Flight Centre lifts annual profit 28% as kiwis take to the sky in 2014

Monday 5th January 2015

Flight Centre (NZ), the local arm of the Australian travel agent, lifted annual profit 28 percent in 2014 as more New Zealanders travelled overseas.

Annual profit rose to $7.66 million in the year ended June 30, 2014 from $5.97 million a year earlier, according to the company's financial statements lodged with the Companies Office. Revenue rose 5.9 percent to $132.8 million, of which $91.4 million was commission and fees from the provision of travel.

Flight Centre Travel Group, its listed Australian-based parent, reported a 16 percent drop in profit to A$206.9 million in the year ended June, as it booked a A$61.3 million non-cash write down to its goodwill and brand names, according to its annual report released in August. Earnings before interest and tax from its New Zealand unit rose to a record A$16 million, eclipsing 2003's peak, the report said.

Over that period about 2.24 million New Zealanders travelled internationally, up 4.5 percent from a year earlier, according to Statistics New Zealand figures. Of those trips, half were across the ditch to Australia, while the US, Fiji, the UK and China were other popular destinations.

In October, Flight Centre said it expected to see the increase in kiwis travelling abroad to continue, predicting UK and Europe travel to hit a record in 2015 as the Rugby World Cup lured New Zealanders to the Northern Hemisphere, while cheap airfares made it more attractive.

“We are seeing return airfares to London priced around $1,650 per person and return to Europe from under $1,500 per person," Flight Centre general manager of product Simon McKearney said in an October statement. "This is exceptional news for kiwi travellers, and in real terms, the cheapest pricing we have ever seen. In an already buoyant market, this will only enhance demand."

Flight Centre's ASX-listed shares rose 0.9 percent to A$33.14.

BusinessDesk.co.nz

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