Flight Centre shares took off after the travel agency group upgraded its guidance, saying continued strong growth in cash reserves should allow it to restore its dividend policy.
Flight Centre revised its 2009/10 pre-tax profit guidance to between A$160 million ($200 million) and A$180 million yesterday, up from between A$125 million and A$135 million.
"The revised guidance represents 60 per cent to 80 per cent growth on the A$99.8 million trading result achieved during 2008/09 and follows a stronger than expected first half," Flight Centre said.
Trading conditions stabilised globally during the first half, particularly in Australia, managing director Graham Turner said.
Flight Centre's shares were up A$1.38 or 7.8 per cent at A$19.08.
IG Markets research analyst Ben Potter says there is a lot for the market to like about the announcement. "Not only is this the biggest upgrade we've seen so far this year, the accompanying narrative is very encouraging."
Mr Turner said pre-tax profit for the six months to December 31 was likely to be between A$70 million and A$74 million, a 13 per cent to 19 per cent improvement on the previous corresponding half.
- AAP
Flight Centre shares shoot up
AdvertisementAdvertise with NZME.