Flight Centre Profit Down 5 Percent
Australia-based travel agent Flight Centre reported its full year financials, with net profit slipping 5.6 percent to AUD$230.8 million (USD$182 million).
The drop in profit was attributed to softer airfare pricing, political uncertainty in some markets, and currency fluctuations.
The company’s total travel booking value was just over AUD$20 billion, with online leisure sales exceeding AUD$1 billion for the first time. Home market Australia accounted for just over half that volume.
The result was achieved in a relatively subdued trading climate, Flight Centre’s chairman Gary Smith said in a statement.
Most international markets saw growth in travel booking value, with the UK and United Arab Emirates the only two to report a drop. The UK volume was down 8 percent in local currency and 11 percent in Aussie dollar terms.
Looking forward Flight Centre “expects a more normal trading environment during FY18 in Australia, with modest decreases or increases in average fares, rather than steep declines across the board.”