Flight Centre Travel Group has reported a 7 per cent year-on-year growth in the first half of the 2025 financial year.
The group posted a $117 million underlying profit before tax for the first half highlighting a strong second-quarter rebound and an UPBT surge of 14 per cent. Statutory profit before tax came in at $88.2 million, down from $120.2 million in FY24 1H, largely due to higher gains from convertible notes in the prior year.
Despite this, FLT maintained growth, investing in AI-driven innovations to boost customer experience and efficiency. Corporate AI initiatives are expected to drive a 15-20 per cent productivity increase by FY26, while leisure AI tools streamline online enquiries and bookings.
Lower volume-based supplier payments, a $4 million investment in global cruises and an $8 million downturn in Asia were all noted key influences on results. However, total transaction value (TTV) jumped $365 million to $11.7 billion, with corporate contributing $6 billion and leisure $5.5 billion. TTV growth picked up in 2Q, rising seven per cent after a slow 1Q, impacted by airfare deflation in Australia and Asia.
Australian international ticket sales jumped 12 per cent, though average fares fell 6.5 per cent YoY. UPBT margin saw a modest lift and is expected to rise further with seasonal trends, super over-ride recovery, and efficiency gains. January’s UPBT margin in Australia exceeded 2.3 per cent, with further improvement anticipated.
FLT continues restructuring, closing a division of its Infinity wholesale business after $2.5 million in losses, following prior closures of Discova Americas and GoGo in FY24. The board declared an 11 cents per share fully franked interim dividend, payable 17 April, bringing total post-pandemic returns to over $150 million. FLT also bought back $200 million in convertible notes and acquired Cruise Club UK and Dubai’s TP Connects.
“The 1H was a tale of two quarters in that 2Q TTV and profit growth rebounded after a challenging 1Q,” Flight Centre Travel Group CEO Graham ‘Skroo’ Turner said.
“In fact, our 2Q profit growth rate more than doubled our 2Q TTV growth rate providing good operating leverage and momentum ahead of our key trading months.
“Our corporate business – now a materially larger business than pre-COVID – again delivered record 1H TTV and increased profit during a period of consolidation that should ultimately lead to more rapid earnings growth.
“Leisure TTV also increased and has subsequently reached record levels in various locations and brands in January, but profit was in line with the strong FY24 1H result, partly because of investments in the high growth cruise sector.
“The leisure business of today is significantly more productive, more efficient and more profitable and has a clear future growth blueprint across its diverse brand stable.
With strong momentum into 2H, FLT said it is set to capitalise on peak trading while advancing AI and efficiency strategies.
