The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the red today.
Flight Centre shares are sliding 2.74% and are currently fetching $14.21. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 1.07% at the time of writing.
Let's take a look at what might be weighing on the Flight Centre share price.
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Travel chaos continues
Flight Centre is not the only ASX 200 travel share struggling today. The Qantas Airways Limited (ASX: QAN) share price is down 2.47%, while Webjet Limited (ASX: WEB) shares are falling 1.84%.
Australian airline shares are following in the footsteps of United States travel shares. United Airlines Holdings Inc (NASDAQ: UAL) shares dropped 2.38%, while Delta Air Lines Inc (NYSE: DAL) shares fell 2.77% and Southwest Airlines Co (NYSE: LUV) tumbled 5.16%.
There was flight cancellation chaos amid blizzards and winter storms. Southwest Airlines cancelled nearly 10,000 flights across the country in three days, Business Traveler USA reported.
Flight Centre has operations and offices globally, including in the United States.
The USA also announced overnight they will require negative COVID tests for travellers from China, including Hong Kong and Macau, The New York Times reported. Japan and Italy have also announced similar measures.
A decision on introducing a similar measure in Australia for travellers from China has yet to be made. Health Minister Mark Butler, in quotes cited by news.com.au, said:
The Australian government continues to monitor the global situation. Travel arrangements for Australians and visitors to the country remain unchanged.
Flight Centre is predicting continued momentum company-wide in FY23. In November, the company reported its cost margin is improving and tracking at 10% in the year to date. This is in line with the company's pre-COVID transformation target. The company is predicting more rapid improvement during the second half of the financial year.
Share price snapshot
The Flight Centre share price has descended 20.35% in the last year.
For perspective, the ASX 200 has shed 6.65% in the last year.
