SYDNEY, 29 February 2024: Flight Centre Travel Group achieved an AUD106 million underlying profit before tax (PBT) for the half year to 31 December 2023.
The leisure business’s AUD60 million underlying PBT exceeded pre-pandemic levels and was:
• Circa 30-times the AUD2 million FY23 first half (1H) result;
• Double the AUD30 million FY19 1H underlying PBT.
Underlying corporate PBT increased 53% to AUD93 million during another period of healthy, organic growth and ahead of the Productive Operations initiative’s benefits being realised.
Total transaction value (TTV) increased 15% to AUD11.3 billion, delivering FCTG’s second-strongest start to a year (behind only the FY20 1H).
Corporate TTV increased 16.8% to a record AUD5.9 billion as the business again achieved new sales milestones and comfortably outpaced the broader corporate travel sector’s recovery.
Leisure TTV increased 18% to AUD5.2 billion, with scale benefits achieved across a diverse mass market, including luxury, complementary, and independent brand ranges.
FCM managing director Asia Bertrand Saillet commented: “Asia has continued to outperform, with a significant 44% increase in revenue, fuelled by strong performance across Southeast Asia, India, and the re-opening of China.
Our strategic decisions to consolidate and focus on our core business offerings, investments in technology, and leveraging Global Business Solutions to increase automation, operational efficiencies, and productivity have contributed to our success.
With new account wins and strong customer retention rates of 98 per cent, FCM Travel has become the preferred travel management company providing business travellers with a ‘Glocal’ travel experience.”
Flight Centre Travel Group global corporate CEO Chris Galanty noted: “Our corporate businesses have had a strong start to H1 of FY24 globally, contributing 52% of Flight Centre Travel Group’s 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, Middle East, 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% 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 AUD1.3 billion, with FCM Travel typically winning customers from competitors and Corporate Traveller securing a mix of unmanaged and smaller, managed accounts.”
