Flight Centre $850m in red

COVID-19 restrictions take heavy toll on company

FLIGHT Centre Travel Group has suffered the most challenging year in its more than four decade history, slumping to an annual statutory loss of $849m before tax.

Chief executive Graham Turner said the annual loss was unprecedented.

“There’s no comparison, we’ve never posted a loss since 1982,” he said.

The Brisbane-based business suffered a 36 per cent sales plunge, had 70 per cent of its workforce stood down or made redundant and half its global stores closed.

The pre-tax loss compared to a $343.5m profit before tax last year, while the underlying loss slumped to $510m for the year, from $343.1m profit a year ago. Mr Turner, whose own fortune has taken a belting due to COVID-19, said the business was well-positioned to take its share of the market when it returns.

“That depends on government restrictions being eased, particularly in Australia and New Zealand,” he said.

Mr Turner tipped the virus would be around “for years and years” and reiterated his view that things needed to get back to normal.

“I share with just about everyone else in business, travel, airports, airlines, hospitality and tourism – we’ve got to be able to live with this virus,” he said.

Mr Turner, who along with executives and the board took a 50 per cent pay cut in the fourth quarter, said there was “no reason” not to create international travel bubbles with some countries, with airlines and airports well-positioned to enforce strict protocols.

Flight Centre has not provided a guidance for the current financial year, citing uncertainty around government travel restrictions.

Despite having a strong balance sheet pre-COVID the company moved to cut its $230m monthly outgoings by 70 per cent resulting in $1.9bn in annualised savings.

Flight Centre is expected to benefit by between $40m and $50m from an extension to the JobKeeper scheme.

The travel group’s shares fell 3c to $12.58 on Thursday.