3 ASX travel shares surging in Flight Centre's slipstream today

Helloworld, Webjet, and Qantas gained alongside Flight Centre today.

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Key points
  • Helloworld, Webjet, and Qantas shares gained alongside Flight Centre's share price surge today
  • Flight Centre upgraded its FY23 forecast for underlying EBITDA to between $295 million and $305 million, up from between $270 million and $290 million previously
  • Flight Centre is also expecting FY23 to be its second-best year ever for total transaction value

The Flight Centre Travel Group Ltd (ASX: FLT) soared today and likely dragged other ASX travel shares higher with it.

The Flight Centre share price closed the session on Thursday up 4.04% to $21.65 per share.

Also flying high today were fellow ASX travel shares:

  • Helloworld Travel Ltd (ASX: HLO) shares, up a hefty 9.41% to $2.79 per share
  • Webjet Limited (ASX: WEB) shares, up 2.72% to $7.54 per share
  • Qantas Airways Limited (ASX: QAN) shares, up 1.55% to $6.56 per share.

Webjet, Qantas, and Helloworld did not release any official news to the ASX today.

A woman reaches her arms to the sky as a plane flies overhead at sunset.

Image source: Getty Images

What news has investors buying ASX travel shares today?

Flight Centre upgraded its earnings guidance for FY23 today.

The company now expects underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of between $295 million and $305 million in FY23.

This is up from between $270 million and $290 million previously.

The company noted this represented a $483 million improvement from the underlying $183 million loss posted in FY22.

Flight Centre also expects $22 billion in total transaction value (TTV) for FY23, up almost 115% year over year.

This represents the company's second-best full-year result ever. Its best was $23.7 billion in TTV in FY19.

Flight Centre remains the most shorted stock of the ASX shares, with 10.45% of its capital shorted.

This means a lot of pro traders are expecting the Flight Centre share price to go down.

Motley Fool contributor Bronwyn Allen has positions in Flight Centre Travel Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Helloworld Travel. The Motley Fool Australia has recommended Flight Centre Travel Group. 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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