Since reporting its full-year results, the Flight Centre Travel Group Ltd (ASX: FLT) share price has been in lift off!
At the time of writing, shares in the travel agency are trading for $20.43 – up 3.23%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.32% higher. In fact, shares hit a new 52-week high of $20.45 earlier in trading.
Let's take a closer look at the company.
Flight Centre's full year results
For the 12 months to 30 June, Flight Centre reported the following:
- Total revenue down 79.1% to $396 million
- Underlying loss before tax flat at $507 million
- Underlying loss after tax improved to $364 million
- Cash balance of $1.36 billion
With many ASX travel shares, the COVID-19 pandemic had an adverse effect on the company's financial performance. With Australia's international borders effectively shut, and the states shutting borders at a moment's notice, the entire tourism sector took a massive hit throughout the financial year.
Just to understand just how hard the pandemic has hit the sector, at the beginning of 2020, the Flight Centre share price was $39.66 per unit. That's 94% higher than the current share price.
Looking forward, however, Flight Centre management believes its worst days are behind it. CEO Graham Turner said the company could declare a profit in FY22. He doesn't expect the company to return to pre-COVID levels until mid-2024, however.
What about the Flight Centre share price?
The day before reporting its full-year results, the Flight Centre share price closed at $16.35. As of writing, the company's value has appreciated by 25%. At the same time, the ASX 200 has fallen about 2%.
Investors, perhaps looking at Australia's accelerating vaccine rollout, may be sharing the optimism of Flight Centre's management looking forward. As Motley Fool's own Scott Phillips says, share prices are more about expectations going forward than on past performance. The rising Flight Centre share price may indicate many traders are feeling positive about the travel agency.
Flight Centre share price snapshot
Over the past 12 months, the Flight Centre share price has increased 45%. Year-to-date the company's value has appreciated 27%. Flight Centre Travel Group has a market capitalisation of about $4 billion.
