Corporate Travel Management has returned to profit as business travellers around the world have returned to face-to-face meetings and border restrictions have eased.
However, the Australian-headquartered travel management company said it does not expect to fully recover from the effects of the pandemic until 2024.
It has reported underlying earnings before interest and taxes (Ebitda) of A$59.8 million (£36 million), for the year to the end of June 2022 – compared to a loss of A$7.2 million (£4.3 million) to the end of June 2021.
“While CTM has remained profitable at an Ebitda level since early 2021, the key driver of the FY22 result was the fourth quarter,” said the TMC in its full-year statement.
It said the group is recovering faster than the broader corporate travel market through increased market share and 97% client retention.
Jamie Pherous, managing director, said: “Our customers are embracing the opportunity to return to face-to-face connectivity in a post-Covid world.
“Following the removal of most border and travel restrictions globally, the fourth quarter momentum makes us optimistic for the future, and we are pleased that the business has successfully translated that momentum into earnings.
“CTM is a different business than it was prior to the Covid-19 pandemic. We are larger, more diverse and more relevant to our market globally.
“This gives us an exciting platform from which to continue our organic growth trajectory in FY23 and beyond. Our results in FY22, and particularly in the fourth quarter, put us on a path to full recovery in the near-term.”
The Ebitda figure in the fourth quarter was a record result for its Europe region.
“In Europe, a combination of new client wins and a broad recovery in travel have enabled a strong financial result,” the results statement said.
“Demand is expected to strengthen after the summer vacation period as key clients go back to offices. This region is also winning significant new clients into FY23.”
Debbie Carling, EMEA chief executive at CTM, added: “As a global business, CTM has come out of the pandemic bigger and stronger, and that includes the UK team where we have recently bolstered the operational, business development and CTM Sport teams with several new hires and continue to invite talented people to join us.”
The group said its top priority for the new financial year is tackling the challenges of “unprecedented resourcing shortfalls” in the travel industry – affecting service levels, airport and airline capacity.
The group added 950 new employees during the financial year to support customers’ travel needs in this “complex and fast-changing environment”.
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