Shares soar for Flight Centre
SHARES in Flight Centre soared to a 15 month high yesterday after the travel company announcement it was likely to hit a record $20 billion in annual sales.
The company’s shares ended at $44.33, up 10.9 per cent, at the end of trade after the Queensland company announced it expected to achieve an underlying profit before tax between $325 million and $330 million for the 2017 fiscal year.
Strong sales in the United States, the United Kingdom and New Zealand all contributed to a solid second half of the financial year, according to the company’s managing director Graham Turner.
Meanwhile international airfares in Australia, which had been down about 7 per cent in the first half, were back in line with the prior year’s prices.
Flight Centre had revised its full year guidance to $300 million to $330 million in February, from an initial range of $320 million to $355 million, citing the effects of widespread airfare discounting.
“While, we always aim to improve on the prior year’s result, our achievements during the second half reflect a solid recovery after a challenging first half, which saw a combination of internal and external factors affect results,” Mr Turner said.
The company’s UK operations were on track to deliver a record profit in local currency, though a fall in the British pound’s value would negatively affect the translation into Australian dollars.
Mr Turner said the company had focused on “factors within our control”, citing generating strong sales volumes, enhanced productivity, cost containing and reductions, and growing online capabilities.
The company was the best performer on the ASX 200 yesterday. Flight Centre is due to release its full year results on August 24.