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

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

QUEENSLAND WEATHER UPDATE: MAJOR AIRPORTS STILL IN BUSINESS DESPITE CANCELLATIONS AND DELAYS

DESPITE the storms and flash floods which are continuing to wreak havoc across several Queensland cities and towns...

STARS ALIGN AS GOLD COAST ICON REBRANDS

TODAY marks a shift in the Gold Coast's constellation as the iconic Jupiters Hotel and Casino officially rebra...

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

Related News

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter