ASX travel shares have taken to the skies in the past month.
Since the market open on 7 March, the Flight Centre Travel Group Ltd (ASX: FLT) share price has lifted nearly 20%. Shares in Webjet Limited (ASX: WEB) have climbed 9% in that time frame, while Qantas Airways Limited (ASX: QAN) shares have soared nearly 13%.
Let’s take a look at why these travel companies had such a great month.
All aboard, restrictions lift
ASX travel shares have ascended amid building travel momentum as restrictions are lifted by governments around the world.
The upward trend began on 9 March amid news India would restart international flights from 27 March. Qantas is reportedly tapping into Australia’s huge Indian community and trade and investment market.
ASX travel shares had another stellar day on 10 March, as oil prices dropped as much as 17%. Oil prices, which impact the price of fuel, are a major cost for airlines.
On 16 March, the travel sector gained another boost when New Zealand announced it would open the border to Australian tourists earlier than expected.
Qantas shares went up 2.23%, Flight Centre shares gained 1.87% and Webjet shares climbed 3.28% on this day alone. Helloworld Travel also jumped 3.45%, while Corporate Travel Management surged 5.26%.
Also on this day, the United Kingdom advised that arrivals would no longer need to present a COVID-19 test to enter the country.
More good news
In another boost for travel, Health Minister Greg Hunt advised on 25 March that Australia’s biosecurity emergency would soon end.
This means a return to cruise travel, with the international cruise ship ban into Australian waters set to end on 17 April. Travellers will also no longer require a COVID-19 test on arrival into the country from this date. Mr Hunt said:
Following medical advice, the Biosecurity Emergency Determination relating to COVID-19 for Australia will not be renewed when it lapses on April 17.
In today’s trade, Qantas shares fell 1.35%, Webjet shares lifted 1.45% and Flight Centre shares climbed 3.55%. Helloworld Travel shares jumped 2.04% while Corporate Travel shares rose 2.22%.
The Webjet share price is Goldman Sachs’s top pick for the travel sector, my Foolish colleague James recently reported. The company has placed a $6.90 price target on the company’s shares, a 17% hike on the current share price.
The post ASX travel shares are flying higher in a month. Here’s why. appeared first on The Motley Fool Australia.
Should you invest $1,000 in right now?
Before you consider , you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
- Why the Flight Centre share price travelled 12% higher in March
- What happened to the Qantas share price today?
- Why this broker thinks the Webjet share price can fly 26% higher
- Here’s why the Flight Centre share price is taking off today
- How did the Webjet share price travel in March?
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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.
from The Motley Fool Australia https://ift.tt/Me2YGLD