Flight Centre Travel Group (ASX:FLT) shares fall today — here's what investors are watching

Sonal Goyal

26 August 2026 06:10 PM AEST

Flight Centre Travel Group (ASX:FLT) shares fall today — here's what investors are watching

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Key Highlights

Record group TTV increased 4.7% to $25.7 billion in FY26, with growth across both leisure and corporate operations.
Underlying PBT declined 4% to $278 million after Q4 disruption reduced leisure profit by about $60 million.
Statutory NPAT increased 38% to $149 million, while EPS rose 42.9% to 70.9 cents per share.
FY26 dividends increased 5% to 42 cents per share, with early FY27 leisure trading showing record July TTV.

Flight Centre Travel Group (ASX:FLT) shares fell after the travel group's FY26 profit growth masked a sharp Q4 Earnings hit within its leisure division from Middle East travel disruption. Flight Centre (ASX:FLT) shares were trading at $11.98, down 7.52% (-$0.98), as at 3:44pm AEST on 26 August 2026.

Flight Centre Travel Group delivered record transaction volumes in FY26, although the final quarter materially altered the year's profit trajectory. Group TTV increased 4.7% year on year to $25.7 billion, compared with 6.9% growth during the first nine months. Revenue increased 2.5% to $2.9 billion.

The principal divergence was between transaction growth and underlying profitability. Underlying EBITDA increased 3.9% to $466 million, while underlying PBT declined 4% to $278 million from $289 million. The company attributed the difference partly to higher software amortisation, new leisure Lease costs and increased net interest expense.

The leisure division absorbed much of the late-year disruption. After tracking towards an underlying PBT of approximately $200 million through the first three quarters, the Business recorded an estimated $60 million profit impact in Q4 as escalating Middle East tensions disrupted travel patterns.

Corporate travel remained the stronger earnings contributor during FY26. Corporate TTV increased 2.9% to $12.7 billion and revenue rose 3.3% to $1.2 billion. Underlying EBITDA increased 24.4% to $275 million, while underlying PBT rose 28% to $240 million. Corporate Traveller's TTV exceeded $5 billion for the first time, while the US business recorded TTV above US$2 billion.

Leisure TTV increased 7.4% to $12.6 billion, but this growth did not translate into higher earnings. Revenue rose 2.6% to $1.4 billion, while the revenue Margin fell to 11.4% from 11.9%. Underlying EBITDA declined 6.7% to $250 million, and underlying PBT fell 21.7% to $139 million from $177 million. The division also processed more than $250 million in airfare refunds following the escalation of Middle East tensions.

Despite the decline in underlying PBT, statutory PBT increased marginally by 0.2% to $213 million. Statutory NPAT rose 38% to $149 million, its highest post-COVID level, although the comparison benefited from deferred tax asset write-offs that reduced the FY25 NPAT base. EPS increased 42.9% to 70.9 cents, exceeding the rate of NPAT growth as share buy-backs reduced the number of shares on issue.

The company completed its initial $200 million on-market buy-back involving 16.2 million shares and commenced another $200 million program in July 2026. It also issued a $450 million convertible note during FY26 to refinance existing notes and partly fund the Iglu acquisition.

Early FY27 trading indicates a recovery in leisure activity, with July TTV reaching a record monthly level and exceeding the corresponding pre-pandemic 2019 peak. Management expects corporate FY27 profit to be weighted towards the second half. FY27 earnings guidance is scheduled to be provided at the company's November 2026 AGM.

Conclusion

Flight Centre's FY26 results show a business with record transaction volumes but uneven earnings performance across its divisions. Corporate delivered substantial profit growth, while leisure earnings declined as Q4 disruption, margin pressure and changing travel patterns affected the result. Statutory NPAT and EPS increased significantly, supported partly by the prior-year tax comparison and share buy-backs. Early FY27 leisure indicators have improved, although the group remains exposed to geopolitical disruption, currency movements, interest costs and the timing of corporate account wins.

FAQs

Q: What was Flight Centre's FY26 TTV?

A:Group TTV reached a record $25.7 billion in FY26, increasing 4.7% year on year.

Q: Did Flight Centre's underlying profit increase in FY26?

A:No. Underlying PBT declined 4% to $278 million from $289 million.

Q: How did statutory NPAT perform?

A:Statutory NPAT increased 38% to $149 million, although the comparison benefited from a lower FY25 base following deferred tax asset write-offs.

Q: What happened to the leisure division's profit?

A:Leisure underlying PBT declined 21.7% to $139 million, despite TTV increasing 7.4% to $12.6 billion.

Q: What is Flight Centre's FY27 earnings guidance?

A:The company plans to provide FY27 earnings guidance at its Annual General Meeting in November 2026.

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