Air Australia's financial issues and entire fleet grounding is expected cost Flight Centre Limited up to one million.

The company said in a financial update that the voluntary administration of the company could cost it up to one million, however, the financial burden could have been worse had it not take action to minimize its risks prior.

“The company took steps to protect its customers and shareholders after travel insurance providers removed insolvency coverage fore the airline in December,” the company said.

“Had FLT not taken action to minimize company and customer risk, losses would have been greater.”

Despite the potential impact to profits, the company reported an 18 percent increase in profits before tax (PBT) for the final six months of 2011 over the same half-year period in 2010.

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