Helloworld shares surge as transaction volumes more than double

afr.com:

Helloworld shares were sharply higher on Monday after the travel agent said it had swung back to a profit and that it would continue growing earnings as international travel rebounds.

The volume of transactions more than doubled in the 12 months to June 30, from $1.08 billion in the last year, which took in a period of COVID-19 restrictions, to $2.57 billion. It remains below pre-pandemic levels.

Helloworld is one of the country’s largest operators of travel agencies, with 5 per cent of the retail market. Its largest competitor is Flight Centre, which will release its results this week and is expecting transaction volumes to be around $22 billion, an increase of some 115 per cent.

At the beach in Spain. International travel levels, both to and from Australia, are expected to return to pre-pandemic levels next year. Bloomberg

A turnaround among travel agents points to the size of the broader resurgence in the tourism industry. Official forecasts suggest there will be six million outbound departures this year, half the pre-pandemic level. That mark is expected to be surpassed by 2025. Domestic travel, on the other hand, has already exceeded levels seen before COVID-19.

Helloworld told shareholders that the proportion of leisure travellers would normalise and volumes should recover to pre-pandemic levels in the next financial year “assuming increased airline capacity”.

Tourists from China will also “present ongoing opportunities” for Helloworld, the company told shareholders, after Beijing put Australia back onto a list of approved destinations for local tour operators.

“Ticket volumes continue to increase as carriers return to Australia and New Zealand and number of flights grows,” the company said in a statement.