Flight Centre Travel Group (ASX:FLT) achieved an AUD$106million underlying profit before tax (PBT) for the half year to December 31, 2023.
The leisure business’s AUD$60million underlying PBT exceeded pre-pandemic levels and was:
• Circa 30-times the AUD$2million FY23 first half (1H) result; and
• Double the AUD$30million FY19 1H underlying PBT.
Underlying corporate PBT increased 53 per cent to AUD$93million, during another period of healthy, organic growth and ahead of the Productive Operations initiative’s benefits being realised.
Total transaction value (TTV) increased 15 per cent to AUD$11.3billion, delivering FCTG's second strongest start to a year (behind only the FY20 1H).
Corporate TTV increased 16.8 per cent to a record AUD$5.9billion, as the business again achieved new sales milestones and comfortably outpaced the broader corporate travel sector’s recovery.
Leisure TTV increased 18 per cent to AUD$5.2billion, with scale benefits being achieved across a diverse mass market, luxury, complementary and independent brand range.
To view the full ASX announcement, please CLICK HERE.
Comments by Victoria Courtney, Managing Director, Flight Centre Travel Group New Zealand:
“Flight Centre Travel Group New Zealand has had a positive first half of the financial year with both leisure and corporate travel demand remaining steady, despite the high cost of living and other economic uncertainty.
“The corporate arm of Flight Centre Travel Group has continued its recovery as travel remains critical for the success of many New Zealand businesses. Our corporate brands - FCM Travel and Corporate Traveller - have been successful in securing new business and continue to have outstanding business retention rates, contributing to a solid performance.
“In the leisure space, we’ve grown our red and white footprint – recently opening new Flight Centre stores at St Lukes Mall in Auckland and Tauranga Crossing Mall, with more planned before 30 June. We continue to pride ourselves on opening up the world for those who want to see.
“Our luxury brand, Travel Associates, has also increased its footprint with the opening of its Mt Eden, Auckland store, as well as a successful recruitment drive that is already contributing to a strong performance. We’re well placed to continue our growth in this high-end market for the second half of the year.
“In the Independent space, we continue to take on experienced and passionate agents who are thriving, with an incredible start to the financial year and a healthy forecast for ongoing growth.
“Travel Money NZ is now trading from eight locations, with further expansion planned. The return of this brand has been well received by the market with trading results reflecting this.
“With the culmination of increased airline capacity, more typical, seasonal demand and thus more competitive airfares – it’s set to be another positive six months ahead. We look forward to building on the first half of the year as we continue to offer incredible travel experiences to corporate and leisure travellers alike.”
Comments by Chris Galanty, Global Corporate CEO, Flight Centre Travel Group:
“Our corporate businesses have had a strong start to H1 of FY24 globally, contributing 52 per cent of Flight Centre Travel Group’s (ASX:FLT) total transaction value, with our proven organic growth model again delivering record overall sales.
“We’ve also achieved new milestones in the four geographic regions of Australia and New Zealand, the Americas, Europe, and Middle East and Africa and Asia.
“These record results, built on high customer retention rates and large volumes of new account wins, were achieved in a sector that has only recovered to circa 70 per cent of pre-COVID transaction volume levels, pointing to our healthy market-share growth.
“At the end of January 2024, our corporate brands had secured new accounts with projected annual spends of circa $1.3billion, with FCM Travel typically winning customers from competitors, and Corporate Traveller securing a mix of unmanaged and smaller, managed accounts.
“We continue to make strides in the technology space with mass adoption of our Corporate Traveller Melon platform in the USA and Canada – with fast growth also being seen in the UK. FCM Platform has also seen successful growth with all existing customers anticipated to be migrated this year.
“We’re also progressing our corporate AI Centre of Excellence and that has seen new features added to the suite of products already available that have improved the customer experience and increased our operational productivity.
“Aside from technology, we’ve also been working tirelessly towards clear and consistent strategies that have been successfully executed globally, with these strategies initially focusing on ‘Grow to Win’, but now also include productive operations.
“We look forward to continuing this momentum into H2 of FY24 – with more exciting advancements to come later in the year – and some major customers to be onboarded globally.”
