Prepare for take-off
Sep 30, 2020
4 minutes
STORY JAMES CARLISLE
Flight Centre has posed two conundrums for investors over the years: its wild cyclicality and the overarching threat of the internet to its bricks-and-mortar business model. The former has made it difficult to assess a base level for earnings and the latter has made it hard to value them.
Ironically, the Covid-19 pandemic may have solved both. For once we know exactly where we are in the cycle – right at the bottom.
While the closure of half its stores will hasten the company’s move to a more sustainable business model, based on corporate travel, the challenge now is
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