On Thursday, Australia’s largest travel agent Flight Centre Travel Group (ASX: FLT) presented at the Macquarie Conference. The company reaffirmed their FY17 guidance of $300m to $330m underlying profit before tax, down 7-15% on the previous corresponding period, which had been impacted by declining prices in international airfares over the last 12 months. We believe international airfare pricing is beginning to show signs of stabilisation and expect management to reduce costs and with a conservative balance sheet, we expect to see the potential for capital management later this year. Shares in Flight Centre closed up 12.9% for the week. We own Flight Centre as a market-driven investment in WAM Capital, WAM Leaders and WAM Active.