Did ASX travel shares do well in September?

How did travel shares fare amid interest rate hikes, recession fears, industry weakness, and travel chaos?

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Key points

  • ASX travel shares with a market capitalisation more than $100 million descended in September 
  • The benchmark ASX 200 also fell, losing 7% over the month 
  • Flight Centre dropped more than other travel shares 

The S&P/ASX 200 Index (ASX: XJO) fell in September, but how did ASX travel shares perform in comparison?

Travel shares on the ASX include Qantas Airways Limited (ASX: QAN), Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT). More ASX travel shares with a market cap over $100 million include Regional Express Holdings Ltd (ASX: REX), Corporate Travel Management Ltd (ASX: CTD) and Helloworld Travel Ltd (ASX: HLO)

Let's take a look at how these travel companies performed in September.

Travel shares fall

ASX travel shares struggled in September. Flight Centre shares slumped 20.56% between market close on 31 August and 30 September. The Qantas share price lost 5.64% in the same timeframe, while Webjet shares fell 13.77%. Meanwhile, the Regional Express share price shed 5.71%, Corporate Travel Management lost 13.71% and Helloworld Travel dropped 8.25%.

For perspective, the benchmark ASX 200 index shed 7% in September.

Travel shares appeared to struggle amid interest rate hikes, recession fears, industry weakness, and travel chaos.

United States travel shares also fell in September. For example, Delta Air Lines Inc (NYSE: DAL) shares lost nearly 10%, while American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holdings Inc (NASDAQ: UAL) shares both descended 7%.

However, Qantas did release some positive news on its performance in September. The company's on-time performance improved in the first two weeks of the month. Flight delays, cancellations and mishandled bag rates all dropped.

Qantas' annual report also shed light on the salary of CEO Alan Joyce. Joyce received a $2.3 million base salary and other benefits in the 2022 financial year, 15% more than FY21.

Flight Centre shares continued to be the most shorted share on the ASX in September. This was despite Goldman Sachs tipping upside for the Flight Centre share price. Goldman Sachs placed a neutral rating and $19.60 price target on the company's shares.

Webjet shares fell despite a broker upgrade. Webjet also provided a strategy update to the market in September. The company noted international flight bookings had improved in 2023. Webjet is planning to increase use of social media and video platforms, reduce paid search advertising and retain marketing spend at 1.5% of time to value (TTV).

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs and Helloworld Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Delta Air Lines. The Motley Fool Australia has positions in 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 Scott Phillips.

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