The Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Friday despite no fresh news from the company.
However, good news from international airlines and a slightly lower short position might be bolstering the market’s sentiment towards the travel agent.
At the time of writing, the Flight Centre share price is $20.39, 3.08% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 1.1%.
Let’s take a closer look at what might be going on with Flight Centre’s shares today.
What’s boosting the Flight Centre share price today?
The Flight Centre share price is in the green today, potentially in response to news from US-listed airlines.
Thursday’s session overseas saw both Southwest Airlines Co and JetBlue Airways Corporation releasing quarterly updates.
The pair each noted rising demand for flights would likely help offset the rising cost of fuel.
That’s likely good news for the broader travel industry as it continues to recover from the COVID-19 pandemic.
And such sentiment might have been enough to make some short-sellers question their position in Flight Centre shares.
The company’s short position has dropped ever so slightly over the last month. The latest data suggests 17.04% of the company’s shares are in the hands of short-sellers.
That’s down from 17.42% this time last month.
However, the drop hasn’t been enough to shake off Flight Centre’s title as the ASX’s most shorted stock.
Its short position appears to point to some market participants believing the company’s recovery won’t be all it’s cracked up to be.
Still, the Flight Centre share price is doing well in 2022. It has gained 9% since the start of the year – outperforming the ASX 200’s 5% slip.
It’s also 33% higher than it was this time last year. Meanwhile, the ASX 200 is recording a 1% gain for the last 12 months.
The post The Flight Centre share price is soaring 3% today. Could this be behind its gains? appeared first on The Motley Fool Australia.
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More reading
- These 3 ASX shares have plunged this year: Expert reveals what to do
- Why is the Flight Centre share price still attracting so much short interest in May?
- The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
- These are the 10 most shorted ASX shares
- Why is the Flight Centre share price among the ASX 200’s top performers today?
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 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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