2002

Flight Centre Limited upgrades profit outlook

Thursday, 6 June 2002

Australia's leading travel retailer, Flight Centre Limited, has upgraded its full year profit outlook and is on track to post another record result. The company today revealed that it had traded solidly in a difficult environment and expected its pre-tax profit for the year to June 30, 2002 to be about 30% higher than the previous year's pre-tax result. Flight Centre Limited chairman Norman Fussell said the anticipated pre-tax profit result was pleasing, given the challenges that arose in the travel industry during the current fiscal year. Mr Fussell said the challenges had included September 11's impact on North American aviation, Ansett's demise in Australia, the loss of Canadian carrier Canada 3000 and the consolidation of travel agencies globally. "At the half-year, we reported that we were about 10% ahead of last year in terms of pre-tax profit but were unable to make any predictions for the full year because of the uncertain travel climate," he said. "Since then, we have experienced improved trading conditions and results from the first five months of the current calendar year were well ahead of those from last year. "As a result, we now expect our pre-tax profit for the full year to be up about 30% on last year. "The expected result reflects Flight Centre Limited's strategy of continuing to grow its presence in Australia and overseas and the company continues to add additional shops and businesses to its operations." Flight Centre Limited chief executive officer Graham Turner said it was too early to predict final numbers for the full year. Mr Turner said, while some uncertainty remained, demand for travel appeared to be returning to its normal pattern, with many airlines reinstating services that were cancelled earlier in the fiscal year. "As a company, our focus has again been on delivering the best possible service and prices to our customers and it is encouraging to be able to report this improved pre-tax profit outlook," he said. "Many areas of the company have posted impressive results, with strong performances coming from Australia and New Zealand in both the leisure and corporate travel markets."