FCM strengthens financial position in response to COVID-19
APRIL 14, 2020
FCM Travel's parent company Flight Centre Travel Group (FCTG) has announced a comprehensive package of initiatives to strengthen its balance sheet and liquidity position.
These initiatives mean that FCTG has secured a total AUD $900 million through a mix of capital raising and new debt facilities. They complement previously announced cost reduction and cash preservation initiatives implemented by FCTG to help overcome the unprecedented travel and trading restrictions imposed by governments in response to the covid-19 pandemic.
This will enable FCM Travel to increase its focus on key investments and to support all customers even during prolonged challenging business travel trading conditions. The move also allows the global TMC to execute its long-term strategy, expand its capabilities and service a significant number of new clients. The additional funding means the group’s total liquidity position now amounts to over AUD $2.3 billion.
Despite the current trading climate, FCM Travel, which has a global presence in over 100 countries, is continuing to see strong customer activity in both sales and implementation, with record wins year to date.
Global TMC still seeing strong customer activity in sales and implementation
Marcus Eklund, Global Managing Director, FCM Travel said: “Our priority is to support customers and reassure them that they can trust and count on FCM during these unprecedented times and beyond.
FCM’s financial strength is a key element of that trust. This announcement of additional funding is an important step in giving our customers the confidence that we are ready to support them when their business travel activity resumes, and that we will also be in a position to accelerate FCM’s growth in the future.
Bertrand Saillet, Managing Director, Asia, FCM Travel added: “The strength of interest from investors reflects the increasing recognition of FCM’s strong fundamentals in the business travel market. With this funding, it will allow us to quicken our pace of recovery, which we have already started to see in mainland China. We anticipate this momentum to continue and are excited to be able to optimise our resources and offer higher value and service to our customers.”