The Flight Centre Travel Group Ltd (ASX: FLT) share price is in focus today after the company updated its FY26 profit guidance and announced a new $200 million on-market share buy-back. FLT now expects underlying profit before tax (UPBT) of $275 million to $295 million—roughly in line with last year's $286 million result.
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What did Flight Centre Travel Group report?
- FY26 UPBT guidance revised to $275m–$295m (FY25: $286m), down from the previous $310m–$345m target
- Conflict in the Middle East is expected to reduce Q4 leisure earnings by around $50m
- Corporate business remains strong, set for year-on-year profit growth
- Adverse FX impacts of $5m–$10m expected due to a stronger Australian dollar
- Up to $200 million on-market share buy-back to commence
What else do investors need to know?
Flight Centre says the downward revision is due to temporary, conflict-driven disruption—mainly hitting international leisure travel in the fourth quarter. The recently agreed Middle East peace deal should help conditions recover going into FY27, but it won't have much impact on the current year given the timing.
The company's global corporate division is less affected and continues to deliver strong profit growth. Cost-saving initiatives are underway, including discretionary spending cuts and a pause on non-essential hiring, balanced with ongoing investment in growth sectors like luxury, cruises, and tours.
What did Flight Centre Travel Group management say?
Managing director Graham Turner said:
The change in our short-term expectations reflects a temporary, conflict-driven headwind layered over what was shaping as a very solid year.
It has been driven by an external shock – the Middle East conflict disrupting peak leisure travel – not by a deterioration in our underlying business. Group-wide, the company delivered almost 10% UPBT growth across the first three quarters of FY26, accelerating to ~20% growth during Q3. Even after absorbing Q4 disruption, the group still expects an underlying profit broadly in line with FY25. Looking ahead, we have strong foundations and growth prospects in both the leisure and corporate sectors. This is reflected in the Board's decision to launch a new up-to-$200m buy-back – which clearly signals that we see our shares as undervalued at current levels.
What's next for Flight Centre Travel Group?
Flight Centre is rolling out a number of AI-driven initiatives to boost productivity and enhance customer experience, including new corporate travel assistants and smarter leisure booking tools. The company is staying disciplined on costs while continuing to invest in high-potential areas like cruise, tours, and loyalty programs.
Looking ahead to FY27, management is optimistic, expecting a rebound as travel patterns normalise and peace returns to the Middle East. The newly announced share buy-back signals confidence in Flight Centre's medium-term growth profile.
Flight Centre Travel Group share price snapshot
Over the past 12 months, the Flight Centre shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
