New Qantas Agreement Signed

Flight Centre Limited and Qantas have formally signed a preferred supplier agreement for 2006/07 and 2007/08.

Flight Centre anticipates that its overall earning capacity for 2006/07 under the terms of the new Qantas agreement will not be materially less to that which applied under the previous Qantas arrangements in respect of the 2005/06 financial year.

As has been the case in previous contracts, targets for the second year, 2007/08, are subject to negotiation at the end of 2006/07.