Why the Flight Centre share price is falling today

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What happened

The Flight Centre share price fell around 11% on Thursday. This came on a day when the ASX followed Wall Street’s weak overnight trading. In late afternoon trade, the ASX 200 was 140 points lower at 5,826.

In February this year, Flight Centre (ASX:FLT) shares traded at around $40 before tumbling as low as $8.56 during the depths of the COVID-19 sell-off.

So what

The Flight Centre share price took a knock today because of a spike in coronavirus cases, both in the US and other parts of the world, and also here in Victoria.

Also impacting Flight Centre share was news that Qantas were axing 6,000 staff, with around 100 aircraft to be grounded for up to 12 months, some for even longer.

Although there wasn’t any specific news out from Flight Centre today, the fall in its share price can likely be put down to fears consumers will further delay travel plans, plus a bout of profit taking. The FLT share price had traded as high as $17.52 earlier in June as investors bet on travel bookings bouncing back hard and fast.

Now what

Shares in beaten down travel companies like Flight Centre and Webjet have been popular in recent weeks. Like many stocks directly impacted by the coronavirus, the timing and extent of any bounce back remains highly uncertain.

Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au