Flight Centre expects yearly profit

Despite natural disasters reigning over the 2010/11 financial year, Flight Centre Limited is expecting to achieve record breaking profits before tax (PBT) between $234 million and $247 million.

 The figure represents a 22.5-24.5 percent increase on the $198.5 million achieved over the financial year 2009/10 and surpasses the company’s record breaking 2008/09 results of $201 million PBT.

Flight Centre managing director Graham Turner said the result would be 20 percent highest that its previous record and for the first time ever the agency company has achieved profits in each of its ten countries of operation.

“This includes the United Stated, which has achieved its first full year profit in the 12 years that FLT has operated in the country,” Mr Turner said.

The US welcomed earnings before interest and tax of up to $2 million compared to the $2.3 million loss during the financial period last year.

A statement from Flight Centre read that the record breaking results were mostly pushed by MICE travellers, while leisure customers travelled “more discerning during 2010/11”.

Mr Turner added that while Australian domestic travel is yet to resurrect to its former strengths the demand was not as “soft” as other retailers have reported.

“This is partly a reflection of the product we sell,” Mr Turner explained.

“In the current climate, leisure customers are finding compelling reasons to take-off overseas, with international airfares remaining highly affordable and the strong dollar delivering a secondary benefit.”

Mr Turner concluded that the company is focusing on achieving further records and profits during the 2011/12 business period in all of its operating geographies.

“Assuming normal trading conditions, we will initially target 10 percent profit and total transaction volume growth.”
Source = e-Travel Blackboard: N.J
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