Flight Centre Travel Group has reported a 7 per cent rise in total transaction value (TTV) to $12.5 billion for the first half of FY26, with underlying profit before tax (UPBT) climbing 4 per cent to $124.6 million as its corporate division and AI investments begin to reshape the business.
The strong result, covering the six months to December 31, 2025, lands against the backdrop of a turbulent FY25 that saw full-year underlying profit before tax fall to $289.1 million amid geopolitical disruption and a pullback in US-bound leisure bookings. That context makes the first-half FY26 numbers a shift in momentum, with the group reaffirming full-year profit guidance of $315 million to $350 million.
Revenue rose 6 per cent to $1.4 billion, while FCTG says its cost margin fell to a record low of 9.6 per cent of TTV, down from 9.9 per cent in the same half last year. In simple terms, the company is spending less to generate each dollar of sales than at any point in its history.
“Our results reflect our global model’s strength and our brands’ enduring value as we continue to evolve,” FCTG Managing Director Graham Skroo Turner said.
Where is the profit growth coming from?
FCTG says its corporate arm is doing the heavy lifting, reporting a 20 per cent uplift in corporate UPBT, driven by a 6 per cent rise in TTV and a 13 per cent improvement in TTV per full-time employee. The company says its Asian corporate operations have returned to profitability after recording a $22 million loss in FY25.
Corporate Traveller in the US grew TTV by 13 per cent, while FCM Travel secured almost $600 million in new contracted accounts during the half. “The corporate business continues to perform strongly, powered by advanced technology platforms driving improved customer experience and enhancing consultant productivity,” Turner said.
What’s happening in leisure?
Leisure TTV grew 10 per cent, though FCTG says first-half leisure profit was lower year-on-year as expected, with the company pointing to a temporary shift toward more affordable international destinations and early cruise investments as factors. The group says January leisure results were a record, signalling a turnaround heading into the stronger second half.
Online TTV rose 14 per cent to nearly $900 million, while specialist brands, including Ignite and independent agents, delivered TTV growth above 30 per cent. Scott Dunn, the UK luxury operator acquired in 2023, reported 20 per cent TTV growth and almost 80 per cent profit growth. FCTG’s acquisition of Iglu is also accelerating its cruise push, with the company positioning for more than $2 billion in annualised cruise TTV.
The World360 Rewards loyalty program, which launched in November 2025 across Flight Centre, Travel Associates and Cruiseabout, is reported to be gaining early traction, particularly among younger travellers, though no membership figures were disclosed.
“The leisure business enters the second half with solid momentum, supported by improving profitability, a growing loyalty program and record results in January,” Turner said. “With the inclusion of our recent acquisition, Iglu, leisure is now on track to top its FY25 profit and to potentially deliver record second-half TTV.”
Read our coverage of the World360 Rewards loyalty program event, held last week in Sydney, here.
How is AI reshaping the business?
FCTG says AI tools have now triaged more than 8 million emails and saved an estimated 67,000 hours across the business. In leisure, a co-consulting tool built in partnership with Anthropic reportedly saves consultants up to 30 minutes per itinerary by surfacing relevant hotels, activities, and flight trends ranked by likelihood to convert.
In corporate, FCM’s AI assistant “Sam” and Corporate Traveller’s equivalent “Mel” are progressing through pilot phases ahead of wider rollout in the second half. FCTG is also preparing to launch MelonPay, a new payments and expense product for its corporate clients in the Northern Hemisphere.
“Across the group, we’re accelerating digital evolution and AI innovation to build a technology-enabled, AI-driven operating model that strengthens our competitive position while preserving FLT’s high-touch service culture and maintaining strict cost discipline,” Turner said.
What does the outlook look like?
FCTG reaffirmed underlying profit before tax (UPBT) guidance of $315 million to $350 million for FY26, with the midpoint of $332.5 million implying 15 per cent growth on FY25. The group typically earns around 60 per cent of its annual profit in the second half, and says both leisure and corporate are on track for year-on-year profit growth.
Directors declared an interim dividend of 12 cents per share, fully franked, meaning shareholders receive a full tax credit on the payout. That’s up 9 per cent on the same period last year.
FCTG expects the second half to accelerate, pointing to record January leisure trading, Iglu’s contribution boosting year-on-year comparisons, a deeper Asia turnaround following heavy second-half FY25 losses, and productivity gains from its Global Business Services and Productive Operations programs scaling across the group.
“Despite challenging conditions, demand remains resilient and we’re using our scale, people and technology to capture a growing market,” Turner said. “We are expanding into new sectors and creating additional revenue streams beyond traditional corporate travel management and leisure retailing.”
KARRYON UNPACKS: FCTG’s record-low cost margin and accelerating AI tools signal a business investing hard in consultant productivity. The loyalty program rollout, cruise expansion through Iglu and specialist brand growth above 30 per cent suggest the leisure playbook is diversifying fast.
