Shares soar as Flight Centre ups forecast

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. The company was the best performer on the ASX 200 yesterday.