The Flight Centre Travel Group Ltd (ASX: FLT) share price has been a test of patience amid ongoing lockdowns and rising COVID-19 cases across Australia.
Flight Centre share price lower as lockdown woes continue
This morning, The Australian reported that the Sydney lockdown could be extended until mid-September.
“The NSW government has requested financial modelling for a lockdown of Greater Sydney that extends until mid-September due to the severity of the outbreak and an expectation that businesses and jobs won’t survive without more financial support.”
However, in a separate report from 9 News, NSW Premier Gladys Berejiklian said she would not jump to “any conclusions” and was “unaware of the source of a claim in The Australian that the lockdown would be pushed to mid-September”.
Regardless, the COVID-19 situation in NSW continues to worsen with 145 new cases reported on Monday.
With more cases coming out of NSW, investors might have to brace for continued volatility for the Flight Centre share price.
Travel is picking up … just not in Australia
The Flight Centre share price continues to face headwinds in Australia. However there is an encouraging restart to domestic and international tourism across major countries including Europe and the United States.
Commentary from the RBA’s July monetary policy meeting, said a “relaxation of containment measures had expanded opportunities for the consumption of discretionary services, including … domestic air travel. There had been a tentative restart to international tourism in some countries, particularly within Europe.”
Domestic travel is also making a strong rebound in the United States, with TSA checkpoint travel numbers rebounding close or even above 2019 figures.
Unfortunately for the Flight Centre share price, it’ll have to patiently wait for domestic lockdowns and COVID-19 cases to subside.
What’s next for the Flight Centre?
According to Flight Centre’s investor calendar, the company is due to report its full year FY21 results on 27 August.
The post Flight Centre (ASX:FLT) share price slides amid news Sydney lockdown could last until September appeared first on The Motley Fool Australia.
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More reading
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- ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens
- ASX 200 travel shares slide as New Zealand closes travel bubble
- The Flight Centre (ASX:FLT) share price is up today, despite lockdowns
- What happened on the US stock market overnight and how could it impact ASX shares?
Motley Fool contributor Kerry Sun 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 Bruce Jackson.
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