Flight Centre Travel Group reported a mixed fiscal 2026 performance, with total transaction value (TTV) rising 7.4% to AUD 12.6 billion but underlying EBITDA up just 4% year-on-year. Corporate underlying profit before tax increased 28% to AUD 240 million, driven by efficiency gains, though leisure profit fell sharply in the fourth quarter.
Leisure underlying profit before tax dropped to about AUD 2 million in Q4 from AUD 45 million in the prior year, reflecting AUD 60 million in profit impact from the Middle East conflict, including roughly AUD 250 million in airfare refunds. Corporate Traveller’s TTV surpassed AUD 5 billion for the first time, while U.S. corporate TTV exceeded USD 2 billion, up 10% in local currency.
Productivity metrics improved, with TTV per travel consultant up 34% since 2023. The Flight Centre brand’s Net Promoter Score reached 63, a 14-point increase and a record high. The group’s low-cost margin narrowed to 9.5%, the lowest on record, while net interest expense rose by AUD 16 million year-on-year.
Executives highlighted ongoing transformation efforts, including AI-driven initiatives described as industry-leading. Chris Galanty, corporate CEO, noted the shift toward "Productive Operations," emphasizing efficiency gains as a core driver of performance. James Kavanagh, leisure CEO, acknowledged the Q4 disruption but indicated a "reasonably well" start to July.
Capital management included a new share buyback program of up to AUD 200 million, following a previous buyback of a similar scale. The group also completed portfolio adjustments, divesting Cross Hotels and the Pedal Group stake while acquiring Iglu and Fresh and investing in Blockskye.
Flight Centre’s shares fell 4.4% to AUD 12.39 following the update, leaving the stock 25.2% below its 52-week high of AUD 16.56 and 28.9% above its low of AUD 9.61. The company’s market capitalization stood at AUD 1.81 billion, with a P/E ratio of 24.9 and a dividend yield of 3.16%.
