More travel companies cut exec salaries, withdraw earnings guidance

Business concepts, cutting salary

A number of other ASX-listed travel companies have updated the market on their strategies to tackle the impact of the COVID-19 pandemic.

Corporate Travel Management (CTM) has suspended its earnings guidance for the 2020 financial year, as well as actioning several plans to manage costs against reduced corporate travel activity.

These include staff leave, shorter working weeks on proportionate pay and leave without pay, which apply across all CTM staff.

Additional measures by the company include a freeze on all non-essential recruitment, a reduction of all discretionary expenditure and delaying non-client facing project work.

CTM managing director Jamie Pherous and non-executive directors will take a 20 per cent reduction in their fees and fixed remuneration respectively for the remainder of this financial year.

The company noted it has the capacity to implement further measures “should the situation require”.

Apollo Tourism & Leisure withdrew its FY20 profit guidance on Thursday, and is taking steps in each region to mitigate the impact of COVID-19 on the business.

As an additional cost-saving measure, the Apollo’s executive and non-executive board members will forgo 20 per cent of their salaries and fees for the remainder of FY20, which will be reviewed early in the next financial year.

Ardent Leisure withdrew its earnings guidance on Friday, and expects the impact of the COVID-19 outbreak on its theme parks division to continue for longer than initially anticipated.

“Both Main Event and theme parks are pursuing a range of mitigating actions in response to the downturn in guest attendance,” the company said in a statement.

“These include adjusting operating costs, deferring non-essential capital investment, and reviewing other non-critical business activities and discretionary expenses.

“The theme parks division will continue to focus marketing efforts on the domestic market in the short to medium term.”

Ardent said it has also undertaken a range of measures to enhance the cleaning and sanitisation of Main Event centres and its theme parks.

Travel tech company Serko suspended its full-year revenue guidance this morning due to the rapidly increasing uncertainty surrounding the COVID-19 outbreak, as well as the impact it and the related border control restrictions are having on corporate travel.

“Our priority during this period of uncertainty is to maintain Serko’s current balance sheet strength and position,” Serko CEO Darrin Grafton said.

“Our focus is ensuring the company continues to grow following this challenging trading period.

“Serko presently has a strong cash balance, following its successful capital raising undertaken late last year, and the executive team and board are optimising the business for long-term growth by carefully managing the allocation of capital during this period.”

CTM, Apollo, Ardent, and Serko are among the latest ASX-listed companies to reveal their COVID-19 mitigation methods; joining Qantas, Virgin Australia, Flight Centre, Helloworld Travel, and Webjet.

Featured image: iStock/takasuu

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