Sunday, 4 October 2020

Travel agency giants take another major hit

Embattled travel agency group Flight Centre is embarking on another round of store closures.


It confirmed this week that a further 91 stores in Australia will close as state border restrictions and a non-existent overseas travel market continues to shackle the business.

"Without question, the past six months have been the most challenging period in our almost 40 years in business," said Flight Centre Australia managing director James Kavanagh.

"Never before had we imagined - let alone faced - a scenario whereby all discretionary travel would be halted for a prolonged period."

The company will have 332 stores remaining but about 60 of these will remain closed for at least another six months.

"These shops are expected to reopen when governments lift these restrictions and as travel reawakens."

Flight Centre announced the closure of 100 stores several months ago. It said that around 4,000 workers have lost their job since the Covid-19 pandemic started.

"We are incredibly sorry that some of our great people are not able to continue on their Flight Centre journey with us at this time but we are taking steps to preserve as many roles as possible," Kavanagh said.

The company doesn't believe a full travel market recovery will happen until at least 2023 and maybe even longer.

Tthe coronavirus pandemic has led to its share price tumbling 64.6% since the year began.

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