The Flight Centre (ASX:FLT) share price has been struggling. Here’s why

Here’s what might have been weighing on the Flight Centre share price lately.
The post The Flight Centre (ASX:FLT) share price has been struggling. Here’s why appeared first on The Motley Fool Australia. –

The Flight Centre Travel Group Ltd (ASX: FLT) share price has been caught in turbulence lately.

And it’s no surprise. With shock lockdowns in Brisbane and Southeast Queensland, restrictions coming and going in Victoria and South Australia, and Sydney still battling COVID-19‘s Delta strain, Flight Centre — along with most of the travel sector — is feeling the heat.  

The Flight Centre share price has fallen 5% over the last 30 days. However, its gained 4% since this time last week.

At the time of writing, the travel company’s shares are trading for $15.01 apiece, 0.79% lower than yesterday’s close.

So, let’s take a look at what could be affecting the Flight Centre share price.

Is COVID-19 impacting Flight Centre?

The Flight Centre share price has been on a rollercoaster lately, as have many states battling COVID-19 outbreaks.

The travel agency spent most of last month falling as Sydney, Victoria, and South Australia each locked down at various times. In fact, Flight Centre’s shares fell 7.8% between July 5 and July 27.

Fortunately, Flight Centre spent a few days in the green over the last week amid changes to Australian lockdowns.

Victoria and South Australia successfully contained outbreaks of the virus and regained normalcy on Wednesday last week. However, Southeast Queensland entered a surprise lockdown on Saturday.

The Flight Centre share price has gained 3% since this time last week.

Could this drive Flight Centre forward?

In a much-needed breath of fresh air, the Federal Government released modelling for Australia’s road out of the pandemic and, potentially, into Flight Centre shopfronts, yesterday.

The Government is following Doherty Institute modelling that found the vaccine rollout needs to be shifted to focus on young Australians.

It also found Australia’s on track to have 70% of Australians vaccinated by early November.

When that figure is reached, it expects lockdowns will be less necessary, with Australia able to slow the virus’ spread using restrictions.  

The government had previously outlined a map back to international travel using vaccination rates as the catalyst. However, only a future increase in the number of returning travellers is mentioned within the new modelling.

In less favourable news, Qantas Airways (ASX: QAN) landed a blow on its own share price and, likely, confidence in the travel sector yesterday by standing down 2,500 crew members.

Flight Centre share price snapshot

The Flight Centre share price has been struggling lately, as have many Australian travel bugs.

Right now, Flight Centre shares are swapping hands for 6.5% less than they were at the start of 2021. However, they have gained 49.9% since this time last year.

The company has a market capitalisation of around $3 billion, with approximately 199 million shares outstanding.  

The post The Flight Centre (ASX:FLT) share price has been struggling. Here’s why appeared first on The Motley Fool Australia.

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More reading

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Motley Fool contributor Brooke Cooper 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. 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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