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Trading Idea of the Day

ASX:FLT - Flight Centre Travel Group Ltd - BULLISH BIAS (long term) - BULLISH BIAS (short term)

Key levels on the chart - consider taking trades from key support/resistance zones.
Price is significantly undervalued and at a key support, a level not seen since the beginning of COVID.
The reopening and pent-up travel demand narrative is only gathering momentum, with FLT expecting a gradual recovery in FY23 followed by a 'larger scale recovery during FY24' as the world opens up even more.
Flight Centre's corporate travel segment has returned to pre-covid form based on their latest updates, contributing $58m to their underlying earnings. The company said corporate transaction levels are also back at pre-covid levels, with revenue at approximately 95% which is a positive sign for FY23 and shareholder expectations.
Leisure bookings remain subdued, impacted by the 'lack of competition and spare capacity. The leisure segment lags as outbound travel remains impacted by a lack of competition and capacity, leading to a lack of bookings available and abnormal prices.
Management expects revenue margins to remain below pre-covid levels over the forecast period but partially offset by cost margin improvements.