Flight Centre expects a seven per cent slide in pre-tax profit due to writedowns on the value of its underperforming US and Indian businesses, plus an $11 million price fixing fine.
But the travel business is upbeat about the year ahead and says most customers are not cancelling bookings because of the MH17 disaster.
Flight Centre expects to have made a pre-tax profit between $322 million and $324 million in the 2013/14 financial year, down from $349.2 million in the prior year.
The result will be weighed down by a $48 million writedown on its US business and a $13 million writedown on its Indian operations, due to their weaker than expected performance.
Flight Centre has also had to pay $11 million in fines imposed by the Federal Court, for attempting to induce three airlines to enter into price fixing arrangements.
Managing director Graham Turner said the company grew its underlying profit, which excludes one-off items, in 2013/14, with record results from several key markets.
He expects sales and profit to grow in 2014/15, and said the downing of MH17 had not had a significant impact on its business.
"The tragic loss of MH17 is likely to have a modest impact on results, as most travellers are currently opting to maintain their bookings with Malaysia Airlines or other carriers," he said.
"Customers who have cancelled future Malaysia Airlines bookings have generally re-booked on other airlines, rather than cancelling their trips outright."
Mr Turner said growth in the company's Australian leisure operations slowed in the lead up to and following May's federal budget, due to a slide in consumer sentiment.
But cheap airfares should help the business to recover during the year ahead, he said.
"It's impossible to predict a time frame for a full recovery, although history shows that Australian travellers don't tend to postpone holidays for extended periods," Mr Turner said.
Flight Centre shares dropped 50 cents, or 1.1 per cent, to $46.80.
The company's finalised profit results will be released in August.
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