Category: Company News / Tourism / Air Transport / Business, Economics and Finance / Stockmarket
Flight Centre shares dive on further profit warning
Friday, 4 Nov 2016 10:32:28 | Thuy Ong

Shares in Flight Centre dropped as much as 14 per cent before recovering slightly. (Flickr: David Jackmanson)
Flight Centre has issued another profit warning, sending its shares sharply lower as the travel agent says record low airfares, subdued trading and lower-than-expected profits for its Top Deck and Back Roads touring businesses will hit its bottom line.
Underlying first half profit is expected to be between $105 million and $120 million, compared to $145.9 million in the previous corresponding period.
Flight Centre said widespread airline discounting saw the value of international airfares sold during the first half of the 2017 financial year fall 7 per cent.
Geopolitical events - including the Brexit vote, the presidential election in the United States and Zika virus - also negatively affected sales, Flight Centre said.
"Internal and external factors that are currently impacting top and bottom-line results mean that we will not be tracking at those levels by the end of the first half," said managing director Graham Turner in a statement to the ASX.
Underlying profit before tax is expected to come in between $320 million and $355 million for the full year, compared with $352.4 million the previous year.
Shares in the company dropped as much as 14 per cent to $28.52 before recovering slightly.
At 1:07pm (AEDT) shares were down 9.7 per cent to four-and-a-half-month lows of $30.70.
Flight Centre had previously issued another profit warning in May, citing similar difficulties.
- About Us
- |
- Terms of Use
- |
-
RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.