Flight Center Travel Group Sees Strong Start to 2023 Fiscal Year
Transactions are up, but full return to corporate travel remains in early stages >>
by: Harvey Chipkin
While Flight Center Travel Group’s (FCTG) corporate travel transaction volumes and revenue returned to near or above pre-COVID-19 levels in September and October, that did not reflect a full return to business travel, according to managing director Graham Turner, speaking at the company’s annual general meeting.
He said total transactions for corporate business was close to A$1 billion ($671 million) in both September and October while overall transaction volumes for the company returned to pre-pandemic levels and revenue is at or about 95% of 2019 levels.
However, said Turner, travel remains 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." He said the recovery in business travel 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 the current fiscal year, which began in July, FCTG’s corporate business reported EBITDA (earnings before interest, taxes, depreciation and amortization) of A$58 million (about $39.1 million) , compared with a loss of A$28 million (about $18.9 million) in the same period the previous year. The group expects the current fiscal year to be one of “gradual recovery” for the overall travel industry with a stronger revival in the 2024 fiscal year.
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