Record First Half Result for Flight Centre

Flight Centre has just released its results for the six months to 31 Dec, with a 37% rise in pre-tax profit to $101.1m.
Total transaction value was up 12% to $5.7 billion for the half, and revenue was also up 12% to $916.6 million.
The company said its results had improved across the globe, with its operations in Australia, the UK, Canada, Asia and the Middle East all delivering record first half earnings before interest and tax.
FC is continuing to target a pre-tax result of $220m-$240m for the full year, with several events affecting the broader travel sector including the unrest in the Middle East, flooding in Queensland and Victoria and the cyclones in North Queensland.
“In leisure travel, enquiry levels and profits have been reasonable, but customers have been cautious and focused on value. The company is not yet seeing the same levels of consumer confidence experienced during the fourth quarter of 2009/10,” said Flight Centre.
The company also said that it had reaffirmed its support for the domestic tourism sector in Australia “and will work with tourism bodies and its suppliers to stimulate visitor numbers”.

Australia’s largest travel retailer, Flight Centre, says consumer confidence has declined over the past couple of months – “Leisure customers are cautious and deal focused” – while announcing a record first half pre-tax profit of $101 million for the six months to December 31, a whopping 37% rise over the previous year. But high growth rates are in the past and Flight Centre is sticking to earlier forecasts of a full year pre-tax profit between $220m and $240m (the second quarter is typically the most profitable). Australia was the strongest performer while China made its first pre-tax profit since the business was established in 2004. The United States performed poorly once again – down 12% in $US terms – but Flight Centre is hopeful this business will be in the black by year end.

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