FC profit hits new record

FLIGHT Centre has revealed a record underlying pre-tax profit of $384.7m, despite sluggish growth in Australia ( TD breaking news).

In its 2017/18 results announced this morning, Flight Centre Travel Group (FCTG) confirmed a profit near the top of its earlier guidance range, with 16.8% growth on last year and a 2% advance on its previous record set in 2013/14.

The group revealed a record total transaction value (TTV) of $21.8 billion - up 8.5% on last year - with almost half (49%) of its TTV now generated by operations outside of Australia.

“The company’s record results highlight its business model’s strength, its ongoing relevance to customers globally and its increasing diversity,” said FCTG md Graham Turner.

“The Americas and EMEA businesses performed particularly well and together generated a $151 million profit, which more than doubled their combined results from just two years ago.”

However in Aust/NZ, TTV grew by 4% to reach $12.3 billion, a softer level of growth than normal due to GDS and network changes, which have included the merger of Escape Travel and Cruiseabout into the Flight Centre and Travel Associates brands.

Underlying profit before tax in Aust/NZ was $250 million, down 4% on last year, and was adjusted to exclude non-recurring items including $13.3 million relating to Flight Centre’s loss in the Federal Court over airfare price fixing allegations ( TD 04 Apr).