Flight Centre profit dips as Zika virus and Brexit take toll on tourism

Flight Centre has booked a modest fall in profit as it grapples with the effects of the Zika virus and the Brexit vote.

Flight Centre store.

Flight Centre has reported a slight fall in full-year profit as it grapples with the effects on tourism of the Zika virus and the Brexit vote.

Net profit after tax slipped 4.7 per cent to $244.6 million in the year to June 30, compared with $256.6m in the previous year.

Conditions remain volatile is some markets, after Britain’s vote to leave the European Union weighed on demand for corporate and leisure travel late in fiscal 2016 and early in the current fiscal year, Flight Centre (FLT) said.

The travel agency said airfares continue to fall in the US as airlines discount fares in response to travel warnings linked to the spread of Zika and instability in Europe.

Despite saying it was too early to give profit guidance for this year, Flight Centre managing director Graham Turner said the group would be “disappointed” if it didn’t improve on its 2016 performance.

The company is also focusing on its online presence, planning to launch transactional websites in Europe, Asia, the UAE and South Africa this year.

Revenue rose 11.2 per cent to $2.67 billion in fiscal 2016, from $2.4bn in the prior year.

Flight Centre will pay a final dividend of 92c per share, fully franked, on October 14 to shareholders who are on the register on September 16.