Are ASX travel shares finally emerging from the COVID storm?

Key points

• ASX travel shares finished Wednesday in the green
• Prime Minister Scott Morrison has expressed optimism on international borders opening
• Citi analysts are optimistic about travel as COVID-19 Omicron cases peak

ASX travel shares finished in positive territory today amid renewed optimism on international borders.

The Webjet Ltd (ASX: WEB) share price closed up 1.97% while Qantas Airways Limited (ASX: QAN) finished 2.65% higher. The Flight Centre Travel Group Ltd (ASX: FLT) also edged 1.44% into the green.

Let’s take a look at what may have lifted ASX travel shares today.

Renewed push on international borders

ASX 200 travel shares have been performing well since the market emerged from the Australia Day holiday. Since market open on January 27, Webjet is 12% higher, Qantas has gained 10% while Flight Centre is up 13%.

In a press conference in Sydney today, Prime Minister Scott Morrison expressed optimism the international border will open, Perth Now reported.

The key issue that I’ve tasked our health officials to advise me on in opening up the border to international arrivals is what impact that might have on the hospital system and the pressures that could come from additional people coming into the country at this time.

Morrison hailed the opening to backpackers and visa holders a success, the publication reported.

The comments follow Morrison telling radio on Friday the borders may “fully open” before Easter.

Other ASX travel shares seem to have been buoyed by the optimism today. Helloworld Travel Ltd (ASX: HLO) closed 1.27% in the green while Corporate Travel Management Ltd (ASX: CTD) was up 0.33% on the day

Earlier this week, Citi research analyst Samuel Seow found despite the COVID-19 Omicron scare, people continued to visit international travel sites in the past month. In comments reported in The Australian, he said:

Intentions to travel as measured by website visits remained relatively stable through the uncertain period. We expect this bodes well for travel as cases begin to peak.

Today, the Australian Tourism Export Council also backed calls for the international border to open. In a media release, managing director Peter Shelley said:

Opening our borders would bring in desperately needed workers, reconnect people with their families and provide a lifeline to our tourism industry which has copped a lot over the last two years.

In every way we have joined the rest of the world in taking on covid as part of our day to day lives and we now need to remove the last pretence of a barrier and accept that Australia has to re-engage with the global travel community by fully reopening or international borders. 

ASX travel share summary

In the past 12 months, ASX travel shares have found themselves back in positive territory.

Webjet is 3.17% higher, Qantas has gained 7.39% while Flight Centre’s share price has hiked almost 22% in the past year.

Over the same period, the S&P/ASX 200 Index (ASX: XJO) has gained around 4.85%.

The post Are ASX travel shares finally emerging from the COVID storm? appeared first on The Motley Fool Australia.

More reading

• Why has ASX travel share Flight Centre (ASX:FLT) lifted 10% in a week?
• Could the Webjet (ASX:WEB) share price be about to get a boost?
• Top broker says Corporate Travel Management (ASX:CTD) shares can rise 36%
• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• What is green shorting and which ASX 200 shares are being targeted?

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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