Travel giants soar on hopes for industry still on its knees
Brisbane’s travel duo Flight Centre and Corporate Travel Management are defying gravity with share prices rising steeply on the back of renewed hope for the tourism market.
Lockdowns and border restrictions have again disrupted travel in Australia. (Photo: Jeremy Piper/AAP PHOTOS)
Flight Centre, which raised $700 million earlier this year just to stay alive, rose 13 per cent on Tuesday alone to $17.52, which is a 96 per cent rise on its March 19 low of $8.92.
Corporate Travel Management closed on Tuesday at $14.92, a rise of 202 per cent from its March low of $4.70.
However, the shares of both companies are still well below the prices before the pandemic hit.
The Australian tourism market may face a much-reduced market when international borders do re-open because of China’s statements that its citizens should be wary of travel to Australia because of an alleged increase in racist attacks.
The overall market is also booming. The ASX 200 closed at 6144 on Tuesday, although it was expected to fall back today after a sell-off overnight in the US.
It has climbed 38 per cent since its March lows and is now 14 per cent below its high in February and added $464 billion to its value since the March lows, but it is still $267 billion short of the February peak.
The Australian dollar is also hovering around the US70 cent mark on the back of higher iron ore prices which has also boosted stocks like BHP and Rio Tinto.
