Flight Centre (ASX:FLT) share price up 7% as travel shares rise on Tuesday

Higher vaccination numbers prepare the runway for ASX travel shares…

| More on:
A woman stands on a runway with her arms outstretched in excitement as a plane takes off behind her representing the rising Qantas share price today

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

sdf

The Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Tuesday. Shares in the $2.85 billion travel agent aren't alone in their ascent – with many other ASX travel shares experiencing a lift.

At the time of writing, the Flight Centre share price is trading 6.5% higher to $15.19. It appears the tourism sector is riding the coattails of a more optimistic day for COVID-19 briefings.

Lessening of limitations on the horizon

ASX shares with exposure to the tourism/travel industry have been worse for wear since the drastic resurgence in coronavirus case numbers stemming from the delta strain. As such, today offers somewhat of a reprieve for shareholders.

As part of her daily briefings, New South Wales Premier Gladys Berejiklian shared a perspective that might be refreshing for those in pandemic-pinched lines of work. The message was one of warning for those states relying on a 'zero case' approach. It also offered a glimmer of hope for an open NSW.

At this morning's briefing, Premier Berejiklian stated:

Some states have zero cases and border closures, but every state will have to come out of that eventually.

Other states who have had zero cases for a long time, when they open their borders and welcome the international travel, welcome people from other states, the delta strain will take hold and that is why it is important to be prepared by getting high vaccine rates, ensuring the health system is in place to deal with that.

A major milestone for NSW's vaccination rollout was hit today, with 6 million vaccine doses administered. The Premier noted this was equivalent to 60% of the population having one dose. Furthermore, 32% of the state is now fully vaccinated.

As a result, it is expected that the state will grant further freedoms to fully vaccinated people as early as Thursday this week.

It seems investors might be speculating on the positive impact this could have on the broader tourism sector. In afternoon trade, the Flight Centre share price is soaring – along with Webjet Ltd (ASX: WEB), Corporate Travel Management Ltd (ASX: CTD), Helloworld Travel Ltd (ASX: HLO), and Qantas Airways Limited (ASX: QAN).

Flight Centre share price recap

Despite disruptions in its business activities, the Flight Centre share price has performed relatively in line with the broader S&P/ASX 200 Index (ASX: XJO). In fact, the company's shares have regained ~70% from the peak of the COVID crash in March 2020.

However, the promise of eased restrictions for the fully vaccinated will be put to the test on Thursday.

This is when the NSW government has promised to make a further announcement on potential freedoms for the vaccinated and when Flight Centre's FY21 full-year results are expected to drop. If nothing else, it will certainly make for an interesting day on the ASX share market.

The Flight Centre share price remains to be one of the most heavily shorted on the ASX.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Helloworld Limited, and Webjet Ltd. 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

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

UBS reveals the biggest question facing Qantas shares over the next 12 months

UBS takes a look at the projected flight trajectory of Qantas shares post this week’s Jetstar Asia closure.

Read more »

A pilot stands in an empty passenger cabin smiling with his arms crossed looking excited
Travel Shares

What does Macquarie think Qantas shares are worth?

Let's see if the broker believes the Flying Kangaroo's shares can keep rising.

Read more »

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

3 reasons to sell Qantas shares today

A leading expert foresees headwinds building for Qantas shares.

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

Qantas share price lifts off on big Asian news

Qantas shares have surged more than 73% in a year. Here’s why they’re gaining again today.

Read more »

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

Could Virgin's IPO impact Qantas shares?

The recent IPO announcement could change the Australian aviation landscape. 

Read more »

Smiling woman looking through a plane window.
Travel Shares

Virgin Australia returning to the ASX with $685m IPO

Demand for domestic travel draws the airline back to the stock market.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Here's the earnings forecast out to 2029 for Qantas shares

Can the airline generate even stronger earnings? Here’s what experts think.

Read more »

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

Qantas shares have doubled in less than 2 years. Are they a buy, hold or sell?

What do analysts think of the Flying Kangaroo?

Read more »