10 ASX travel stocks to watch out for!

Highlights

  • With some parts of regional NSW still under lockdown, the travel sector continues to reel under stress.
  • Sealink maintained a robust balance sheet despite COVID restrictions.
  • Webjet strengthened its capital position managing its cash burn at a healthy level.

The Australian travel industry had been on a track of steady recovery before the lockdown restrictions in NSW and Victoria derailed the momentum . Some parts of regional NSW are still subject to the ongoing stay-at-home orders – which has magnified the problems for the travel industry.

Representative Image Source: © Jirsak | Megapixl.com,

The lockdown pushed the entire Aussie travel sector at a crossroad with more than half of the population in lockdown.

Sealink Travel Group Limited (ASX:SLK)

The ASX listed transport and tour provider - Sealink Travel Group, has benefited from several factors during FY2021. The tour provider reported strong organic growth with record underlying Net Profit After Tax and Amortization (NPATA), during FY21.

RELATED READ - Serko reports constrained demand during FY21 amid disruption in travel market

For the year ended on 30 June 2021 –

  • The company maintained a strong balance sheet position with leverage maintained at 1.4x.
  • The gross operating cash flow stood at AU$157.4 million, up 44.1% from prior year.
  • Sealink achieved a record net profit after tax and amortisation (NPATA) of AU$74.7 million, up 153% from FY2020.
  • The revenue also increased by 88.1% from the prior corresponding year to AU$1.73 billion.

Sealink has recently entered a binding joint venture agreement with RATP Dev UK Limited’s West London bus operations. On 23 September, SLK shares were trading 4.780% higher at AU$9.315 at 10:39 AM AEST.

Alliance Aviation Services Limited (ASX:AQZ)

Alliance Aviation is an ASX listed fly-in, fly-out (FIFO) transportation provider to the mining and energy sector in Australia.

Representative Image Source: © Jirsak | Megapixl.com 2

The ad hoc charter operator achieved record profit during FY21, despite uncertain market condition of the travel industry. For FY2021:

  • Company’s underlying profit before tax stood at AU$51 million, up 25% from the prior year.
  • The revenue from operations stood at AU$308.7 million – driven by both contract and charter revenues.
  • Underlying operating cash flow stood at AU$75.9 million, up 73% from the prior year.

On 23 September, Alliance shares were trading 1.199% higher at AU$4.220 at 11:58 AM ASET.

Corporate Travel Management Limited (ASX:CTD)

Corporate Travel Management provides innovative travel management services to the global corporate markets.

The company achieved rapid return to underlying EBITDA during 2H1. For Fy 2021:

  • Company’s earnings before taxes interest depreciation and amortisation (EBITDA) stood at AU$7.2 million.
  • The total transaction value was estimated at AU$1.6 billion and the statutory NPAT stood at AU$55.4 million.
  • CTD maintained a strong balance sheet position with zero debt and cash at AU$99 million.

On 23 September, CTD shares were trading 5.033% higher at AU$23.370 a 12:37 PM AEST.

RELATED READ - ASX rises 0.3% on energy, tech boost; Nanosonics, Webjet lead

Webjet Limited (ASX:WEB)

The AU$2.24 billion worth Webjet Limited, is a full range travel booking service provider.

Representative Image Source: © Jirsak | Megapixl.com 

Webjet has maintained a strong capital position with cash reserves worth AU$261 million as of 31 March 2021. According to its latest FY21 results -

  • Despite headwinds due to the COVID-19 travel restrictions, Webjet reported a revenue of AU$38.5 million for the 9-month period from 1 July 2020 to 31 March 2021.
  • The company strengthened its capital position managing the cash burn and reported an average cash burn of AU$5.5 million.
  • Webjet has announced a positive cash flow for 1H22 as its COVID-positive strategy is delivering results.

On 23 September, WEB shares were trading 4.222% higher at AU$6.170 at 1:22 PM AEST.

Air New Zealand Limited (ASX:AIZ)

Air New Zealand provides global network of passengers and cargo service centres in New Zealand.

Continuing to navigate the COVID-19 impacts, the company reported 71% increase in its cargo revenue. According to its latest FY21 results –

  • The operating revenue stood at AU$2.5 billion, down 48% from the prior year.
  • Cargo revenue increased by 71% from the prior year, fueled by the Government’s support schemes.
  • The company reported liquidity of AU$1.3 billion, that included cash at AU$183 million, as of 24 August 2021.

On 23 September, AIZ shares were trading 0.986% higher at AU$1.535 at 1:23 PM AEST.

Auckland International Airport Limited (ASX:AIA)

The ASX Auckland International Airport is one of the major airline hubs in New Zealand. Auckland Airport’s total passenger traffic increased by 59.7% in July, from the last year. According to its FY21 annual results –

  • Auckland Airport’s investment property division delivered strong performance during the 12 months period ended on 30 June 2021. The occupancy remained at 99% despite headwinds due to COVID-19.
  • Auckland has recently unveiled plans to expand shopping experience with its outlet centre development.

On 23 September, AIA shares were trading 0.944% higher at AU$7.480 at 1:40 PM AEST.

Sydney Airport (ASX:SYD)

The ASX listed AU$22.23 billion company – Sydney Airport, is one of the most important infrastructure pieces in Australia.

Representative Image Source: © Jirsak | Megapixl.com

The airport reported a 98.9% decline in domestic passengers in August, which was badly impacted due to the NSW stay-at-home orders. According to its 1H21 results –

  • Capital expenditure fell by 57.3% from FY2020 to AU$65.2 million.
  • The revenue stood at AU$341.6 million, down 33.2% from FY2020.
  • Company’s net operating receipts significantly declined by 98% to AU$1.8 million.

On 23 September, SYD shares were trading 0.365% lower at AU$8.210 at 2:08 PM AEST.

Qantas Airways Limited (ASX:QAN)

Qantas Airways is an ASX listed international and domestic transportation service provider.

Representative Image Source: © Jirsak | Megapixl.com

Qantas reported a 95% increase of domestic flying during the year ended on 30 June 2021. According to its FY21 annual report-

  • The underlying EBITDA stood at AU$410 million for FY2021.
  • Annualised structural cost benefits stood at AU$650 million and the total liquidity stood at AU$3.8 billion.
  • The airlines reported AU$267 million net free cash flow for 2H21.

On 23 September, Qantas shares were trading 4.753% higher at AU$5.730 at 2:21 PM AEST.

Transurban Group (ASX:TCL)

Transurban is an ASX listed owner and developer of electronic toll roads and transport systems in Australia. The company has announced the successful completion of its Institutional Entitlement Offer today.

According to its FY21 results:

  • The company delivered a significant progress finalising sale of a 50% stake from its Express Lane assets during FY21.
  • Statutory profit stood at AU$3.27 billion however free cash declined by 13.5% from FY2020.
  • New assets - M8/M5 East and NorthConnex, performed ahead of expectations.

On 23 September, TCL shares were trading 1.199% lower at AU$14.010 at 2:33PM AEST.

Flight Centre Travel Group Limited (ASX:FLT)

With a market worth of AU$3.78 billion, Flight Centre operates as both leisure and corporate travel sector retailer in Australia.

According to its latest FY21 results:

  • FLT reported a profit before tax of AU$54 million, up from AU$18 million in FY20.
  • The group sales increased to AU$333 million. The company is also expanding its business across New Zealand.

On 23 September, FLT shares wee trading 4.791% higher at AU$19.900 at 2:47 PM AEST.

  • With some parts of regional NSW still under lockdown, the travel sector continues to reel under stress.
  • Sealink maintained a robust balance sheet despite COVID restrictions.
  • Webjet strengthened its capital position managing its cash burn at a healthy level.

The Australian travel industry had been on a track of steady recovery before the lockdown restrictions in NSW and Victoria derailed the momentum . Some parts of regional NSW are still subject to the ongoing stay-at-home orders – which has magnified the problems for the travel industry.

Representative Image Source: © Jirsak | Megapixl.com,

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