WEB, FLT: Why are ASX ‘air travel’ stocks under investors’ radar today?

3 min read | May 02, 2022 07:15 PM AEST | By Ritwika

WEB, FLT: Why are ASX ‘air travel’ stocks under investors’ radar today? — Image source: © Snicol24 | Megapixl.com

Highlights

Qantas’ announcement made investors rejuvenate the ASX air travel stocks that had been suffering from the impacts of COVID-19.

Investors’ have stirred the ASX air travel stocks today, including WEB and FLT, by trading their shares heavily and making these stocks end in green today.

The shares of Webjet Limited (ASX:WEB) closed 1.160% higher at AU$6.1 per share on the ASX today (2 May). Approximately 4.05 million shares of Webjet were traded throughout the entire trading session on the ASX today.

The share price of Webjet has gained over 22% on the ASX over the past 12 months. On the other hand, Webjet’s year-to-date share price also gained over 12% on the ASX today (2 May).

What pushed the share price of Webjet today?

Today all eyes of the investors were on the ASX air travel stocks as Qantas Airways Limited (ASX:QAN) made a ground-breaking announcement today along with releasing its Q3 FY22 results.

Qantas announced that the company is likely to order 20 Airbus, which are expected to arrive in the late calendar year 2023. Along with that, Qantas will also secure buy rights for additional 94 planes, which are expected to get delivered in 2034.

This move by Qantas will completely transform both domestic and international travel scenarios in Australia.

Qantas also informed that 12 of its airbuses would be ordered for its non-stop flights from Australia to other cities globally, such as New York, and London, as a part of the ‘Project Sunrise’.

This decision by Qantas was supported by its quick business recovery during the post-COVID phase, which is clearly indicated in its Q3 FY22 financials.

Read more: Qantas (ASX:QAN) shares gain 3.6% on 3QFY22 & fleet updates

Post this announcement, the shares of Qantas closed, trading 2.857% higher at AU$5.76 per share on the ASX today. Approximately 17 million shares of Qantas were traded throughout the entire trading session on the ASX.

Meanwhile, Webjet being an ASX-listed online travel booking service provider has come under investors’ radar after Qantas’ announcement.

Furthermore, another ASX ‘air travel’ stock, Flight Centre Travel Group Limited (ASX:FLT), was also heavily traded on the ASX today, with 1.6 million shares being traded during the entire trading session. Flight Centre closed 1.77% higher at AU$22.99 per share on the ASX today (2 May).

The share price of Flight Centre has gained approximately by 36% on the ASX over the past 12 months. On the other hand, Flight Centre’s year-to-date share price also gained over 23% on the ASX today (2 May).

Flight Centre is an ASX-listed travel sector retailer. With a market capitalization of AU$4.51 billion, the company is focused on offering travel experiences to its clients. From tour operating and hotel management, Flight Centre got everything covered under its services for both corporate as well as leisure travel plans.

Today, Flight Centre grabbed investors’ attention due to the same reason as Qantas’ move will give a serious boost to the otherwise slumbering tourism industry. Investors’ are expecting this sector to finally rise and shine after suffering from the impacts of COVID-19 for two long years.

Read more: Helloworld (ASX:HLO) reports strong revenue as travel business resumes

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