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20 July, 2023

Flight Centre expects an almost half-billion-dollar turnaround from FY22

Melbourne, Australia: April 12, 2018: Street view of a Flight Centre shop window. Flight Centre is Australia’s largest travel agency selling international flights, holidays and tours. A man walks past.

Flight Centre Travel Group (FCTG) today announced that it expects to post an almost half-billion-dollar turnaround from its FY22 loss.

The upgraded profit guidance from FCTG has the company reporting earnings before interest, tax, depreciation and amortisation (EBITDA) between $295m and $305m for the 12 months to 30 June 2023.

This $300m midpoint is a 7 per cent increase of the midpoint in the company’s previously targeted range of underlying EBITDA between $270m and $290m and a $483m turnaround on the a underlying $183m FY22 loss.

Total transaction value (TTV) for FY23 is expected to be in the order of $22billion, almost 115 per cent growth on the prior year (FY22: $10.3billion).

Global leisure TTV for FY23 is expected to be in the order of $10billion, while corporate TTV for FY23 is expected to reach $11billion, which represents more than 20 per cent growth on the business’s previous TTV record of $8.9 billion (FY19).

“Overall, we are pleased with our continued recovery as demand has generally rebounded solidly across both our leisure and corporate travel businesses,” FLT managing director Graham Turner said.

Graham Turner

“In corporate, we have delivered record TTV while investing significantly for the future by securing large volumes of new accounts, expanding our sales force and introducing innovative new platforms and products for our customers, which should lead to stronger returns in the years ahead.

“In leisure, we are emerging from the pandemic as a more productive, more efficient and more diverse business with a strong brand stable, enhanced capability and efficient and productive models that are now starting to achieve scale benefits.

“During FY23, we also invested in our luxury travel collection through the Scott Dunn acquisition early in the 2H and, more recently, the Luxperience events business to bolster our presence in a very attractive leisure sector.

“Looking ahead, our expectations are that leisure travellers will continue to prioritise holidays and experiences over other areas of discretionary spending, as we have seen in the past and as evidenced by the consistent year-on-year growth in outbound travel in large and important markets like Australia.

“In corporate, we expect that the large volume of new business that we continue to win – both from competitors and accounts that were previously unmanaged – will offset the impact on TTV flowing from lower-than-normal client spend.”

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fctg flight centre FY23