Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why

Australians might be able to hop on an international flight as soon as next month.
The post Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why appeared first on The Motley Fool Australia. –

The Flight Centre Travel Group Ltd (ASX: FLT) share price is beginning its ascent to pre-COVID levels as travel optimism gathers momentum.

At the time of writing, Flight Centre shares are up 7.55% to a 20-month high of $23.50.

What’s driving the Flight Centre share price?

Travel shares are booming, globally

The US Global Jets Exchange Traded Fund (ETF) rallied 5.33% on Friday night, signalling a strong re-rate across travel-related shares.

The Jets ETF is comprised of companies in the air travel industry including airline operators, airports and terminal services.

The ETF holds mainly US airlines but also has exposure to the likes of Qantas Group Ltd (ASX: QAN) and Sydney Airport (ASX: SYD).

With a benchmark travel index like Jets rallying overnight, it could only mean good news for the Flight Centre share price.

Australia set to reopen borders

Last Friday, Prime Minister Scott Morrison announced international borders will reopen in November for states that reach 80 per cent vaccination rates.

“The government’s intention is that once changes are made in November, the current overseas travel restrictions related to COVID-19 will be removed and Australians will be able to travel subject to any other travel advice and limits, as long as they are fully vaccinated and those countries’ border settings allow,” Mr Morrison said in a statement.

He said the government is considering quarantine-free travel between some countries, such as New Zealand, when “it is safe to do so”.

According to the Australian Financial Review, “Ex-Australia, Britain, Europe (especially Greece), the United States, Singapore and Fiji, along with New Zealand, feature strongly in bookings”.

When the news first broke last Friday, the Flight Centre share price managed to eke out a 1.82% gain to $21.85 despite the S&P/ASX 200 Index (ASX: XJO) tumbling 2%.

Flight Centre shares begin the climb to pre-COVID levels

The Flight Centre share price is breaking to the upside following a steady stream of positive news for the travel industry.

It’s up 9.4% in October alone and rallied 34% in the past month.

That said, Flight Centre has a mountain to climb if it is to reach its pre-COVID levels of around $40 a share.

The post Up 7%, the Flight Centre (ASX:FLT) share price is surging. Here’s why 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 August 16th 2021

More reading

A budget blowout and a volatile ASX 200. Scott Phillips on Weekend Sunrise

If you invested $1,000 in Flight Centre (ASX:FLT) shares a decade ago, here’s what it would be worth now
These were the best performing ASX 200 shares last week

The Flight Centre (ASX:FLT) share price is in the green today. Here’s why
Qantas (ASX:QAN) share price rises as border opening set to be brought forward

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!