Flight Centre predicts return to profits by EOY

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 (FLTG) amended its 2022 fiscal year market guidance after a strong rebound in global travel demand.

FLTG now predicts it will record an underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of between $180 million and $190 million for the 12 months to 30 June 2022.

The midpoint between these predicted losses – $185 million – represents an 11.9 per cent improvement on the company’s initial FY22 predicted loss of between $195 million and $225 million. It also represents a major improvement on Flight Centre’s $337.9 million FY21 EBITDA loss.

Flight Centre expects to break-even for the six months to 30 June 2022. This is a large turnaround following its losses to February 2022.

Travel demand accelerated after concerns about the Omicron strain abated and as governments relaxed the restrictions that grounded most non-essential travel.

With this acceleration, total transaction value (TTV) for FY22 topped $10 billion – more than two-and-a-half times the $3.95billion FY21 result – and, on a monthly basis, was tracking near or above pre-COVID levels in a number of businesses by year-end.

TTV recovery has, to date, been fuelled by both an uplift in demand and higher than normal ticket prices linked to a lack of airline capacity, particularly on international routes.

“After an incredibly challenging period, we were pleased to achieve our goal of returning to monthly underlying EBITDA profitability in both the corporate and leisure sectors late in the year,” Flight Centre Travel Group managing director Graham Turner said.

“The scale of our recovery exceeded our initial expectations and meant that we should now exceed our preliminary FY22 result target, with early trading results pointing to a break-even second half result and a healthy fourth-quarter profit (underlying EBITDA).

“There will inevitably be ongoing challenges for the industry over the next six to twelve months as new strains of the virus emerge, airline capacity returns and as we rebuild staff numbers to required levels, but we feel that we are well placed to overcome these concerns given our corporate business’s continued rise and our leisure business’s ongoing strength. 

Graham Turner – Flight Centre Travel Group managing director

“In the corporate sector, we are gaining market-share globally through high customer retention rates and a multi-billion-dollar pipeline of new accounts won across our Corporate Traveller and FCM brands during the pandemic.

“Wins range from start-ups and small to medium-sized businesses in Corporate Traveller to enterprise-level global accounts like Shell and other high-profile companies are moving to FCM from competitors.

“In the leisure sector, our success is built on having strong brands and sales channels that are resonating with customers in what is now a more complex travel environment.

“We are seeing positive returns on our investment in new growth models, with offerings like our independent agent channel growing rapidly, and signs of a solid recovery in complementary brands like Travel Money, our foreign exchange business which is again open and profitable. 

“In Flight Centre brand, our leisure customer offering will soon be bolstered by the addition of omni-channel capabilities, which will allow customers to move seamlessly between sales channels for the first time. Omni channel capability will allow us to reach more customers and present exciting new deals, flights and holidays that are bookable instantly.”

Flight Centre will release audited FY22 accounts on Thursday, 25 August.

Latest News

  • Cruise

Seabourn introduces enhanced groups programs for travel advisors

Leading ultra-luxury cruising and expedition travel company, Seabourne, proudly announces the “Seabourn Enhanced Groups Program” to elevate business prospects for travel advisors. This program introduces a revamped Tour Conductor Credit that offers shipboard credits or bonus commission for bookings. It also eliminates the need for deposits for small group allotments and increases group capacity. “Seabourn […]

  • Cruise

MSC World America to become the ultimate family destination at sea

MSC Cruises’ latest world-class ship is set to redefine family cruising with unprecedented spaces and activities, including ones developed in partnership with the LEGO® group. The cruise line announced that its new flagship will feature seven distinct districts, each bringing together a range of tailored experiences. The ship’s blend of American comfort and European design […]

  • Cruise

Ponant’s latest luxury cruise expeditions for 2024 and 2025

Head out to see the beauty of unique destinations on three bucket-list explorations of Australia with Ponant Cruise’s new luxury expeditions. Known for their luxury cruises, Ponant offers unique and truly exceptional sea voyage aboard sleek and intimately sized cruise yachts. They offer a range of discovery expeditions, and launched new cruises that take guests […]

  • News

Liz Anderson steps down from CATO Board after eight years of leadership

The Council of Australian Tour Operators (CATO) has today announced that Liz Anderson (at right) will be stepping down from the Board on Wednesday June 19, concluding her eight years as a director. “The eight years that Liz served on the CATO board were the most transformative time in the Association’s history,” CATO Chair Dennis […]

  • Attractions

Comedian Josh Thomas road tests swapping day job for Tassie odd jobs

Australians are invited to tap into a 200-million-day annual leave bank* and swap day jobs for one of 10 ‘Odd Jobs’ in Tasmania this off-season including Wombat Walker, Paranormal Investigator, Wine Whisperer and Truffler Snuffler. Tourism Tasmania has today launched Odd Jobs, a tongue-in-cheek campaign designed to encourage Australians to swap their day jobs for […]

  • Aviation
  • News

Christine O’Reilly to replace Peter Hay as chair of Australia Pacific Airports Corporation

Christine O’Reilly has been named as the new chair of Australia Pacific Airports Corporation (APAC) – the owner of Melbourne and Launceston Airports. According to a release, O’Reilly will replace Peter Hay on 1 October, who retires after five years as Chair of APAC. APAC CEO Lorie Argus said O’Reilly’s appointment comes at an exciting […]

  • Tourism

The number one thing you can’t forget if you’re going to Europe & The Olympics

As the Summer Olympics in Paris draws near, travel insurance comparison site Compare the Market is urging travellers to safeguard their European summer sports dreams by getting travel insurance for when the unexpected happens. While France seems like a decently safe country to visit, it’s crucial not to overlook the potential risks that could disrupt a holiday. From bed […]

  • Destinations
  • Partner Content

The Solomon Islands’ is ‘Kulture-plus’

Be grateful that your experience of 'headhunting' is limited to some random dude reaching out to you on LinkedIn.

Partner Content

by Travel Weekly

Travel Weekly
  • Cruise

Cruise Traveller’s new Scottish Highlands cruise tour package

Australian small ship cruising specialist, Cruise Traveller, offers a 20-night land and sea holiday in the UK aboard the Lord of the Glens. The tiny cruise line’s 52-guest boutique vessel, Lord of the Glens, is purpose-built to explore the intricate waterways and lochs of the Scottish Highlands. It boasts a rich, traditional ambience with polished […]

  • Cruise

Celebrity Xcel’s keel-laying ceremony in France, with 2025 inaugural sail planned

Construction has commenced on Celebrity Cruises’ next ship, Celebrity Xcel, with a keel-laying ceremony at the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France. An Edge Series ship, Celebrity Xcel will set sail in autumn 2025, with several new yet-to-be-revealed offerings. At the ceremony, Jason Liberty, president and CEO of Royal Caribbean Group (RCG), the parent […]

  • Destinations
  • Tour Operators

Globus unveils nine new independent tours for 2025

Coach touring brand Globus has unveiled nine new independent tours for 2025, from Bangkok to Bali and Abu Dhabi to Nepal. “With Globus Independent tours, our guests are free to enjoy the many benefits of touring, untethered and unscheduled,” APAC head of marketing, Globus family of brands (GFOB), Chris Fundell said. “Providing hand-picked hotel accommodations, […]

  • Hotels

Mandarin Oriental Hotel Group opens Mandarin Oriental Mayfair

The Mandarin Oriental has opened a second property in London, the Mandarin Oriental Mayfair, in the heart of historic Hanover Square. Designed by internationally renowned Rogers Stirk Harbour and Partners, the hotel is the first new build in Mayfair in over a decade. Bringing a modern architectural approach to one of London’s most storied squares, […]