Flight Centre (ASX:FLT) founder and chief executive Graham Turner says although there has been consistent uplift in demand since April, widespread and ongoing travel restrictions continue to hamper a more meaningful industry-wide recovery.
In early April, they raised $900 million via a $700 million capital raising and a $200 million increase in our debt facilities.
At the same time, they outlined comprehensive cost reduction and cash preservation strategies and unveiled a short-term target of a $65 million net operating cash outflow by July 31 2020, which was successfully achieved.
Then, in July 2020, they completed the sale of their Melbourne head office property and secured a government-backed loan in the United Kingdom to extend our cash and liquidity runway.
In all, we had a $1.9b illion cash balance at July 31, 2020, including circa $1.1 billion in liquidity.
The company believes demand for international travel will not fully recover before FY23 or FY24.
Shares in Flight Centre (ASX:FLT) are trading 0.4 per cent higher at $13.82.