Flight Centre swings back to profit, resumes dividends

The news: Flight Centre has swung back to a full-year profit and resumed dividends after more than three years on the back of a strong recovery in travel demand.

The numbers: It reported a statutory profit of $47.4 million for the year to 30 June, compared to a $287.2 million loss a year earlier. Underlying earnings rose to $301.65 million from a $183.1 million loss a year ago. Revenue more than doubled to $2.28 billion and the company will pay a fully franked final dividend of 18 cents a share — its first since the pandemic.

The context: The travel agency has benefited from a rebound in demand in both corporate and leisure segments as travel restrictions have been removed globally post-pandemic. It said the results reflected efficiency gains and higher airline capacity as well as seasonality, with growth heavily weighted to the second half of the financial year.

What they said: "Looking ahead to FY24, we are well placed to capitalise on opportunities that will arise as industry recovery continues. Already, we have seen solid TTV and profit growth in early trading in a resilient travel market that seems to be holding up reasonably well compared to other sectors," Managing Director Graham Turner said.