Flight Centre axing another 160 jobs, stores closing

AUCKLAND: Flight Centre will cut 160 jobs and close 23 stores on top of heavy cuts earlier this year.

The travel agent says most of the job losses would come from its retail arm and follow about 600 people across the group who have been made redundant or left voluntarily since the pandemic struck.

Flight Centre had 1200 staff and more than 130 stores at the start of the year. It announced 58 store closures in April.

Managing director of Flight Centre New Zealand David Coombes said the restructuring decision was incredibly difficult.

‘‘We are gutted to again be reducing our team and farewelling a large number of talented and passionate people from our business. Our people are at the core of who we are, so this is, of course, heartbreaking,’’ he said.

Staff were offered, and some accepted, voluntary redundancy. Those people would be able to access the Government's Covid relief payment.

Those who wished to stay on had been offered a role.

Mr Coombes said Flight Centre would survive.

‘‘As borders remain closed we have been forced to make this difficult decision to ensure our business stays viable, protecting our customers’ refunds and credits, and then opening up the world for Kiwis as border restrictions lift,’’ he said.

The global travel group reported a $A662 million ($NZ709 million) net loss for the 12 months to June 30, compared with a A$264 million profit the year before. It was its first loss since being listed on the Australian sharemarket 25 years ago.

New Zealand figures are not broken out.

The group, however, has $A1.1 billion in available liquidity, boosted in April by a A$700 million capital raising and $A200 million debt.

Store closures cut outlets in Australia from about 900 to 520, and globally from 1500 to 800.

The company has been paid more than $11 million in the three tranches of wage subsidy in this country. — The New Zealand Herald