By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Flight Centre Announces Closure of 428 Stores
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Have an existing account? Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2024 | All Rights Reserved
Travel Radar - Aviation News > News > Flight Centre Announces Closure of 428 Stores

Flight Centre Announces Closure of 428 Stores

Travel Radar
Last updated: 7 January 2021 17:02
By Travel Radar Staff 4 Min Read
Share
Source: Jeremy Story Carter, ABC News
SHARE

Following last month’s announcement that 100 stores were closing due to the COVID-19 global pandemic, the popular travel agency Flight Centre have announced that they will be permanently closing 428 of 944 stores. 40 percent of the underperforming Australian stores are now expected to close their doors by the end of July.

. @flightcentreAU will close more than 40 per cent of its Aussie stores as part of its strategy to strengthen the company's balance sheet amid the COVID-19 crisis. https://t.co/Fuy07LfP3m #flightcentre #covid19 #travelindustry pic.twitter.com/JGlYIJqi3l

— Travel Weekly (@TravelWeeklyAUS) April 7, 2020

The difficult decision came after sales from last month were down by up to thirty percent, with a predicted decline in the coming months as travel restrictions in Australia become more strict.

40% of Flight Centre stores will have closed by the end of July. Source: Jeremy Story Carter, ABC News

While people are still booking flights for the future, Flight Centre are looking to prepare for the worst. The permanent store closures are predicted to save the company annual costs of up to $1.9 billion.

Like many other struggling travel companies right now, 6,000 out of 20,000 support and sales staff have either been made to stand down without leave or become entirely redundant. This includes staff a part of the store network including the Universal Traveller brand.

6,000 Flight Centre employees will lose their jobs. Source: Samford State School, Twitter

The permanent store closures are not the only changes within the company, either. It is possible that the central Melbourne office for Flight Centre will also be closed, leaving leftover staff and stores without the extra crucial support and resources required for ongoing business survival.

“It is, without question, the most challenging period we have encountered in over thirty years of business and it is inevitable that some businesses across our industry will fail, given the significant loss of revenue that they will be experiencing now and for at least the next few months,” Graham Turner, Flight Centre CEO, stated to the ASX.

Flight Centre CEO Graham Turner. Source: Mark Cranitch, News Corp Australia

“Within this uncertain environment, our priorities are to reduce costs, while also ensuring that we and our people are ready to capitalise when the steep discounting that is underway across most travel categories starts to gain fraction and as the trading cycle rebounds,” Turner continued. “As we saw with SARS and the GFC in Australia, the rebound can be relatively fast and strong after a fairly significant downturn in international travel.”

The trusted company have also been able to secure an estimated loan of up to $900 million. $200 million is said to have been borrowed from existing investors and the remaining $700 million from capital raising. This was made possible after the company issued 97 million new shares, which would make for a significant 27 percent discount. Despite the new funds that this created, the increased shares will have significantly decreased the overall value of the company.

The circumstances surrounding travel companies like Flight Centre are changing as rapidly as COVID-19 cases are, and therefore it is difficult to predict how long the industry will suffer. The best course of action is to prepare as much as possible, which makes the closure of stores a necessary move.

You Might Also Like

Jet Aviation: Integrated Digital Control Centre for EMEA & APAC Flight Operations

SWISS Cancels 1,400 Flights This Summer Season

Cathay Pacific Enables Use of Apple’s Find My Share Item Location In Lost Baggage Recovery

Vietjet Qazaqstan: A New Airline Launch in Central Asia

Astral Aviation Boosts Fleet with Boeing 767-300 Freighter Addition

Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
By Travel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article Cause for Optimism; Jet-2 Re-Opens 17th June
Next Article easyJet Founder threatens to sue airline executives
Leave a comment
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Cairo, Egypt at night
EgyptAir to Upgrade Network Infrastructure
Airline Economics Airlines Airports
© Pexels
7 Situations We Recommend Taxi Airport Travel
Airports Travel
© Pexels
Why Airport Kitchens Are Ramping Up Deep Cleans Ahead of Summer Travel
Airports Did You Know
© Pexels
When Shipping by Air Makes the Most Sense for Your Business
Aviation Technology
A WestJet airplane climbing through the sky, with snowy mountains in the background, showcasing a clear blue atmosphere.
WestJet Announces New Summer Routes
Airlines Aviation Route Development
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • About Us
  • Contact Us
  • Careers
  • Press & PR
  • Privacy & Legal

Our Content

  • News
  • Data
  • Images
  • Jobs
  • Subscribe

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Click here to Signup!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
AdBlock Detected
Ads help us bring you high-quality, independent journalism for free. Support us by whitelisting us from your ad blocker.
Okay, I'll Whitelist
Welcome to the TR Community!

Sign in to your account

Register Lost your password?