Flight Centre Travel Group has achieved a record $23.74 billion in total transaction value for fiscal year 2024 (FY24), marking a $1.8 billion increase from the previous year as the company continues to benefit from the resurgence of travel despite a challenging economic environment.
The ASX-listed travel giant reported revenue of $2.71 billion, up from $2.28 billion in FY23. The underlying profit before tax surged by 131% to $320 million. Leisure travel profits more than doubled, reaching their highest level in a decade, while corporate travel also showed strength with over $1 billion in year-on-year growth, setting another record. Net profits rose to $139 million, up from $47 million in FY23, with an overall revenue margin of 11.4%.
Flight Centre noted an increase in total transaction value (TTV) achieved through enhanced productivity. The company surpassed its FY19 sales record with 63% of its FY19 workforce, alongside an expanding network of independent agents and agencies. Current expenses are running about 15% below pre-COVID levels.
However, the company faced several challenges, including significant airfare deflation. Average international economy fares in Australia during the second half of FY24 were 13% lower than in the same period of the previous year, partially mitigated by a 10% increase in ticket sales. Flight Centre also observed larger basket sizes in various leisure brands.
Additionally, a flat trading environment in the global corporate sector towards the end of the year was noted, with minimal volume growth in industry-wide airfare sales, according to Market Information Data Transfer (MIDT) data.
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