In light of unprecedented challenges facing the travel industry, Flight Centre Travel Group (FCTG) has accelerated its “urgent” business review to identify further cost- and cash-saving initiatives.
FCTG said in an update that it would be significantly impacted by recent events in relation to the COVID-19 outbreak, including government-imposed restrictions on international travel and major reductions in airline capacity.
As part of the review, FCTG said it will hold further discussions with stakeholders including landlords, suppliers, vendors, insurers, and banks on ways to manage the financial impact of a precipitous drop in travel activity in the near-term.
The company has also initiated talks with the federal government to discuss broader industry assistance packages, in light of the support being made available to airlines in Australia and, in some cases overseas, to companies that have been significantly impacted.
FCTG said it would seek to preserve as many roles as possible, “but job losses across the industry and within the company are inevitable”.
The travel giant’s managing director, Graham “Skroo” Turner (pictured above), added: “The conditions that our industry is facing are unprecedented and have clearly arisen as a result of the coronavirus and the initiatives that are being implemented to slow its spread.
“Management is determined to overcome the significant challenges that it currently faces and, with the support of our stakeholders, is ready to prosper when conditions eventually normalise.”
FCTG’s update comes not long after it revealed plans to close as many as 100 “under-performing” leisure shops across Australia before 30 June to cope with the impact of the COVID-19 outbreak.