The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?

We check how Flight Centre shares are travelling amid industry optimism.

| More on:
a man in a flowery t-shirt and sunglasses clutches two airline boarding passes and a toy plane in his other hand and smiles widely to the camera, sticking his tongue out to show his joy.

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

Key points

  • The Flight Centre share price has jumped 5% in the past week 
  • Enthusiasm in the market that "travel is back" may have weighed positively on the minds of investors 
  • Flight Centre also won a NSW government contract covering 80 agencies 

The Flight Centre Travel Group Ltd (ASX: FLT) share price has been climbing the past week.

Shares in the travel company have gained more than 5% since market close on 13 May and are currently trading at $20.62. That’s 0.15% in the green during midday trade on Monday.

Let’s take a look at what’s impacting the Flight Centre share price.

Travel boost

Flight Centre is not the only ASX travel share to rise in the past week. Qantas Airways Limited (ASX: QAN) shares have jumped 3.78% since market close on 13 May, while Webjet Limited (ASX: WEB) shares have surged 8.4%.

Enthusiasm for travel may be impacting the Flight Centre share price. On Thursday last week, Webjet managing director John Guscic expressed a positive outlook for the travel industry during the company’s full year results briefing. Quoted in the Australian Financial Review, Guscic said:

Guess who’s back? Travel’s back, baby.

As my Foolish colleague James reported, Webjet revenue surged 258% to $138 million in FY 2022.

Flight Centre had some positive news of its own last week. On Monday, the company announced it had retained a New South Wales government travel management contract.

The new contract will continue for a further three years at least and covers 80 agencies within the government.

Commenting on the news, Flight Centre’s 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.

Australia’s international borders opened to tourists on 21 February. In April, the country’s biosecurity emergency ended, enabling cruise ships to enter Australia. New Zealand will also open its borders to all tourists from 31 July.

Share price snapshot

Flight Centre shares have soared nearly 35% in the past 12 months, leaping nearly 17% year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has climbed 2% during the past year.

Flight Centre has a market capitalisation of about $4.1 billion based on its current share price.

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 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 Scott Phillips.

More on Travel Shares

A traveller sits slumped on the floor of an airport with ehr suitcase looking fed-up as other travellers walk past.
Travel Shares

How did ASX travel shares perform in June?

It hasn't been smooth sailing for ASX travel shares in the last month.

Read more »

Two adults and a child look happy as they walk through airport with child sitting on suitcase.
Travel Shares

ASX 200 travel shares leap as Australia scraps COVID-19 vaccine mandates for international arrivals

What positive news could be boosting ASX200 travel shares today?

Read more »

A mum lifts her daughter high into the air so she can fly.
Travel Shares

Here’s why I think the Webjet share price could fly higher in 2022

There are plenty of reasons why I think this ASX travel share is a good opportunity.

Read more »

a small boy sits alone with his brightly coloured suitcase next to him in a deserted airport while he rests a hand against his head and looks down into his lap as though he is weary.
Travel Shares

Why did the Flight Centre share price tumble 15% in June?

The ASX 200 travel giant struggled last month. We take a closer look.

Read more »

Woman sitting looking miserable at airport
Travel Shares

Why did the Qantas share price plunge 19% in June?

With July upon us, we look at the headwinds that battered the flying kangaroo in June and a few offsetting…

Read more »

Paper aeroplane going down on a chart, symbolising a falling share price.
Travel Shares

What is holding back the Flight Centre share price today?

Flight Centre shares are slumping today...

Read more »

a young girl wearing a set of airplane wings stands on a tarmac with hands in the air and an excited look on her face as though she is about to take off.
Travel Shares

Why this smaller ASX travel share is locking horns with Qantas over regulation

Here's the latest on Regional Express' battle with Qantas over regional flight routes.

Read more »

An airport ground staff worker holds two red beacons in either hand crossed above his head on a vast airport tarmac.
Travel Shares

Own Qantas shares? Here’s why the $5K staff bonus could be up in the air

Qantas sounds alarm bell on $5K bonus to employees

Read more »