According to a report by Reuters, Flight Centre Travel Group, an Australian corporate travel management company, experienced a slight increase in its first-quarter underlying profit. This announcement on Friday led to the company’s shares dropping to their lowest point in over 10 months.
As of 0011 GMT, the shares had decreased by as much as 17.4% to A$17.85, marking their lowest level since late November 2023. Meanwhile, the broader benchmark index saw a decline of 0.7%.
The company stated in a limited trading update that both its underlying profit and profit margin for the first quarter of fiscal 2025 showed marginal improvements compared to the previous year. However, this update did not include specific profit figures.
UBS analysts described the update as ‘relatively negative,’ especially considering the consensus expectations for a 63% growth in profit before tax for the first half of fiscal 2025 and a 39% increase for the entire fiscal year. Flight Centre also mentioned that it anticipates its profit to be significantly weighted towards the second half of the fiscal year.
The travel manager noted that the growth of its global corporate business has been negatively affected by lower airfare prices and relatively subdued global corporate sector activity, among other factors.
Despite these challenges, Flight Centre reported observing early positive trends for October in its business. Entering a seasonally busier trading period, the company expects an increase in both corporate travel activity and leisure travel following the Northern Hemisphere holiday season.
