The Flight Centre Travel Group Ltd (ASX: FLT) share price is slipping today despite its new deal with Regional Express Holdings Ltd (ASX: REX).
Flight Centre has made a commercial agreement with the airline focused on connecting regional Australia with the nation's capitals. The travel agency believes the agreement will benefit its customers.
Right now, Flight Centre's shares are swapping hands for $14.52 apiece, 4.29% less than at Friday's close.
Let's take a closer look at today's news.
New offerings
The Flight Centre share price is slipping amid news of a commercial agreement with Rex.
The new agreement will see Flight Centre offering Rex's services to both its leisure and corporate customers.
According to Rex's deputy chair, John Sharp AM, the deal will give Flight Centre's customers "even greater access to… national, regional and domestic networks".
Rex operates flights between Sydney, Melbourne, Adelaide, Canberra, the Gold Coast, and 61 regional and remote locations around Australia.
Commentary from management
Flight Centre CEO Graham "Skroo" Turner commented on the news that's failed to boost the company's share price today:
We are delighted to enter into this agreement with Rex for the benefit of our customers who book across our diverse business streams.
Rex's customer centric principles align with ours and its dedication to providing vital air services, particularly to our remote and regional communities is significant. We look forward to playing a part in Rex's exciting growth strategy moving forward.
Flight Centre share price snapshot
The Flight Centre share price dip comes at an unfortunate time for the travel agency. Its shares were already in the red on the ASX.
Right now, Flight Centre stock is trading for 8.39% less than it was at the start of 2021. However, it has gained nearly 19% since this time last year.
The company has a market capitalisation of around $3 billion, with approximately 199 million shares outstanding.
