Flight Centre says it likely hit a record $20 billion in annual sales after its north American travel businesses achieved significant growth in the second half of the financial year.
Shares in the Brisbane-based travel agency jumped to a 15-month high after an improved performance in the past six months led Flight Centre to upgrade its earnings guidance.
Managing director Graham Turner said Flight Centre's US business was on track for a record second half profit and its Canadian business had grown significantly from a year ago.
Sales volumes have also grown in Australia and New Zealand, and airfares are back in line with the prior year's prices, following "unprecedented discounting" during the first half of the financial year.
"Our achievements during the second half reflect a solid recovery after a challenging first half, which saw a combination of internal and external factors affect results," Mr Turner said.
The group's UK business is expected to deliver a record profit in local currency terms, though a significantly weaker British pound will negatively affect the conversion into Australian dollars.
Flight Centre expects it achieved second half underlying profit growth of between 2.5 per cent and 4.9 per cent, compared to the same period a year ago, with total annual sales of more than $20 billion expected.
Full year underlying profit before tax is expected to be between $325 million and $330 million, up from its previous forecast of between $300 million and $330 million.
But the improved guidance is still lower than Flight Centre's $352 million underlying profit in 2015/16.
The company's shares gained $4.14, or 10.4 per cent, to $44.10.
Flight Centre will release its annual financial results in August.
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