The Flight Centre Travel Group Ltd (ASX: FLT) share price fell 10.5% in early trade on Monday after the travel operator released a 2019 financial year trading update at its AGM.
Flight Centre is a large travel agent business with a Flight Centre bricks and mortar network in Australia, and operations overseas.
Flight Centre FY19 Trading Update:
At the end of the first quarter, Flight Centre said that it is tracking slightly above 7% growth in constant current yearly total transaction value (TTV). TTV is the value of the travel services sold, not just Flight Centre’s revenue.
For the first half to 31 December 2018, Flight Centre’s management expect underlying profit before tax of $140 million to $150 million.
This compares to $139.7 million in the first half of FY18, suggesting profit growth could be between almost 0% up to growth of 7%.
The company is targeting annual underlying profit before tax of $390 million to $420 million, it said.
However, CEO Graham Turner warned of uncertainty due to oil prices, “It’s likely though that airfare prices, which have remained fairly stable, will come under pressure if oil prices continue to rise.”
In the recent FY18 result, Flight Centre revealed 12% growth of profit.
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