Flight Centre Travel Group (ASX:FLT) has revised its FY25 profit guidance, expecting underlying profit before tax to fall between $300 million and $335 million, down from an initial target of $365 million to $405 million.
This adjustment follows volatile trading conditions, influenced by changes in U.S. trade and entry policies, which have impacted business and consumer confidence.
While the company is on track to achieve record total transaction value, the company anticipates slower growth in its peak trading months of May and June.
Despite this, Flight Centre Travel's global leisure business is expected to exceed pre-pandemic profitability levels, and its corporate division continues to perform solidly with a strong pipeline of new accounts.
Flight Centre Travel is implementing cost-reduction strategies, including fast-tracking productivity improvements, reducing full-time employees in non-customer-facing roles, and cutting capital expenditure.
The company has also announced a $200 million on-market share buy-back, starting May 12.
Flight Centre Travel remains optimistic about future growth, with a focus on long-term investments in technology, infrastructure, and strategic initiatives aimed at driving profitability.