The Australian financial market has shown rapid signs of recovery as the nation gets a grip on its economic and business scenario. However, the dilemma persists for the travel stocks with the future of international travel still in the doldrums.
While the COVID-19 pandemic was unfortunate news for the financial market, travel stocks were worst affected by the lockdown repercussions. The suspension of travel, with countries immediately imposing border restrictions, lead to one of the worst crashes for the erstwhile booming companies.
However, the sector is witnessing bright spots as the domestic travel businesses bounced back. Meanwhile, the overseas tourism prospects continue to improve with the global vaccination programs and travel bubble arrangements.
In this backdrop, let us gauge investors sentiments with respect to the future of the following ASX-listed travel stocks.
Copyright © 2021 Kalkine Media
Qantas Airways Limited (ASX:QAN)
The shares of Qantas Airways have recovered 33.7% in the past year, with QAN trading at A$4.72 on 11 May 2021 (at 10:28 AM AEST).
The air carrier, in its recent market update, highlighted strong leisure demand together with the recovery of the majority of corporate and small to medium business travel. Therefore, the Group has upgraded its estimate and now expects to reach 90% of its pre-pandemic domestic capacity for Q4 FY21, given the state borders remain open.
The continued domestic capacity expansion is likely to continue into FY22, with Jetstar achieving 120% of pre-pandemic levels and Qantas to be at 107%.
Corporate Travel Management Limited (ASX:CTD)
Corporate Travel Management stock zoomed 40% in one year, trading at A$16.95 on 11 May 2021 (at 10:32 AM AEST).
Corporate Travel Management is returning to profit and expects positive underlying EBITDA in the fourth quarter of FY21, led by the UK/EU and ANZ business regions. Significantly, the US and the UK have the most advanced vaccination and are expected to have all people above 18 years to be vaccinated by June/July 2021.
The swift pace of inoculation in the critical business regions for the Group is anticipated to bolster the recovery of corporate domestic travel as a well significant level of trans-Atlantic and pan-European travel soon.
Copyright © 2021 Kalkine Media
Helloworld Travel Limited (ASX:HLO)
Helloworld Travel shares recovered 14.33% in the past year, trading at A$1.795 on 11 May 2021 (at 10:32 AM AEST).
While the Total Transaction Value (TTV) for Helloworld for the March 2021 Quarter was down 79.6% over the pcp, the Company saw the highest TTV for the financial year for March month, at A$112.5 million. The Company anticipates TTV to continue improving across the coming months in each of its division, with annualised TTV expected to be around A$1 billion for FY2021.
Besides these companies, Flight Centre Travel Group Limited (ASX:FLT) shares edged up by 38.6% in one year, trading at A$15.55 on 11 May on 11 May 2021 (at 10:29 AM AEST). Meanwhile, Shares of Webjet Limited (ASX:WEB) have marked an uptick of 35% in a year and traded at A$4.73 on 11 May 2021 (at 10:30 AM AEST).
Despite witnessing recovery in annual terms, most travel stocks have shown negative momentum in the past month. Notably, the troubling pandemic scenario in many parts of the world and the slow vaccine rollouts in Australia could be one of the roadblocks impeding the recovery of international travel.
Nevertheless, amidst several flickers of hope with developments unfolding, it is remained to be seen how the scenario unfolds for ASX travel players.
SOURCE: Kalkine Media
