Flight Centre Travel Group (ASX:FLT) outlined first-half momentum and reaffirmed full-year guidance during its half-year results call, pointing to record transaction activity, improving productivity and continued investment in technology and higher-growth travel segments.
First-half highlights and earnings bridge
Chief Financial Officer Adam Campbell said the group delivered a “pretty strong result” for the first half, despite volatile trading conditions that carried over from late 2025 into early 2026. Total transaction value (TTV/TPV) rose 7% to AUD 12.5 billion and revenue increased 6% to AUD 1.4 billion. Underlying EBITDA rose 9% to AUD 213 million and underlying profit before tax (PBT) increased 4% to AUD 125 million.
Campbell also said the company continued to invest through the half in network enhancements, digital and AI capabilities, high-growth sectors and new revenue streams, while keeping an eye on longer-term business evolution.
Corporate: operating leverage and new revenue streams
Corporate division CEO Chris Galanty described a “very strong first half corporate performance,” supported by record TTV and profit growth of 20% on top-line growth of 6%. Campbell said this reflected operating leverage from productivity and efficiency investments and a return to profitability in Asia.
Galanty emphasized the division’s two-brand strategy—Corporate Traveller in SMEs and FCM (referred to on the call as “SCM” in the enterprise segment)—arguing the distinct brand, product and service models provide a competitive advantage versus “one-size-fits-all” competitors. He also highlighted a broadening revenue mix beyond traditional travel management, including meetings and events, payment and expense, consultancy and VIP/specialist travel.
Key corporate call-outs included:
- Corporate Traveller is “well on track” to surpass AUD 5 billion of TTV for the first time this year, which Galanty said would make it the largest SME-only travel management company globally.
- Northern Hemisphere performance was highlighted, with the U.S. corporate business growing 13%.
- Meetings & events and professional services now contribute more than 10% of corporate revenue, with management pointing to a “huge opportunity” to expand this contribution across regions and brands.
The company also discussed “Productive Operations,” its corporate digital transformation program. Galanty said benefits were already coming through and that the business expects further gains as key projects are fully deployed and embedded by the end of the year. The initiative is focused on more automated workflows and tighter integration between customer-facing booking platforms (including “Melon” for Corporate Traveller and the SCM platform for enterprise) and internal consultant operating systems.
In Q&A, management said productivity gains were being realized through lower staff numbers while growing turnover, transactions and revenue, with further upside expected from increased customer self-service and additional automation using robotics and AI.
Leisure: diversified portfolio and a record January
Leisure CEO J.K. said the division has shifted from a “shop-heavy” model to a diversified and digitally enabled portfolio spanning mass market, luxury, specialist brands and independent brands—each now generating more than AUD 1 billion in annual TTV. Online leisure sales grew 14% in the half to nearly AUD 900 million, representing about 15% of sales, which J.K. said allows stores and call centers to focus on higher-value, complex bookings.
For the half, leisure TTV rose 10% to just under AUD 6 billion and revenue increased 6% to AUD 690 million. Underlying PBT was AUD 61 million, slightly below the prior year’s AUD 64 million, which J.K. attributed to a mix and destination shift toward shorter-haul, lower-margin international travel and “front-loaded” investment in sales staff, product, technology and stores.
Management said the mix is already reversing and highlighted January as a record month. J.K. said January produced a record leisure profit—the strongest month in the company’s history—and management indicated leisure profit and TTV were tracking ahead on a year-to-date basis by the end of January.
Performance highlights discussed on the call included:
- Scott Dunn (luxury): TTV up 20% and profit up almost 80%, with the U.S. noted as a standout market and expansion into Hong Kong referenced.
- Specialist brands: TTV up more than 30%.
- Cruise: with Iglu integration underway, management said the group is on track to exceed AUD 2 billion in cruise TTV this year, with an ambition to become a leading global cruise seller.
J.K. also highlighted the rollout of WorldThreeSixty Rewards across Flight Centre, Cruiseabout and Travel Associates, describing it as app-first and integrated with new CRM and loyalty platforms. Early results cited included that about 54% of members were either new to the group or had not booked in the last three years, and that the largest cohort within the Flight Centre brand was aged 20–29. Launch partners mentioned included ANZ, Bupa and Caltex, alongside more than 300 retail partners.
Guidance reaffirmed, capital management and portfolio actions
Group Managing Director “Screw” reaffirmed FY26 underlying PBT guidance of AUD 315 million to AUD 350 million, with the midpoint of AUD 332.5 million implying 15% year-on-year growth. Management noted the earnings skew implied by the guidance—about 38% in the first half and 62% in the second half—was consistent with typical seasonal patterns.
The company reiterated FY26 capex of about AUD 85 million, aimed primarily at systems and technology, while also continuing selective physical network expansion in locations and brands viewed as underrepresented.
On capital management, Campbell said the group issued AUD 450 million of new longer-dated convertible notes in the first half, enabling full retirement of 2028 notes in May, a further reduction in 2027 notes and partial funding of the Iglu acquisition. The company’s up-to-AUD 200 million share buyback had executed AUD 126 million to date, retiring just under 10 million shares. Campbell also cautioned that because of carry-forward loss utilization, FY26’s final dividend would “likely be partially franked,” with a likely return to unfranked dividends in FY27.
Management also reviewed portfolio simplification and strategic reallocation actions, including the divestiture of Cross Hotels, the closure of underperforming businesses (including Discover Americas, Gogo, The Travel Junction and StudentUniverse), strategic pivots (Topdeck and Liberty rebranded to Envoy Orange) and acquisitions in cruise and luxury (including Iglu, Cruise Club and Scott Dunn).
During Q&A, management said it was not rushing into further acquisitions but was looking selectively in areas aligned to strategy, including specialist corporate niches and leisure segments such as luxury and cruise.
About Flight Centre Travel Group (ASX:FLT)
Flight Centre Travel Group Limited provides travel retailing services for the leisure and corporate sectors in Australia, New Zealand, the Americas, Europe, the Middle East, Africa, Asia, and internationally. The company offers leisure travel services for the niche sectors, as well as mass, youth, premium, and cruise markets; and corporate travel services for organizations of various sizes across industries, as well as supplies products to its national and international network, or travel retail outlets.
