Flight Cen­tre wor­ries Citi

Townsville Bulletin - - NEWS -

A DAY after Flight Cen­tre shares hit a 15- month high on the back of im­proved profit guid­ance, an­a­lysts at Citi have cut the stock to a sell, saying growth op­por­tu­ni­ties for the travel group are lim­ited.

Citi an­a­lyst Bryan Ray­mond said Flight Cen­tre faced pres­sure from po­ten­tially weak growth in air­fares and dwin­dling con­sumer de­mand, mak­ing the com­pany’s cur­rent share price op­ti­mistic.

“The weak con­sumer is an emerg­ing con­cern for Flight Cen­tre’s vol­ume growth,” Mr Ray­mond said in a re­port.

Mr Ray­mond said slow in­come growth and ris­ing house­hold bills could be im­pact­ing on the abil­ity of Aus­tralians to spend money on travel, par­tic­u­larly to long- haul des­ti­na­tions such as North Amer­ica and Europe.

He said that could mean some con­sumers switch­ing to travel within Aus­tralia.

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