Flight Centre: Momentum building as Australia, UK shine

Flight Centre managing director Graham Turner told today’s annual meeting that the company has started the new financial year with “good momentum”.

“First quarter profit results have improved in Australia and in each of our international businesses, compared to the previous corresponding period,” he said.

“Overall results improved during the course of 2009/10, which means maintaining our current profit growth rate will become more challenging as the year progresses.

“However, so far we are pleased with our performance.

“Our profit year-to-date is a record for this particular quarter and is about 15 percent up on 2008/09, which was previously our best first quarter.”

Turner shied away from speculating on an upgrade to forecasts for a full year profit.

He said a moderate slowdown in leisure travel during the early months of 2010/11 had been offset by strong corporate travel results.

All corporate businesses had been profitable at EBIT level during the first quarter with the exception of the emerging Singapore FCm business, which generated a small loss.

“In terms of our individual countries, best performances to date have come from Australia and the UK,” Turner said.

“The UK business is now consistently our largest profit generator outside Australia and continues to record healthy growth, despite challenges in the local economy.

“The UK leisure and corporate businesses have both performed well, with the new hyperstore in London’s Oxford Street profitable in its first month.”