Flight Centre announces 1H24 profit increase of 565% as corporate travel remains strong
Flight Centre Travel Group has announced an AUD$106million underlying profit before tax (PBT) for the half year to December 31, 2023.
The leisure business’s AUD$60million underlying PBT exceeded pre-pandemic levels and was:
- Circa 30-times the AUD$2million FY23 first half (1H) result.
- Double the AUD$30million FY19 1H underlying PBT.
Underlying corporate PBT increased 53 per cent to AUD$93million, during another period of healthy, organic growth and ahead of the Productive Operations initiative’s benefits being realised.
Total transaction value (TTV) increased 15 per cent to AUD$11.3billion, delivering FCTG’s second strongest start to a year (behind only the FY20 1H) while Corporate TTV increased 16.8 per cent to a record AUD$5.9billion, the business again achieved new sales milestones and comfortably outpaced the broader corporate travel sector’s recovery.
Leisure TTV increased 18 per cent to AUD$5.2billion, with scale benefits being achieved across a diverse mass market, luxury, complementary and independent brand range.
“Travel continues to be a critical facet for corporates across Australia and New Zealand with several new business wins contributing to a solid first half to the financial year, as revealed in Flight Centre Travel Group’s (ASX:FLT) mid-year results announcement,” MD (AU/NZ), Flight Centre Corporate, Melissa Elf, said.
“The volume of travellers across Flight Centre Corporate increased by 21 per cent in H1 FY24, compared to H1 FY23, across all businesses (FCM Travel, Corporate Traveller, and Stage and Screen).
“We’ve made a conscious commitment to consistency in productive operations, delivering a blend of touch and tech, in response to what corporate travellers are seeking, and this is driving significant new business wins for us across the corporate arm.
“According to the Global Business Travel Association, international business travel spending will reach $1.5 trillion in 2024, which is up from the pre-pandemic peak of $1.4 trillion.
“The numbers speak volumes – corporate travel is back for many and it’s a booming industry, that’s buoyed by the growing trend of ‘bleisure’ travel, in which business travellers are tacking personal time on their end of their work trips.
“We’re predicting a strong year ahead, with the culmination of decreasing domestic and international airfares, improving competition and capacity from airlines, fleet reconfigurations to streamline airline operations, and our continued investment into productive operations and technology.
“Although the industry still has some way to go in terms of recovery internationally, we’re very optimistic about growth opportunities as we enter the second half, particularly as economic confidence returns, and with meetings, events, and conferences remaining a priority to business.”
Chris Galanty, global corporate CEO, Flight Centre Travel Group, revealed that corporate business has contributed 52 per cent of the groups total transaction value among other highlights.
“We’ve also achieved new milestones in the four geographic regions of Australia and New Zealand, the Americas, Europe, and Middle East and Africa and Asia,” he, said.
“These record results, built on high customer retention rates and large volumes of new account wins, were achieved in a sector that has only recovered to circa 70 per cent of pre-COVID transaction volume levels, pointing to our healthy market-share growth.
“At the end of January 2024, our corporate brands had secured new accounts with projected annual spends of circa $1.3billion, with FCM Travel typically winning customers from competitors, and Corporate Traveller securing a mix of unmanaged and smaller, managed accounts.
“We continue to make strides in the technology space with mass adoption of our Corporate Traveller Melon platform in the USA and Canada – with fast growth also being seen in the UK. FCM Platform has also seen successful growth with all existing customers anticipated to be migrated this year.
“We’re also progressing our corporate AI Centre of Excellence and that has seen new features added to the suite of products already available that have improved the customer experience and increased our operational productivity.
“Aside from technology, we’ve also been working tirelessly towards clear and consistent strategies that have been successfully executed globally, with these strategies initially focusing on ‘Grow to Win’, but now also include productive operations.
“We look forward to continuing this momentum into H2 of FY24 – with more exciting advancements
to come later in the year – and some major customers to be onboarded globally.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
flight centre flight centre travel group Melissa ElfLatest News
Linkd appoints Carolyn Nightingale and Lawson Dibb to new roles
Linkd Tourism sings praises of Carolyn Nightingale and dubs Lawson Dibb as Kyushu Tourism Office guru.
Celebrity Ascent makes its European debut
Choosing to cruise this northern summer? Celebrity Ascent promises to raise the bar.
NCL opens sales for Norwegian Sun’s APAC debut, announces 14 new voyages
It was to be 13 new voyages we heard, but given the numbers unlucky nature, an extra had to be thought up.
Inside Travel Group appoints Tom Welland Global Trade Marketing Manager
Heidi's Tom Welland heads to Inside Travel Group as its new Global Trade Marketing Manager.
Federal Government rolls out $1.4m program to promote careers in tourism across regional NSW
The Government taking a break from some of its pointier issues with some work in our incredible industry!
Australian visitors to South Korea surge
Japanned out? Aussies are adding South Korea to their bucket list.
G Adventures celebrates Dr. Jane Goodall’s 90th with new wildlife-focused trips
Fancy yourself as a bit of a conservationist? Put your skills to the test on the Jane Goodall collection.
Virgin Australia says suspended flights to Bali result of Boeing MAX delays
If only we had a company like Boeing to blame our mistakes on. Any takers? Get in touch!
Airline Review: Singapore Airlines Business Class – A380-800
The iconic Singapore Airlines' A380-800 is in a class of its own - business class that is.
South African Airways to relaunch Joburg – Perth flights as economic ties strengthen
Bringing two of the world's most distinctive accents closer together, for good or for bad is yet to be determined.
My journey: Before becoming a travel agent I was… a palliative care nurse
Australind Travel & Cruise, Travellers Choice member Saibra Twigg reveals her life as paediatric nurse then to palliative care before a career leap to travel agent. How did you become a palliative care nurse? ST I went straight from school in nursing and initially specialised in paediatrics, working at Perth’s Princess Margaret Hospital for Children. […]
Emirates unveils future plans with new hub at Al Maktoum International Airport
We've also been looking into our future. It involves plenty of famils, we hope.
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]