Flight Centre upgrades FY guidance
Flight Centre Limited (FLT) upgraded its FY10 pre-tax profit guidance today from $125 million - $135 million to $160 million - $180 million following a stronger than expected first-half. The company posted a result of $99.8 million in FY09.
Flight Centre expects pre-tax profit for the first half to be 13% -19% higher than the previous corresponding period at between $70 million - $74 million.
Managing director, Graham Turner, said the first half result was particularly pleasing given last year’s result included a record first quarter profit.
“Assuming global 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,” Mr Turner said.
“Trading conditions have stabilised globally during the first half, although the rate of actual improvement has varied from country to country.”
Mr Turner said the company had started to witness some improvement in the global corporate travel sector, along with a strong performance from the leisure and wholesale travel businesses.
Flight Centre said losses in the USA are currently in line with initial expectations, while stronger results are expected in the second half due to it being the peak booking season for the region.
Meanwhile, the company said it has entered into an agreement to resolve its disputes with corporate travel joint venture partner, Rahul Nath.
Flight Centre said the agreement remains the subject to the satisfaction of a number of conditions and, if completed, would see Flight Centre take full ownership of FCm India by acquiring Mr Nath’s 44% interest.
As at 1420 AEDT, Flight Centre shares were up $1.58 to $19.28.
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