Flight Centre Reports Record Sept., Oct. Corp. Sales

Flight Centre Travel Group reported record monthly corporate travel sales in September and October, though managing director Graham Turner said the travel management company still has a lot of room for growth in demand recovery.

In the group’s annual general meeting on Monday, Turner said total transaction value for Flight Centre’s corporate business neared A$1 billion (US$671 million) in each September and October. Overall transaction volumes returned to pre-Covid-19 levels and revenue is at about 95 percent of 2019 levels, he said. 

Those numbers do not mean companies are traveling at pre-pandemic levels, however.

“Travel is … at a relatively early stage on the path to recovery, and there is considerable pent-up demand that is not yet fully translating to bookings,” Turner said in his remarks during the meeting. “In business travel, for example, our recovery is being driven by very high customer retention rates and large volumes of new account wins rather than by overall client activity returning to pre-Covid levels.”

For the first four months of its fiscal year, which runs from July through June, the group’s corporate business reported earnings before interest, taxes, depreciation and amortization of A$58 million, compared with a A$28.8 million loss in the same period the previous year, Turner said. The group expects the current fiscal year to be one of “gradual recovery” for the overall travel industry, with a larger recovery ahead in the 2024 fiscal year.

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