Flight Centre revises its 200910 profit expectations

first_imgSource = e-Travel Blackboard: C.F FLIGHT Centre Limited (FLT) has revised its profit expectations for the 2009/10 fiscal year, reporting that it now expects a $160m-$180m trading result.The revised guidance represents a significant leap from FLT’s initial target of $125 million to $135 million pre-tax 2009/10 profit.That’s an increase of as much as 80% on the $99.8m result for 2008/09, with the company saying it’s experienced a strong first half than it had previously expected.  Managing director Graham Turner said pre-tax profit for the half to December 31 2009 was expected to be $70 million to $74 million, a 13% to 19% improvement on the corresponding period during 2008/09. “Double-digit growth is a reasonable achievement for the first half, given that last year’s result included a record first quarter profit,” Mr Turner said.“Assuming global trading conditions continue to gradually recover, we are well placed to record stronger profit growth during the second half, as results during the corresponding period of 2008/09 were heavily affected by the global financial crisis.“Trading conditions have stabilised globally during the first half, although the rate of actual improvement has varied from country to country.“Highlights so far have included: Good growth in sales volumes – in some businesses, including Australia, ticket numbers have been up more than 20%. “Yields, or average ticket prices, have been lower than normal, following the supplier discounting that took place last year, but we have started to see gradual price increases recently. “Strong results in Australia, where economic recovery has been fastest to date… reasonable profit in the United Kingdom, despite the GFC’s ongoing effects. “Profits in our other established regions – Canada, South Africa and New Zealand; and Continued growth in cash reserves, which should allow the company to restore its normal dividend policy, subject to the business’s anticipated needs at the time.” “Generally, our leisure and wholesale travel businesses have performed well and we have started to see some improvement in the global corporate travel sector. “While clients are still down trading, our continued success in winning new corporate travel accounts means we are well placed to benefit when the market recovers.”Flight Centre has also resolved it’s previously disclosed disputes with its corporate travel joint venture, and the company is also expected to take 100% ownership and control of FCm India. FLT’s half year accounts will be released February 25, 2010. <a href=”http://www.etbtravelnews.global/click/26f76/” target=”_blank”><img src=”http://adsvr.travelads.biz/www/delivery/avw.php?zoneid=10&amp;cb=INSERT_RANDOM_NUMBER_HERE&amp;n=a5c63036″ border=”0″ alt=””></a>last_img

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