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%.
Meanwhile, the Helloworld Travel Ltd (ASX: HLO) share price is 17% higher, and Corporate Travel Management Ltd (ASX: CTD) shares have lifted 16% since this date.
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.
