$22 billion TTV and $70 million in profit – versus a $378 million loss last year.
Flight Centre Travel Group has just released its results for the 12 months to 30 June, with MD Graham Turner saying “after an incredibly challenging period, we are pleased to report material profit and sales uplifts, in improved conditions during FY23, leading to stronger shareholder returns”.
Turner said the $485 million profit turnaround had exceeded initial expectations as the global business recovered from the removal of “unprecedented restrictions” imposed on travellers during the COVID-19 pandemic.
Sales more than doubled group-wide, with both leisure and corporate operations delivering more than $10 billion in annual TTV for the first time.
The company announced a new capital management policy which will see 50-60% of net profit after tax allocated to dividends or buy-backs. Today’s announcement includes an 18c per share dividend for shareholders – the first since the pandemic.
Turner noted the impact of airline commission reductions during the year, noting that as well as pursuing margin improvement opportunities Flight Centre is working with airlines to increase Total Available Margins (TAM) paid to its diverse stable of businesses through NDC deals and content arrangements, nett fares and mutually beneficial partnerships.
More details in today’s issue of Travel Daily.