Corrected: UPDATE 1-Australia's Flight Centre cuts profit forecast, launches $141.2 million share buyback
CORRECTED-UPDATE 1-Australia's Flight Centre cuts profit forecast, launches $141.2 million share buyback Corrects share buyback amount conversion in headline and first paragraph to $141.2 million, from $130.2 million
June 17 (Reuters) - Flight Centre Travel Group FLT.AX on Wednesday cut its annual profit forecast after the Middle East conflict disrupted international leisure travel, and said it would buy back up to A$200 million ($141.2 million) of its shares.
The travel company now expects underlying profit before tax (UPBT) of A$275 million to A$295 million for the year ending June 30, down from its previous target of A$310 million to A$345 million.
Flight Centre said the revised outlook reflected a significant short-term impact from the Middle East conflict on international leisure travel rather than deterioration in underlying business conditions.
The company said fourth-quarter disruption is expected to reduce leisure earnings by about A$50 million, compared with previous expectations, alongside a roughly A$5 million hit to its touring business and a A$5 million to A$10 million adverse foreign exchange impact.
Flight Centre Travel also announced an on-market share buy back, following the completion of a previous programme in May that repurchased 16.2 million shares.
($1 = 1.4164 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Anil D'Silva)
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