Escalating Middle East tensions and global downturn in bookings to the US cited for “a challenging fourth quarter”.
Flight Centre Travel Group has just released preliminary, and unaudited, financial results for the 2024/25 financial year, revealing an expected underlying profit before tax of between $285 million and $295 million.
The result, which comes despite a record Total Transaction Value of an expected $24.5 billion, sees it fall short of its full-year profit target of between $300 million and $335 million.
This target was itself revised downward in Apr this year from its initial projection of between $365 million and $405 million.
Market volatility disrupted traditional travel and booking patterns during the peak trading period, the company said, with travellers opting for closer-to-home holidays or delaying travel plans entirely.
The company also revealed a greater investment in enhanced AI functionality to boost the customer experience, including a future AI “co-consultant” product for leisure travel agents which is currently being trialled.
A new leisure loyalty program initially covering the Flight Centre, Cruiseabout and Travel Associates brands is also in development to introduce “a significant new revenue stream”.
More details in today’s issue of Travel Daily.