Flight Centre Shares Recovering Strongly Even if Travel Activities Still in the Doldrums

A tidal wave of COVID-19-induced damages has been inflicted on Flight Centre since late March 2020. Government restrictions on travel (international, domestic), effective grounding of airline capacity and strict lockdown measures on consumers have created an unprecedented liquidity squeeze on the group. We believe the measures to execute a drastic reduction in costs (cuts to store network/leases, staff, marketing), combined with the AUD 700 million equity capital raising in April 2020, is enough for the no moat-rated group to weather the current malaise.