Flight Centre Travel: Get on board

About the author:

Author name:

By Belinda Moore

Job title:

Senior Analyst

Date posted:

21 July 2023, 9:00 AM

Sectors Covered:

Agriculture, Food & Beverage, Travel and Chemicals

• Flight Centre Travel (ASX:FLT) has upgraded its FY23 EBITDA guidance for the second time in recent months. The midpoint is only a 1.5% beat compared to our previous forecast which was ahead of guidance but was a more material beat for consensus at 7.6%.
• While we think both Corporate and Leisure have had a strong finish to the year, we think that Leisure will beat expectations. Its material improvement in 2H23 NPBT margin should demonstrate its more efficient and profitable new business model.
• With confidence that the travel recovery has much further to go and the benefits of FLT’s transformed business model emerging, we think the earnings upgrade cycle may continue for some time. We maintain an Add recommendation.

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