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Key points
- The Flight Centre share price has gained 10.56% in a week
- Flight Centre shares up 1.38% in today's trade
- International border reopening hope is helping ASX travel shares
The Flight Centre Travel Group Ltd (ASX: FLT) share price is flying high this week, taking off since Australia Day.
The travel company's shares are up 10.56% since market close on 25 January. In today's trade the Flight Centre share price is up 1.38%, swapping hands for $17.58 at the time of writing.
Let's take a look at what could be impacting this ASX travel share.
What's been happening at Flight Centre?
Flight Centre shares may be ascending, but they are not the only ASX travel share on the rise.
Since market close on 25 January, Qantas Airways Limited (ASX: QAN) shares have risen 7.83%. And the Webjet Limited (ASX: WEB) share price is soaring 8.84% in the same timeframe.
Meanwhile, Corporate Travel Management Ltd (ASX: CTD) has climbed 5.46%, and Helloworld Travel Ltd (ASX: HLO) has leapt 11.16% in that time.
Flight Centre and ASX travel shares appear to be on the rise on the back of positive news on the international border.
Prime Minister Scott Morrison provided hope international borders may be open before Easter. He made the comments during a visit to Cairns on Friday.
In an interview with 4CA, Mr Morrison said:
I look forward to international visitors more broadly, tourists coming back.
And that's our next, that's our next hurdle. And we're working away to just get the timing of that right, and I don't think it's too far away.
… I'd like to see us get there soon, certainly before Easter, well before Easter.
Meanwhile, the Australian Tourism Export Council has weighed into the debate on borders today, stating international closures are "no longer a viable or sensible approach".
Managing director Peter Shelley said:
Given every person arriving in Australia has to be fully vaccinated and tested, there simply is no greater health risk which would result from reopening our international borders – rather it would provide a huge relief to an already burdened and struggling tourism sector.
The hermit kingdom approach to protecting our borders is no longer viable and we need urgent clarity from the government on when we can welcome international visitors.
What's the outlook for Flight Centre?
Citi has lowered its price target for the Flight Centre share price, News Corp reported yesterday.
Commenting on his outlook for Flight Centre shares, Citi vice president and analyst Sam Seow said:
Our cautiousness on Flight Centre increases as cash burn appears to have increased during this (Omicron) period and it appears to be getting closer to debt covenants.
Meanwhile, my Foolish colleague James recently reported Flight Centre is the most shorted share on the ASX.
Share price recap
The Flight Centre share price has surged 21% in the past 12 months but is down 0.23% year to date.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has gained nearly 5% in the past 52 weeks.
The company has a market capitalisation of about $3.5 billion based on the current share price.
