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Flight Centre downgrades profit forecast

 

Flight centreTravel agency Flight Centre has blamed challenging trading conditions in Australia for a profit downgrade.

The company says it will be difficult to achieve its initial pre-tax underlying profit target range of $395 million to $405 million, or growth of five to eight per cent, in the current year.

“Trading conditions in Australia remain challenging following the leisure travel spending slowdown late in 2013/14,” it said.

Flight Centre shares had shed $3.34, or 9.53 per cent, to $31.70 by 1127 AEDT.

It is now forecasting underlying profit before tax of between $360 million and $390 million.

MD, Graham Turner, said the outlook for Australia was uncertain.

“While we expect solid contributions from our overseas businesses, which in profit terms have consistently grown at 20 to 30 per cent per annum in recent years, the growth outlook for the larger Australian business is currently unclear,” he said.

AAP

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