How Flight Centre Achieved Record $24.5B TTV Despite Global Turmoil

Record Growth Amid Global Uncertainty

Flight Centre Travel Group (FLT) has reported a landmark $24.5 billion in total transaction value (TTV) for the fiscal year ending June 30, 2025, marking a 3% increase despite a turbulent global environment. The travel giant navigated a landscape marked by cautious consumers, geopolitical tensions, particularly escalating conflicts in the Middle East, and economic uncertainties that dampened leisure travel to key destinations like the United States and parts of Asia.

While the headline TTV growth underscores the resilience of the travel sector, underlying profit before tax (UPBT) told a more nuanced story. FLT posted $289.1 million in UPBT, aligning with revised guidance but reflecting a 10% decline from the previous year. Statutory profit before tax also slipped 3% to $213 million, pressured by a challenging fourth quarter.

Regional Challenges and Strategic Responses

The fourth quarter was notably affected by geopolitical instability and regional operational issues. Asia, in particular, swung from a $9 million profit in FY24 to a $22 million loss in FY25, driven by non-recurring costs and underperformance. Meanwhile, leisure bookings to the US dropped 11% in the final quarter, reversing earlier gains. Corporate travel also faced headwinds but showed promise outside Asia, with brands like Corporate Traveller achieving 6% profit growth excluding the region’s losses.

In response, Flight Centre is implementing a multi-pronged strategy to stabilize and grow earnings. This includes holding underlying costs steady through productivity gains, reducing capital expenditure by up to 20% in FY26, and refining its portfolio by closing or repositioning underperforming assets such as StudentUniverse and The Travel Junction. The company is also leveraging supplier relationships and new air distribution models to optimize margins.

Investing in Innovation and New Growth Engines

Looking ahead, FLT is placing significant bets on technology and customer engagement to fuel future growth. The launch of a new leisure loyalty program in the first half of FY26 aims to deepen customer relationships and unlock new revenue streams by rewarding travel across multiple brands and services. Complementing this, the company is embedding artificial intelligence across its operations, from AI-powered virtual travel assistants to enhanced customer relationship management platforms, to boost productivity and personalize service.

These initiatives are expected to accelerate profit growth in the second half of FY26, alongside signs of stabilizing consumer confidence and improving booking trends. The corporate segment, particularly Corporate Traveller in the US, continues to expand, with record transaction volumes reported in July 2025 despite a contracting market.

Strong Balance Sheet Supports Capital Returns

Flight Centre’s robust balance sheet enabled $450 million in capital management activities during FY25, including convertible note buy-backs, on-market share repurchases, and dividend payments totaling $88 million. The company declared a fully franked final dividend of $0.29 per share, maintaining the full-year dividend at $0.40 per share, signaling confidence in its financial position and future prospects.

With nearly $1 billion invested in capital management since FY24, FLT is well-positioned to pursue strategic investments while returning value to shareholders. Market guidance for FY26 will be provided at the upcoming Annual General Meeting in November, with a focus on sustainable year-on-year profit growth and a target underlying profit margin of 2%.