Both the Flight Centre Travel Group Ltd (ASX: FLT) share price and the Webjet Limited (ASX: WEB) share price remain suspended on Monday.
The two travel companies had suggested that they would return from their suspensions today, but that was dependent on them finalising some much-needed liquidity to get them through the coronavirus crisis.
Flight Centre.
Flight Centre halted its shares on March 19 whilst it assessed the impact of the coronavirus on its business.
Last week the company revealed its response plan and announced that it is undertaking steps to ensure it retains a robust balance sheet and liquidity position. This includes cancelling the $40.1 million interim dividend payment that was due to be paid to shareholders in April.
Whilst the company has not yet commented on the other actions that it intends to take, there is speculation that it will need to raise upwards of $400 million.
According to the AFR, analysts at Morgan Stanley said: "In order it to achieve that prudent minimum 6-8 months of liquidity, we believe that $200 million to $400 million of additional liquidity is required."
Webjet.
This morning this online travel agent provided an update on its suspension. According to the release, the company is still working on its proposed capital raising and has extended its voluntary suspension.
At this stage, Webjet expects to be in a position to announce the outcome of the proposed raising within five business days. Though, this was what it said five business days earlier.
Judging by the delay, it appears as though Webjet is struggling to raise the funds required to see it through the crisis.
Last week The Australian reported that Webjet called off a capital raising. It is understood to have been seeking to raise $250 million at $2.00 per share. This compares to its last traded price of $3.76.
Hopefully both companies will be back on the ASX board in the near future and have sufficient liquidity to make it through the crisis.
