Flight Centre Travel Group (FCTG) has reported a record total transaction value (TTV) of $24.5 billion for the 2025 financial year, despite a turbulent trading cycle marked by economic headwinds and geopolitical uncertainty.
The 3 per cent rise in TTV was announced alongside the group’s underlying profit before tax (UPBT) of $289.1 million and a statutory profit before tax (PBT) of $213 million.
While statutory profit was 3 per cent down on FY24, the company says its record TTV demonstrated resilience during one of the toughest operating environments this decade.
“After two years of strong recovery post-COVID, FY25 proved to be a more challenging trading period,” FCTG Managing Director Graham Turner said.
“The challenges we encountered should not, however, prove to be long-term headwinds for our business given they were generally cyclical and potentially short-term in nature; or within our control and, therefore, able to be addressed internally.”
Leisure lifts
The leisure business achieved $11.8 billion in TTV, up 6.7 per cent year-on-year. However, UPBT fell 5.3 per cent to $175 million.
Despite the dip, profits remained around 35 per cent higher than pre-COVID levels, underlining the structural changes in the division.
Growth was strongest in Travel Money, which surged 31 per cent to $1.2 billion in TTV, and Ignite, which jumped 20 per cent to $455 million.
Independent agents and agencies also contributed significantly, with a 17 per cent increase to $2.3 billion.
Cruise and tour sales in Australia grew by around 20 per cent, although investments in Cruiseabout locally and Cruise Club in the UK led to modest losses as the businesses were rebuilt for long-term profitability.
Chief among upcoming initiatives is the launch of a new leisure loyalty program in the first half of FY26. Covering Flight Centre, Travel Associates and Cruiseabout, the program is expected to drive repeat business, increase spend per booking, and open new revenue streams with suppliers and partners.
Corporate gains, Asia drains
FCTG’s corporate arm delivered $12.3 billion in TTV, up 2 per cent year-on-year.
Despite the lift in corporate TTV, UPBT came in at $190 million, a 10 per cent fall overall. But when excluding Asia’s losses, profit grew by 6 per cent.
Corporate Traveller was a standout, particularly in the US, where second-half TTV rose 12 per cent in a contracting market. Flight Centre said the brand is on track to become a $5 billion-per-year business during FY26.
FCM Travel also expanded its client base, securing contracted accounts worth $1.3 billion, while broadening its meetings and events services.
However, Asian corporate business underperformed, recording a $22 million loss compared to a $9 million profit the previous year.
Turbulence hits
According to FCTG, the final quarter of FY25 proved particularly challenging.
Escalating tensions in the Middle East, combined with a global downturn in leisure travel to the United States and region-specific issues in Asia, disrupted peak trading.
In Australia, bookings to the US dropped 11 per cent in Q4 after rising 7 per cent over the first nine months of the year, with many travellers opting for closer-to-home destinations or delaying commitment to long-haul holidays.
While significant, FCTG said the disruptions were cyclical and likely to be short-term. It added that some signs of stabilisation have already appeared, including improving consumer sentiment indicators and increased enquiry volumes across both leisure and corporate channels.
“While we expect some ongoing turbulence early in FY26, we are also starting to see signs of stabilisation, which mirrors our experiences after other cyclical downturns,” Turner said.
“Historically, travel has proven to be a resilient sector with a long record of year-on-year growth.”
Future focus
To offset volatility, FCTG has implemented cost optimisation measures to keep expenses broadly in line with FY25.
Capital expenditure will also be reduced by 15–20 per cent in FY26, with priority given to projects in digital, artificial intelligence (AI), cruises, tours, and meetings and events.
AI remains a core focus for the group, with Quantium and Anthropic partnerships embedding new capabilities across leisure and corporate operations.
In corporate, FCM’s AI-powered virtual assistant “Sam” has been relaunched, while in leisure, consultants are being equipped with Salesforce tools and AI “co-captains” to improve customer insights and automate tasks.
The company also flagged that its adoption of new airline distribution models, particularly New Distribution Capability (NDC), is tracking ahead of many competitors. Globally, adoption is at 10–15 per cent, but above 50 per cent with some carriers.
Balance sheet strength
The results come as Flight Centre continues to return value to shareholders, with nearly $1 billion in capital management initiatives undertaken since FY24. This included a $200 million convertible note buy-back, a $92 million dividend, and repayment of $100 million in bank debt.
Directors declared a final dividend of $0.29 per share, bringing full-year dividends to $0.40 per share, representing a 52 per cent return of underlying net profit after tax.
Optimistic outlook
Flight Centre Travel Group expects the early months of FY26 to remain challenging, but forecasts accelerated profit growth in the second half as conditions stabilise and investments in loyalty, AI and digital deliver stronger returns.
The group reiterated its longer-term target of achieving a 2 per cent UPBT margin, supported by productivity gains, new growth engines and a strategy that balances cost discipline with innovation.
“To boost earnings in a volatile climate, we have implemented strategies to hold underlying costs at FY25 levels, while pursuing TTV growth opportunities,” Turner remarked.
“Looking further ahead, strong capital management, brand and geographic diversity, productivity initiatives and ongoing investment in new growth engines, such as loyalty, cruise and events, position FLT for improved profitability and resilience.”
For more info on Flight Centre Travel Group, visit www.fctgl.com.
