Let’s take a look at three travel giants reporting today.
Qantas (ASX:QAN) said it’s seeing a sustained recovery in travel demand as Australia transitions to living with Covid-19. It said revenue growth during the third quarter has led to a rapid reduction in net debt of $1 billion to $4.5 billion at the end of April, below pre-Covid levels. This compares to a peak of more than $6.4 billion at the height of border closures. However, the company still expects to post a full-year EBIT loss for FY22 that includes the worst of the Delta and Omicron impacts as well as one-off restart costs. Shares are trading 5 per cent higher at $5.88.
Helloworld Travel (ASX:HLO) also said its post-Covid recovery is continuing as borders reopen and confidence returns. Travelers are booking longer lead times with higher average spend. The company’s revenue during the March quarter rose by 52 per cent, while its EBITDA loss of $1.9 million improved by 53 per cent compared with the prior year period, despite a $4.8 million reduction in government wage subsidies. Shares are trading 3.8 per cent higher at $2.76.
Meanwhile, Regional Express (ASX:REX) and Delta Air Lines are set to provide interline ticketing and baggage services to each other, starting in the third quarter of 2022, after Rex Airlines signed a letter of intent with Delta. It said Rex’s passengers will be able to connect seamlessly on Delta’s daily flight between Sydney and Los Angeles, a frequency which will increase to 10 flights a week beginning in December. Shares are trading 2.9 per cent higher at $1.27.