The Webjet Limited (ASX: WEB) share price led the S&P/ASX 200 Index (ASX: XJO) leaders on Friday, climbing 11.8% higher. It wasn't the only ASX travel share on the move last week as investors piled back into the big travel companies.
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Why ASX travel shares are taking off
It seems odd that ASX travel shares would be back in vogue with tight coronavirus restrictions around the company.
The prospect of international travel in the near future is bleak with even New Zealand struggling to contain a new COVID-19 outbreak.
However, investors have been bullish on the Aussie travel companies in the past week or so.
One big factor was the heavy losses in the Webjet share price after reporting a $143.6 million full-year loss. That saw the ASX travel share fall 12% lower on Thursday before rebounding strongly to close out the week.
It was a similar story for the Flight Centre Travel Group Ltd (ASX: FLT) share price. Shares in the Aussie travel group jumped 7.1% higher on Friday but remain down 68.4% for the year.
I think there's a bit of momentum behind the recent moves with investors hedging their bets across the travel industry.
I'm mildly bullish on the Corporate Travel Management Ltd (ASX: CTD) share price right now. The big difference here is that I think business travel will rebound much more quickly than leisure.
That means Corporate Travel earnings could outperform its peers in the short to medium-term. State borders remain shut but intra-state flights continue to run between regional hubs.
The ASX travel share jumped 4.5% higher on Friday and is now down 33.3% for the year. However, the momentum factor is also strong, with Corporate Travel shares up 57.9% since the start of August.
Momentum isn't exactly a long-term play, but I think it certainly helps in the current environment.
Corporate Travel's share price fell lower after its full-year results announcement on Wednesday but investors were back buying by the end of the week.
Foolish takeaway
ASX travel shares have been rocketing higher despite tight restrictions across the country.
However, the share market is forward-looking which means investors are pricing in the short-term negative impacts.
That could mean now is a good time to snap up ASX travel companies like Webjet for a good price and hold for the long-term.
