Brisbane-headquartered Flight Centre Travel Group has amended its FY24 profit guidance.
Based on preliminary trading results, the company expects a total transaction value of $23.7 billion, aligning with its record FY19 result despite significant airfare deflation, especially in the second half of FY24.
Flight Centre anticipates an underlying profit between $316 million and $324 million before tax, reflecting a substantial 130% growth compared to the previous year's $138.8 million profit before tax.
The revised profit margin is projected to be between 1.3% and 1.4%, an improvement from FY23's 0.6% and FY24's first half result of 0.94%.
Following its closure, the company has excluded approximately $4 million in trading losses for the Discova Central Americas destination management company.
"FLT is a diverse global business with a resilient customer base, spanning the leisure and corporate travel sectors, and a proven track record of delivering year-on-year TTV growth," said Graham Turner, Managing Director of Flight Centre.
The company's FY24 guidance also factored in significant non-recurring items like the restructuring of StudentUniverse, now aiming for a break-even in FY25.
Adjustments were made to provide a clearer picture of the company's performance and future prospects.
The company looks forward to further improvement in key metrics and will release audited FY24 accounts on Aug. 28.
Flight Centre is an ASX-listed travel retailer and corporate travel manager. The company's principal activities include travel retailing in both the leisure and corporate travel sectors, plus in-destination travel experience businesses, including tour operations, hotel management, destination management companies and wholesaling.