Flight Centre Travel Group (FCTG) is expecting a loss of roughly $500 million for this financial year, but is hopeful of returning to profitability in FY22.
In a presentation for investors at a conference hosted by banking giant Macquarie, FCTG supremo Graham “Skroo” Turner and chief financial officer Adam Campbell revealed that the company is expecting its losses in the second half of FY21 to be broadly in line with the first half, meaning a full-year loss of circa $500 million.
However, FCTG has headed into the final quarter of the current fiscal year with the wind in its sails.
The travel giant’s March turnover was more than $100 million higher than in February – up 32.7 per cent month on month – taking gross quarterly total transaction value (TTV) back above the billion-dollar mark for the first time since the COVID-19 pandemic struck.
FCTG’s global leisure TTV was tracking at 14 per cent of pre-COVID levels at the end of the third quarter due to tighter restrictions for discretionary travel, a high cost base and a historically heavy reliance on international travel.
However, the company is witnessing “encouraging signs” in Australia for its leisure division. The presentation also noted that the flightcentre.com.au website generated 30 per cent of the Flight Centre brand’s TTV in March.
FCTG’s corporate division was tracking at 29 per cent of pre-COVID levels at the end of Q3, with Australia recovering more rapidly than the global corporate business, but at a lower-than-normal revenue margin.