Key Highlights

  • Flight Centre has issued initial FY27 guidance for underlying PBT of $290 million to $325 million.
  • That range compares with $278 million in FY26 underlying profit.
  • The company expects a weaker first half, with about $30 million of specific headwinds.
  • The guidance was issued at the Annual General Meeting on 11 November 2026.

Flight Centre Travel Group Limited (ASX:FLT) is in focus on the ASX 200 today after using its annual general meeting on 11 November 2026 to issue initial FY27 guidance. Managing director Graham Turner told shareholders the company expects Underlying Profit before tax (PBT) of $290 million to $325 million for the year to 30 June 2027, which would represent growth of 4% to 17% on the $278 million delivered in FY26. The outlook comes with a clear warning that the first half will be softer, with the result weighted to the second half of the year.

FY27 guidance and the first-half skew

The headline range points to a return to profit growth after a year in which conflict in the Middle East disrupted leisure travel. However, Flight Centre expects the first half of FY27 to contribute only about 31% of the full-year result, a lower share than in previous years. First-half underlying PBT is expected to come in below the $125 million recorded in the first half of FY26.

Mr Turner outlined a combined drag of about $30 million on the first half. The company has moved World360 Rewards and Productive Operations costs above the line, which accounts for about $16 million. Upfront Investment of up to $5 million is going into corporate growth in the small and medium enterprise market in the Northern Hemisphere. The absence of a $5 million Asian bad Debt Reversal booked last year also weighs on the comparison.

Global touring is expected to swing from a $3.5 million profit to a $1.5 million loss because of Middle East tensions, while group net interest expense is forecast to rise by $6 million to $8 million. The company's global head office costs are expected to have a first-half impact of $11 million to $13 million.

Where the result lands within the range will depend on the recovery in leisure trading during the fourth quarter, returns from investment in the corporate business, and the extent to which higher interest costs and weaker touring can be offset.

Early trading in the new financial year

Flight Centre gave shareholders some insight into trading so far. July was the leisure business's best month on record for total transaction value (TTV), surpassing its pre-pandemic peak.

In the corporate business, TTV rose about 7% in constant currency during the first quarter, with the United States up about 15% in US dollar terms. Measured in Australian dollars, global corporate TTV growth was 1.2%, reflecting the effect of currency movements. TTV measures the total value of travel booked through the group, including airfares, hotels, cruises and tours, and is a broader activity gauge than revenue, which captures only the commissions, fees and margins Flight Centre earns on those bookings.

The corporate travel Brand FCM is starting trading on accounts with annualised spend above $350 million this month and next. It has also secured a further $400 million in estimated annual spend this year, mostly from the second half. In cruise, 85% of year-one itineraries and 35% of year-two itineraries on the company's exclusive 12-month charters have been sold.

A look back at FY26

The FY27 outlook builds on a year of record activity but lower profit. In FY26, group TTV reached a record $25.7 billion, up 4.7%. Underlying EBITDA rose 3.9% to $466 million, while underlying PBT fell 4% to $278 million. Statutory net profit after tax rose 38% to $149 million, and Earnings Per Share rose 43% to 71 cents.

The corporate division lifted TTV by 2.9% to $12.7 billion and grew underlying PBT by 28% to $240 million. The leisure division increased TTV by 7.4% to $12.6 billion, but underlying PBT fell 21.7% to $139 million. Flight Centre estimates Middle East hostilities cost the leisure Business about $60 million in profit, and leisure's underlying PBT in the disrupted fourth quarter of FY26 was just $2.4 million.

Full-year dividends totalled 42 cents per share, up 5%.

Mr Turner acknowledged the gap between activity and earnings, telling shareholders: "Our challenge in recent years has been converting TTV growth into bottom-line profit growth." He added: "I believe the business is well placed for the future."

Capital management and portfolio changes

Flight Centre has been active on its balance sheet. It completed a $200 million share buy-back and began a new buy-back of up to $200 million in July. It also issued a $450 million convertible note, which partly funded the Acquisition of cruise specialist Iglu.

The group has also been simplifying its portfolio. It sold Cross Hotels and Resorts and its stake in Pedal Group, generating about $80 million in combined proceeds, which it is redeploying into its core travel strategy.

Remuneration vote and board changes

Chairman Gary Smith flagged that the company could receive its first-ever strike against its remuneration report, with support appearing likely to fall just short of the 75% threshold. Under the Corporations Act, a strike occurs when 25% or more of votes cast oppose the remuneration report. Two consecutive strikes trigger a vote on whether directors must stand for re-election. The formal voting results are lodged with the ASX after the meeting closes.

The AGM also marked the retirement of Rob Baker from the board after 13 years. Gareth Turner succeeds him as chair of the audit and risk committee.

Key Takeaways

Flight Centre is on the ASX 200 today after issuing initial FY27 guidance for underlying PBT of $290 million to $325 million, compared with $278 million in FY26. The company expects a weaker first half, with about $30 million in specific headwinds including cost reclassification, corporate investment, touring losses and higher interest expense, and first-half PBT below last year's $125 million.

Early trading offers some support, with July delivering record leisure TTV and corporate TTV up about 7% in constant currency in the first quarter. The key items to watch are the leisure recovery in the fourth quarter, the conversion of new FCM accounts into earnings, progress on the up to $200 million buy-back and the final count on the remuneration report vote.