Business at Flight Centre Travel Group's corporate brands was "strong" in the first quarter of its fiscal year, which ran through to 30 September.
In its annual general meeting on Wednesday, Flight Centre Travel Group CEO Graham Turner said total transaction value for the group's corporate business was up 7 per cent year over year, as FCM is "securing a pipeline of account wins totalling almost A$400 million [€226 million]" and "Asia [is] returning to modest profitability."
Since the close of the first quarter, Turner said performance in October
has confirmed "momentum across both corporate and leisure segments."
Flight Centre has been trimming its workforce for its corporate business, and Turner said the business had an average full-time employee reduction of 5 per cent for the quarter.
For the full 2026 financial year, the group is targeting underlying profit before tax of A$305-340 million, a 5.5 per cent to 17.6 per cent increase on FY25. First half earnings are expected to be broadly in line with last year, with "solid corporate profit growth to be offset by a leisure profit decrease".
A stronger second half of its financial year is forecast on the basis of a more stable trading climate, a further rebound in Asia, and tailwinds from cost-out initiatives.
"While we will again prioritise organic growth and expect to continue with our on-market share buy-back, we will consider investing in M&A if attractive opportunities arise that are aligned with our strategic objectives,” said Turner. This could include technology that enhances productivity or the customer experience, or capability in specialised and rapidly growing corporate or leisure sectors.
Corporate Traveller is poised to join FCM as a A$5 billion-per-year TTV business during FY26, said Turner, with plans in place to fast-track growth in larger Northern Hemisphere markets. The company also reported “pleasing and promising growth” from two specialist businesses under its corporate portfolio: Stage and Screen and FCM Meetings & Events.
In its FY25 report, the results of which were published in August, 32 per cent of the group’s corporate TTV was achieved in the Americas, 29 per cent in Australia and New Zealand, 27 per cent in Europe, and 12 per cent in Asia.
Across the group, FCM secured the greatest share of TTV, at 31 per cent globally, followed by Flight Centre with 25 per cent and Corporate Traveller with 19 per cent.
While corporate TTV growth globally was up 2 per cent to A$12.3 billion in FY25, underlying profit before tax dropped to A$190 million from A$211 million in FY24.