What’s going on at Flight Centre?
The post Own Flight Centre shares? Here’s why the boss is predicting more pain for the travel sector appeared first on The Motley Fool Australia. –
Flight Centre shares are currently trading at $17.12, a 0.23% fall. In comparison, the S&P/ASX 200 IndexÂ (ASX: XJO) is falling 0.34% today.
Let’s take a look at what is happening at Flight Centre.
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 200Â has lost nearly 7% in a year.
Flight Centre has aÂ market capitalisationÂ of $3.42 billion based on the current share price.
The post Own Flight Centre shares? Here’s why the boss is predicting more pain for the travel sector appeared first on The Motley Fool Australia.
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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 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.