• Record $24.5 billion TTV result, up 3%
• UPBT of $289.1 million, down 9.8%
• Challenging global trading environment impacted performance

Flight Centre Travel Group Ltd has reported its FY25 results, with a record TTV of $24.5 billion, up 3% year-on-year. However, underlying profit before tax (UPBT) declined 9.8% to $289.1 million, impacted by a challenging global trading environment throughout the year. This included patchy trading conditions, escalating geopolitical tensions, US tariff turmoil, macro-economic uncertainty, and softness in the global corporate travel market. The company's proactive measures to address the volatility include cost optimisation, capex efficiency, portfolio refinement, and leveraging supplier partnerships. Flight Centre also initiated the 'Fusion Project' to improve operational efficiency and deliver scale benefits. The company continued to invest in its digital transformation, with channel diversification, technology investments, and AI integration to enhance the customer experience and boost productivity. The corporate segment delivered 2% TTV growth to $12.3 billion, with the US Corporate Traveller business outperforming. The leisure segment grew TTV by 6.7% to $11.8 billion, with strong contributions from specialist and independent categories. Flight Centre undertook $450 million in capital management initiatives during FY25, including a $200 million convertible note buyback, $100 million debt repayment, and a $200 million on-market share buyback.

The company has a positive medium to long-term outlook, with its large-scale leisure and corporate businesses delivering ongoing TTV growth and recurring revenue. The robust balance sheet allows for further capital management initiatives, and the resilient travel sector is generally growing consistently, with some promising signs of market stabilisation now emerging.