Flight Centre navigates airfare discounts

Sales and profits before tax at The Flight Centre Travel Group are in line with its half year target.

But the results come against a backdrop of challenging economics, with airfare discounting the driving force in the second half of financial year 2016.

Managing director Graham Turner said “While we were disappointed that our record sales didn’t translate to record 1H profits, our $113.2 million underlying profit before tax was a decent outcome, given the conditions.”

Turner said rapid airline capacity growth in Australia in 2016 calendar year had affected revenue comparisons.

Key sectors which performed well included hotel room nights, cruise, foreign exchange, adventure travel and the youth sector.

Growth in the long term is to focus on leisure travel retailing, in-destination travel, corporate travel, student and youth sector, non-travel businesses, business acceleration and early stage travel technology investments.