Flight Centre 1H Revenue Surges, Boosts Steerage Amid Journey Demand

By Mike Cherney

SYDNEY–Australian journey company Flight Centre posted a half-year web revenue in comparison with a loss within the prior yr, and mentioned it might enhance its steerage amid strong journey demand.
Flight Centre mentioned statutory web revenue was 86.6 million Australian {dollars} (US$56.6 million) within the six months by means of December, versus a roughly A$20 million loss within the prior yr. That compares to market expectations for web revenue of A$67 million, as assessed by FactSet.

Income was about A$1.29 billion, an increase of 29%. Underlying revenue earlier than tax improved markedly to A$106 million. Whole transaction worth rose 15% to A$11.3 billion.
Flight Centre declared a dividend of 10 Australian cents per share.
Flight Centre mentioned each its leisure and company journey companies posted a strong end result within the half. It mentioned company whole transaction worth rose 17% and leisure whole transaction worth rose 18%. In leisure, underlying revenue earlier than tax exceeded pre-pandemic ranges.
Wanting forward, Flight Centre mentioned that the fiscal second half up to now was performing according to expectations. It mentioned it might enhance its steerage for FY 2024 underlying revenue earlier than tax to A$300 million-A$340 million from A$270 million-A$310 million. It mentioned that improve displays a change within the measurement of convertible be aware amortization, quite than buying and selling efficiency.
Total, whole transaction worth is on observe to surpass the report A$23.7 billion achieved throughout FY 2019.
“Ongoing strong journey demand has been aided by continued low unemployment in key markets and a need amongst common travellers to make up for misplaced time after lockdowns,” the corporate mentioned.
Write to Mike Cherney at mike.cherney@wsj.com