The Flight Centre Travel Group Ltd (ASX: FLT) share price is ascending again today, with CEO Graham Turner optimistic the international border opening will help the company.
The travel company’s shares are currently trading at $19.99 apiece, up 5.54%. This comes after yesterday’s 7.8% gain.
Let’s take a look at what could be helping the company’s share price today.
Optimism on border reopening
Turner has welcomed news Australia’s international borders will open this month. As Motley Fool Australia reported earlier, Australia will allow tourists into the country from February 21 this year.
Speaking to Sky News Australia, CEO Graham Turner described the border opening as “better late than never”.
Obviously this announcement is going to help our businesses in places like South Africa, UK, Europe, Canada and the USA, so that’s really good news there.
Generally we’re on the way back, I know there’s going to be ups and downs, but we’re pretty happy at the moment.
The Qantas Airways Limited (ASX: QAN) share price is up 0.64% today, while Webjet Limited (ASX: WEB) is climbing 6%. Meanwhile, Helloworld Travel Ltd (ASX: HLO) is climbing 1.56% and Corporate Travel Management Ltd (ASX: CTD) is gaining 3.86%.
This follows big gains for the major ASX travel shares yesterday when the border reopening was announced.
Further commenting on the impact of border closures on Flight Centre, Turner said the company had to lose “about two thirds of our people”.
We are back up globally from 21,000 originally, we are back up to about 10,000 people now. We are building back up, to make sure that we can cope with the demand as it comes back.
Today, Deloitte Access Economics and RMIT Online released a study stating international border closures cost the Australian economy $32 billion, 7 News reported.
On Monday, Prime Minister Scott Morrison said the reopening was a “welcome relief” for tourist providers.
If you’re double vaccinated, we look forward to welcoming you back to Australia, and I know the tourism industry will be looking forward to that, and over the next two weeks they will have the opportunity both for visitors to be coming and for them to be gearing up to welcome international visitors back to Australia.
Flight Centre share price snapshot
The Flight Centre share price has soared nearly 29% in the past 12 months and 11% year to date. In the past week alone, it has surged nearly 19%.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 4.6% over the past 52 weeks.
Flight Centre has a market capitalisation of $3.9 billion based on its current share price
The post ‘On the way back’: Flight Centre (ASX:FLT) share price takes off on border reopening appeared first on The Motley Fool Australia.
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More reading
- Why Flight Centre, Macquarie, Super Retail, and Suncorp shares are racing higher
- ASX 200 (ASX:XJO) midday update: Macquarie and Suncorp impress
- Here are the top 10 ASX shares today
- Why are ASX travel shares Flight Centre (ASX:FLT), Qantas and Webjet lifting off today?
- These are the 10 most shorted ASX shares
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, 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.
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