Flight Centre share price leaps as 'revenge travel' takes off

Travel shares were a standout performer on the market today

Key points
  • Flight Centre shares had a positive day today 
  • ASX 200 travel shares were all on the rise amid optimistic travel sentiment 
  • Flight Centre general manager Brent Novak described Australia's heightened travel interest as "revenge travel" 

The Flight Centre Travel Group Ltd (ASX: FLT) share price had a buoyant day on the ASX today.

The company's share price jumped 4.32% to $17.37. For perspective, the S&P/ASX 200 Index (ASX: XJO) rose 1.23% today.

Let's take a look at how the Flight Centre share price performed today.

It's smiles all around as this couple take a selfie in their seats as their plane takes off and they travel overseas.

Image source: Getty Images

Why is the Flight Centre share price higher today?

Flight Centre shares were not the only ASX travel shares to take off today. Webjet Ltd (ASX: WEB) shares jumped 3.7% while Qantas Airways Limited (ASX: QAN) shares gained 2.04%.

Flight Centre shares climbed today following comments on the weekend from Flight Centre general manager Brent Novak that "revenge travel" is back.

The online travel agency is seeing a strong interest in travel to Fiji, along with Indonesia and the United States, The Australian reported. Commenting on the outlook for travel, Novak said:

Our customers have had to put a wide range of holidays, ­family reunions and special events on hold over the last two years and are now booking these long-awaited trips.

We expect the trend for travel across the northern hemisphere to continue throughout the northern summer as steady volumes of Flight Centre customers continue to book revenge travel.

In the first week of July, 50% of online travel interest was for Indonesia, while Fiji was 18%, United States 8.1%, and Vanuatu 4%.

US travel shares also had a positive day on Friday, the most recent day of trading in the US.

The shares of online travel giant Expedia Group Inc (NASDAQ: EXPE) jumped 3.27%. Meanwhile, Delta Air Lines, Inc (NYSE: DAL) shares gained 1.07%, while American Airlines Group Inc (NASDAQ: AAL) shares closed 1.54% higher.

Flight Centre share price snapshot

The Flight Centre share price has gained almost 16% in a year although it has fallen around 1.5% year to date.

For perspective, the benchmark ASX 200 index has shed 9% about in a year.

Flight Centre has a market capitalisation of more than $3.47 billion based on the current share price.

Motley Fool contributor Monica O'Shea has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Delta Air Lines. 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.

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