Could this be the reason behind Flight Centre’s surge today?
The post Why is the Flight Centre (ASX:FLT) share price taking to the skies on Tuesday? appeared first on The Motley Fool Australia. –
The Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off in a feat that seems to be at odds with international Omicron outbreaks.
At the time of writing, the Flight Centre share price is $17.10, 3.89% higher than its previous close.
However, the company isn’t alone in its gains. The Webjet Limited (ASX: WEB) share price is also surging today, up by more than 3% in late afternoon trading.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.88% right now.
Let’s take a look at what might be driving the travel agent’s stock higher today.
Could this be boosting the Flight Centre share price?
The Flight Centre share price is soaring today despite an overnight downturn for international travel shares.
As the Omicron COVID-19 variant spreads, travel to various parts of the world is once more being halted.
Today, New Zealand delayed the reopening of its borders until late February. Meanwhile, Israel has mandated quarantine for travellers from the United States and banned travel from numerous other nations.
Additionally, according to CNN Travel, several European countries have reinstated COVID-19 restrictions while the Netherlands goes into lockdown.
The share prices of Booking Holdings Inc (NASDAQ: BKNG), Marriott International Inc (NASDAQ: MAR), and Southwest Airlines Co (NYSE: LUV), as well as many other US-listed travel stocks, all slipped into the red overnight, potentially spurred by the international Omicron outbreak.
However, the Flight Centre share price might be gaining on domestic news. As of today, restrictions for international arrivals into Australia have eased.
International arrivals landing in Melbourne and Sydney will no longer need to isolate for 72 hours. Instead, they will only have to isolate until they receive a negative COVID-19 test.
When announcing the change last week, New South Wales Premier Dominic Perrottet commented:
This decision has been made with safety remaining the top priority, which is why all arrivals must return a negative PCR test before they can exit isolation and have an additional test following that.
Finally, the Flight Centre share price might be simply recovering from its recent tumble. Over the course of last week, the travel company’s stock fell 6% despite its silence. Thus, today’s movements might be a simple correction.
The post Why is the Flight Centre (ASX:FLT) share price taking to the skies on Tuesday? appeared first on The Motley Fool Australia.
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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 Booking Holdings, 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 Bruce Jackson.