Flight Centre’s FY25: $24.5B TTV Up 3%, Profit Down Nearly 10%, Dividend Steady

Record Growth Amid Global Challenges

Flight Centre Travel Group (FLT) reported a milestone FY25 with a record total transaction value (TTV) of $24.5 billion, marking a 3% increase despite a challenging global trading environment. The company faced headwinds including geopolitical tensions, US tariff disruptions, and cautious consumer sentiment that tempered profit growth.

Underlying profit before tax (UPBT) fell 9.8% to $289.1 million, reflecting these cyclical pressures and strategic investments. Statutory profit before tax was down 3% at $212.6 million. The board declared a fully franked final dividend of 29 cents per share, maintaining the full-year dividend at 40 cents, consistent with FY24.

Corporate Segment Drives Market Share Gains

The corporate travel division showed resilience with 2% TTV growth to $12.3 billion, buoyed by strong performance in the US market where Corporate Traveller achieved 12% volume growth in the second half. FLT’s dual-brand strategy, combining FCM’s global enterprise reach with Corporate Traveller’s SME focus, continues to win new accounts and expand market share.

Productivity improvements and digital platform investments, including the proprietary Melon booking tool and AI-powered virtual assistant Sam, are enhancing customer experience and operational efficiency. The corporate segment’s underlying profit was impacted by Asia losses and reduced supplier overrides but showed a 6% profit increase excluding Asia.

Leisure Segment Growth and Strategic Investments

FLT’s leisure business grew TTV by 6.7% to $11.8 billion, reaching 86% of pre-COVID transaction levels with a leaner workforce. Growth was driven by independent and specialist brands, with strong contributions from cruise and tour sectors. Investments in expanding the Cruiseabout network and acquiring CruiseClub UK incurred modest losses but are expected to fuel future growth.

Despite softness in some regions, particularly Asia and EMEA, and a Q4 slowdown linked to geopolitical tensions, the leisure segment remains on a positive trajectory. FLT is preparing to launch a new loyalty program in FY26 to deepen customer engagement and drive revenue diversification.

Proactive Cost Management and Digital Transformation

In response to market volatility, FLT implemented targeted cost optimization measures, including a recruitment freeze for support roles and a 15-20% reduction in capital expenditure planned for FY26. The company is also refining its portfolio by closing or repositioning underperforming assets such as StudentUniverse and The Travel Junction, while rebranding and relaunching others like Liberty and Topdeck.

Digital transformation remains a core focus, with ongoing investments in AI integration across the group. FLT’s AI Centre of Excellence and partnerships with Anthropic and Quantium are driving innovations that enhance productivity, customer experience, and competitive differentiation.

Strong Balance Sheet and Capital Management

FLT’s robust balance sheet underpinned $450 million in capital management initiatives during FY25, including a $200 million buyback of convertible notes and an on-market share buyback program. The company also repaid $100 million of bank debt and maintains $200 million in undrawn facilities, providing flexibility for future investments and shareholder returns.

Looking ahead, FLT expects a flat first half in FY26 due to ongoing geopolitical and economic uncertainties but sees promising signs of market stabilization and consumer confidence recovery. Detailed profit guidance will be provided at the November AGM, with a focus on sustainable year-on-year profit growth and margin improvement.