Travel agency group Flight Centre has reiterated its annual pre-tax profit guidance and says it's happy with its progress in 2009-10 so far.
"While we are reasonably happy with our progress so far and we are currently ahead of expectations, our previous full year profit guidance of a $125 million to $135 million pre-tax result remains in place," managing director Graham Turner told shareholders on today.
Late this morning, Flight Centre shares were down 10 cents at $16.30.
"Given the volatility the industry has experienced in recent years, it would be premature to amend our outlook at this early stage."
Flight Centre's first quarter pre-tax trading profit totalled $34 million, and was ahead of expectations.
Mr Turner said domestic leisure travel had been reasonable so far, due to more stable trading conditions, while corporate travel results continued to be affected by the global financial crisis.
The company's US results were also ahead of budget and "significantly" in front of the previous corresponding period.
"However, the company expects the overall US business to generate a first half loss, followed by a profit during the second half, which is traditionally the peak booking period for US travel agencies," Mr Turner said.
"The business is budgeted to break-even over the full year, but of course, this will depend on market conditions."
AAP