Flight Centre Posts Record $25.7 Billion Transaction Value as Leisure Slips in Q4
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Flight Centre Travel Group booked a record $25.7 billion in total transaction value for FY26, but fourth-quarter flight disruptions cut underlying pre-tax profit by 4 per cent to $278 million.
Group revenue rose 2.5 per cent to $2.9 billion for the twelve months ended June 30. Statutory earnings before interest, tax, depreciation, and amortisation increased 8 per cent to $430.6 million, while underlying EBITDA climbed 3.9 per cent to $466 million.
Middle East Flight Reductions Hit Leisure Bookings
A $60 million earnings decline in the fourth quarter derailed what had been nine months of steady profit expansion. Managing director Graham Turner said the leisure business was tracking toward $200 million in pre-tax profit before conflict in the Middle East prompted airlines to trim flight schedules.
Full-year leisure transaction value still rose 7.4 per cent to $12.6 billion, generating $1.4 billion in revenue. Early trading showed signs of recovery, with July transaction values setting a monthly record as seat capacity normalised on key routes connecting the Asia-Pacific region to Europe.
Corporate Bookings Provide Buffer
Corporate travel accounts insulated the broader business from sharper consumer pullbacks. Corporate transaction value rose 2.9 per cent to $12.7 billion and revenue gained 3.3 per cent to $1.2 billion, pushing the division’s underlying EBITDA up 24.4 per cent to $275 million.
Small and medium business unit Corporate Traveller exceeded $5 billion in transaction value for the first time, while the group’s US operations turned in more than US$2 billion. Management is counting on its proprietary booking platforms and cost programmes to protect margins as capacity stabilises across the first half of FY27.