Flight Centre Travel Group (ASX:FLT) reported a $117 million underlying profit before tax for the first half of the 2025 fiscal year, reflecting a 7% year-on-year increase.
The company saw a strong rebound in the second quarter, with underlying profit before tax rising 14%, outpacing the 2% growth in Q1.
Total transaction value increased by $365 million to $11.7 billion, marking year-over-year H1 TTV growth for the 28th time in 30 years since listing.
Statutory profit before tax stood at $88.2 million, down from $120.2 million in H1 FY24, primarily due to higher gains in FY24 from the buy-back and remeasurement of convertible notes.
The company invested in artificial intelligence initiatives to enhance customer products, employee productivity, and operational efficiency.
AI-driven improvements in both corporate and leisure sectors are expected to yield productivity gains by FY26.
Despite lower supplier payments and investments in the growing cruise sector, Flight Centre’s corporate segment achieved record H1 TTV of $6 billion, with corporate profits increasing 4% to $96 million.
The leisure segment also saw strong TTV growth, particularly in luxury and independent travel.
Looking ahead, Flight Centre targets an FY25 UPBT between $365 million and $405 million, with expectations of stronger H2 profitability due to increased travel demand and easing airfare deflation.
The board declared an 11 cents per share interim dividend, reinforcing the company's commitment to shareholder returns while continuing strategic investments in AI and expansion initiatives.
At the time of reporting, Flight Centre's share price was $15.43.