin may still be prepared to hold back on war with Ukraine may have helped these shares, as my Foolish colleague in the US reported.
In Australia, the Corporate Travel Management Ltd (ASX: CTD) share price also surged 7.65% while Helloworld Travel Ltd (ASX: HLO) finished the day up 7.08%.
Corporate Travel’s gain came on the back of its half-yearly results today which showed its revenue more than doubled in H1 FY22. The company also reported its revenue in North America is higher than it was pre-COVID-19.
Meanwhile, news that WA Premier Mark McGowan may be lifting WA’s border lockdown could also be good news for ASX travel shares.
WA Premier Mark McGowan reportedly said a new reopening date could be on the way, according to 7 News. McGowan said:
We are reviewing (restrictions) as we speak. The reality is, though, that we are getting the third-dose vaccination rate up, the eastern states appear to be coming off their peak, which is a good thing.
Meanwhile, the Canadian government eased its COVID-19 rules for travellers arriving in the country on Tuesday. Fully vaccinated travellers will no longer require a PCR test on arrival in Canada. France also relaxed its travel rules on 12 February.
This is all good news for ASX travel shares.
The post Why are ASX travel shares taking flight today? appeared first on The Motley Fool Australia.
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More reading
- Corporate Travel (ASX:CTD) more than doubles its revenue amid easing COVID-19 travel restrictions
- Border drama: Qantas (ASX:QAN) faces continued challenges on ‘kangaroo route’
- Qantas (ASX:QAN) share price slips amid Bonza plans to launch ‘something very different to the market’
- 2 ASX shares to buy that are perfectly set up to rally
- ‘Deeply unfair’: Here’s why some Qantas (ASX:QAN) customers are seeing red
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, 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 Bruce Jackson.
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