October rebound puts Flight Centre on track

October rebound puts Flight Centre on track
By admin

Sales have rebounded in October after weaker than expected trading in September, Flight Centre has said.

The update came as the retailer said overall sales in the first four months of the financial year are on track to achieve its profit growth target of between 5% to 8%.

If the trend continues, managing director Graham Turner said pre tax profits will hit between $305m and $315m, compared to $290.4m last year.

“While it is still early days in 2012/13, first quarter trading results and October projections indicate that we are currently trading in line with the full year target,” he told shareholders at its annual general meeting this morning. ”Overall results were reasonable in July and August, but below our expectations in September. Early indications suggest that we have regained some momentum in October.”

He said corporate travel continues to grow at a faster pace than leisure.

But economic uncertainty is still having an impact, Turner added, although cheap international airfares were stimulating outbound travel from Australia.

Its UK and US businesses were also on track for further growth following record contributions in 2011/12.

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