Flight Centre Gains Additional Funding, Share Price Up (ASX:FLT)
In the current climate of COVID-19, businesses like Flight Centre Travel Group Ltd [ASX:FLT] have been ravaged by the decline in global travel.
With the FLT share price trading at $10.84 at the time of writing, Flight Centre is doing all it can to protect itself in these uncertain times.
What’s happening at Flight Centre?
From mid-January 2020 Flight Centre’s share price has plummeted over 73% to its current price.
The onset of the novel COVID-19 pandemic ceased traveling and holidaying, which is nothing short of a disaster for Flight Centre, who’s business is focused on these exact areas.
We discussed in an article back in May that the company sold their Melbourne headquarters for a much-needed cash injection.
Flight Centre acted again to sure up their future by announcing recently they have secured access to a debt facility of up to £65 million, which will be drawn as and when required to help offset the coronavirus’ impacts on its United Kingdom business.
With no end in sight for the global health pandemic, the entire travel industry is looking for ways to survive.
The pain is being felt across the sector.
Where to from here for Flight Centre
Right now, in Australia the state of Victoria is in lockdown as the COVID-19 virus spreads and it is looking more likely that New South Wales will follow suit.
This posses a problem for Flight Centre and co in the travel sector, as in normal operating conditions the route between Melbourne and Sydney is the second busiest in the world.
With out people booking flights, holidays and activities companies like Flight Centre may just be in for a rocky road to travel.
On a technical basis the price is currently at $10.84, getting down towards the $8.44 level, something not seen since February 2006 (blue rectangle).
If the price is to continue its move down, this level of $8.44 is an important one to watch.
On the upside if the price turns up, then levels of $15.16 and $18.13 may provide future resistance.
For Money Morning
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