Company Reports

Flight Centre's fiscal 2026 underlying profit before tax fell 4% to AUD 278 million. Leisure was the culprit, with PBT down 22%, while higher losses from headquarters activities also hurt. A final fully franked dividend of AUD 0.30 was declared, bringing the total for the year to AUD 0.42, up 5%.

Flight Centre is one of the world's biggest travel agents, but it still generates substantial earnings in Australia and New Zealand. Unrivaled scale and brand strength in the domestic travel market have delivered buying power and pricing flexibility that resulted in high returns on capital. Flight Centre has a strong network of services that has driven solid end-user traffic and bookings over the past 20 years, but we do not believe this is sufficient to protect the company against online competitors over the next 10 years.

Flight Centre has downgraded fiscal 2026 earnings guidance, with underlying pretax profit, or PBT, projected at AUD 275 million-AUD 295 million. The midpoint is down 13% from that of prior guidance.

Flight Centre is one of the world's biggest travel agents, but it still generates substantial earnings in Australia and New Zealand. Unrivalled scale and brand strength in the domestic travel market have delivered buying power and pricing flexibility that resulted in high returns on capital. Flight Centre has a strong network of services that has driven solid end-user traffic and bookings over the past 20 years, but we do not believe this is sufficient to protect the company against online competitors over the next 10 years.

At its strategy day, Flight Centre unveiled its "Five Disciplined Bets," which focus on driving high-margin growth in leisure, emphasizing more complex luxury and cruise travel, while improving productivity through automation. All this amid the uncertainty from the conflict in the Middle East.

Flight Centre revealed a 10% lift in underlying profit before tax, or PBT, to AUD 226 million for nine months ended March 2026. Corporate PBT grew 23% to AUD 177 million, while leisure PBT was up just 2% to AUD 136 million. Corporate costs increased 22% to AUD 87 million.

Flight Centre is one of the world's largest travel agents, but it still generates substantial earnings in Australia and New Zealand. Unrivalled scale and brand strength in the domestic travel market have delivered buying power and pricing flexibility that resulted in high returns on capital. Flight Centre has a strong network of services that has driven solid end-user traffic and bookings over the past 20 years, but we do not believe this is sufficient to protect the company against online competitors over the next 10 years.

Flight Centre will hold a general meeting on May 14, 2026. Shareholders will vote on the proposed sale of a 47% stake in cycling business Pedal Group for AUD 62 million to the Turner Collective, a consortium associated with Flight Centre's founder and major shareholder Graham Turner.

Covid-induced damages and economic volatility have been affecting Flight Centre. However, a drastic reduction in costs (cuts to store network/leases, staff, marketing), combined with the AUD 697 million equity capital raising in April 2020 and steady recovery in travel activities, has stabilized the no-moat-rated group.

Flight Centre's fiscal 2026 interim underlying EBITDA lifted 9% to AUD 213 million, on 6% revenue growth to AUD 1.4 billion. This led to a 4% increase in underlying profit before tax to AUD 125 million, while fiscal 2026 PBT guidance of AUD 315 million-AUD 350 million was reiterated.

Flight Centre provided fiscal 2026 underlying profit before tax guidance range of AUD 305 million to AUD 340 million, implying growth of 6% to 18%. However, PBT is likely to be skewed to the second half, with the first half tracking in line with the AUD 120 million achieved a year ago.

A wave of covid-19-induced damages has been inflicted on Flight Centre since March 2020. However, the measures to execute a drastic reduction in costs (cuts to store network/leases, staff, marketing), combined with the AUD 697 million equity capital raising in April 2020 and the subsequent solid recovery in travel activities, have stabilized the no-moat-rated group.

Flight Centre's fiscal 2025 underlying pretax profit fell 10% to AUD 289 million, at the midpoint of the recently downgraded guidance range. This led to a 27% drop in underlying net profit to AUD 168 million. A final dividend of AUD 0.29 brought the fiscal 2025 total to AUD 0.40, which is unchanged.

A wave of covid-19-induced damages has been inflicted on Flight Centre since March 2020. However, the measures to execute a drastic reduction in costs (cuts to store network/leases, staff, marketing), combined with the AUD 697 million equity capital raising in April 2020 and the subsequent solid recovery in travel activities, have stabilized the no-moat-rated group.

A wave of covid-19-induced damages has been inflicted on Flight Centre since March 2020. However, the measures to execute a drastic reduction in costs (cuts to store network/leases, staff, marketing), combined with the AUD 697 million equity capital raising in April 2020 and the subsequent solid recovery in travel activities, have stabilized the no-moat-rated group.

Flight Centre downgrades its fiscal 2025 earnings guidance, with underlying pretax profit now expected to be between AUD 285 million and AUD 295 million. This is lower than prior guidance of AUD 300 million to AUD 335 million by almost 10% at the midpoint.

Flight Centre lowered profit guidance by approximately 18%, as perceived stricter US border policy and lower consumer confidence dissuades international travel. The firm has announced cuts to capital expenditure and a AUD 200 million buyback.

A wave of covid-19-induced damages has been inflicted on Flight Centre since March 2020. However, the measures to execute a drastic reduction in costs (cuts to store network/leases, staff, marketing), combined with the AUD 697 million equity capital raising in April 2020 and the subsequent rapid recovery in travel activities, have stabilized the no-moat-rated group.

Shares in Flight Centre are down 20%-plus, adjusted for the interim dividend per share, since the unveiling of fiscal 2025 first-half results in February. Lackluster December-half earnings are raising doubts about the reiterated full-year guidance, while macro concerns are affecting sentiment.

Flight Centre's fiscal 2025 interim underlying profit before tax, or PBT, grew 7% to AUD 117 million, leading to a 10% lift in interim DPS to AUD 11.0 cents, fully franked. Full-year fiscal 2025 PBT guidance range was reaffirmed at AUD 365 million to AUD 405 million, equating to 14% to 26% growth.