Flight Centre will still make a record profit of $370m-$380m this financial year despite slowing leisure travel sales, Managing Director Graham Turner said today.
“Our ability to hit the top of our targeted range has been adversely affected by disappointing travel results in Canada and a tougher trading environment for the large Australian leisure business during the past eight weeks,” Mr Turner said.
“While Australian leisure continues to grow and increase market share it is not achieving the high levels of growth during the fourth quarter as it recorded earlier in the year.
“This slowdown was most evident in May and corresponded with the widely reported decline in consumer confidence in Australia.”
Treasure Joe Hockey announced a tough Federal Budget on May 13, the reverberations of which are still being reported daily in the Australian news media.
“While demand often rebounds quickly after a short-term downturn in the leisure market, conditions are uncertain and it is obviously impossible to predict the time-frame for recovery,” Mr Turner said.
“On a positive note, international and domestic airfare prices remain highly affordable as the financial year draws to a close.
“Cheap fares have historically proven to be a key factor in stimulating demand.
“For example yesterday we advertised return economy airfares from Sydney to Singapore for $456 – ten years ago our cheapest return airfare to Singapore cost $843.”