Shares in Flight Centre Travel Group Ltd (ASX: FLT) are walking forwards today and now trade 2 percentage points higher at $20.15.
As airlines get their first major test since the lifting of major COVID-19 restrictions, there's been somewhat of pandemonium at Sydney Airport, reports say.
Talks of long queues and equally as long waiting times have been circling around the media, but nevertheless, the images of endless foot traffic are signs people are flying again.
Image source: Getty Images
Are travel conditions warming up?
Despite the wind down in operating activity, Flight Centre appears to be heading back towards its pre-pandemic outcome measures.
Today it advised it purchased an additional 47.5% interest in travel technology business, TP Connects.
Flight Centre originally took a 22.5% stake in the Dubai software-as-a-service (SaaS) business back in February 2020, then advised its intention to up its interest in TP Connects from 22.5% to 70% roughly one year later.
Although, we won't know the particulars of the deal, as "the terms of [its] investment are currently confidential and are not disclosed," the company says.
"[Flight Centre] initially invested in TPC in February 2020 with a view to supercharging the development
of TPC's innovative technology platform, which aims to shape the future of travel distribution
by aggregating content from multiple sources," it remarked.
With the latest acquisition in place, the company looks to be capitalising on any potential upside from flight bookings.
Speaking to Sky News this morning, Flight Centre CEO Graham Turner acknowledged that whilst there's been airport delays, current trends are encouraging.
"Talking to Sydney Airport and Qantas, they seem to think they will be able to sort this [delays etc] out reasonably quickly," he said.
"[T]he good news is that so many people are travelling of course – it's certainly a relief after the last couple of years."
Flight Centre shares have spiked 11% in the last year and are up 14% this year to date.
