Flight Centre has posted a generally strong result for the financial year ending 2014 despite being a tumultuous year for the travel industry.
Underlying profit of $376.5 million attributed to a 9.7% growth for the travel agent group, with managing director Graham Turner pointing out operational highlights such as solid trading in most countries and continued network expansion, with an additional 1200 jobs created.
Write-downs on the agency’s underperforming US and Indian businesses, along with an $11 million ACCC fine caused a drop in statutory before-tax profit by 7.3% to $323.8 million.
Both the business and leisure travel sectors delivered increased sales and profits in Australia and remains the main driver of the company’s profit; however Turner said for the fourth consecutive year, all 10 countries were profitable.
The Malaysia Airlines’ twin tragedies of the missing flight MH370 and the MH17 disaster in the Ukraine had no impact on the company’s performance.
Flight Centre is in the process of what Turner calls its “killer theme” where they are reinventing the company from travel agency to “world class retailer” with physical changes to its stores and greater accessibility for customers. Additionally, more products have been made available online and more after hours sales teams deployed to provide around the clock service.
Turner points out that “travellers are the winners” as the company announced the dawning of a “golden era” of travel, characterised by cheaper fares, more choice, greater comfort and less flying time.
“Low cost carriers don’t suit all travellers but they have helped make it affordable for huge numbers of people to experience this golden age of travel,” Turner said.
Flight Centre also announced today its joint venture with youth travel company Topdeck Tours. The two businesses have a lengthy history together which originated with the Flight Centre chief executive officer Graham Turner, who was one of the original founders of Topdeck Travel back in 1973.
