The Flight Centre Travel Group Ltd (ASX: FLT) share price is enjoying a healthy lift today.
Shares in the S&P/ASX 200 Index (ASX: XJO) travel group closed on Friday at $19.62 and were trading for $20.07, up 2.3% at the start of the lunch hour.
This comes following news that the company has retained a “prestigious” state government contract.
What government contract was retained?
The Flight Centre share price could be enjoying some extra tailwinds today following news reported by The Australian that the company has retained its New South Wales government travel management contract.
With a tender process now concluded, FCM – the company’s global business travel division – will keep the contract, which it’s held for six years. The new contract runs for three years, along with two more one-year options.
Commenting on the contract retention, FCM Travel Solutions general manager Melissa Elf said:
We’re delighted to have retained this prestigious account and we’re looking forward to helping the New South Wales government achieve its aims… The travel contract will consist of nine clusters and over 80 agencies, with each agency having specific requirements, and the program will be further supported with enhanced reporting.
What’s been happening with the Flight Centre share price?
Buoyed by the reopening of domestic and many international travel routes, the ASX 200 travel share has outperformed the benchmark both in the calendar year and over the past 12 months.
Flight Centre shares are up 31% since this time last year and up 8% so far in 2022.
By comparison the ASX 200 has gained 1% over the full year and remains down 6% since the opening bell on 4 January.
Is there further upside?
Citing some strong third-quarter metrics, the broker noted that March saw Flight Centre return to operating profit.
Bell Potter retained its buy rating and increased its target for the Flight Centre share price to $24.50. That’s 22% above the current price.