David Coombes David Coombes

FCTG: Huge losses, but positives

 

Flight Centre Travel Group (FCTG) released its year-end results on 27August for its 2020 Fiscal Year, which show an optimistic future for its corporate brands FCM Travel Solutions and Corporate Traveller despite a major downturn in the travel industry.

Whilst FCTG experienced severe losses (A$510M underlying loss before tax) due to unprecedented travel restrictions caused by the COVID-19 pandemic, FCM Travel Solutions and Corporate Traveller proved to be resilient. During the global shutdown, the two business travel divisions landed a

record amount of new business and pipeline of potential opportunities, meaning they are well positioned to fuel FCTG’s recovery.

David Coombes, managing director Flight Centre NZ says COVID-19 has had an undeniable impact on Flight Centre and the industry. ‘We are not out of the woods yet. Last financial year, we reported record profit for the third successive time and were on track to do so again prior to COVID-19. Since March, we have been forced to make incredibly tough decisions to combat the significant downturn in travel demand and resulting negative revenues caused by this virus. The most heartbreaking of those being that half of our people have lost their jobs through no fault of their own. 

‘There is still work to be done on our path to recovery, we have significantly reduced our cost base in New Zealand as our teams continue to service customers.

‘In an encouraging sign, our Corporate businesses in NZ, FCM Travel Solutions and Corporate Traveller, have been showing early signs of recovery - booking 50% of prior year domestic air tickets in July.

‘There are ongoing challenges for our business while borders remain closed. Further support from the government is needed while we battle through without meaningful revenue and are still incurring costs to service our customers.’

 

Related items

ProMag