Flight Centre has announced a remarkable financial performance, with its profit tripling as travel spending remains robust. For the year, the company’s total transaction volumes (TTV) increased by 8.2% year-on-year to reach $23.7 billion, surpassing its FY19 peak. Total revenue also saw a significant rise of 20.9%, reaching $2.8 billion, while underlying EBITDA surged by 58.6% to $478.5 million.
The company has declared a total dividend of 40 cents per share, a substantial increase from 18 cents per share the previous year.
Looking ahead, Flight Centre anticipates capital expenditure to hit $100 million in FY25, with approximately 75% allocated to technology and system upgrades. Additionally, the company plans to expand its global footprint by opening around 35 new leisure travel shops, including 18 Travel Money outlets.
Flight Centre projects the travel industry will return to growth rates of 4% to 5% in the coming year and has reaffirmed its target of a 2% profit before tax (PBT) margin.
However, the company noted that despite reaching record TTV levels, growth was tempered by “significant” airfare deflation, business closures, and a stagnant trading environment in the global corporate sector toward the end of the year.
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