Why is the Flight Centre share price trouncing ahead of the ASX 200 today?


The Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Friday, outperforming the S&P/ASX 200 Index (ASX: XJO) by more than 2%.

Its gains come despite no news from the company. However, there’s been plenty of happenings that might have got the market excited about the travel agent’s stock.

At the time of writing, the Flight Centre share price is $22.61, 2.96% higher than its previous close.

For context, the ASX 200 is currently boasting a 0.7% gain.

Let’s take a look at what might be going on with Flight Centre’s stock today.

Stock in Flight Centre is pushing ahead of the ASX 200 on Friday. Its movement follows a strong performance from international travel stocks overnight.

While most Aussies snored, stock in Airbnb Inc (NASDAQ: ABNB), Trip Advisor Inc (NASDAQ: TRIP), and Booking Holdings Inc (NASDAQ: BKNG) gained alongside the broader Nasdaq Index.

That, and other similar movements, likely bolstered excitement in domestic travel stocks like Flight Centre.

On top of that, Australians have returned to travel in droves over the last few months, potentially bolstering sentiment for the travel agent’s shares.

Flight Centre is on the hunt for more than 500 new staff members as demand for its services takes off, the Australian Financial Review reported yesterday afternoon.

Additionally, Melbourne airport saw its highest levels of monthly domestic traffic since the onset of the pandemic in March.

More than 1.5 million passengers jetted from the Victorian capital to land at other Aussie airports last month.

The airport also recorded a total of 1.72 million travellers last month – just 7,642 thousand fewer than it did in March 2020.

Today’s gains have helped push the Flight Centre share price even higher into the year to date green.

Right now, the ASX 200 travel stock is trading for 21% more than it was at the start of 2022. It has also gained 32% since this time last year.

Source: Read More

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