Record sales drive Flight Centre profit prediction
Flight Centre Travel Group (FLT) is forecasting an underlying profit before tax of $325-330 million in the year to 30 Jun, having achieved record full year sales and strong second-half growth.
In a profit guidance issued this morning, FLT says it expects its total transaction value (TTV) to be more than $20 billion, well ahead of the $19.3 billion result achieved in the previous financial year.
Managing director Graham Turner said the company’s second half profit had been boosted by strong results in North America where the USA business was on track for a record profit. It was also underpinned by strong results in Europe where the UK operations would deliver another record profit in local currency.
Turner said results in New Zealand and Australia had improved during the second half, with New Zealand to contribute a record full year profit and the Australian business starting to benefit from strong sales volumes.
He said average international airfare prices in Australia had been 7% down in the first half due to widespread discounting, but were now closer to levels seen during the same period last year leading to stronger revenue late in the year.
More details in today’s Travel Daily.