FLIGHT CENTRE PROFITS TAKE OFF

FLIGHT CENTRE PROFITS TAKE OFF

FLIGHT Centre has bucked the downward tourism trend after today reporting NPAT of $70.5 million – up 38 per cent on half-yearly FY10 figures of $51.1m.

Managing director Graham Turner (pictured) says the Australian component of the business remains the most lucrative.

“Most of our profit continues to come from Australia and from our retail business, although our global corporate operations also started the year well,” says Turner.

“And despite the state of the UK economy, our operations there have been performing strongly for the past couple of years.”

Turner insists the company’s online presence doesn’t threaten its retail operation.

“About 85 per cent of international travel is booked through agents, plus a significant chunk of domestic – so there’s certainly a place for agents,” he says.

“Consider that Flight Centre generates around $7 billion in sales per year, just in Australia, and only a small percentage of that is generated through our website. So almost that entire figure is generated via shops.”

There has been movement in the leisure travel part of the business, which suffered a moderate downturn, offset by strong corporate travel results.

“Following our strong second half performance last year in leisure travel, we have experienced a moderate slowdown in the sector during the early months of 2010/2011,” says Turner.

“This has been offset by strong corporate travel results, with all corporate businesses profitable at EBIT level during the first quarter. The only exception was the emerging Singapore FCm business, which generated a small loss.”

In a further example of the company’s bullish acquisition drive, FLT became one of the United State’s largest corporate travel providers after taking full ownership of Boston-based Garber’s Travel Services Incorporated in December last year. The acquisition cost  $US10.4m, including $US6m in cash, for the 74 per cent it didn’t already own.

“In the US, we have a comprehensive and profitable corporate offering that includes FCm offices in Seattle, San Francisco, Los Angeles, Phoenix, Dallas, Chicago, Boston, New York and Washington DC,” says Turner.

Flight Centre shares remain steady, trading at around $23.00.

For the full interview with Graham Turner and Flight Centre, don’t miss Brisbane Business News’ annual Top 50 Companies edition out in March.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

Aussie Broadband launches $344m bid for Over The Wire

Aussie Broadband launches $344m bid for Over The Wire

One of Brisbane’s Top Companies Over The Wire (ASX: OTW) has ...

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths Group (ASX: WOW) has today thrown its hat in the ring to...

Shopping Centres Australasia launches $750m metro convenience retail JV with GIC

Shopping Centres Australasia launches $750m metro convenience retail JV with GIC

After making its fortunes with suburban malls anchored by blue-chip...

Brisbane Top Companies revealed

Brisbane Top Companies revealed

Brisbane’s top companies have been a hotbed of growth in 2021...