Flight Centre Travel Group Ltd (ASX: FLT) shares are struggling today, but it is not the only ASX 200 travel share that has been in the red today.
Flight Centre shares are currently trading at $17.12, a 0.23% fall. In comparison, the S&P/ASX 200 Index (ASX: XJO) is falling 0.34% today.
Earlier, the Qantas Airways Limited (ASX: QAN) share price was falling 1.31%, while Webjet Limited (ASX: WEB) shares were down 1.39%. Both shares have retraced to be in the green currently.
Let's take a look at what is happening at Flight Centre.
Image source: Getty Images
More 'pain'
Flight Centre managing director Graham Turner is predicting that travel pain could continue until "October or November", and that's assuming Omicron settles down.
Speaking on the Today Show about recent cancellations and flight delays, Turner said:
It will improve but it's going to take some time I would suggest six or eight weeks before all of this really settles down and there is going to be pain for domestic travellers in that time.
Turner highlighted that building back the travel industry after two and a half years of having to cut back travel to the bone is "quite difficult". He said.
There's just lack of experience, expert staff, pilots, and not only that, obviously this latest COVID wave is meaning there is a lot of absenteeism as well.
Turner said despite delays, lots of changes and quite a few cancellations, most people are getting away to their destination domestically.
Flight Centre upgraded its FY22 market guidance in a release to the market last week. The travel company is expecting a solid rebound in travel demand late in the year. Flight Centre predicts to report an underlying EBITDA loss of between $180 and $190 million. This represents an 11.9% improvement on its initial FY22 market guidance.
Flight Centre share price snapshot
Flight Centre shares have soared 13% in a year, but are 3% in the red year to date.
For perspective, the ASX 200 has lost nearly 7% in a year.
Flight Centre has a market capitalisation of $3.42 billion based on the current share price.
