Flight Centre earnings could fall by up to 4% this financial year
With less Aussies spending money on leisure travel over the 2013/14 year, Flight Centre has predicted a 4% decline on last financial year and said it would be “difficult” to achieve its initial target of AUD 395 million to AUD 405 million for financial year 2015, according to eGlobal Travel Media.
The travel company said in a statement: “This [spending] slowdown has led to lower than normal leisure sales growth in Australia during the five months to November 30, 2014 and slightly lower margins, as FLT’s sales people have reduced commissions to lower overall ticket prices and stimulate demand.”
Flight Centre managing director Graham Turner explained they are yet to see signs of full recovery post Federal Budget.
“When we set our full-year growth targets in August, we expected the uncertainty surrounding Australia’s federal budget would have abated as the first half drew to a close and consumer confidence and spending would have started to rebound”.
“Unfortunately, we are yet to see tangible signs of a full recovery and the overall leisure travel market in Australia continues to be flat year-on-year,” he said.
However Turner indicated Flight Centre expected stronger demand as the financial year progresses and travellers start to take advantage of cheap fares.
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