Flight Centre's upgrade boosts shares

Flight Centre has boosted its annual profit guidance after strong growth overseas contributed to a better than expected half year performance.

Flight Centre has upgraded its full-year guidance after a 37 per cent lift in half-year profit. (AAP)

Flight Centre's international business has taken off, helping to lift the travel agency's first-half profit and prompting an upgrade of its full-year forecast.

Net profit of $102.2 million in the six months to December was up 37 per cent on the previous half, while total transaction value - what customers pay for flights and other travel services - lifted nine per cent to $10.2 billion.

Managing director Graham Turner said a better than expected half year performance had led Flight Centre to upgrade its forecast for annual pre-tax profit growth to between nine and 17 per cent, from the previous range of six to 15 per cent.

Flight Centre shares gained $5.19, or 10.4 per cent, to a record high of $55.26.

Citi analyst said Bryan Raymond said Flight Centre looked to be "on track and ahead of schedule" in turning around its international divisions and securing long-term offshore profitability.

Its Australian and New Zealand businesses generated $5.9 billion of transactions, up four per cent from a year ago, which Mr Raymond said was a little below Citi forecasts.

"The core Australia/NZ result was slightly below expectations as the business was disrupted by systems changes and a pull-back in sales and marketing costs," Mr Raymond said.

Flight Centre's divisions in the Americas, Europe, the Middle East and Asia generated the strongest growth.

"For the first time, the US business was profitable during the seasonally-softer first-half," Mr Turner said.

Further growth has been flagged in the domestic corporate travel division as well as its overseas divisions, including Asia which returned to profit after two years of losses.

"Generally the company expects first half operational trends to continue, with overseas businesses, particularly the large North American and Europe and Middle East operations, likely to drive FY18 profit growth," Mr Turner said.

FLIGHT CENTRE'S OVERSEAS GROWTH BOOSTS PROFIT:

* Half-year net profit up 37.2pct to $102.2m

* Revenue up 5.4pct to $1.4b

* Fully franked interim dividend up 15 cents to 60 cents