Why is the Flight Centre share price picking up altitude today?

Two kids wearing pilot's goggles take flight down the runway on their tummies with arms outstretched like wings.Two kids wearing pilot's goggles take flight down the runway on their tummies with arms outstretched like wings.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is heading north on Friday afternoon.

This comes despite the travel agent not releasing any price-sensitive announcements today.

At the time of writing, Flight Centre shares are climbing 1.51% to $19.55.

What’s driving Flight Centre shares higher?

Investors are buying up Flight Centre shares after dropping more than 8% in the past week.

It appears bargain hunters are taking advantage of the share price weakness following 5 trading days of consecutive losses.

Earlier this month, Flight Centre stated a recovery in the travel market was well underway given that COVID-19 restrictions have eased.

As the world is learning to live with the virus, the company recorded a strong performance in March.

As such, $8 million in earnings before interest, tax, depreciation and amortisation (EBITDA) was achieved for the month.

Flight Centre said that the global corporate business is now profitable and the leisure business is approaching breakeven.

Furthermore, total transaction value (TTV) is strongly rebounding across the globe, with March figures at 59% of pre-COVID levels.

This has led to $2 million in operating cash inflow whilst management continues to invest in areas that drive profitability.

Flight Centre anticipates a full year underlying EBITDA loss of around $195 million to $225 million. This compares to the underlying EBITDA loss of $184 million during the first half of FY22.

Flight Centre share price summary

Since this time last year, Flight Centre shares have travelled 31% higher as the travel sector begins to open up.

When looking at year to date, its shares have pushed slightly ahead, with a 10% gain.

On valuation grounds, Flight Centre commands a market capitalisation of roughly $3.91 billion.

The post Why is the Flight Centre share price picking up altitude today? appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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