The Flight Centre Travel Group Ltd (ASX: FLT) share price is having a pretty decent day today. Flight Centre shares are, at the time of writing, up 2.64% to $19.86 a share.
That’s a pretty pleasing result for shareholders, considering the broader S&P/ASX 200 Index (ASX: XJO) is ‘only’ up 0.59% at the same time.
Today’s movement continues the positive momentum the Flight Centre share price has enjoyed over the past month or two in particular. Flight Centre is now up 27% since 22 February, and up 44.7% since 1 February. They are also up 98.6% over the past 12 months.
However, zooming out and the picture is still not quite as rosy for long-term investors. Flight Centre shares are still 44.2% down from the pre-COVID level of $35.54 a share, and 68% down from the all-time high of $61.56 a share we saw back in August 2018.
But that was then, and this is now. So, what’s been going on with Flight Centre today?
Why is the Flight Centre share price soaring today?
Well, let’s get this out of the way: there is no official news or announcements out of Flight Centre that might provide an easy explanation for why Flight Centre shares have taken off today. The company’s last ASX announcement was released on 17 March, but that was just some routine regulatory paperwork, nothing too exciting.
But we are seeing similar moves from the companies that share Flight Centre’s stable as a travel company. Corporate Travel Management Ltd (ASX: CTD) shares are up 0.7% today, while Webjet Limited (ASX: WEB) shares have been bumped 1.65%. So this is clearly an industry-wide trend here.
These shares have all been in investors’ sights ever since the government announced the $1.2 billion travel stimulus package earlier in the month. This package includes 800,000 half-price airline tickets, which is obviously a positive development for companies like Flight Centre.
Also likely adding to this momentum is the ongoing rollout of coronavirus vaccines. The US has flagged that all citizens will be eligible for their shot by the end of April.
Here in Australia, we are not quite as advanced, but the government is still planning on making vaccines universally available before the end of the year.
All of these developments add up to a fertile environment for the Flight Centre share price. Thus, it’s no big surprise that Flight Centre shares are lifting today.