Flight Centre 1H2022 Earnings Preview: Where next for FLT stock?

Flight Centre Travel Group Ltd (FLT) is one of the world’s largest trip agency groups with operations that extend throughout four major regions, including Australia and New Zealand, the Americas, Europe, and Asia.
In addition, FLT’s global commercial trip operation network, FCM Travel Results, extends to about 90 other countries through strategic licensing agreements with independent original drivers. FLT is listed to report its half- time figures on Thursday, February 24th.

The trip assiduity was devastated by the impact of the COVID-19 epidemic as borders slammed shut around the world and trippers cancelled or heldup passages. FLT saw an 80 decline in its share price from its 2019$44.24 high to the$8.69 low and cancelled its preliminarily blazoned tip.

In April 2020, it launched an exigency equity caregiving of$ 700m and tapped the Bank of England’s exigency debt installation to help its UK operations. Thousands of staff were stood down or made spare, and hundreds of stores targeting rest trippers were closed across its global network.

Emphasizing this period, FLT recorded a$507.1 million beginning loss before duty during FY21, in line with the previous time result and request guidance. As stressed in the company’s Annual General Meeting (AGM) in October 2021, its healthy liquidity position helped it ride the colorful Covid challenges.

During the AGM, the company also noted that trading conditions were anticipated to ameliorate, supported by trip restrictions being relaxed/ lifted in crucial requests and vaccination programs gaining instigation encyclopedically. Still given the ongoing query, declined to give FY 2022 guidance.

“ Timing is uncertain and remains largely in government hands, given that profit generation openings are naturally linked to bordersre-opening and staying open and transnational trip continuing in a further meaningful way encyclopedically.”

One of the crucial misgivings was removed history on news that Australia willre-open its borders to vaccinated excursionists from February 21st, furnishing a massive boost for Australia’s$ 60 billion sightseer assiduity.

After two times of losing plutocrat, the prospect of a return to profitability, most probably in the alternate half of 2022, has buoyed trip stocks, including FLT, presently trading at$19.55.

FLT Daily Chart

Following the drop from the$40.72 high to the April$8.56 low, the share price of FLT has been happy to grind advanced within a trend channel for the better part of 12 months now.

If the share price can break above vertical resistance at$20.20/ 40, there’s compass for a test of the October$25.58 high before trend channel resistance at$26.50.

On the strike, trend channel support viewed ahead of$15.00 will give support should another Covid challenge crop in 2022.

Source Tradingview. The numbers stated areas of February 8th 2022. Once performance isn’t a dependable index of unborn performance. This report doesn’t contain and isn’t to be taken as containing any fiscal product advice or fiscal product recommendation

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