The Flight Centre Travel Group Ltd (ASX: FLT) share price is among many ASX travel stocks tumbling lower on Monday.
The sector’s woes come amid rising oil prices and the continuing conflict in Ukraine.
At the time of writing, the Flight Centre share price is $16.77, 5.73% lower than its previous close.
For context, the broader market is also suffering. The S&P/ASX 200 Index (ASX: XJO) is currently down 1.24% while the All Ordinaries Index (ASX: XAO) has dipped 1.22%.
Let’s take a closer look at what might be dragging the travel agent’s stock lower today.
What’s weighing on the Flight Centre share price today?
The Flight Centre share price has joined many of its peers in the red as rising oil prices and Russia’s invasion of Ukraine spur concerns of the sector’s profitability.
Russian media outlet TASS reported the country’s president Vladimir Putin is warning international airlines dodging Russian airspace will face higher costs.
Costs born from the extra time and fuel it takes to avoid airspace over the world’s largest country will see airlines’ profits dwindle and airfares increase, Putin reportedly said.
Market participants might be assuming this could spell bad news for Flight Centre’s bottom line.
Qantas Airways Limited (ASX: QAN) is one of many international airlines currently bypassing Russia.
Its Darwin-to-London route is flying through the Middle East and southern Europe instead, adding an extra hour of flight time.
The Qantas share price is one of the ASX 200’s worst performers today, tumbling 7.72% at the time of writing.
Flight Centre is also joined in the red by the Webjet Limited (ASX: WEB) share price. It has slumped 4.36% so far today.
Meanwhile, that of Corporate Travel Management Ltd (ASX: CTD) is 4.63% lower.
Not all ASX travel shares are in the red, however. Shares in Regional Express Holdings Ltd (ASX: REX) gained slightly this morning before falling to trade flat with their previous closing price.
The post Why is the Flight Centre (ASX:FLT) share price dipping 6% today? appeared first on The Motley Fool Australia.
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More reading
- These are the 10 most shorted ASX shares
- Why the Flight Centre (ASX:FLT) share price is down 16% from its year to date high
- The Flight Centre (ASX:FLT) share price managed to gain some altitude in February. Here’s how
- Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
- These are the 10 most shorted ASX shares
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 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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