Flight Centre profit drops after $60M disruption
Key points
- Middle East flight groundings and cancellations reduced Flight Centre's leisure profit by an estimated $60 million.
- The travel agency's underlying profit before tax fell 4% to $278 million.
- Management stated that business model diversity and corporate division strength will help drive operational recovery.
Flight Centre (ASX:FLT) reported a record $25.7 billion transaction value for FY26 despite flight cancellations cutting leisure profit by $60 million.
The company originally guided for underlying profit before tax between 4315 million and $350 million.
The business processed more than $250 million in customer refunds after Middle Eastern travel hubs suspended flights.
Following the announcement, the Flight Centre share price was down at $12.42.
Underlying earnings before interest, taxes, depreciation, and amortisation rose 3.9% across the fiscal year to $466 million.
Statutory net profit after tax gained 38% to reach $149 million as corporate travel bookings offset leisure softness.
