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Flight Centre to close 100 stores
Travel agency group Flight Centre plans to shut down 100 stores and has withdrawn financial forecasts for the year ahead
In a stock exchange filing Flight Centre expects a $90 million hit to second half profits but it still can’t predict the true impact yet.
"The virus’s spread and the subsequent increase in travel restrictions had made it more difficult to predict the virus’s likely full year impact or a timeframe for recovery," it said.
The 100 stores to go have already been ‘underperforming’ and accounts for about 10% of its store network.
Staff will be redeployed at other shop locations.
"While people are still booking travel we are now seeing significant softening and expect this to continue into April at least," said managing director Graham Turner.
"The rebound can be relatively fast and strong after a fairly significant downturn in international travel."
The Australia government issued an advisory for Aussies to reconsider all overseas travel.
"This is a global advisory in light of the widespread nature of the covid-19 outbreak and the significant measures in place to curb it," government travel advice platform Smart Traveller said.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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