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· Posted on
February 21, 2024

After 18 months of pain, Flight Centre can see sunshine again

Flight Centre saw a pre tax loss of $602m in the 2021 financial year...but it's feeling optimistic again.

What's the key learning?

  • Flight Centre recently recorded its largest day of online sales since June
  • With NSW planning to reopen international travel, Flight Centre has told investors that it hopes to reach break-even point even sooner than anticipated
  • A break-even point is the point where a business' total costs and total revenue are equal.

Background: Lockdowns and travel restrictions have really hurt Flight Centre. They saw a pre tax loss of $602m in the 2021 financial year. That has REALLY gotta hurt. 

What happened: Flight Centre is feeling optimistic again. NSW plans to reopen international travel and Queensland plans to reopen its borders by Christmas (baby steps QLD, baby steps). 

What else: And recently, flightcentre.com.au recorded its largest day of online sales since June. They're targeting a return to monthly profitability and told investors that it can reach break-even point even sooner.

So what's the key learning?

💡A break-even point is the point at which the total costs in the business and the total revenue for the business are equal. At this point, the company has not yet made any profit.

💡Knowing the business’ break-even point can help a business set product pricing, set sales budgets and help create the basis of a business plan.

💡For Flight Centre, they are aiming to get to that break-even point this financial year.

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