|First half growth encourages increased profits.|
Flight Centre Limited has raised its underlying profit before tax (PBT) expectations after achieving strong growth during the first half of the FY2012-13.
Expectations were raised from the initial US$305 million-US$315 million target to US$325 million-US$340 million, in lieu of 8 percent PBT growth in the first half of the financial year.
If achieved the upgraded guidance will represent a 12-17 percent increase on the US$290.4 million achieved during FY2011-12.
“Year-to-date, our 10 countries are profitable and several are on track to record full year EBIT contributions,” Flight Centre Limited managing director Graham Turner said.
“This includes Australia and the United Kingdom, which are typically our largest profit generators.”
Australia’s leisure market has made a turn-around in the second half of FY2012-13 to more than offset the soft domestic corporate travel market.
“Similarly the UK leisure business has performed well at a time when corporate clients have been down-trading,” Mr Turner said.
In the United States Flight Centre’s corporate business is flourishing, now the largest individual operation in the U.S., consistently outperforming leisure and wholesale business.
New Zealand is on track to record its best full year result since 2008, South African corporate is blossoming, India is suffering from local trading conditions and Canada reports soft leisure results.