Flight Centre predicts $285m-$290m pre-tax result.
Flight Centre has just issued updated profit guidance for the 2011/12 financial year, with expectations of an overall pre-tax result of up to $290m, up 18% on the previous year.
MD Graham Turner said that the company’s healthy growth in “volatile trading conditions” highlighted Flight Centre’s global diversity.
“FLT did not experience the sales slowdown that retailers in some discretionary markets experienced during 2011/12, but it is fair to say that economic uncertainty in some markets has created a more cautious leisure travel customer,” he said.
Turner said the Australian leisure business continues to set records and remains the key contributor to group profits – but corporate travel and international operations are also now delivering “solid overall earnings”.
“All 10 countries were profitable at earnings before interest and tax (EBIT) level for the second successive year, and record profits were achieved in the United Kingdom, the United States, Dubai, Singapore and China, in addition to Australia,” Turner said.
On the corporate side, Flight Centre businesses generated more than $4 billion in TTV, and Turner said “we see ongoing opportunities to win market share in Australia and in all countries”.
Online is also a key focus, with enhancements to flightcentre.com.au meaning that “travellers can now search, compare and book thousands of international airfares”.
“Our goal is to offer customers a blended travel experience that couples our offline shop and office network with our expanded online capabilities…as a retailer we will be seamlessly [available] 24/7 to allow travellers to interact and transact with us around the clock in the ways that best suit their needs,” he added.
During 2012/13 Flight Centre expects to grow its global sales force by 8-10%, which will see it employ about 1000 new sales consultants and open its 2500th shop.
More information in today’s Travel Daily.