Flight Centre Travel Group anticipates a decline in its full-year profits before tax projection due to the outbreak of the COVID-19 coronavirus.
The company is projecting a range between $240 million to $340 million instead of its previous target of $310 to $350 million.
In its earnings report for the first half of fiscal year 2020, Flight Centre says it is “currently expecting significant second half earnings impact.”
The Brisbane, Australia-based travel company reports that its greater China and Singapore corporate businesses have been “significantly impacted by the Chinese inbound and outbound travel shutdowns.”
Flight Centre’s corporate businesses throughout the world have also been impacted during the past three weeks.
Demand for its leisure business has softened as travelers consider alternative plans.
Subscribe to our newsletter below
Graham Turner, global managing director and CEO, says the company “will continue to monitor developments, particularly the ongoing efforts to contain the virus’s spread.”
“As we address this challenge, we will draw on our SARS experience and focus on our people and customers in the short-term, with a view to benefiting from any pent-up demand, particularly in leisure, when the situation stabilizes and improves,” he says.
Turner says the company can weather the impact of COVID-19 due to its healthy cash position and its scale and diversity.
In its earnings for the first half of fiscal year 2020, Flight Centre reports a 5.8% year-over-year increase in revenue to $1.54 billion.
After-tax statutory profit declined 74% to $22.1 million, which the company attributes to high-profile global events such as the collapse of Thomas Cook.