Interestingly, there’s been no news from the company to explain today’s gains. However, international travel stocks rallied overnight amid more expectations of a strong recovery.
At the time of writing, the Flight Centre share price is $21.14, 4.45% higher than its previous close.
For context, the ASX 200 is currently boasting a 0.9% gain.
Let’s take a look at what might be driving the travel agent’s stock to outperform.
Flight Centre share price surges on Wednesday
It’s a good day on the ASX for the Flight Centre share price despite the company’s silence. And it’s joined in the green by many of its ASX 200 travel peers.
Right now, the Webjet Limited (ASX: WEB) share price is up 2% while Qantas Airways Limited (ASX: QAN) shares have gained 1.8%. At the same time, stock in Corporate Travel Management Ltd (ASX: CTD) is booming 4.3%.
The US$15 billion (AU$21.4 billion) airline announced it expects surging demand will see its total revenue per available seat mile increase this quarter, allowing its margins to remain steady despite higher oil prices.
The United Airlines share price surged 7.9% on the news. Meanwhile, the Ryanair Holdings (NASDAQ: RYAAY) share price gained 4.4% after the company released its earnings for the 12 months ended 31 March.
The budget airline slashed its losses to around $554 million over the 12 months. For comparison, the prior comparable period saw it record a loss of approximately $1.5 billion.
The news from the two airlines appeared to reverberate through the broader travel sector and, potentially, onto the ASX today.
Right now, Flight Centre’s stock is 14% higher than it was at the start of 2022. It has also gained 37% since this time last year.