29 October 2009

Flight Centre ahead of expectations

BRISBANE Ã¢â¬' Flight Centre has achieved a pre-tax trading profit in theorder of $34million during the first quarter of 2009/10.

Managing director Graham Turner told shareholders at the companyÃ¢â¬â¢s annual meeting today that FLT had performed ahead of expectations during the three months to September 30 in more stable trading conditions.

Ã¢â¬ÅâœAlthough early days, we have seen an increase in volumes, or tickets issued, as consumer confidence seems to be improving,Ã¢â¬~ Turner said.

Ã¢â¬ÅâœIn some countries, ticket numbers are up on the first quarters of 2007/08 and 2008/09, both of which were record periods.

Ã¢â¬ÅâœThe challenge is that yields Ã¢â¬' average prices Ã¢â¬' remain significantly down on last year. Yields do appear to have bottomed, however, following the significant supplier discounting we saw last year.Ã¢â¬~

Turner said FLT was trading ahead of expectations, and the companyÃ¢â¬â¢s previous full year profit guidance of a $125million to $135million pre-tax result remains in place.

Ã¢â¬ÅâœGiven the volatility the industry has experienced in recent years, it would be premature to amend our outlook at this early stage,Ã¢â¬~ Turner added.

Other first quarter Flight Centre highlights included:

Ã¢Ë†' Profit in all regions, excluding North America and parts of Asia;

Ã¢Ë†' Good results in Australia, where recovery has, to date, been faster than in other markets;

- Good volumes and reasonable profits in a challenging UK trading climate;

- Profit and some encouraging signs in New Zealand, including strong customer enquiry, good Discover Europe travel expo sales and improving corporate results;

- Reduced profit in South Africa, but with recent signs of improvement and,

- Losses from the Asia-Middle East corporate businesses