Flight Centre on target for profit growth

Flight Centre on target for profit growth
By admin


Flight Centre expects to increase its full-year profits for 2014 by as much as 10%, flagging continued growth for the coming year.

Total underlying profit before tax is expected to be between $375 million and $377m for year ending 2014, falling between the earlier prediction of $370m to $380m.

The final result will be reported on August 27.

Consumer confidence around the May federal budget saw slowing growth in the company’s Australian leisure travel business.

Non-cash writedowns to goodwill and brand names totalling $61.3m in India and the United States were also noted by the group.

After the successful purchase of Dublin-based corporate travel specialist Travelplan Corporate, Flight Centre said it would continue to pursue strategic acquisition opportunities.

In light of the recent airline tragedies with Malaysia Airlines, Flight Centre added customers who had cancelled future Malaysia Airlines bookings generally rebooked on other airlines, rather than cancelling their trips outright.

"The tragic loss of MH17 is likely to have a modest impact on results, as most travellers are currently opting to maintain their bookings with Malaysia Airlines or other carriers," the company stated.

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