Subscribe


Travel Daily

TD breaking news – Flight Centre forecasts profit decline

Australia’s largest travel retailer reports slower than normal sales growth

Flight Centre Travel Group has provided a market update this afternoon, saying it expects its underlying profit before tax (PBT) for the 12 months to 30 Jun 2015 to be between $355 million and $365 million. 

At mid-point, the flagged underlying profit of $360m for the full year is 4.4% lower than the record $376.5 million underlying PBT set during “superior trading conditions” in 2013/14, Flight Centre said.

The company said actual or statutory PBT during 2013/14 was $323.8 millilon.

Flight Centre said contributing factors for the expected lower PBT included lower gross margins and revenue, “brought about by consultant discounting to stimulate demand among cautious leisure consumers during the first half and in response to competitive market pricing in the corporate travel sector”, higher costs related to the front-end wage change implemented in Aug last year and “slower than normal sales growth.”

FLT managing director Graham Turner said the company’s international business will deliver solid profit growth, “but the Australian business will not achieve its normal growth trajectory”.

Total Transaction Value for 2014/15 is expected to rise about 3% on last year.

Turner said demand for the USA remains strong and looks set to continue into the new year, citing a “price war” currently underway on the Australia-Honolulu route.

FLT reported that all businesses will be profitable, except Canada, where a new senior management team is now in place, ready to “improve performance, particularly in leisure travel after two disappointing years”.

The group also flagged an expansion of its hyperstores in the US and UK, with locations earmarked to debut in Dublin, Richmond and Washington.

FLT’s Stage & Screen and Campus Travel corporate brands will also be deployed in the UK and USA respectively, the company confirmed.

More details in today’s issue of Travel Daily.


The above Breaking News Alert was sent to Travel Daily subscribers on 23 Jun 15

Make a comment...



Established in 1994, Travel Daily is Australia's leading travel industry publication, and is sent as a paid subscription to people across the industry as a PDF newsletter every weekday.

Register for Travel Daily trial subscription

To sign up for a free 14-day trial, click on the button at right.

Click here to see a sample issue of Travel Daily.

Click here for more information on subscriptions.

Alternatively, you can search our site or find other content below.

Recent Travel Daily articles

28 Jun

TD breaking news – AFTA announces new credit card chargeback scheme - AFTA Insolvency Chargeback Scheme (AICS) solves supplier ...


27 Jun

AFTA update 27 June 17 - FROM AFTA's chief executive, Jayson Westbury. It ...


27 Jun

Window Seat 27 June 17 - ONE of the burning questions asked of ...


27 Jun

Malindo Air famil - TO CELEBRATE Malindo Air's new Brisbane-Denpasar-Kuala Lumpur ...


27 Jun

Luxury Escapes on the road - MELBOURNE-BASED travel package specialist Luxury Escapes has ...


27 Jun

Stay in a Swiss Alpine Hut! - SWITZERLAND Tourism has unveiled the theme for ...


27 Jun

Cebu defers A321neos - PHILIPPINE carrier Cebu Pacific has confirmed its ...


27 Jun

Dreamworld kimbas - DREAMWORLD will welcome two African white lions ...


27 Jun

HINN AKL overhaul - HOLIDAY Inn Auckland Airport has announced a ...


27 Jun

China incentive group - MELBOURNE last week welcomed 3,000 delegates from ...


27 Jun

Crown staff sentence - CROWN Resorts Limited has confirmed 17 current ...


27 Jun

Amtrak taps DL boss - FORMER Delta Air Lines chief exec Richard ...


27 Jun

Tokatoka free wi-fi - WARWICK Hotels & Resorts will offer in-house ...


27 Jun

Expedia Rev+ debuts - EXPEDIA yesterday formally launched its new Rev+ ...


27 Jun

APX online reporting - HELLOWORLD NZ corporate offshoot APX Travel Management ...


27 Jun

MO into Melbourne - MANDARIN Oriental Hotel Group has announced its ...


27 Jun

Round-world incentive - CONSTELLATION Journeys is offering travel agents a ...


27 Jun

Pre-travel GP roll out - COVER-MORE is now offering pre-travel doctor consultations ...


27 Jun

BI rejigs Dubai fares - ROYAL Brunei Airlines has today advised agents ...


27 Jun

DNSW appointment - DESTINATION NSW yesterday announced the promotion of ...



Show Travel Daily items by month: