Flight Centre Travel Group’s (ASX:FLT) Annual General Meeting has taken place and the following business update was issued to the Australian Securities Exchange.
- $6billion in first quarter (1Q) Total Transaction Value (TTV) – our second strongest start to a year and with corporate TTV again at record levels
- 1Q TTV increased about 20 per cent – or more than AUD$900million compared to the same period last year – to AUD$6billion, just below the record circa AUD$6.2billion result we delivered four years ago
- 1Q corporate TTV exceeded AUD$3.1billion, another record, as we continued to outpace the broader sector’s recovery, with activity across the industry globally reaching 72 per cent of pre-COVID levels during the period (Based on MIDT data for 1Q FY23 as a % of 1Q FY19)
- The organic growth that has fuelled our rapid recovery to date has continued with FCM securing new, contracted accounts with projected annual spends in the order of AUD$565million already this year.
Chris Lynes, Managing Director of Canada, Flight Centre Travel Group:
“We've experienced unprecedented success in the first quarter (Jul-Sep 2023), of FY24 at the Flight Centre Travel Group, with an incredible increase in profits compared to the same period last year.
“This growth is undeniable proof of our resilience, vision, and dominant position within the Canadian corporate travel sector, particularly among startups and mid-sized enterprises (SMEs).
“No surprise here; Canada's vibrant and dynamic business ecosystem consistently ranks among the world's best markets for SMEs, a fact that has contributed to our soaring profits.
“And with new data from Morgan Stanley confirming the continued growth of the corporate travel sector, we have every reason to be confident in our future in Canada.
“Toronto, Vancouver, and Calgary remain the top destinations for domestic corporate travellers, while international travel has seen an uptick in popularity for U.S. destinations like Las Vegas, Chicago, and New York City. Indeed, our nation’s business borders are growing ever wider.
“We're off to an impressive start this first quarter of FY24, and the outlook for the remainder of the financial year is even more promising.”
For the full ASX announcement, please CLICK HERE.
Comments by Chris Galanty, Global CEO, Flight Centre Corporate:
“The corporate division of the Flight Centre Travel Group (ASX:FLT), that includes flagship businesses FCM and Corporate Traveller, has achieved record-breaking Total Transaction Value (TTV) for the first quarter of FY24 with year-to-date wins totalling circa AUD$900 million.
“FCM, in particular, has been able to secure some strong wins in both North America, United Kingdom and Asia – one of the many reasons we saw a particularly strong end to the month of October. We see the corporate travel market has recovered to circa 70 per cent as an average across all markets.
“Despite the challenging macro environment globally, FCM and Corporate Traveller continues to win new customers and grow market share – while keeping their resilient customer bases. The small-to-medium sized enterprise market in the U.S. and Canada in particular, is strong.
“We’ve also enjoyed successful growth in both our digital platforms – Melon in the U.S. and UK – and FCM Platform, with our investments in both really starting to pay off.
“All new FCM customers are now successfully implemented on the new Platform and all our existing customers will also be transferred by the end of the financial year. Corporate Traveller’s Melon is also going from strength to strength, with more than 90 per cent of new customers in the U.S. integrated.
“There’s no question our new digital platforms have, and will continue to be, key differentiators when it comes to winning new customers. With our strong people-first approach, combined with successful technological investments to date, this really sets us apart.”