Flight Centre Travel Group delivered record transaction value in FY26, but a weaker fourth quarter in its leisure business dampened profit growth.

For the year ended June 30, total transaction value (TTV) rose 4.7 per cent to a record $25.7 billion, while revenue increased 2.5 per cent to $2.9 billion. 

Statutory EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 8 per cent to $430.6 million, and underlying EBITDA increased 3.9 per cent to $466 million.

However, underlying profit before tax fell 4 per cent to $278 million after the leisure business suffered a decline of about $60 million during the fourth quarter, which the company attributed to reduced flights due to the Middle East war.

“FY26 was a story of mixed fortunes for our company – nine months of strong momentum and progress, interrupted by three months of external disruption that left profit broadly in line with FY25,” said MD and CEO Graham Turner.

He said the leisure division had been on track to generate about $200 million in underlying profit before tax before trading conditions deteriorated in the final quarter.

“Through the first three quarters, we were tracking well ahead of the prior year in both leisure and corporate. Then, in Q4, the Middle East conflict disrupted travel patterns,” he said.

“That was an external shock, not a change in the leisure business’s underlying strength, and momentum is already returning, with July TTV at record levels for the month.”

Flight Centre’s leisure division delivered solid growth across most of the year, with TTV increasing 7.4 per cent to $12.6 billion and revenue rising 2.6 per cent to $1.4 billion.

The corporate division was “more resilient” in Q4, with TTV increasing 2.9 per cent to $12.7 billion and revenue rising 3.3 per cent to $1.2 billion. Underlying EBITDA climbed 24.4 per cent to $275 million.

Turner said the division’s broader geographic footprint and greater exposure to domestic travel helped cushion the impact, providing a “partial shield”,

“The division still delivered record TTV, which translated to even stronger profit growth.”

Corporate Traveller – the group’s SME-focused brand – surpassed $5 billion in TTV for the first time, while its US operations generated more than US$2 billion in TTV during the year.

Looking ahead, the group said it remains focused on managing costs, growing market share and maintaining balance sheet strength while monitoring ongoing uncertainty from Middle East volatility and broader economic conditions.

“We are seeing healthy returns on our investments in proprietary platforms and the Productive Operations initiative, which has delivered material productivity improvements over the past three years,” Turner added.

“New revenue streams have also performed well, expanding our addressable market and deepening our relationships with customers.”

• Further reading: Turner family launches buyout of Flight Centre’s 99 bikes.