In case you missed it, Flight Centre says international fares have been falling all year
Flight Centre says the cost of international flights from Australia finally began dropping this year.
Flight Centre managing director Graham Turner outside a travel agency in Brisbane. . (AAP Image/Dave Hunt)
In the first six months of the year, the price of economy international fares from Australia fell 13 per cent and in July, they were five per cent cheaper than they were in July 2023.
“That obviously stimulates demand,” Melissa Elf, Flight Centre’s Australia-based corporate global chief operating officer, told AAP.
International ticket sales from Australia were up 10 per cent in the first six months of the year and up 18 per cent in July compared to July 2023.
While the long-awaited deflation will impact Flight Centre’s short-term total transaction volume growth, managing director Graham Turner said the company viewed it as extremely positive.
“It makes travel more affordable for families in particular and is likely to drive volume growth into FY25,” he said this week.
Flight Centre also announced its total transaction volume grew to $23.7 billion in 2023/24, slightly eclipsing its previous record, set in the year before the COVID-19 pandemic.
Its revenue climbed from $2.3 billion to $2.7 billion despite Flight Centre having five per cent less staff as of June 30 than it did a year ago.
Flight Centre’s net profit after tax nearly tripled, rising to $139 million from $47 million.
The company posted a $10.7 million loss as a result of airline Rex entering administration.
