Flight Centre boss Graham Turner says election of Trump brings an unknown factor into play

Graham Turner says his business is suffering from excessive government spending, which is stymieing an economy still struggling to fire.

Pedestrians pass a Flight Centre in central Melbourne advertising cheap air travel.

Flight Centre boss Graham Turner says his business is suffering from excessive government spending, which is stymieing an economy still struggling to emerge from Covid-era shutdowns.

Mr Turner, who founded the country’s biggest travel business more than 40 years ago, said the travel industry had been hit like many others from the “clearly inflationary recent budgets” by federal Treasurer Jim Chalmers and most of the Australian states.

“It is no secret that government spending must come down significantly for the Australian economy to be successful once again,” Mr Turner said.

Mr Turner echoed views from the Business Council of Australia last year that the country risked being throttled by an ever-widening budget deficit and rising public debt, placing a heavier fiscal burden on future generations.

Mr Turner also warned that politicians had not learnt from “their inappropriate and often politically motivated” Covid shutdowns, which were still impacting the economy.

He said Flight Centre’s profit last financial year was still about $40m short of pre-Covid results.

“For our business, the government-mandated lockdowns and border closures meant over the four or so Covid years we have lost in profits and actual losses about $3.2bn,” he said.

“Flight Centre is but a small part of the Australian economy of course so it’s almost unimaginable what the government’s unprecedented, and unwarranted action, is still costing the Australian and other economies.”

He said the recently published book on Qantas by journalist Joe Aston, The Chairman’s Lounge, was worth reading to get a “good picture of what the Covid restrictions did to airlines and how difficult it was for Qantas and Virgin to recover”.

“It contains many lessons too on what not to do,” he said.

Graham Turner says governments need to rein in spending.

Mr Turner said that in the 26 countries his company operates both leisure and business travel there had been consistent growth in the first five or six months of 2024.

“Coming back strongly from the government and often public panic of the Covid virus we were still seeing the so-called revenge travel era,” Mr Turner said. “Then it quietened significantly around the June and July period.”

Mr Turner said his business also was facing uncertainty in global markets due to wars and the election of Donald Trump.

“The election of Trump in the States brings an unknown factor into play particularly in North America, Asia and in our UK/Europe businesses,” he said.

“We will see how this plays out over the next 12 months. The Middle Eastern war is another unsettling factor and we don’t think anyone knows how that will end.”

Mr Turner said on a positive note the refusal by Albanese government to allow Qatar more flights into Australia 18 months ago looks like now being reversed with the Middle East carrier taking a possible 25 per cent stake in Virgin Airlines.

“We believe this will make VA a stronger domestic competitor as well, so good news,” he said.

Mr Turner said that during and post Covid, Flight Centre had become more involved directly with the travel industry under the auspices of the Australian Travel Industry Association (ATIA).

“We see this association having a big impact on the travel industry’s future, particularly in the intermediary (travel agent) space,” he said.

“The traditional to-ing and fro-ing between intermediaries, airlines and other travel product providers will be an important longer-term opportunity for agents and airlines working closer together for the long-term benefit of the travelling public.”

Airline passengers facing delays of three hours or more could soon be entitled to a full refund under a proposed new Charter of Rights.

Transport Minister Catherine King recently announced the Aviation Customer Rights Charter with a paper released for public consultation.