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Here’s why the Flight Centre Travel Group Ltd share price is soaring

Owners of Flight Centre Travel Group Ltd (ASX: FLT) shares have been well rewarded for their persistence and patience over the past month. In that time, the Flight Centre share price has rocketed $8.67 per share to $44.52, up 24%. The shares have gained 2.3% during today’s session alone.

The Flight Centre share price has experienced turbulent conditions over the past few years. The shares have been heavily shorted, at times, while shareholders have been forced to endure multiple earnings downgrades and plenty of scepticism from the financial press.

Last week however, the company issued the news all shareholders wanted to read. The travel agency business said it is on track to achieve the top of its targeted range following a solid second-half recovery.

It now expects to achieve an underlying profit before tax (PBT) between $325 million and $330 million for the year to 30 June, with PBT for the second-half expected to exceed that of the prior corresponding period by 2.5% to 4.9%.

The group’s managing director, Graham Turner, attributed the stronger result to a solid performance in North America, as well as Europe, the Middle East and Africa (EMEA).

The Flight Centre share price has now gained more than 41% over the past 12 months but has actually declined around 5% over the past three years. The shares offer a fully franked dividend yield of 3.1% at today’s price, and could be worth a closer look by long-term investors.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia owns shares of Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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