Flight Centre lifts half-year profit 37pc, upgrades full-year guidance

Travel agency Flight Centre has posted a 37pc rise in half-year net profit and upgraded its guidance for the full year.

Flight Centre managing director Graham Turner. Pic: Mark Cranitch.

Travel agency Flight Centre Travel Group said half-year net profit rose by 37 per cent and upgraded its guidance for the full fiscal year.

The company (FLT) said its net profit in the six months through December was $102.1 million. Revenue rose by 5 pe recent to $1.37 billion while total transaction volume rose by nearly 9 per cent to about $10.1 billion, which the company said was a record.

The company declared an interim dividend of 60 cents per share, compared to 45 cents in the prior corresponding period.

Looking ahead, the company upgraded its underlying profit before tax expectations for the full fiscal year, saying it now believed that figure would come in between $360 million and $385 million, compared to previous guidance of $350 million and $380 million.

“Generally, we can be pleased with our performance to date, given that we are tracking at or near record levels in most key financial areas,” managing director Graham Turner said.

“We have also made sound progress in executing operational strategies and transformation initiatives that have been developed to fast-track revenue growth and curb costs.”

In the previous fiscal year, Flight Centre said annual net profit fell as it struggled with declines in airfares, currency fluctuations and political uncertainty that impacted travel, and launched a so-called transformation program to improve performance. The company has made a slew of acquisitions recently to help diversify its business as it competes with the online travel websites.

Dow Jones Newswires