Flight Centre Travel Group reported a 2 percent year-over-year increase in total transaction value for its corporate travel brands during its 2025 fiscal year amid what the company called a “challenging global trading cycle.”
TTV for Flight Centre’s corporate business in the fiscal year, which ended June 30, was A$12.3 billion (US$8 billion), which Flight Centre said was a record. Growth, however, was “reasonably modest in a flat global market,” which included current clients reducing travel budgets. Flight Centre managing director Graham Turner said the broader challenges to the group are “generally cyclical and potentially short-term in nature.”
“While we expect some ongoing turbulence early in FY26, we are also starting to see signs of stabilization, which mirrors our experiences after other cyclical downturns,” Turner said in an earnings release.
Both of Flight Centre’s corporate brands reported client growth, with FCM adding contracted accounts totaling A$1.3 billion (US$846.3 million) during the fiscal year and Corporate Traveler’s TTV reaching about A$4.8 billion (US$3.1 billion), making it the group’s largest revenue generator behind only the Flight Centre brand. In the U.S., Corporate Traveler reported 12 percent TTV growth year over year during the second half of the fiscal year.
Flight Centre expects that client growth to continue in the 2026 fiscal year, with Corporate Traveler’s TTV in the U.S. increasing 20 percent year over year in July. The company also said FCM would benefit from industry consolidation—with the American Express Global Business Travel acquisition of CWT expected to close in the current quarter—and FCM “is already seeing increased [request-for-proposals] activity and interest.”
At the same time, Flight Centre said its corporate businesses are operating with a “leaner workforce,” with a reduction of about 6 percent of full-time employees over the two years leading up to the end of the 2025 fiscal year. The company said cost savings from staff reductions are being reallocated to digital spending and will “drive further productivity growth.”
Across all its businesses, Flight Centre Travel Group reported A$24.5 billion (US$15.9 billion) in TTV, up 3 percent year over year. Profit before taxes was A$289.1 million, down 9.8 percent year over year but “in line with revised expectations,” according to the group.
Flight Centre’s FY2025 first-half results
Recent Comments