The Flight Centre (ASX:FLT) share price is up today, despite lockdowns

It’s been a volatile week for Flight Centre, and the broader travel industry.
The post The Flight Centre (ASX:FLT) share price is up today, despite lockdowns appeared first on The Motley Fool Australia. –

The Flight Centre Travel Group Ltd (ASX: FLT) share price has added 1.68% on Wednesday to $14.55, near to breakeven for the week.

The resurgence of COVID-19 cases and emerging Delta variant, both in Australia and globally, has weighed in on sentiment for airline and travel shares this week.

A sharp sell-off on Monday night saw high-profile American airline shares such as Boeing, United Airlines and American Airlines slide between 4% and 5.5%.

This led to the Flight Centre share price briefly sliding to a six-month low of $14.13 on Tuesday.

Many states, including Victoria, New South Wales and South Australia, have imposed various lockdown measures. So what’s going with the Flight Centre share price?

A light at the end of the tunnel?

The Reserve Bank of Australia (RBA) released its July monetary policy meeting minutes on Tuesday, with the board saying:

As vaccinations had increased and hospitalisations remained at low levels, population mobility had recovered considerably in many countries, including in the North Atlantic, where stringent restrictions that had been in place earlier in the year had been relaxed.

This relaxation of containment measures had expanded opportunities for the consumption of discretionary services, including contact-intensive activities such as dining out and domestic air travel. There had been a tentative restart to international tourism in some countries, particularly within Europe.

The RBA noted that the “Australian economy was transitioning from recovery to expansion”. This is despite many major cities entering lockdown in the last week or two.

“As observed following earlier lockdowns, spending was expected to rebound when containment measures were eased.”

Flight Centre share price struggles to hold intraday highs

The Flight Centre share price was 3.21% higher around lunch time, hitting an intraday high of $14.79.

Unfortunately, it couldn’t hold onto these gains, closing 1.68% higher at $14.55.

Interestingly, the US Global Jets exchange-traded fund (ETF) rallied 5.05% on Tuesday night.

The ETF is an index of global companies including airlines, manufacturers, airports and terminal services.

The ETF has a small allocation (1.85%) in ASX-listed air travel shares.

The post The Flight Centre (ASX:FLT) share price is up today, despite lockdowns appeared first on The Motley Fool Australia.

Should you invest $1,000 in Flight Centre right now?

Before you consider Flight Centre, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Flight Centre wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

What happened on the US stock market overnight and how could it impact ASX shares?

Here’s why the Flight Centre (ASX: FLT) share price is down 5% in the last week
These are the 10 most shorted ASX shares

Fund manager sees Webjet (ASX:WEB) share price as ‘golden’ opportunity
Broker says Webjet (ASX:WEB) share price weakness is a buying opportunity

Motley Fool contributor Kerry Sun 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!