The stocks set to fly as travel takes off again
With COVID-19 travel restrictions beginning to ease, the Montgomery Small Companies Fund has been adding to its investments in ASX listed travel businesses. In particular, we like the look of Alliance Aviation Services, Corporate Travel Management, Flight Centre and Webjet, which should all do well as travel rebounds.
The skies finally appear to be clearing for the travel sector to take off as restrictions ease around the world after a challenging couple of years for the industry. Both the UK and the European Union have scrapped COVID-19 testing requirements for fully vaccinated travellers while recent commentary from numerous US airlines suggests that North American leisure activity is back at or near pre-pandemic levels with corporate improving to 25-30 per cent behind.
The Montgomery Small Companies Fund has been adding to its travel exposure to benefit from the improving industry outlook, preferring those companies which have materially improved their competitive positioning during the downturn which should see them emerge as market share takers and materially outperform as the cycle recovers. Our travel exposures include