FLIGHT CENTRE SKY HIGH

Written on the 10 June 2010

FLIGHT CENTRE SKY HIGH

FLIGHT Centre Limited (FLT) has upgraded its pre-tax profit forecast for FY10 by $30 million, despite travel disruptions from Icelandic volcano Eyjafjallajokull last month.

Managing director Graham Turner (pictured) expects a profit band between $190 million and $200 million, compared to previous targets between $160 million and $180 million.

“Sales volumes have remained healthy globally and trading conditions have gradually started to improve in most of our overseas businesses during the second half,” he says.

“The Australian business has continued to perform strongly and has not yet experienced the slowdown in demand that some retailers have reported recently.

“The strong UK performance is pleasing, considering the economic turmoil locally and in parts of Europe, the short-term disruption to air travel caused by last month’s ash clouds and the ongoing distraction associated with the British Airways strikes.”

He says the New Zealand and Canadian business have recorded significant growth off a low base, US losses have decreased and the UK performance has been the strongest out of FLT’s international businesses.

“In the USA, losses have decreased substantially year-on-year. The corporate business is again trading profitably, wholesaler GoGo continues to contribute positively and the Liberty retail network is on track for healthy profits in the peak May-June booking period.”

He says that despite the unrest in Bangkok there have been few cancellations on Thailand flights, while FLT will be closely monitoring how recent falls in value for the Australian dollar will affect sales.

“Adverse currency movements also continue to be offset by the savings that are available on some international airfares.”

FLT shares jumped 5 per cent to $17.18 per unit today.


Latest News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

VOLATILE INDUSTRY CLIPS FLIGHT CENTRE'S WINGS

DESPITE achieving record sales in the first half, Flight Centre Travel Group (ASX: FLT) profit has suffered the ef...

ARDENT TAKES $95.2 MILLION HIT FROM DREAMWORLD TRAGEDY

ARDENT Leisure has taken a $95.2 million write-down on the value of its Dreamworld theme park following the tragedy t...

AGENT EXITS, LOW LISTINGS HURT MCGRATH

PROFITS have dived 72 per cent at real estate group McGrath (ASX:MEA) to $2.4 milllion on the back of low property...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter