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Flight Centre chopping 800 stores, raising $700m

A massive placement of shares will dilute existing investors, but CEO Graham Turner says “it’s part of our long-term survival strategy”.

Flight Centre is cutting 800 stores and raising $700 million to help it ride out a bleak scenario of the coronavirus throttling the travel industry for 18 months.

The cuts eliminate almost half the Flight Centre stores catering to leisure travellers and are part of the strategy to reduce costs by almost 70 per cent at the Brisbane-based travel agency.

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Liam Walsh writes on investigations and companies with The Australian Financial Review. He has won multiple media awards, worked in Japan and is now based in Brisbane. Email Liam at liam.walsh@afr.com.au

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    Original URL: https://www.afr.com/companies/tourism/virus-hit-flight-centre-chopping-800-stores-raising-700m-20200406-p54hgc