Flight Centre reports $317 million loss, but “well placed for the eventual recovery”.
Flight Centre’s $1.5 billion TTV for the six months to 31 December 2020 was just 12% of the previous corresponding period, according to the company’s financial results which were just released on the Australian Securities Exchange confirming a $317 million statutory loss.
CEO Graham Turner said despite the conditions encountered since March last year, the company was not in a holding pattern waiting for borders to reopen, but instead “taking steps to ensure we are well placed for the eventual recovery”.
Capital expenditure has been maintained on key leisure and corporate technology projects, with new platforms now rolling out across the business.
Various businesses were already returning to profitability, including Ignite in Australia thanks to solid future domestic sales and 2022 cruise bookings. Turner said a large volume of new corporate accounts had been secured, while the rollout of vaccination programs globally was also a strong positive sign.
The Flight Centre MD said GDS figures indicated market share growth in Australia, while the company’s “brand stable and shop networks have been rightsized”.
Turner said the company’s extended liquidity runway meant it was well positioned for inevitable market consolidation, with a significantly lower cost base, brand and geographic diversity, and significant leverage to domestic and short-haul regional travel.
Flight Centre is targeting a return to breakeven in both leisure and corporate travel during the 2021 calendar year, on the basis that domestic borders are likely to open permanently and some low risk international travel may be permitted.
“Based on what we have seen so far, travellers have been keen to take off as soon as they have been allowed to do so, which should ultimately lead to a very solid rebound,” Turner said.
More details in today’s issue of Travel Daily.