Why did the Flight Centre (ASX:FLT) share price go backwards in November?

Here's what went wrong for the travel agency last month.

| More on:
A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

November wasn't a great month for the Flight Centre Travel Group Ltd (ASX: FLT) share price.

The travel agency's stock tumbled 13.03% over the course of last month despite no price-sensitive news having been released by the company.

After closing at $20.41 on 1 November, the Flight Centre share price ended the final session of the month trading at $17.75.

For context, the S&P/ASX 200 Index (ASX: XJO) also ended the month in the red, dropping 1.56% over the same time frame.

Let's take a look at what might have weighed on the company's shares in November.

Flight Centre share price nosedives over November

The Flight Centre share price finished lower than it started for the second month in a row in November.

This time, it was likely driven lower by increasing numbers of new COVID-19 cases appearing around the globe.

The month started out relatively strong for Flight Centre. Its share price surged 5.4% amid the reopening of the United States' international borders.

Unfortunately, it took a tumble on 22 November and hasn't managed to recover yet.

The drop coincided with news that Austria was locking down as COVID-19 took off in the European nation along with many of its neighbours.

At the same time, the United States reported a 16.1% week-on-week increase in cases of the virus.

But that wasn't Flight Centre's worst day on the ASX in November.

Last Friday, the value of the company's shares fell 7.4% amid the emergence of the Omicron COVID-19 variant.

At the time, officials warned that while we didn't know the impact the variant could have, it had the potential to evade vaccines and treatments and spread rapidly.

Monday also started out disastrous for the Flight Centre share price. Luckily, it mostly recovered over the course of the day.

It's worth noting; Flight Centre wasn't the only ASX 200 travel share to suffer in November.

The Webjet Limited (ASX: WEB) share price also fell 14.9% last month, while that of Corporate Travel Management Ltd (ASX: CTD) dived 10.7%.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Travel Shares

Bored woman waiting for her flight at the airport.
Travel Shares

Why is the Flight Centre share price falling today?

What's going on with this travel agent's shares?

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

A 'once in a lifetime' opportunity for Qantas shares?

Can this stock fly higher?

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Act fast if you want to receive the next Flight Centre dividend

It won't be long until this travel agent pays its next dividend.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Why is the Webjet share price racing to a 52-week high today?

Webjet has been busy talking up its WebBeds business this morning.

Read more »

A businessman points a finger in accusation, indicating a share price or ASX company in trouble
Travel Shares

Qantas shares hit turbulence amid $250,000 fine for 'shameful' conduct

ASX 200 investors are bidding down the Qantas share price on Wednesday.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Flight Centre shares plunge 7% despite return of the interim dividend

ASX 200 investors are sending the Flight Centre share price spiralling lower on Wednesday.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Earnings Results

Flight Centre share price on watch amid 565% half-year profit surge

Flight Centre shares could see some sizeable moves today after the ASX 200 travel stock reported on its half-year results.

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Own Flight Centre shares? Here's what you need to know ahead of its results

The travel agent giant is releasing its results on Wednesday next week.

Read more »