By Australian travel agency Flight Centre recently announced a significant turnaround in its half-year financial performance, recording a net profit of 86.6 million Australian dollars (US$56.6 million) compared to a loss in the previous year. The company also reported a substantial increase in revenue, reaching about A$1.29 billion, marking a 29% growth.
Key Highlights:
- Statutory net profit of A$86.6 million
- Revenue up by 29% to A$1.29 billion
- Underlying profit before tax improved to A$106 million
- Total transaction value rose 15% to A$11.3 billion
Both the leisure and corporate travel segments of Flight Centre contributed to this positive outcome, with corporate total transaction value increasing by 17% and leisure total transaction value rising by 18%. Notably, leisure’s underlying profit before tax exceeded pre-pandemic levels.
Expansion of Guidance
Looking ahead, Flight Centre anticipates continued success in the fiscal second half, prompting an increase in the guidance for FY 2024 underlying profit before tax to A$300 million-A$340 million. This adjustment reflects a change in the measurement of convertible note amortization, rather than trading performance.
The company remains optimistic about the future, with total transaction value expected to surpass the record achieved during FY 2019. Factors such as low unemployment rates and a pent-up demand for travel contribute to sustained momentum in the travel industry.
By Mike Cherney
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