The Flight Centre Travel Group Ltd (ASX: FLT) share price lost momentum in March, closing the month 1.7% lower than it started. After closing February at $18.80, the stock slumped to end March at $18.48.
For comparison, the S&P/ASX 200 Index (ASX: XJO) fell 1.1% last month.
So, what went on at the ASX 200 travel share over the period? Let's take a look.
Flight Centre completes capital raising in March
After starting 2023 with two months of ripper gains, the Flight Centre share price stalled in March.
Interestingly, there was no price-sensitive news from the travel giant last month. Though, it did complete what became a $240 million capital raise.
The company launched a share purchase plan (SPP) to help fund its acquisition of luxury travel brand Scott Dunn in February. The SPP was originally intended to raise $40 million.
However, after receiving applications for more than $350 million worth of new shares – offered at $14.60 apiece – the company bolstered the raise to $60 million.
Flight Centre founder and managing director Graham Turner commented on the demand, thanking shareholders for their support and saying:
By increasing the SPP offer to $60 million, we have provided our shareholders with the opportunity to secure a more meaningful stake in their company with a view to benefitting to a larger degree as its post-COVID recovery gains momentum.
But not all were as bullish on the Flight Centre share price as the 19,304 shareholders who applied for the SPP assumably were.
The ASX 200 stock remained the market's most shorted last month. The company had a short interest of nearly 12% at last count.
It's worth mentioning, however, that's notably lower than its peak short interest in April 2022 when more than 18% of its shares were being shorted.
Flight Centre share price snapshot
March was a disappointing month for the Flight Centre share price. But the stock has outperformed over the longer term.
It's gained 32% since the start of 2023. Though, it's 2% lower than it was this time last year.
Comparatively, the ASX 200 has lifted 4% year to date and has fallen 4% over the last 12 months.
