Why did the Flight Centre share price trounce the ASX 200 today?

The Flight Centre Travel Group Ltd (ASX: FLT) share price gained 1.49% on Thursday, closing at $16.38.

The ASX travel share comfortably outperformed the S&P/ASX 200 Index (ASX: XJO), which finished 0.19% higher.

It also narrowly beat the performance of its ‘home’ sector, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) rising 1.26%.

Flight Centre’s shares lifted higher despite there being no news from the company today.

However, one of its travel peers reported some positive steps toward a full recovery this morning. Let’s cover the highlights.

What happened with Flight Centre today?

The Flight Centre share price lifted along with those of fellow ASX travel share Webjet Limited (ASX: WEB), which reported its half-year results for FY23 this morning.

The results appear to have impressed investors, with the Webjet share price ending the day 10.14% higher at $6.19.

The online travel agent noted that some aspects of its business are trading ahead of pre-COVID levels as pent-up demand continues to be released.

Revenue increased 217% year over year to $175.7 million. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 557% to $72.5 million.

Webjet’s WebBed business led the charge in turning the company around after it posted a $15.9 million loss for 1H22.

WebBeds contributed $1.42 billion in total transaction value (TTV) and $114.4 million in revenue to the company’s top and bottom lines.

Webjet’s managing director John Guscic described its performance as a “spectacular turnaround”, and said it’s expected the company will exceed pre-pandemic profitability for FY23.

Flight Centre share price snapshot

Webjet’s results could come as welcome news to the Flight Centre share price, which took a beating amid the company releasing its trading update on 14 November.

Flight Centre’s revenue growth for the first four months of FY23 apparently came in lower than expected, as its shares dropped 4% on the day.

The Flight Centre share price is now down 7% since the start of the year. The ASX 200 is down 4% over the same period.

The company’s market capitalisation is around $3.22 billion.

The post Why did the Flight Centre share price trounce the ASX 200 today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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 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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