• Record TTV achieved in a challenging global trading cycle
• Challenges largely cyclical and likely to be short-term
• Strategies in place to address market volatility, with a focus on cost optimization and productivity gains

Flight Centre Travel Group (FLT) has released its audited FY25 accounts, reporting a record TTV of $24.5 billion, up 3% year-on-year (YOY) in a challenging global trading cycle. The company's underlying profit before tax (UPBT) was $289.1 million, at the midpoint of the recently revised range, while statutory PBT was $213 million, down slightly on FY24. The results were impacted by underperformance and non-recurring costs in Asia, as well as the significant impacts of escalating tensions in the Middle East and the ongoing global downturn in bookings to the United States on leisure results late in the year. Despite these temporary challenges, the corporate business again delivered record TTV, with the Corporate Traveller and FCM brands outperforming. The leisure business generated 86% of its record FY19 TTV with just 42% of its FY19 FTE workforce, highlighting strong productivity gains. FLT has unveiled plans for a leisure loyalty program starting later this calendar year, which is expected to create a new engine of growth. The company has also undertaken $450 million in capital management initiatives during FY25, including a convertible note buy-back, on-market issued capital buy-back, and dividend payments. Looking ahead, FLT believes the cyclical challenges that affected FY25 results will continue to impact booking and travel patterns early in FY26, but accelerated profit growth is expected during the 2H as key projects gain momentum and the trading cycle gradually improves.

FLT expects FY26 1H UPBT to be reasonably flat given a degree of ongoing volatility early in the Q1 and the comparatively strong FY25 2Q result. Accelerated profit growth is expected during the 2H as key projects gain momentum and as the trading cycle gradually improves.

FLT is working with its airline partners to boost margins and deliver savings to customers via NDC, which now has a 10-15% adoption rate within FLT globally and is above 50% with some key carriers. The company expects to provide FY26 market guidance at its Annual General Meeting on November 12, 2025, and will prioritize sustainable YOY profit growth in the near-term, while retaining its longer-term focus on delivering a 2% UPBT margin.