The (ASX: XJO) stock ( ) has gone through rough times in the last few weeks. In the past month, the Flight Centre share price has dropped by close to 20%. Big declines aren't exactly what shareholders want to see, but it can open up a new buying opportunity for investors wanting to buy (more).
The last few years have been very volatile for due to the impacts of the COVID-19 pandemic. The recent decline has brought the Flight Centre share price back to December 2020 levels. Fund manager L1 Capital has named Flight Centre as a turnaround opportunity for a few different reasons.
L1 recently noted in its monthly update that the Flight Centre share price fell 29% in October because the business provided a softer , which noted impacts from airfare price deflation and downtrading in some corporate accounts. In that update, the ASX 200 stock reported that it was trading "marginally" above the FY24 first quarter across most key metrics, including total transaction value, profit margin and underlying profit. However, the ASX travel share said the global corporate travel sector activity was flat in the first quarter and that growth was impacted by airfare deflation and downtrading, but there were "positive early signs for October".
Flight Centre warned that airfare price deflation is having a short-term impact on total transaction value (TTV) growth. Solid volume growth during the first quarter was offset largely by the deflation. In the subsequent , Flight Centre said its quarterly TTV.
