Flight Centre's No-Moat Rating Reiterated

A wave of covid-19-induced damages has been inflicted on Flight Centre since March 2020. Restrictions on travel and border control, grounding of airline capacity, and strict lockdown measures on consumers created an unprecedented squeeze on the group. However, the measures to execute a drastic reduction in costs (cuts to store network/leases, staff, marketing), combined with the AUD 697 million equity capital raising in April 2020 and the subsequent recovery in travel activities, have stabilized the no-moat-rated group. And recovery to prepandemic level of earnings is on track.