The Australian dollar's recent slide doesn't appear to be dampening our enthusiasm for overseas travel.
Global travel giant Flight Centre says ticket sales to the United States and Europe are strong despite the dollar having dropped about 20 US cents against the greenback since September.
Chief operating officer Melanie Waters-Ryan said while the lower dollar might dent spending money for Australians travelling overseas, people were snapping up bargain airfare deals.
"That would show me that customers are making their plans for the northern hemisphere summer," she said.
"There doesn't seem to be a change in consumer pattern (with the falling dollar)."
Her comments came as the travel company reported a first half net profit of $110.3 million, down 9.5 per cent from a year ago amid a volatile Australian travel market.
Managing director Graham Turner said sales growth in Flight Centre's core Australian operations was weak, but he attributed that to weaker consumer confidence rather than a falling dollar.
He expects some recovery as the year progresses, with cheap international airfares set to bolster sales during what he described as a "golden era" of travel.
"We are now heading into what is normally a peak booking period and there is a chance to achieve accelerated growth, given the fourth quarter last year was a comparatively weaker trading period in Australia," he said.
"In terms of customer enquiry, our shops are generally as busy as ever."
Flight Centre impressed investors by confirming its forecast of a full year underlying pre-tax profit of between $360-390 million, a four per cent rise on the record $376.5 million in 2013/14.
Its shares soared 12 per cent, or $4.25, to $39.50.
"This morning's numbers have surprised to the upside a little, hence the jump in the stock price," Australian Stock Report's head of research Chris Conway said.
Chief financial officer Andrew Flannery is cautiously optimistic about the second half after seeing some "green shoots" emerging since November.
"What we have seen is improving spend from the consumer on leisure travel," he said.
"There does seem to be some growth coming back into the market."
Flight Centre's overseas businesses offset modest growth in Australia in the first half, with earnings from international operations rising 25 per cent to $25.3 million as new stores were opened around the world.
Total transaction value rose 8.8 per cent to $8.1 billion, with record TTVs across all of its operations including Australia, the US, UK, China and South Africa.
But Canada and New Zealand were still works in progress, Mr Turner said, as high costs and competition hit profits.
PROFIT DOWN BUT FLIGHT CENTRE ON SCHEDULE
* Net profit of $100.3m, down 9.5 pct from $110.8m
* Total revenue of $1.1b, up 4.6 pct from $1.05b
* Fully franked interim dividend steady at 55 cents
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