How did ASX travel shares perform in June?

ASX travel shares were a mixed bag in June. Some names came out on top whilst others booked substantial losses.

It seems people are flying in greater numbers, alongside positive trends in cargo. This means profits look set to return to the travel and airline industries in 2023.

However, looking at the performances of these three prominent ASX travel shares in June, you wouldn’t know it.

Let’s check the performances of Qantas Airways Limited (ASX: QAN), Flight Centre Travel Group Limited (ASX: FLT), and Webjet Limited (ASX: WEB) below:

Flight Centre Travel Group Ltd (ASX: FLT)

Shares of Flight Centre took a hard landing in June and slipped from a high of $20.67 on 8 June to bottom at $17 a week later

By month’s end, the Flight Centre share price had closed at $17.36, more than 16% down from the beginning of June.

Flight Centre is also Citi’s worst ASX 200 travel buy at the moment, according to The Australian, as cited by The Motley Fool.

The broker says Flight Centre could likely face headwinds due to slower international travel volumes out of Australia and so-called ‘VFR’ (visiting friends and relatives) travel.

It rates the share a sell and values the company at $15.55 apiece in the process.

Webjet Ltd (ASX: WEB)

Shares of Webjet arrived at a similar destination in June and traded 12% down across the month.

Despite a quiet month out of Webjet’s camp, investors sold off shares in tandem with weakness in both the sector and broader market.

Nonetheless, Webjet is still the favourite ASX travel play from the team of analysts at Citi.

The Citi team reckons Webjet has the best business model to perform in the current macroeconomic landscape.

Specifically, the business-to-consumer B2C division is the company’s strong point, Citi says.

This could be important considering the number of external influences currently plaguing equity markets.

The broker is also constructive on Webjet’s business-to-business (B2B) segment, noting this is the highest margin segment.

It values Webjet at $6.94 per share, rating it a buy.

Qantas Airways Ltd (ASX: QAN)

Investors in Qantas shares also suffered a hard landing in June with the share price falling from $5.53 on 1 June to six-month lows of $4.36 by 17 June.

At the time of writing, Qantas has clawed back some ground, trading up 2.02% at $4.54.

The share displayed weakness alongside a downturn in the broader market, joining its fellow ASX travel shares on the way down.

It now trades below its pre-COVID price levels, having failed to recover to its pre-pandemic highs.

The Citi team is also cautious on Qantas, noting the airline is likely to face pressures on pricing power and competition within the space.

It values the company at $5.46 per share and is neutral on the stock.

The post How did ASX travel shares perform in June? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 travel shares leap as Australia scraps COVID-19 vaccine mandates for international arrivals
• Top brokers name 3 ASX shares to buy next week
• Here’s why I think the Webjet share price could fly higher in 2022
• Why did the Flight Centre share price tumble 15% in June?
• Why did the Qantas share price plunge 19% in June?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. 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 Scott Phillips.

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