The Flight Centre Travel Group Ltd (ASX: FLT) share price is beginning its ascent to pre-COVID levels as travel optimism gathers momentum.
At the time of writing, Flight Centre shares are up 7.55% to a 20-month high of $23.50.
What's driving the Flight Centre share price?
Travel shares are booming, globally
The US Global Jets Exchange Traded Fund (ETF) rallied 5.33% on Friday night, signalling a strong re-rate across travel-related shares.
The Jets ETF is comprised of companies in the air travel industry including airline operators, airports and terminal services.
The ETF holds mainly US airlines but also has exposure to the likes of Qantas Group Ltd (ASX: QAN) and Sydney Airport (ASX: SYD).
With a benchmark travel index like Jets rallying overnight, it could only mean good news for the Flight Centre share price.
Australia set to reopen borders
Last Friday, Prime Minister Scott Morrison announced international borders will reopen in November for states that reach 80 per cent vaccination rates.
"The government's intention is that once changes are made in November, the current overseas travel restrictions related to COVID-19 will be removed and Australians will be able to travel subject to any other travel advice and limits, as long as they are fully vaccinated and those countries' border settings allow," Mr Morrison said in a statement.
He said the government is considering quarantine-free travel between some countries, such as New Zealand, when "it is safe to do so".
According to the Australian Financial Review, "Ex-Australia, Britain, Europe (especially Greece), the United States, Singapore and Fiji, along with New Zealand, feature strongly in bookings".
When the news first broke last Friday, the Flight Centre share price managed to eke out a 1.82% gain to $21.85 despite the S&P/ASX 200 Index (ASX: XJO) tumbling 2%.
Flight Centre shares begin the climb to pre-COVID levels
The Flight Centre share price is breaking to the upside following a steady stream of positive news for the travel industry.
It's up 9.4% in October alone and rallied 34% in the past month.
That said, Flight Centre has a mountain to climb if it is to reach its pre-COVID levels of around $40 a share.
