Flight Centre delivers record half-year TTV with profit growth ahead of expectations
Flight Centre Travel Group has reported Flight Centre FY26 Results for the first half ending 31 December 2025, achieving record total transaction value (TTV) of $12.5 billion (up 7%) and underlying profit before tax (UPBT) of $125 million (up 4%). The result marks the 28th time in 30 years that first-half TTV has exceeded the prior year, underscoring the resilience of the company’s diversified business model in a challenging global trading environment.
Revenue climbed 6% to $1.4 billion, while underlying EBITDA increased 9% to $213 million. The company declared an interim dividend of 12 cents per share (up 9%), returning 30% of underlying net profit after tax to shareholders. Earnings per share grew 3.2% to 28.3 cents per share (ASX: FLT).
| Metric | 1H FY26 | 1H FY25 | Change |
|---|---|---|---|
| TTV | $12.5b | $11.7b | +7.3% |
| Revenue | $1.4b | $1.3b | +6.1% |
| Underlying UPBT | $125m | $120m | +4.1% |
| Underlying EBITDA | $213m | $195m | +9.1% |
| Interim Dividend | 12 cents | 11 cents | +9.0% |
| EPS | 28.3 cents | 27.4 cents | +3.2% |
The Flight Centre FY26 Results reflect record low cost margins and sustained momentum across key business offerings, with the company investing heavily in network enhancements, digital capabilities, and AI-driven efficiency during the period.
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Corporate division emerges as the growth engine with record performance
Record TTV and accelerating profit growth
The Corporate division delivered a standout performance, achieving record first-half TTV of $6.3 billion (up 6%) and profit growth of 20% to $115 million, far outpacing TTV growth and demonstrating significant operating leverage. The business is now approximately 50% larger than pre-COVID levels (FY19 1H) and is expanding its addressable market through meetings and events, payments, and professional services, which contributed just under 10% of corporate revenue during the half.
Asia returned to profitability during 1H FY26 after prior-year losses, while Corporate Traveller remains on track to surpass $5 billion in TTV during FY26, with US operations growing 13% despite subdued market conditions. The division has achieved a 6% reduction in full-time employees over one year (9% over two years) while increasing productivity by 13% (one year) and 18% (two years).
The 20% profit growth on just 6% TTV growth demonstrates the scale benefits and operating leverage emerging from the company’s Productive Operations initiative, with further gains expected as AI-powered intelligence layers “Mel” and “Sam” move from pilot to wider deployment during the second half.
AI-powered efficiency transforming cost structure
Flight Centre is deploying AI co-consulting tools to increase consultant efficiency, reduce cost-to-serve, and deliver more personalised, consistent customer experiences. The “Mel” and “Sam” AI-powered intelligence layers are currently in pilot, with broader rollout expected during the second half of FY26. These tools assist consultants with email triaging, knowledge retrieval, and customer recommendations, streamlining workflows and reducing transaction costs.
The company is partnering with leading AI innovators, including Anthropic, to create a more automated workflow with an integrated technology platform. Customer-facing platforms such as Melon and the FCM platform are fully integrated with consultant platforms, allowing the business to harness foundational AI and deliver speed, automation, and productivity gains across the global corporate operation.
Leisure division positions for record second half after January milestone
The Leisure division reported first-half profit of $61 million, down slightly (4%) year-on-year but in line with expectations. TTV grew 10% to $6 billion, positioning the business for a record second half with the inclusion of Iglu and current growth trajectory. Positive momentum emerged in January 2026, which achieved record UPBT, taking year-to-date profit above the prior year (up 4%).
The specialist category delivered standout performance with TTV growth of more than 30%, while online TTV grew 14% to almost $900 million, reflecting increased digital capability and the strategy to shift lower-value, high-volume transactions online. Cruise-related TTV is on track to exceed $2 billion annualised in FY26, supported by the Iglu acquisition and strong growth across Cruiseabout and Cruise HQ wholesale operations.
Scott Dunn delivered record trading levels with TTV growing 20% and profit increasing by approximately 20%, performing strongly in the US and expanding into Hong Kong with a new office. Travel Money and Ignite are on track to join Flight Centre, FCM, and Corporate Traveller as Horizon 1 brands, while the World360 Rewards loyalty programme is resonating particularly with the 20-29 demographic, achieving approximately 54% uptake among new or re-engaging customers.
Understanding Flight Centre’s diversified business model
Flight Centre operates a dual-division structure comprising Corporate and Leisure, with Corporate now representing approximately 51% of group TTV (up from 39% in 1H FY20), reflecting a strategic shift towards higher-margin business travel. The Leisure division has evolved beyond its traditional shop-based model into a diversified, digitally enabled business built around four categories: mass-market (Flight Centre brand), luxury (Travel Associates, Scott Dunn, Envoyage), specialist (Cruiseabout, Ignite, Travel Money), and independent brands.
The multi-channel approach spans retail stores, digital platforms, and specialist brands, supported by the World360 Rewards loyalty programme. High repeat-traveller engagement continues to drive recurring revenue, with the programme resonating particularly with younger demographics. Average customer ages remain consistent in the Flight Centre brand (56 in store, 45 online), while Net Promoter Scores improved across key brands during 1H FY26.
The diversification reduces reliance on any single channel or segment, providing resilience during market volatility and multiple avenues for growth through technology-enabled operating models and AI-driven personalisation.
Capital management initiatives enhance shareholder returns
Flight Centre continues to execute its $200 million on-market share buyback, with $126 million deployed to date, retiring approximately 9.8 million shares and enhancing earnings per share. The company issued a new $450 million Convertible Note to enable the full retirement of the 2028 notes (due May 2026) and reduce the 2027 notes’ face value, with proceeds also used to part-fund the Iglu acquisition.
The 9% interim dividend increase, delivering 12 cents per share fully franked, returns 30% of underlying net profit after tax to shareholders. Ongoing utilisation of tax losses is driving cash growth but impacting the franking balance, with the company’s capital allocation framework continuing to assess investment opportunities alongside proactive capital management activities.
The balance sheet remains healthy, with total cash and investments of $745 million at 31 December 2025, supporting the company’s strategic priorities and organic growth investments across digital platforms, AI capabilities, and high-growth sectors including cruise, luxury, and corporate services.
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FY26 outlook reaffirmed with strong second-half momentum expected
Flight Centre has reaffirmed FY26 UPBT guidance of $315 million to $350 million (midpoint $332.5 million, representing 15% year-on-year growth). The midpoint implies a 38%-62% first-half to second-half earnings skew, within the normal historical range. Following record January leisure profit and TTV, both the leisure and corporate divisions are now on track for year-on-year profit growth.
Key drivers of second-half strength include the inclusion of Iglu, stronger leisure seasonality, more favourable year-on-year comparisons as the year progresses (reflecting turbulence during FY25 fourth quarter), deeper Asia turnaround given FY25 losses were heavily second-half weighted, and productivity and efficiency gains across global business services and corporate operations as Productive Operations scales. FY26 capital expenditure remains targeted at $85 million, weighted toward systems and technology.
Global passenger traffic is expected to grow 4.9% year-on-year for 2026, with the APAC region forecast to grow 7.3%, according to IATA. A survey by GBTA on 27 January 2026 found that 84% of corporate buyers expect travel spend to hold or increase. The reaffirmed guidance and record January performance provide confidence in the company’s ability to deliver on full-year targets, with multiple tailwinds supporting second-half acceleration across both divisions.
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