The Flight Centre (ASX:FLT) share price is up today, despite lockdowns

It's been a volatile week for Flight Centre, and the broader travel industry.

| More on:
A younger man wearing a face mask turns to look at the camera as he walks towards a plane on the tarmac.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Flight Centre Travel Group Ltd (ASX: FLT) share price has added 1.68% on Wednesday to $14.55, near to breakeven for the week.

The resurgence of COVID-19 cases and emerging Delta variant, both in Australia and globally, has weighed in on sentiment for airline and travel shares this week.

A sharp sell-off on Monday night saw high-profile American airline shares such as Boeing, United Airlines and American Airlines slide between 4% and 5.5%.

This led to the Flight Centre share price briefly sliding to a six-month low of $14.13 on Tuesday.

Many states, including Victoria, New South Wales and South Australia, have imposed various lockdown measures. So what's going with the Flight Centre share price?

A light at the end of the tunnel?

The Reserve Bank of Australia (RBA) released its July monetary policy meeting minutes on Tuesday, with the board saying:

As vaccinations had increased and hospitalisations remained at low levels, population mobility had recovered considerably in many countries, including in the North Atlantic, where stringent restrictions that had been in place earlier in the year had been relaxed.

This relaxation of containment measures had expanded opportunities for the consumption of discretionary services, including contact-intensive activities such as dining out and domestic air travel. There had been a tentative restart to international tourism in some countries, particularly within Europe.

The RBA noted that the "Australian economy was transitioning from recovery to expansion". This is despite many major cities entering lockdown in the last week or two.

"As observed following earlier lockdowns, spending was expected to rebound when containment measures were eased."

Flight Centre share price struggles to hold intraday highs

The Flight Centre share price was 3.21% higher around lunch time, hitting an intraday high of $14.79.

Unfortunately, it couldn't hold onto these gains, closing 1.68% higher at $14.55.

Interestingly, the US Global Jets exchange-traded fund (ETF) rallied 5.05% on Tuesday night.

The ETF is an index of global companies including airlines, manufacturers, airports and terminal services.

The ETF has a small allocation (1.85%) in ASX-listed air travel shares.

Should you invest $1,000 in Flight Centre Travel Group Limited right now?

Before you buy Flight Centre Travel Group Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Flight Centre Travel Group Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

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.

More on Travel Shares

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Own Qantas shares? Here's what to look out for in the upcoming result

What can investors expect in the impending HY25 result?

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

2 high-profile ASX 200 travel shares reporting next week

Are these Aussie travel companies set for turbulence this reporting season?

Read more »

An elephant and a mouse on either end of wooden scales
Travel Shares

Why I think this ASX small-cap stock is a bargain at under 80 cents

I believe this small company has a lot of growth potential.

Read more »

a passenger plane is on the tarmac with passenger shute attached with a view of the surrounding land and sunset in the background.
Travel Shares

2 things dragging the Qantas share price lower on Thursday

It's a crummy day for the Flying Kangaroo.

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

Why is the Qantas share price having such a tough time today?

Is this government news affecting Qantas?

Read more »

A woman sits crossed legged on seats at an airport holding her ticket and smiling.
Travel Shares

Can the Qantas share price be a top performer again in 2025?

How high can Qantas shares soar?

Read more »

A woman looks nervous and uncertain holding a hand to her chin while looking at a paper cut out of a plane that she's holding in her other hand. representing the falling Air New Zealand share price today
Travel Shares

Uh-oh! Are Qantas shares now 'highly overvalued'?

A leading expert forecasts headwinds for Qantas shares in 2025. But why?

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Is this a good time to buy Qantas shares?

Can we still get onboard with this flying stock?

Read more »