3 best ASX travel shares of financial year 2021
3 best ASX travel shares of financial year 2021
The industry that arguably suffered the most from the COVID-19 pandemic produced some gem stocks, with investors betting on a revival.
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Tony Yoo is a senior journalist at The Motley Fool Australia. He formerly wrote for Yahoo Finance, Business Insider and Guardian Australia. Please send story tips to tony.yoo(at)foolcontractors.com. Tony s stock holdings are here.
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ASX travel shares arguably copped the biggest blow from the COVID-19 pandemic.
Every country suddenly found itself fighting an invisible enemy. And one of the bluntest ways to control the spread of the virus was to close the borders.
Both the big players,
Qantas Airways Limited (ASX: QAN) and Virgin Australia, wet lease planes from Alliance.
“Wet leases are agreements between 2 airlines, where the lessor agrees to provide an aircraft, crew, maintenance and insurance to the lessee in return for payment on the number of hours the aircraft is operated, irrespective of how many passengers are on the plane or the price they paid for their seat,” said Montgomery.
“Wet leases offer the lessee everything needed to begin flights on an almost immediate basis.”
The company cleverly took advantage of the depressed aviation market last year, buying up 30 Embraer E190 planes for just $197 million.
Here are the best performing ASX travel shares so far in 2021 fool.com.au - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.com.au Daily Mail and Mail on Sunday newspapers.
This ASX airline you never heard of could see 40% earnings boost
Tony Yoo | April 27, 2021 2:03pm |
More on: Image source: Getty Images
Montgomery Investment Management founder Roger Montgomery has predicted a little-known ASX-listed airline could enjoy a 40% lift in earnings.
The veteran investor told his online subscribers that
Alliance Aviation Services Ltd (ASX: AQZ)’s advantage is that it “wet leases” planes to its big rivals in addition to its own operations.
“Under a wet leasing arrangement, Alliance supplies the aircraft as well as crew, maintenance, and insurance – while the customer pays by hours operated, pays for fuel, and covers airport fees, duties and taxes,” said Montgomery.
Why the Alliance Aviation (ASX:AQZ) share price is up 67% in 12 months
James Mickleboro | February 11, 2021 10:12am |
More on:
The
Alliance Aviation Services Ltd(ASX: AQZ) share price has been a positive performer on Thursday morning.
In early trade the contract, charter and allied aviation company’s shares are up 2% to $4.44.
This latest gain means the Alliance Aviation share price is now up 67% since this time last year.
Why is the Alliance Aviation share price surging higher?
Investors have been buying Alliance Aviation shares this morning following the release of its half year update after the market close on Wednesday.
In contrast to the heavy loss expected from