Flight Centre shares rally following AGM

Flight Centre shares rally following AGM
Edited by Travel Weekly


Flight Centre shares have shown early signs of improvement on the ASX today, after dropping by around 20 per cent in the past month.

Today is the travel group’s annual general meeting (AGM).

Chairman Gary Smith opened the AGM by outlining some of the group’s biggest achievements over the past year, including a record TTV of $23.74 billion – up circa $1.8 billion year-on-year. There was also a “significant” net cash increase from $264m in FY23 to $422m in FY24, he said.

Smith reported a 131 per cent underlying profit before tax (PBT) increase to $320 million, compared to $138.8 million last year.

“We also finished the year with a very strong balance sheet with more than $1.1 billion in cash and investments and materially lower debt levels,” he added.

The use of AI to grow its sales volumes was also mentioned as an area of growth.

“We are also leveraging machine learning, AI, and natural language processing to enhance our consultants’ effectiveness in highlighting options for customers and to improve conversion.”

“In relation to AI, a number of programs are in place within our corporate and leisure businesses aiming to improve our efficiency and to augment the services that we provide,” he said.

Graham ‘Skroo’ Turner, CEO of Flight Centre, acknowledged the “patchy” first quarter and said he was “heartened by a marked recovery in October across our key metrics of TTV, profit, and profit margin”.

He highlighted luxury and cruising as two areas where the group is seeing strong growth.

“Our luxury, specialist and independent businesses now capture almost half of our leisure TTV, compared to about one third five years ago. We also capture 15-20 per cent of our leisure TTV online,” he said.

“Our cruise sales in particular are growing strongly – up 31 per cent in Australia last year – and we’re now looking to fast-track our growth globally.”

Flight Centre is aiming for an underlying PBT between $365 million and $405 million for the FY2025.

“The mid-point of $385 million represents 20 per cent growth on FY24,” Turner said. Company shares are up by nearly 4 per cent today.

Flight Centre share price plummets 17% following ‘vague’ growth outlook

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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