The Flight Centre Travel Group Ltd (ASX: FLT) share price has continued its slide on Wednesday following the release of another update.
In afternoon trade the travel agent's shares are down 4.5% to $14.84.
At one stage today they were as much as 9% lower to a multi-year low of $14.12.
What did Flight Centre announce?
In response to the unprecedented challenges the travel industry is facing, Flight Centre announced that it is accelerating its urgent business review to identify further cost and cash saving initiatives.
The company acknowledges that as one of the world's largest leisure and corporate travel providers, it will be significantly impacted by recent events.
Especially given the unprecedented government-imposed restrictions on international travel and major reductions in airline capacity from the likes of Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VAH).
As part of its review, the company intends to hold further discussions with stakeholders. These include landlords, suppliers, vendors, insurers, and banks on ways to manage the financial impact of the material drop in travel activity in the near-term.
Flight Centre is also seeking government assistance. It advised that it has initiated talks with the Federal Government to discuss broader industry assistance packages. This follows the support being made available to airlines in Australia and to companies that have been significantly impacted
Job losses.
The company also explained that it is in active discussions with its people at all levels.
Within this challenging trading cycle, Flight Centre intends to preserve as many roles as possible, but acknowledges that job losses across the industry and within the company are inevitable.
Flight Centre's Managing Director, Graham Turner. said: "The conditions that our industry is facing are unprecedented and have clearly arisen as a result of the coronavirus and the initiatives that are being implemented to slow its spread. Management is determined to overcome the significant challenges that it currently faces and, with the support of our stakeholders, is ready to prosper when conditions eventually normalise."
It isn't just Flight Centre sinking lower. The Webjet Limited (ASX: WEB) share price has dropped to a multi-year low of its own on Wednesday.
