What happened to the Flight Centre (ASX:FLT) share price last earnings season?

All eyes are on the Aussie travel share ahead of tomorrow's full-year result

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The Flight Centre Travel Group Ltd (ASX: FLT) share price has been on fire in August. Shares in the Aussie travel share have rocketed 5.6% higher in the last month amid the latest ASX reporting season.

Let's take a look at how the Flight Centre share price has responded in previous earnings periods.

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

Image source: Getty Images

How did the Flight Centre share price fare in February?

Given ASX companies generally report half-yearly, there are two major reporting seasons: February (for 31 December year end) and August (for 30 June year end).

Flight Centre reported its half-year earnings on 25 February 2021. Some of the key takeaways from that result include:

  • $1.9 billion (c.70%) reduction in annualised costs
  • 12% increase in total transaction value (TTV) to $1.5 billion
  • 10.4% revenue margin, down from 12.5% in 1H 2020
  • $247 million underlying loss

The Flight Centre share price climbed higher following February's result. That helped the Aussie travel share surge 18.0% higher from the end of January to the market close on Friday 26 February.

And last August?

Investors can also see what happened last August. Flight Centre released its full-year results for the period ended 30 June 2020 (FY20) on 27 August in a COVID-disrupted year for the travel industry.

As a refresher, Flight Centre's results were headlined by the below:

  • $510 million underlying loss before tax (down from $343.1 million profit in FY19)
  • $1.9 billion cash balance after increasing liquidity by $1.1 billion
  • 36% decline in TTV to $15.3 billion after minimal sales from March to June year end

The Flight Centre share price was volatile last August without any major share price swings following the result.

Foolish takeaway

Shares in the ASX travel agent were up 6.66% to $15.22 yesterday as investors eyed easing restrictions as vaccination numbers surge.

Investors will likely be watching the Flight Centre share price closely ahead of tomorrow's FY21 results release.

Motley Fool contributor Ken Hall 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.

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