Why did the Flight Centre (ASX:FLT) share price have such a great FY22 first quarter?

Flight Centre has been one of the best movers on the ASX lately.
The post Why did the Flight Centre (ASX:FLT) share price have such a great FY22 first quarter? appeared first on The Motley Fool Australia. –

The Flight Centre Travel Group Ltd (ASX: FLT) share price travelled 45% higher in the first quarter of FY22. The positive shift comes as the long-awaited travel agenda comes back to Australian lives.

At the end of Wednesday’s market session, Flight Centre shares closed at $22 apiece.

Travel plans restart

While overseas holidays are expected to soon be a reality, the Flight Centre share price has taken off in recent times.

Clearer visibility surrounding the resumption of travel has led the company to target a return in leisure and corporate profitability. In particular, sales revenue increased month-on-month in the United States buoyed by a return to normal life.

Corporate transaction numbers were at 50% of pre-COVID levels, representing around 40% of Flight Centre’s total transaction value (TTV).

In addition, accelerated vaccination programs have resulted in restrictions being either relaxed or removed in key travel markets. This gives more freedoms to passengers who wish to travel internationally.

As more countries are accepting to live with the virus, a number of international routes are restarting. Australia is set to open up to selected counties from November onwards, with destinations including the United Kingdom and the United States. Other countries such as Fiji, Japan, Singapore, New Zealand and others are anticipated to be available at a later date.

Late last month, Flight Centre managing director, James Kavanagh highlighted the light at the end of the tunnel is getting nearer. He said:

The first day after Qantas’s announcement regarding international flight coming back, we saw a dramatic spike in both bookings and searches – with locations ranging from Los Angeles to Delhi – and over a quarter of these bookings were for business travel.

Flight Centre share price snapshot

Up until late August, Flight Centre shares were trading mostly sideways. However, since then, its shares have skyrocketed almost 60% in less than 2 months. When looking at the larger picture, the company’s share price is up around 40% for the calendar year.

Flight Centre has an attractive price-to-earnings (P/E) ratio of 7.07 and commands a market capitalisation of roughly $4.49 billion.

The post Why did the Flight Centre (ASX:FLT) share price have such a great FY22 first quarter? 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

NSW has reopened. Time to buy?

Is the Flight Centre (ASX: FLT) share price overvalued?
Why did the Flight Centre (ASX:FLT) share price have such a great month in September?
Top broker upgrades the Super Retail (ASX:SUL) share price to buy
Why A2 Milk, CBA, Flight Centre, & Magellan’s shares are sinking

Motley Fool contributor Aaron Teboneras 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!