Flight Centre share price tumbles to new 52-week low on Monday

The Flight Centre Travel Group Ltd (ASX: FLT) share price has been caught up in today’s sell-off, tumbling to its lowest point in more than 12 months.

The travel agent’s stock plunged 2.9% to $14.90 earlier today, marking a new 52-week low. Indeed, that’s the lowest the stock has traded at since August 2021.

Fortunately, the Flight Centre share price has since partly pulled out of its nosedive. It’s currently trading 0.46% lower at $15.28.

The S&P/ASX 200 Index (ASX: XJO) has also seemingly overcome the worst of the day’s tumble.

It’s currently down 1.16% at 6,498.3 points. Earlier today it fell to 6,435.6 points – just 0.4% higher than its own 52-week low.

Let’s take a closer look at the ASX 200 travel favourite’s latest 52-week low.

Flight Centre stock nose-dives to new 52-week low

The market’s most shorted share has tumbled to a new 12-month record low on Monday after its short interest jumped to 15% last week. But the Flight Centre share price isn’t alone in inking a new long-forgotten low today.

That of Corporate Travel Management Ltd (ASX: CTD) slumped 2.5% to $17.20 earlier today – marking its lowest point in more than a year. It has since rebounded to trade 0.7% higher at $17.76.

Meanwhile, the Qantas Airways Limited (ASX: QAN) share price is down 1% to $5.085 while that of Webjet Limited (ASX: WEB) has fallen 1.8% to $5.

The Flight Centre share price’s latest low point comes despite the Aussie tourism industry’s apparent rebound.

The Australian Competition and Consumer Commission (ACCC) recently found that the popularity of many domestic travel routes surpassed pre-pandemic levels over the winter months.

And experts are tipping such trends to continue.

HSBC chief economist for Australia, New Zealand, and global commodities Paul Bloxham shared his belief that Aussies and Kiwis’ return to travel will help stave off the worst of a global economic slowdown in their respective nations ahead of his keynote presentation at Flight Centre corporate’s Illuminate 2022 conference. He said:

Travel is going to be a bright spot in the current challenged world.

Households spent less during the pandemic and the country’s unemployment rate has been at its lowest since the mid-1970s. As such, Australians have saved over $250 billion and are ready to deploy those funds.

Now that the world is reopening, there is a strong appetite for travel among the population and we expect to see a continued increase in travel activity, particularly domestically.

Flight Centre share price snapshot

It likely comes as no surprise that the Flight Centre share price has been struggling so far this year.

The stock has tumbled 18% year to date. It has also dumped 28% since this time last year.

For context, the ASX 200 has fallen 14% since the start of 2022 and 12% over the last 12 months.

The post Flight Centre share price tumbles to new 52-week low on Monday appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Could this be good news for Flight Centre shares?
• Here are the 10 most shorted ASX shares
• Here’s why the Flight Centre share price isn’t all that it seems
• Why have Flight Centre shares been the most shorted on the ASX every week so far in 2022?

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 recommended HSBC Holdings. 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 Scott Phillips.

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