The Flight Centre Travel Group Ltd (ASX: FLT) share price soared to an 18-month high in September. The travel agent has been busy targeting a return to leisure and corporate profitability as conditions improve.
This has led Flight Centre shares to track 30% higher over the past month. On the other hand, the S&P/ASX 200 Index (ASX: XJO) has slumped by more than 4%.
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International travel resumes
Flight Centre advised in its mid-September presentation that sales revenue increased month-on-month during FY21. In particular, leisure and corporate recovery in the United States during Q4 FY21 ticked up a notch.
The company noted that corporate transaction numbers were at 50% of pre-COVID levels, representing around 40% of the total transaction value.
In addition, vaccination programs have gained momentum, with travel restrictions being either relaxed or removed in key travel markets. As such, immediate and strong rebounds are being experienced.
Fully vaccinated passengers are being offered more freedoms for trans-Atlantic travel and to other international destinations. For example, United States travellers can fly to the United Kingdom, and Fiji is opening its borders to vaccinated passengers from November.
Flight Centre said more countries are accepting they have to live with the virus, with various international routes restarting.
What about Australia?
Australia's accelerated vaccination program is on track, with selected international travel set to resume as early as next month. Some 80.5% of over 16s have received their first dose, with 58.4% having had a second dose. It is estimated Australia will reach the magic 80% for the double jab on 6 November.
Flight Centre is preparing for a strong comeback as a more agile business while airlines begin to restore services.
Quarantine-free travel to countries with high vaccination rates could also be on the cards. This includes nations such as the United Kingdom, United States, Fiji, Japan, Singapore, and possibly others.
In Australia, home quarantine is being trialled in some states with early success so far. Flight Centre sees this as a major step forward as it removed customer fears of being forced into expensive hotel quarantine.
Flight Centre share price summary
It's been a solid year for the Flight Centre share price. Since its September gains it's continued to fly, reaching another new 18-month high of $25.28 on Tuesday.
In 2021 alone, its shares have risen by around 45%, reflecting positive sentiment in a quick recovery of the travel sector. In early trade today they are up 2.37% to $23.35.
Flight Centre has a market capitalisation of roughly $4.55 billion, with close to 200 million shares on its registry.
