Travel Shares on the ASX Face Challenges in 2026
In 2026, travel shares listed on the Australian Securities Exchange (ASX) have largely underperformed, with investors expressing growing concerns over a range of macroeconomic and geopolitical factors. Persistent inflation, elevated interest rates, and ongoing tensions involving Iran have all contributed to a climate of uncertainty that is impacting global travel demand. These conditions have led to rising oil prices, which in turn are increasing airline fuel costs and pushing up airfares. Additionally, higher borrowing costs and cost-of-living pressures have made consumers more cautious about discretionary spending such as holidays and business travel.
The conflict in the Middle East has also created broader uncertainty around global economic growth, disrupting flight routes and altering travel patterns. This has prompted investors to reassess their expectations for earnings across the tourism and aviation sectors. As a result, travel-related stocks have faced sustained selling pressure, with fears that demand could weaken further.
However, while the current challenges are significant, they are likely to be temporary if inflation moderates, interest rates begin to ease, and geopolitical tensions stabilise over the medium term. This scenario presents a value opportunity for ASX travel shares, despite the headwinds that are expected to persist in the short term.
Three Potential Long-Term Recovery Options
Qantas Airways (ASX: QAN)
Qantas shares are currently trading close to a 52-week low, having declined by more than 18% year to date. While rising fuel costs pose a threat to the airline’s bottom line this year, its dominant market share continues to make it a blue-chip stock. According to Samantha Menzies from The Motley Fool, Qantas’ market share, expansion into offshore routes, and adoption of artificial intelligence are positive indicators for the company.
Analysts have placed an average price target of $11.04 on Qantas shares, suggesting an upside of almost 30% from current levels. This makes it an attractive long-term investment option for those willing to ride out the current downturn.
Helloworld Travel (ASX: HLO)
Helloworld Travel is another example of a heavily sold-off travel share, with its share price down roughly 25% year to date. The company operates through three key pillars: retail, wholesale, and inbound. Recent analysis from brokers suggests that it could be a long-term value play.
Shaw and Partners recently placed a buy rating on Helloworld Travel, with a 12-month target of $2.80. This implies a potential 95% upside from its current share price.
Web Travel Group Ltd (ASX: WEB)
Web Travel Group could be another long-term focus among ASX travel shares. Its share price has crashed almost 50% year to date, but the company has reported some solid results in the first half of 2026:
- TTV up 22% on the prior corresponding period (PCP)
- Above guidance TTV margin
- WebBeds EBITDA up 21% on PCP
- Solid cash position with $481 million cash, $699 million available liquidity, and a $200 million undrawn revolving credit facility
Twelve analysts offering a one-year forecast on these ASX travel shares have an average target of $5.21, indicating more than 100% upside from the current share price of $2.44.
Final Thoughts
While the current environment poses challenges for ASX travel shares, the long-term outlook remains positive if macroeconomic conditions improve. For investors looking for value opportunities, Qantas Airways, Helloworld Travel, and Web Travel Group Ltd represent compelling options. However, it is important to consider individual risk tolerance and investment goals before making any decisions.
