Buy Flight Centre Shares 2024: Flight Centre’s share price took a substantial hit in the aftermath of the COVID-19 pandemic, plummeting by a staggering 85.92%. Investors are now left wondering if this substantial discount presents a long-term opportunity worth considering. Is it a wise decision to invest in Flight Centre shares in 2024? As a prominent player in the travel industry, Flight Centre has generated a lot of speculation about its recovery. Can we expect its share price to skyrocket with the resurgence of travel and money in the sector?
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In this article, we will delve into the question of whether or not you should buy FLT shares and explore Flight Centre’s ASX dividend history.
Should I Buy Flight Centre Shares 2024
Flight Centre’s primary activity revolves around travel distribution in both the leisure and corporate sectors. They also engage in in-destination travel experience businesses, including tour operations, destination management, hotel management, and wholesale. In a nutshell, Flight Centre plays a pivotal role in the travel industry, catering to various travel needs.
Flight Centre’s Principal Activities
Flight Centre, established in 1982 and headquartered in Brisbane, Australia, offers a comprehensive range of services, including booking flights, holidays, hotels, car rentals, cruises, coach tours, travel insurance, visas, and frequent flyer point redemption. With a global presence in multiple countries, Flight Centre is a well-known name in the travel industry.
FLT ASX Share Price Analysis
Before the COVID-19 recession, Flight Centre shares had been performing admirably, reaching an all-time high of $75.13 in August 2018. However, as of now, the Flight Centre share price stands at $15.24, representing an 80% decline from its peak. In contrast, the broader market has rebounded significantly.
Flight Centre Dividends | Flight Centre ASX Dividend History
Flight Centre traditionally announces dividends with its half-yearly and full-year results in February and August. These dividends are typically paid twice a year, in March (interim dividend) and September (final dividend). The company has a strong track record of paying dividends, even during the Global Financial Crisis in 2008.
FLT Shares Investor Sentiment
A survey of 99 investors regarding their sentiment toward Flight Centre shares reveals a strong bullish sentiment. This sentiment is reflected in their target price for the next 12 months. This positive outlook is promising for potential investors.
Should I Buy Flight Centre Shares: Essential Information
- Market Cap: $3,037,690,948
- Shares Issued: 199,323,553
- ASX Rank: 139
- PE: -2.21
- EPS: -6.911
- Volume 4W Avg: 1,789,686
- VWAP: $15.235
- PEG: N/A
- NTA per Share: $0.98
- ROE: -78.8
- Debt: $914.042 Billion
- Equity: $1.165 Billion
Flight Centre’s Financials
Flight Centre has faced significant challenges due to the COVID-19 pandemic and the associated travel restrictions. However, it has made efforts to adapt and navigate these challenges successfully.
Why is Flight Centre’s Income Going Down?
The income statement reflects a sharp decline in revenue, with a 90% drop from $1.546 billion to $160 million. Despite this, Flight Centre’s cost-cutting measures have been effective in mitigating losses. The company reported a net loss of $317 million, resulting in a negative EPS of -117.2 cents per share.
Balance Sheet
Despite the challenging year, Flight Centre’s balance sheet remains relatively strong. The company has managed to maintain its assets and keep its debts low. With $1.67 billion in cash on hand, Flight Centre appears well-capitalized for future opportunities.
Cash Flow Statement
The cash flow statement indicates an inflow of $426 million from financing ventures. This includes funds raised from the issue of convertible notes and financing from the Bank of England’s COVID-19 facility.
Flight Centre Share Price Prediction 2025
Flight Centre’s share price prediction for 2025 suggests a gradual increase over the year, with a minimal change percentage each month. This forecast provides insights into potential long-term trends.
Technical Analysis
According to technical analysis, the general sentiment for FLT shares is bearish. Multiple indicators, such as RSI, STOCH, MACD, and ADX, suggest a sell or overbought condition. This analysis can guide short-term investment decisions.
FLT Shares: Capital Raise and Bailouts
During the economic downturn, Flight Centre sought government assistance to stabilize its financial situation. The company executed a capital raise, which included an equity capital raising and increased commitment from existing lenders. These measures helped Flight Centre manage its costs and preserve cash during a challenging period.
FLT Shares: Representative Ownership and Trading
Flight Centre has a diverse ownership structure, with around 17% held by representatives, 39.3% by general investors, 35.5% by organizations, and 7.9% by private companies. Graham ‘Skroo’ Turner, the CEO, holds a substantial stake in the company.
The Travel Industry Crash
The travel industry experienced significant losses, with major brands like Qantas, Flight Centre, and Webjet seeing their share prices drop by 30-50%. While the market has largely rebounded, these lagging stocks are now attracting investor attention.
Tourism Disrupts
The COVID-19 pandemic disrupted tourism globally, leading to international visitation halts, domestic mobility restrictions, and heightened health and safety concerns. Australia’s effective management of the pandemic has helped boost confidence in domestic tourism destinations.
Aviation’s Impact
The aviation industry was hit hard by the pandemic, with a 95% drop in the total number of domestic passengers carried. Airlines like Virgin Australia and Qantas had to implement job cuts, and airports faced financial challenges.
Flight Centre Shares: Future Prospects
The future of Flight Centre shares remains uncertain. The company is reliant on a strong recovery in domestic travel, and it anticipates the return of international travel soon. The company has taken cost-cutting measures and aims to secure long-term connections with key suppliers.
In conclusion, the decision to buy Flight Centre shares in 2022 should be made after careful consideration of the company’s financials, market conditions, and prospects. Flight Centre has faced significant challenges, but its strategies and resilience indicate potential for recovery.
