FLIGHT CENTRE JETS TO NEW RECORD

Written on the 11 November 2015

FLIGHT CENTRE JETS TO NEW RECORD

FLIGHT Centre (ASX:FLT) is jetting towards another record profit result after reporting a strong start to the new financial year at the annual general meeting in Brisbane.

The travel company's pre-tax profit forecast is expected to be in the range of $380 million to $395 million, an improvement of up to 8 per cent of $366.3 million in FY15.

The guidance excludes the $11 million returned to the company following its court victory over the ACCC which alleged the company had engaged in price-fixing with airlines.

Flight Centre managing director Graham Turner (pictured) says the company has performed in line with expectations, despite subdued conditions in the outbound travel market.

He says government figures released this week indicate the number of travellers heading overseas increased 2.3 per cent during the first quarter of FY16.

"The weaker Australian dollar does not appear to have turned Australians away from America, with short-term departures to the States growing at more than three times this rate during the same period," Turner says.

"Within our business, both leisure and corporate travel turnover has increased at a slightly higher rate than the outbound travel growth rate.

"We are, of course, a lead indicator of outbound given that we recognise our revenue when the customer has paid in full, which is obviously well before he or she travels and becomes an outbound departure statistic."

Turner says there are some positive signs in the market, including solid customer enquiries, cheaper airfares compared to a year ago and healthy competition between airlines.

Flight Centre has a renewed focus in Asia, outlining a host of new Top Deck tours and acquisitions in the region. The company has also secured commercial agreements with Scoot and Air Asia, as well as a deal with Tiger to be finalised soon.

"In terms of growth drivers for this year, returning the Australian leisure business to its traditional growth trajectory is an obvious opportunity," Turner says.

"To achieve this, we are doing things like broadening our offerings by developing new revenue streams and product lines.

"We're also expanding our footprint, particularly in sectors that are performing well like foreign exchange and cruising."

In a bid to boost total transactions, Flight Centre also plans to grow its global salesforce with another 1000 jobs.

 


Latest News

STAFF CHURN BLAMED FOR MCGRATH EARNINGS DOWNGRADE

MCGRATH will fail to meet earnings forecasts after some of its star real estate agents defected to growing Perth firm...

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediatel...

REDBUBBLE TO MISS IPO FORECASTS

REDBUBBLE, the online marketplace for independent artists, will miss a series of forecasts set out in its IPO in its ...

BLUESCOPE CONTINUES STRONG RUN WITH GUIDANCE UPGRADE

BLUESCOPE Steel (ASX: BSL) is trading up 7.51 per cent at $11.16 per share after upgrading its half-year guidance thi...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter