Flight Centre today released half year results which show the travel agency is likely to hit forecast profit of between $360 million and $390 million for the full 2015 year.
And it says international air fares are getting cheaper.
This month, Flight Centre offered return Qantas, Virgin and Air New Zealand fares to Los Angeles for below $1,000, the lowest levels seen for several years.
And a below $900 return fare was offered from Brisbane last weekend.
Managing director Graham Turner says Flight Centre believes international air fares will remain highly affordable.
This outlook is supported by the International Air Travel Association (IATA) which recently predicted a 5% decline in global fares in 2015.
“This will create cleaner, more transparent fare structures for all travellers and will benefit members of the various airline loyalty programs, as members are sometimes required to pay the surcharge and tax component of fares,” Turner says.
Some business travel customers may also benefit because corporate discounts may now apply to overall ticket prices rather than just base fares, excluding taxes and surcharges.
So far this financial year, Flight Centre has seen subdued business in Australia due to lower consumer confidence.
He says the consumers are cautious but at the same time international fares are very low.
“The outlook in Australia is unclear, but we anticipate some recovery as the year progresses and as travellers start to take advantage of the cheap international flights we are seeing in this golden era for travel,” Mr Turner said.
“We are now heading into what is normally a peak booking period and there is a chance to achieve accelerated growth, given the fourth quarter last year was a comparatively weaker trading period in Australia.”
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