Flight Centre says the hike in the UK's airport departure is likely to hurt British travellers more than Kiwis.

The British government yesterday lifted British air passenger duty charges which are automatically added to the price of a ticker when bookings are made.

Because it is levied on distance traveled, passengers traveling on flights between the UK and New Zealand are among the hardest hit, with increases of 55% or 170 pounds ($NZ356) per person.

The Commerce Commission has warned Flight Centre about a promotional campaign that could breach the Fair Trading Act for telling people they could "fly for free".

The commission has issued warnings in relation to Flight Centre New Zealand’s advertising between May and September 2009.

The warnings were for Flight Centre’s “Fly for free” promotion, airfares not being available for the advertised price and the insufficiency of additional cost disclosure.

Flight Centre has been running the “Fly for free” promotion since June.

Travel agent Flight Centre Ltd today lifted its profit guidance for 2007/08, following "continuing healthy sales growth globally" during the second half.

Flight Centre said it now expects pre-tax profit to exceed $A210 million ($NZ265 million) for the 12 months to June 30, 2008.