Premium air ticket sales, have recovered faster than total air ticket sales
Premium air ticket sales, which have recovered faster than total air ticket sales, helped Helloworld rocket back into profit.
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Premium air ticket sales, which have recovered faster than total air ticket sales, helped Helloworld rocket back into profit with the travel agency producing an after-tax net profit of $19.2m, up from last year’s $28.8m full year loss.
Total transaction values for Helloworld were $2.57bn for the 2023 financial year up from $1.08bn the previous 12 months with total transactions from air tickets reaching 98 per cent of 2019 despite the year starting with reduced capacity and several airlines yet to return to Australia.
Helloworld said the lower volume of air ticket sales was offset by higher ticket pricing adding that availability is increasing and prices are expected to stabilise in the 2024 financial year.
The Helloworld network said strong demand from travellers, removal of border restrictions, coupled with its expanding product portfolio underpinned the strong result.
The network, Australia’s second largest after Flight Centre, said travellers visiting friends and relatives was the predominant reason for strong travel once borders reopened with booking volumes expected to continue to improve as capacity returns to normal and the Asian travel market reopens.
“Revenue and other income increased to $165.9m up from $69.3m in the 2022 financial year, an increase of 139.5 per cent,” said Helloworld chief executive Andrew Burnes.
“The revenue margin for the year finished at 6.3 per cent, up from 5.9 per cent in the prior year, due to improved commission margin,” he said.
Helloworld’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $44.1m for the 2023 year compared to a $10.6m loss the previous year.
For the 2024 financial year its EBITDA guidance is in the range of $64m to $72m given it expects continued growth in travel with further reopening of the Asian market to present ongoing growth opportunities.
Helloworld expects that most of its key Asian markets such as Singapore, Malaysia, Indonesia and China will have returned to their 2019 volumes by 2025. Mr Burnes said markets such as Indonesia had enormous potential but he was still waiting for it to come back, while Singapore was on the up.
In the fourth quarter of 2024 Helloworld will launch a new luxury offering including an expanded Ultimate Journeys range and an exclusive range of premium hotels with tailored special offerings for free and independent travellers. The Ultimate Journeys Range group touring program offers luxury touring from Canberra to the Northern Lights in Scandinavia.
On the acquisition front Helloworld recently forked out $70m for Express Travel Group, it also acquired 34 per cent of the Oslo based Australiareiser Group which is the largest specialist travel wholesaler from Scandinavia to Australia, New Zealand and the South Pacific and it acquired a 40 per cent stake in the Adelaide based Phil Hoffmann Travel.
Helloworld will pay a fully franked final dividend of 6 cents per share on September 22.
Helloworld shares rose more than 7 per cent during intraday trade to $3.23.
Originally published as Premium air ticket sales, have recovered faster than total air ticket sales
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