Flight Centres shares rise despite guidance cuts
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More news: Flight Centre shares advanced even after the travel agency slashed its full-year profit guidance, with the impact of recent US tariff announcements expected to slow growth in the key trading months of May and June.
Flight Centre shares were up 2% to $12.71 at 1:30pm AEST after initially falling at the start of trading.
Flight Centre cuts guidance due to US tariffs, unveils $200m buyback
The news: Travel agency Flight Centre has cut its full-year profit guidance, due to the impact of new US tariff measures on recent trading.
The numbers: Flight Centre said it is now unlikely to deliver the 14% to 26.5% year-on-year growth to achieve its FY25 target of underlying profit before tax of between $365 million and $405 million.
The company noted that it was tracking "towards the low to mid-point" of the guidance range when it released its first-half results, but now expects full-year profit to be between $300 million and $335 million, with the mid-point broadly in line with last year's result of $320 million.
The context: Flight Centre said the US policy changes have impacted business and consumer confidence, as well as corporate and leisure sales in March. Early April trading results point to ongoing uncertainty, the company said, which looks likely to slow growth in its heavily weighted months of May and June.
Flight Centre also announced a share buyback of up to $200 million, to start on or around 12 May, to be completed within 12 months.
What they said: "The recent US developments have exacerbated the volatile trading conditions experienced throughout the year, leading to lower-than-expected total travel value (TTV) growth in core brands and impacted super over-rides, overall margins and operating leverage in these larger brands given most TTV growth has occurred in lower margin businesses," the company said.
The source: ASX
