Flight Centre Travel Group (ASX:FLT) said the Middle East conflict has "heavily impacted" its early fiscal fourth quarter results, including an estimated AU$10 million profit impact to leisure segment results in April, according to a Tuesday filing with the Australian bourse.
May and June are typically stronger leisure trading months, but cancellations, refunds, and reduced forward bookings due to ongoing volatility could have a greater impact heading into the close of the fiscal year, the company said.
Flight Centre Travel Group's corporate business has not been significantly impacted, although the company is monitoring potential flow-on effects from higher airfare prices and macro-economic factors if the volatility persists.
Additionally, the strength of the Australian dollar will also impact overseas profit translation in the fiscal fourth quarter compared with a year earlier, the company said.