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Flight Centre (ASX:FLT) share price up 7% as travel shares rise on Tuesday

Higher vaccination numbers prepare the runway for ASX travel shares…
The post Flight Centre (ASX:FLT) share price up 7% as travel shares rise on Tuesday appeared first on The Motley Fool Australia. –

The Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Tuesday. Shares in the $2.85 billion travel agent aren’t alone in their ascent – with many other ASX travel shares experiencing a lift.

At the time of writing, the Flight Centre share price is trading 6.5% higher to $15.19. It appears the tourism sector is riding the coattails of a more optimistic day for COVID-19 briefings.

Lessening of limitations on the horizon

ASX shares with exposure to the tourism/travel industry have been worse for wear since the drastic resurgence in coronavirus case numbers stemming from the delta strain. As such, today offers somewhat of a reprieve for shareholders.

As part of her daily briefings, New South Wales Premier Gladys Berejiklian shared a perspective that might be refreshing for those in pandemic-pinched lines of work. The message was one of warning for those states relying on a ‘zero case’ approach. It also offered a glimmer of hope for an open NSW.

At this morning’s briefing, Premier Berejiklian stated:

Some states have zero cases and border closures, but every state will have to come out of that eventually.

Other states who have had zero cases for a long time, when they open their borders and welcome the international travel, welcome people from other states, the delta strain will take hold and that is why it is important to be prepared by getting high vaccine rates, ensuring the health system is in place to deal with that.

A major milestone for NSW’s vaccination rollout was hit today, with 6 million vaccine doses administered. The Premier noted this was equivalent to 60% of the population having one dose. Furthermore, 32% of the state is now fully vaccinated.

As a result, it is expected that the state will grant further freedoms to fully vaccinated people as early as Thursday this week.

NSW recorded 753 new locally acquired cases of COVID-19 in the 24 hours to 8pm last night. pic.twitter.com/S1yMf7bHD2

— NSW Health (@NSWHealth) August 24, 2021

It seems investors might be speculating on the positive impact this could have on the broader tourism sector. In afternoon trade, the Flight Centre share price is soaring – along with Webjet Ltd (ASX: WEB), Corporate Travel Management Ltd (ASX: CTD), Helloworld Travel Ltd (ASX: HLO), and Qantas Airways Limited (ASX: QAN).

Flight Centre share price recap

Despite disruptions in its business activities, the Flight Centre share price has performed relatively in line with the broader S&P/ASX 200 Index (ASX: XJO). In fact, the company’s shares have regained ~70% from the peak of the COVID crash in March 2020.

However, the promise of eased restrictions for the fully vaccinated will be put to the test on Thursday.

This is when the NSW government has promised to make a further announcement on potential freedoms for the vaccinated and when Flight Centre’s FY21 full-year results are expected to drop. If nothing else, it will certainly make for an interesting day on the ASX share market.

The Flight Centre share price remains to be one of the most heavily shorted on the ASX.

The post Flight Centre (ASX:FLT) share price up 7% as travel shares rise on Tuesday appeared first on The Motley Fool Australia.

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More reading

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Why Beach, Bendigo & Adelaide Bank, Flight Centre, & Lendlease are tumbling lower

Flight Centre (ASX:FLT) share price slips despite Rex (ASX:REX) agreement
These are the 10 most shorted ASX shares

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Helloworld Limited, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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