A day in the sun for travel stocks with Flight Centre (FLT) +9.21%, Corporate Travel (CTD) +4.33%, Webjet (WEB) +3.75%, QANTAS (QAN) +2.51% & Sydney Airports (SYD) +2.15% after The Federal Government announced a $1.2 billion tourism support package aimed at supporting local travel while international routes remain off limits. This included a basket of airline ticket subsidies for travelers, cheap loans to small tour companies and financial support ($200 million/) for Qantas & Virgin to bring planes back online, plus a bunch of other measures. Flight Centre the major beneficiary here however important to recognize that FLT’s market capitalization ($4bn) is now only ~30% below it’s all time high ($6bn) when shares were trading above $60 given the huge, dilutive emergency capital raise during the pandemic. In other words, we view this as a rally to sell.
MM prefer Corporate Travel (CTD) over Flight Centre (FLT)
Add To Hit List
