Flight Centre has announced an upgrade to its profit before tax guidance for the 2011/12 financial year to sit between $285 million and $290 million, a rise ushered in by the companys global diversity, according to the Groups head.
The $285 million to $290 million guidance is an increase from its initial $265million to $275 million full year target and will see the company expect to earn 16 to 18 percent more than last years $245.2 million underlying profit before tax.
Managing director Graham Turner explained the guidance upgrade showcased healthy growth during tough trading periods and is a rise sustained by the companys worldwide expansion.
While FLT is not immune to external shocks and continues to monitor market conditions as it looks to 2012/13, its brand and geographic diversity can buffer it from the impacts of a downturn in any one country or sector, Mr Turner said.
It is no longer correct to think of FLT as purely an Australian-based retail travel agency.
Mr Turner added that while Australias leisure sector continues to set records, the companys US, Dubai, Singapore, China and UK stores are also delivering profitable earnings before interest and tax.
Despite European economic turmoil, the MD highlighted an expected 50 percent year on year growth from its UK operations to up to $23 million in EBIT while its US stores are likely to contribute $9 million EBIT compared to $1.4 million during the 2010/11 financial year.
On a corporate level, Mr Turner explained the companys global business is generating up to $4 billion in total transaction value per year in the sector and is expecting to see ongoing opportunities to continue winning the Aussie market.
We are now estimated to be one of the top 10 US corporate travel managers and are rapidly expanding our footprint and client base in our 10 cities, Mr Turner said.
Flight Centre currently operates in ten countries and opened its first retail store in Hong Kong during March this year.
Source = e-Travel Blackboard: N.J