Why is the Flight Centre share price soaring today?

We take a look at what might be fuelling the travel agent's stock.

| More on:

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

Key points
  • The Flight Centre share price is in the air on Friday, gaining 3.47% to trade at $19.38
  • Its movement follows the release of a positive update on the company's corporate travel segment, released late yesterday
  • Additionally, the stock might be being boosted by news Australia will soon drop COVID-19 testing requirements for international arrivals 

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.

A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.

Image source: Getty Images

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.

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.

More on Travel Shares

A woman wearing a mask at the airport gets ready to travel again with Qantas.
Travel Shares

Qantas shares flying through $105 million legal turbulence

Qantas is still working to absolve itself of COVID-related operating issues.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Qantas shares do I need to buy for a $10,000 annual passive income?

Qantas shares resumed their passive income payouts in 2025.

Read more »

A man stands before a chalk board with line drawings of paper planes with various curling flight trajectories and paths.
Travel Shares

Nosedive: Why did Qantas shares crash 9% today?

Qantas stock is losing altitude fast this Monday.

Read more »

Smiling woman looking through a plane window.
Travel Shares

The Qantas share price is down 24% since its peak, is it a buy?

Is this a good time to invest in 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 shares sink 13% in a week: What happened, and how long will it last?

Here's the latest update.

Read more »

Smiling woman looking through a plane window.
Travel Shares

Should I buy Qantas shares after their 9% decline?

The airline delivered strong profits, yet the shares fell 9%. Here’s how I see it.

Read more »

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

Brokers think these two travel shares could take off

Investors, pack your bags.

Read more »

Couple at an airport waiting for their flight.
Travel Shares

Qantas shares tumble 6% despite first-half earnings beat

The Flying Kangaroo has released its half-year results today.

Read more »