“A Challenging Period”: Flight Centre Faces More Turbulence
Travel giant, Flight Centre has put more meat on its October 9 earnings warning, and seen a further sell-off.
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“Unrest And Uncertainty”: Flight Centre Strikes Turbulence
Travel groups are finding it hard to get airborne early in the 2019-20 financial year. Webjet got caught by the collapse of UK group, Thomas Cook with $43 million of likely losses, now Flight Centre, the sector’s biggie, yesterday slipped out a forecast of lower first-half earnings and the shares hit turbulence and slumped more than 13%.
Read MoreTravel Agents Fear Fallout As Thomas Cook Collapses
The collapse of UK travel company, Thomas Cook after 178 years in business will leave an impact across every part of the global holiday and business travel businesses, with costs estimated to easily top $A2 billion.
Read MoreWebjet Grounded As Rival Flight Centre Soars
Conflicting market reactions to the annual results of the two better-performed travel groups listed on the ASX Webjet and Flight Centre.
Read MoreFLT – Macquarie rates the stock as Neutral
Macquarie has surveyed 40 travel agents, airlines and hotel operators to gauge recent travel trends. The consensus view is that conditions are subdued for both domestic and international travel. Global political uncertainty and corporates mandating travel freezes of varying degrees are having an impact.
Read MoreFLT – Credit Suisse rates the stock as Neutral
The company has downgraded guidance by -12% to $335-360m for pre-tax profit in FY19. Credit Suisse notes the Australian leisure business continues to be challenged and total transaction value appears to have declined in the first months of 2019.
Read MoreSpecial Dividend Saves “Disappointing” Flight Centre Result
Investors couldn’t quite decide about the Flight Centre interim results yesterday. First up they were unhappy and pushed the shares down more than 4% to a day’s low of $41.40, then they changed their minds and chased the shares back up to where they ended the day at $44.30, up 2.8%.
Read MoreFLT – Deutsche Bank rates the stock as Hold
At the AGM management provided a weak trading update, in Deutsche Bank’s view. First half pre-tax profit is expected to be $140-150m. FY19 underlying pre-tax profit is forecast at $390-420m.
Read MoreFlight Centre Grounded On Weak Outlook
Flight Centre shares sold off heavily yesterday after a weak trading update at the annual meeting yesterday.
Read MoreEmployee Complaints Ground Flight Centre
Travel agent Flight Centre shares took a hammering yesterday despite a higher profit and dividend.
Read MoreFLT – Citi rates as Sell
The share price has been on strong uptrend with Citi analysts referencing a positive turn in the industry’s cycle with oil prices having increased by circa 40% over the past 12 months; this is driving up airfares, helping revenue growth for travel agents such as Flight Centre.
Read MoreFLT – Morgan Stanley rates as Equal-weight
Flight Centre has evolved its model from a leisure focus to be 50/50 leisure/corporate, and successfully so, the broker believes. Corporate customers are using the business because it is quicker, cheaper and more efficient.
Read MoreFLT – UBS rates the stock as Buy
UBS acknowledges earnings upgrades are needed in order for the stock to outperform ahead of consensus in FY19. The main drivers will be robust travel markets and achieving medium-term targets.
Read MoreFLT – Deutsche Bank rates the stock as Hold
Deutsche Bank observes travel volumes in April slowed after a strong March. While Easter can cloud the numbers the broker does not believe this will have been a factor.
Read MoreFlight Centre Fined For Price Fixing
Attempts by Flight Centre, the country’s largest travel agency to fix the value of tickets with three airlines so its “price beat guarantee” didn’t reduce the company’s profits has rebounded badly with the Full Federal Court fining it $12.5 million in a decision handed down yesterday.
Read MoreFLT – Citi rates the stock as Sell
Post the AGM’s guidance for underlying profits before tax to rise by between 6%-19% on the prior year, Citi analysts have added 2% on top of their estimated growth numbers.
Read MoreFlight Centre Flags Profit Lift
Travel group, Flight Centre has gone all bullish about its outlook for 2017-18, forecasting not only a solid December half, but a full year profit rise of 15%.
Read MoreFLT – Morgan Stanley rates the stock as Underweight
Morgan Stanley’s survey suggests that higher mortgage rates will put more pressure on household consumption and encourage borrowers with interest-only loans to switch.
Read MoreFlight Centre Through ‘Discounting’ Turbulence
Flight Centre shares jumped 11% yesterday – hitting a three-year highs in the process after the travel group suggested that the heavy discounting of international airfares was ending.
Read MoreFLT – Macquarie rates the stock as Underperform
The company has revised underlying FY17 pre-tax profit guidance to $325-330m, highlighting the US and UK businesses are expected to deliver record results.
Read MoreFlight Centre Through Turbulence?
Flight Centre shares jumped sharply yesterday when a profit shortfall became a positive.
Read MoreFLT – UBS rates the stock as Downgrade to Neutral
The company’s share price has risen 25% in the year to date and UBS observes it has outperformed the broader market. This, coupled with a more sombre outlook for the Australian discretionary retail environment, is the main driver of the broker’s downgrade to Neutral from Buy.
Read MoreFLT – Morgans rates the stock as Underweight
Morgan Stanley observes the Australian consumer environment has weakened, yet the market appears more constructive on the company’s earnings outlook.
Read MoreFLT – Deutsche Bank rates the stock as Hold
International departures rose 6.9% in March having risen 7.0% last March. But Easter was in March this year and April last year. The broker estimates a 12-month growth rate of 4.7%.
Read MoreHeadwinds Hit Flight Centre
Qantas (QAN) certainly felt it (see separate story), but compared to the damage done to Flight Centre (FLT), it was only a glancing blow. Flight Centre, the country’s biggest travel agency group took a head-on whack from the global air fare war and the weak local travel market in the six months to December.
Read MoreFLT – Morgan Stanley rates the stock as Underweight
Morgan Stanley suspects second half guidance is again too bullish. The broker’s data points to an acceleration in international flight price deflation. Analysis of historical seasonality trends also highlights a risk to FY17 profit guidance.
Read MoreWill The Internet Kill Flight Centre?
In late 2008, as the Global Financial Crisis was shaking the very foundations of the financial system, Flight Centre (ASX: FLT) hit $8.00. It was down 75% from its all-time high only a year earlier.
Read MoreFlight Centre’s Earnings Outlook Weakens
Ahead of its AGM, Flight Centre (FLT) has indicated earnings are likely to be significantly skewed to the second half in FY17. The guidance provided to the market is below broker forecasts and suggests pre-tax profit will be $320-355m for FY17, versus several forecasts that were above or at the top end of that range.
Read MoreFLT – Deutsche Bank rates the stock as Hold
The latest international departure figures are encouraging, Deutsche Bank believes, as they show the strongest rate of growth in the last 12 months and a positive for Flight Centre.
Read MoreFlight Centre Hits Turbulence
Investors took a wary, but slightly positive stance with Flight Centre’s (FLT) 2015-16 results yesterday and veiled warning about the current financial year.
Read MoreIs Flight Centre A Bargain?
Following a recent trading update, Flight Centre (ASX:FLT) shares are trading at around their lowest levels for some years. In its announcement to the market FLT attributed the weak trading to a wide assortment of issues including: the Federal election; Brexit; airfare price wars; investment in key improvement strategies and the Zika virus.
Read MoreFlight Centre: Structural Or Cyclical?
Flight Centre (FLT) shares took another whacking yesterday in the wake of its shock profit downgrade on Monday and the spate of broker downgrades which naturally followed the update.
Read MoreFlight Centre Warns On Profit
Flight Centre Travel Group (FLT) shares fell 9% to $33.55 yesterday after the travel group produced another earnings downgrade.
Read MoreFlight Centre Cruising Despite “Challenging Conditions”
Flight Centre (FLT) shares held up solidly in yesterday’s mostly weaker trading session after it reaffirmed its full-year profit guidance in the wake of a 3.4% rise in interim earnings for the December half year.
Read MoreFlight Centre Off To Solid Start To FY16
And a solid update from Flight Centre Travel Group (FLT) yesterday with the annual meeting told that the company has “generally … performed in line with expectations” in the first four months the current financial year.
Read MoreFLT – Deutsche Bank rates the stock as Buy
International departures in September rise 2.3%, which Deutsche Bank observes is an improvement from August. Leisure was better but corporate was weaker.
Read MoreFlight Centre’s Ongoing Evolution
It’s no secret that Flight Centre’s corporate travel business is growing fast. Less obvious is the potential elsewhere.
Read MoreFLT – Macquarie rates the stock as Underperform
Macquarie has updated its transport sector valuations based on new forecasts for the Australian economy and exhcange rates. The main changes are to AUDUSD and AUDEUR expectations. The impact is mixed across transport sector stocks depending on the extent of foreign revenes and costs.
Read MoreFLT – Deutsche Bank rates the stock as Buy
International departures rose 4.4% in July, an improvement on June’s 2.8%. Deutsche Bank notes this is in line with Flight Centre’s upbeat commentary regarding corporate business performance.
Read MoreFlight Centre Clears Turbulence
Flight Centre (FLT) shares leapt 15% at one stage yesterday after reporting expectations of an improved performance in 2015-16.
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