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Listed travel company Southern Travel has upgraded its annual profit forecast to $850,000 before tax.
The company - which specialised in inbound Japanese tourism before merging with the outbound travel company Walshe Group last year - previously hinted it might not make an operating profit due to a falloff in visitors from Japan.
However, chairman Rodney Walshe said yesterday the company was looking at an operating surplus and positive income from interest, foreign exchange and unusual non-recurring adjustments for its June year results.
Although arrivals to New Zealand and Australia from Japan continued to fall, the company said it was seeing the benefits of organisational changes.
The Walshe division was the general sales agent for Royal Brunei Airlines in New Zealand and had maintained "pleasing profitability" during the year.
A daily flight between New Zealand and Brunei starting in June would be a bonus in the next financial year.
Shares of Southern Travel were flat at 25c, a year low compared to its 12-month high of 48c.
- NZPA
