Highlights

  • Flight Centre Travel Group revised its FY26 underlying profit before tax expectations following disruption to leisure travel demand.
  • The company reported that international travel impacts affected fourth-quarter leisure earnings.
  • Corporate travel performance remained an important contributor during the financial year.
  • Flight Centre announced a new on-market share buyback program as part of its capital management approach.
  • Future performance will depend on travel demand trends and the company’s FY27 outlook.

Flight Centre Travel Group Limited (ASX: FLT) has revised its FY26 underlying profit before tax expectations after travel disruptions affected leisure operations during the final quarter of the financial year.

The company announced that it now expects underlying profit before tax (UPBT) for the year ending 30 June 2026 to be between $275 million and $295 million. This compares with its previous guidance range of $315 million to $350 million provided alongside its half-year results.

The company attributed the adjustment mainly to disruption affecting international leisure travel, particularly during the fourth quarter. Flight Centre also noted impacts from cancellations within its United Kingdom touring business and foreign exchange movements.

Leisure Travel Demand Affected by External Disruptions

Flight Centre stated that international travel disruptions reduced fourth-quarter leisure earnings by approximately $50 million. The company noted that the timing of improved conditions did not provide sufficient benefit to the FY26 result.

Despite the adjustment, Flight Centre highlighted that the first three quarters of FY26 delivered underlying profit before tax growth compared with the previous year. The company also indicated that both leisure and corporate businesses remained profitable during the fourth quarter, although leisure performance was affected by temporary demand disruption.

The company’s update highlighted the sensitivity of travel businesses to external events, particularly within international leisure markets where customer decisions can be influenced by broader conditions.

Corporate Travel Business Provides Support

Flight Centre’s corporate travel division remained an important part of its overall performance during FY26.

In the first half of FY26, the corporate division delivered increased underlying profit before tax compared with the previous corresponding period. The division benefited from continued transaction growth, productivity improvements and improved performance across several markets.

For the six months ended 31 December 2025, Flight Centre reported total transaction value (TTV) of $12,543 million, representing growth of 7%. Revenue increased 6% to $1,408 million, while underlying profit before tax rose 4% to $125 million.

The difference between TTV and revenue remains important when assessing travel businesses. TTV represents the total value of travel bookings processed, while revenue reflects the income retained by the company from those bookings.

Share Buyback Program Announced

Alongside its revised FY26 guidance, Flight Centre announced an on-market share buyback program of up to $200 million.

The program is expected to operate over a 12-month period, with the company retaining flexibility regarding the timing and extent of purchases depending on market conditions.

Flight Centre stated that the buyback is intended to reduce the number of shares on issue, support earnings per share and address dilution associated with convertible notes.

The company noted that there is no guarantee the full amount will be used and that the program may be suspended or discontinued depending on circumstances.

FY25 Provides Previous Performance Context

Flight Centre’s FY26 performance is being assessed against its FY25 results for the year ended 30 June 2025.

During FY25, the company reported total transaction value of $24.53 billion, increasing 3.3%, while revenue rose 2.7% to $2.78 billion.

However, underlying profit before tax declined 9.8% to $289.1 million. Statutory net profit after tax decreased 22.3% to $108.2 million, with basic earnings per share recorded at 49.6 cents.

The company paid a total FY25 dividend of 40 cents per share, fully franked.

Outlook Focuses on Travel Recovery and FY27 Trends

Following the FY26 guidance adjustment, attention remains on the company’s full-year results and future trading conditions.

Flight Centre’s upcoming results will provide further information regarding the impact of leisure travel disruption, performance across business segments and expectations for FY27.

The company continues to focus on its leisure and corporate travel operations, while monitoring changes in international travel demand and customer behaviour.

The company has previously highlighted longer-term growth opportunities across its travel businesses, although future outcomes will depend on market conditions and operational execution.

Conclusion

Flight Centre Travel Group (ASX: FLT) enters the final stage of FY26 after revising its profit expectations due to disruption affecting international leisure travel. While corporate travel performance provided support during the period, the company remains focused on managing changing travel conditions and assessing future demand trends. The upcoming full-year results will provide further insight into the company’s financial performance and outlook.