Flight Centre to close up to 100 stores

Travel agency Flight Centre will close up to 100 stores and has scrapped its earnings guidance due to the coronavirus outbreak.

The company said on Friday that the stores will close before June 30, and sales staff will transfer to other stores, as part of moves to slash costs.

Flight Centre brands include Escape Travel and Student Flights.

Managing director Graham Turner said reducing costs was priority in an uncertain environment.

He reported significant softening in bookings, which he expected to continue into April at least.

Management told the share market that while early trends had been in line with expectations, the virus’ spread and travel restrictions made it more difficult to predict the full year impact.