2000

Flight Centre continues massive growth

Flight Centre Limited is set to report significant growth in its operating profit for the year ending June 30, 2000. Sales increased by approximately 30% to more than $2.3 billion during the year and the group opened more than 100 new retail outlets worldwide. While the audited result for the year will not be available until next month, the figures show the company’s strong growth trend has continued in Australia and overseas. Flight Centre Limited chairman Norm Fussell said the company had experienced a strong second half, after reporting a 50% increase in operating profit after tax for the first half, and expected to report an increase in profit for the full year of about 40%. Mr Fussell said Flight Centre had performed "very well" in Australia, New Zealand, South Africa and Canada. He said Flight Centre's United Kingdom operations had also performed strongly, with shop numbers increasing from 17 to 30 and sales increasing by 60%. He said, by the end of this month, a 10-shop beachhead would have been established in the United States, where losses had been in line with expectations and the company’s business model. Flight Centre chief executive officer Graham Turner said the company was in a strong position to build on its success in 2000-2001. He said Flight Centre had bought events specialist CIM and travel company Overseas Working Holidays and he expected the new businesses to perform strongly in the future, with Overseas Working Holidays to be expanded to include New Zealand. Mr Turner said the company would also enhance its technological base and would spend $9 million on improvements over the next three years. He said projects planned or underway included a new retail system, an on-line business, a global ticketing centre, global wholesaling and a new airfares database. Flight Centre Limited is already Australia and New Zealand’s largest retail travel agency and Mr Turner believes the company has the ability and the right tools to grow over time into the world’s most successful retail travel agency. He said the company already had about 20% of the Australian and New Zealand market share, plus a 10% share in South Africa. Flight Centre Limited employs more than 3200 staff and has 600 shops and businesses throughout the world. Its brands include Flight Centre, Great Holiday Escape, Corporate Traveller, 24 Hour Flights, Travel Associates, Flight Centre Direct, Student Flights, Flight Centre On-line, SBT Business Travel Solutions, Stage and Screen Travel and Freight Services, CIM and Overseas Working Holidays.