The Flight Centre Travel Group has downgraded its 2025 year profit guidance citing reasons including ‘uncertain (cyclical) trading conditions including the recent changes to the United States trade and entry policies’.
While the company says it remains on track to deliver record total transaction value (TTV) ‘the prospect of this current uncertainty continuing into FLT’s busiest trading months May-Jun)’ means it has revised its profit target from an initial AUD365 million-AUD405 million underlying profit before tax to AUD300 million -335 million UPBT. FCTG says the US policy changes began to impact business and consumer confidence, and corporate and leisure sales in Mar; while FCTG’s early Apr trading results point to ongoing uncertainty. “The recent developments in the US have exacerbated the volatile trading conditions experience throughout the year…” it adds. FCTG notes that other factors such as under performance in some regions and upfront investments Uncertainty Impacts Flighties Outlook were also impacting its FY25 profit guidance. As such the company has announced an ordinary share buy-back of up to AUD200 million.
. . . The Upside
On the upside, despite inconsistent trading conditions FCTG says it continues to generate solid monthly profits and has a positive medium to long-term outlook. The company adds that its global leisure business is again on track to exceed pre-pandemic profitability levels while its corporate arm ‘generally continues to trade solidly in most regions’. In addition, FCTG says stronger overall results are expected in the 2026 financial year and beyond as trading conditions stabilise and FCTG’s strategies that are already in place gain momentum. “Our leisure business has emerged from the pandemic as a more profitable and more productive operation, with a more diverse brand stable and a more cost-effective growth model…” says FCTG managing director Graham Turner.
