Jetset Travelworld expects a flat first-half profit as Australia’s leisure market struggles with soft retail prices.

Chairman Tom Dery has told the company’s annual general meeting the group’s travel management business, QBT, had experienced a reduction in total transactions in the four months to October 31 as government agencies reduced their travel spending.

Jetset’s transaction levels for the first half of 2012/13 are expected to be 10 per cent below where they were during the corresponding period in 2011/12.

But, Mr Dery said, this would be partly offset by a nine per cent reduction in costs from a redundancy program announced in June.

Jetset’s Travel Management arm shed 110 jobs as it overhauled the loss-making entity which provides flights and accommodation bookings to government and corporate clients.

Preliminary trading results for the first four months of 2012/13 indicated that Jetset was on track to record a profit before tax that was largely in line with the corresponding period in 2011/12, Mr Dery said.

He said market conditions had remained largely consistent with trends experienced during the previous financial year, with plentiful supply of affordable international and domestic airfares.

“Consistent with commentary from industry participants, the leisure market in Australia has experienced low growth levels due largely to the decline in average selling prices,” he said.

The company also reported paying $800,000 as part of the retirement of chief executive Peter Lacaze.

Former senior Qantas executive Rob Gurney took over on September 30.

Jetset is also spending $2.4 million on a strategic review.

In August, Jetset announced a 71 per cent fall in full-year profits to $5.5 million, compared with $19.2 million in 2010/11.

Jetset Travelworld also operates Harvey World Travel, Qantas Holidays and BestFlights.com.au.