Flight Centre Travel Group (FCTG) released its year-end results on Thursday (Aug. 27) for its 2020 Fiscal Year, showing what it calls an "optimistic future" for its corporate brands FCM Travel Solutions and Corporate Traveller despite the travel industry's economic downturn.
While FCTG experienced severe losses - $510 million (AUD), which is roughly $484,461,750 in Canadian dollars, in underlying loss before tax - due to travel restrictions caused by the COVID-19 pandemic, FCM Travel Solutions and Corporate Traveller proved to be resilient, the company reported.
During the global shutdown, the two business travel divisions landed a record amount of new business and pipeline of potential opportunities, positioning the company to fuel FCTG’s recovery.
FCM Travel Solutions, which has a presence in 97 countries, won new business globally with total projected annual spend (pre-COVID) of USD$1.3billion, thus consolidating its position in the top three global travel management companies and increasing market share.
FCM’s new accounts include multinational and national large enterprise corporations and government agencies.
Together these wins strengthen an already diverse global customer base, which includes a solid portfolio of companies in mining, energy and construction that continued to book essential travel throughout the crisis.
About 25 per cent of FCM’s total transaction value (TTV) currently comes from government, mining/resources and health/pharma sectors.
Meanwhile Corporate Traveller, which specializes in providing travel management services to SME companies, secured new business globally in the region of USD$400M.
Corporate Traveller operates in the USA, Canada, UK, South Africa, Australia, New Zealand and India.
Overall, FCM Travel Solutions and Corporate Traveller saw a profit before tax of roughly AUD$65million (CAD$61.7million) during fiscal year 2020 and are well placed to break-even on domestic/regional volumes.
The corporate divisions recorded strong first half growth and were on track to top $10billion in TTV before industry-wide activity slowed significantly from March.
Prior to the Coronavirus outbreak, FCTG had achieved $150million in global profits (including both its corporate and leisure businesses), for the first eight months of the fiscal year. TTV had also been tracking at record levels through to February 29th, before decreasing significantly in March.
“Our earnings for the first half of the year speak to our robust product offering, our unmatched expertise and superior customer service that appeal to travellers around the globe,” said Charlene Leiss, President of Flight Centre Travel Group Americas. “What they don’t show you is the commitment, passion and fortitude of our nimble team. Although the pandemic created an exceptionally challenging environment, our leadership team made tough, strategic decisions on a global level at the onset of the pandemic to preserve the longevity of FCTG and ensure its ability to endure unprecedented losses over the last five months. The sacrifices that were made, as well the dedication and agility of our talented team of professionals enabled us to persevere and position ourselves well for recovery.”
Don't miss a single travel story: subscribe to PAX today!