Why is the Flight Centre share price soaring today?

The Flight Centre Travel Group Ltd (ASX: FLT) share price is back in the green again today amid plenty of positive news.

The company released a positive update on its COVID-19 recovery only minutes before the market closed yesterday.

Additionally, there’s set to be a major change to Australia’s border entry requirements.

Finally, the stock’s movements come as Qantas Airways Limited (ASX: QAN) launches its latest ‘I Still Call Australia Home’ campaign.

At the time of writing, the Flight Centre share price is $19.38, 3.47% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also up today, having gained 0.38%.

Let’s take a look at the news that could be boosting Flight Centre shares today.

What’s sending the Flight Centre share price sky high on Friday?

The Flight Centre share price is taking off today amid news the company’s corporate travel segment is expected to blast back into the green soon.

The segment is predicted to return to profitability in March or April 2022, The Motley Fool Australia’s Tristan Harrison reports.

The company expects to see between 60% and 75% of pre-pandemic corporate travel return next financial year. Additionally, it hasn’t recorded any notable disruptions due to Russia’s invasion of Ukraine.

On top of the latest news from Flight Centre, there’s been big news regarding Australia’s entry requirements.

International arrivals to Australia will soon be able to skip currently mandated COVID-19 testing prior to their departure.

Health Minister Greg Hunt announced the change at a press conference today. Hunt said Australia is “ready to move on from the emergency declaration” that’s impacted the travel sector for more than two years.

The change will come into effect on 17 April.

Arrivals to Australia will still need to be ‘double-jabbed’ with a COVID-19 vaccine and wear masks on flights.

Nearly simultaneously, Qantas announced it had launched its latest ad campaign to attract visitors to Australia.

The airline also stated demand for domestic travel has been increasing since February. It’s expecting its capacity over Easter to reach 110% of pre-COVID levels.

For comparison, the second half of 2021 saw the company reporting capacity of 40% of pre-pandemic levels.

That’s good news for Qantas ­– its shares are up 1.58%. It also likely provides some positive sentiment for the travel sector.

The share prices of Corporate Travel Management Ltd (ASX: CTD) and Webjet Limited (ASX: WEB) are also higher today. They’ve gained 1.55% and 0.72% respectively at the time of writing.

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

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• The Flight Centre share has tumbled 23% in less than 6 months. Is it now cheap?
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• Goldman Sachs tips Webjet (ASX:WEB) share price to rise over 20%

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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