ASX 200 travel shares are climbing today after US travel shares rallied overnight.
The Flight Centre Travel Group Ltd (ASX: FLT) is up 2.53% at the time of writing, while Webjet Limited (ASX: WEB) is 2.41% in the green. Meanwhile, the Qantas Airways Limited (ASX: QAN) share price is 0.74% higher.
Let’s take a look at what could be impacting ASX travel shares today.
US travel shares rebound
ASX 200 travel shares are following in the footsteps of their US counterparts today. The Delta Air Lines, Inc (NSE: DAL) share price climbed 2.16%, American Airlines Group Inc (NASDAQ: AAL) surged 5.66% while United Airlines Holdings Inc (NASDAQ: UAL) jumped 4.5% in the US on Tuesday.
These shares surged after a Florida court struck down the mask mandate on planes. Airlines were quick to respond to the ruling, although it is still subject to a possible appeal from the US government.
Falling oil prices may also have impacted both ASX 200 and US travel shares. Fuel is a major operating cost for airlines. WTI crude oil prices dropped 5.2% overnight and Brent crude oil dropped 5.1%.
However, oil prices are now recovering, with Brent Crude up 1.04% to US$108.37 a barrel while WTI crude oil is 0.92% higher to US$103.50 a barrel.
Closer to home, travel rules have recently been relaxed for overseas arrivals. As of Monday 18 April, international arrivals into Australia are no longer required to undertake a COVID-19 test before their departures. Cruise ships are also now able to arrive in Australia.
An Easter holiday travel boom saw the Gold Coast at its busiest since 2019, the ABC reported.
Gold Coast holiday apartment manager Marion Simon told the publication:
It’s got that vibe again — the restaurants are full, the people are happy, the guests have been absolutely amazing. We are literally 100 per cent full.
New Zealand opened its borders to Australian travellers last week, providing another boost for ASX 200 travel companies.
ASX travel share recap
Flight Centre shares have surged 24% in the past year, while Webjet shares have jumped 15%. In the last year, Qantas shares have also risen 8%.
In comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) has climbed about 8% in a year.
The post Why are ASX 200 travel shares taking off on Wednesday? appeared first on The Motley Fool Australia.
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More reading
- Why are Webjet shares still among the most shorted on the ASX
- Qantas share price slides following Easter travel woes
- Here are the 5 best performing ASX travel shares of 2022 so far
- The Webjet share price has dropped 9% in six months. Is now the time to pounce?
- These are the 10 most shorted ASX shares
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.
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