3 things we learnt from Flight Centre’s coronavirus Response Plan

Though Flight Centre’s stock remains voluntarily suspended, we examine some of the key things revealed in the company’s Covid-19 Response Plan announcement.

As entire economies grind to a halt, companies are being forced to quickly respond to a dynamic and ultimately still-uncertain business and economic environment.

Airline and travel companies and their employees have been particularly impacted by the coronavirus crisis – as governments across the globe take unprecedented measures to restrict travel – both internationally and domestically.

In response to this situation, Flight Centre – which has already faced significant disruption to its travel-focused business operations – today released details around its Covid-19 Response Plan.

Though the broad strokes of this plan are relatively simple, with the company aiming to focus on cash, costs and liquidity, the implications of its plan are anything but.

Job cuts in focus

Centrally, some 6,000 jobs will be lost either temporarily or permanently, with Flight Centre noting that pre-coronavirus staffing levels are no longer sustainable. Amongst these job losses, approximately 3,800 Australian staff will be stood down in the short-term.

Though of little consolation for workers currently, the company indicated that its 'intention is to return stood-down people to workforce when restrictions are lifted & demand increases.'

Cash remains king and liquidity all-important

Revealing a number of initiatives to preserve cash, as part of today’s announcement FLT further noted that its $15 million monthly sales and marketing spend has been paused, in addition to a number of other 'non-essential projects.'

Secondly, and speaking to its current liquidity position, the compant stressed that it 'is undertaking steps to ensure it retains a robust balance sheet and liquidity position to enable it to manage through the current crisis.’

The company said that it would report on the progress of these steps in due course, at which point FLT would also likely see its stock lifted from its current voluntarily suspension.

Lift or not, between late February to mid-March, Flight Centre saw its share price collapse – falling over 70% in that period, as investors sought to protect their capital from industries most impacted by the Covid-19 crisis.

Prior to its pause in trading, trading halt and finally suspension from official quotation, FLT traded at the $9.91 mark – well off its 52-week high of $49.14 per share.

Management commentary: the outlook

Finally, speaking of the current situation, Flight Centre’s Managing Director, Graham Turner said:

'We will also be conscious of the need to make changes that allow us to successfully overcome this short-term challenge, but do not harm our culture or prevent us from thriving into the future.'

Mr Turner finished by pointing out that:

'We and our people remain committed to looking after our customers – both during this difficult period and beyond and will continue to be available through our leisure shops and corporate offices (where permitted), our websites, via social media and through our mobile capabilities during this time of social distancing.’

How to trade travel and airline stocks

Though Flight Centre remains in a voluntary suspension – with market volatility at all-time-highs – there remain other opportunities for investors to take advantage of. For example, you can use CFDs to trade airline stocks like Qantas and Sydney Airport, long or short through IG’s world-class trading platform.

For example, to buy (long) or sell (short) Qantas using CFDs, follow these easy steps:

  • Create an IG Trading Account or log in to your existing account
  • Enter ‘QAN’ or ‘Qantas’ in the search bar and select it
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.