Flight Centre Cuts FY26 Profit Guidance but Backs Recovery With New $200m Buyback

Flight Centre Travel Group Limited ( (AU:FLT) ) just unveiled an update.

Flight Centre Travel Group has cut its FY26 underlying profit before tax guidance to a range of $275 million to $295 million, from a previous target of $310 million to $345 million, after the Middle East conflict sharply disrupted international leisure travel in the fourth quarter. The company stressed that the downgrade reflects temporary, conflict-driven headwinds rather than structural weakness, noting that underlying profit grew about 10% over the first three quarters, with Q3 up nearly 20% year on year and corporate travel profits still on track for strong growth.

Management expects around $50 million in lost leisure earnings in Q4, plus a $5 million impact on its UK touring businesses and a $5 million to $10 million adverse foreign exchange translation effect, as government travel advisories and rerouting away from Middle East hubs pushed customers to lower-margin carriers and delayed long-haul bookings. Despite the short-term hit, Flight Centre announced a new on-market buyback of up to $200 million in issued capital following a recently completed program, signalling confidence in a rebound in leisure demand, the resilience of the travel sector and a clearer earnings runway into FY27 after the recent Middle East peace agreement.