Flight Centre Travel Group has reported AU$289 million in underlying profit before tax (PBT) in its annual results posted on Wednesday (27 August), marking a 10 per decline compared to the AU$320 million reported last year.

The group¡¯s business travel brands, FCM and Corporate Traveller, also reported a 10 per cent year-on-year decline in underlying PBT to AU$190 million in the 12 months to 30 June 2025, which the Brisbane-based company described as ¡°a challenging trading period¡±.

Total transaction value (TTV) for the TMC brands rose by a modest two per cent year on year to AU$12.3 billion, which marks a deceleration compared to the previous year's 10 per cent increase in corporate TTV.

Overall TTV for the group, including its leisure brands, rose 3 per cent year on year to AU$24.5 billion.

In a statement to the Australian Securities Exchange, Flight Centre said growth in its corporate business was ¡°reasonably modest in a flat global market¡­ with account wins offsetting widespread client downtrading¡±.

Corporate Traveller ¡°outperformed¡± in the US, the company said, delivering 12 per cent TTV growth between January and June despite the ¡°contracting market¡±. The TMC is expected to exceed AU$5 billion in TTV in the US during the 2026 financial year.

FCM is also ¡°well placed for further TTV growth¡± due to an expanding client base and a broader range of products and services, according to Flight Centre.

The TMC is also expected to ¡°benefit from industry consolidation¡­ and is already seeing increased RFP activity and interest in early FY2026¡±.

¡°The FCM UK business experienced another solid year of growth (15 per cent year-on-year), and we¡¯re excited by the implementation pipeline that¡¯s on its way. Our specialist divisions of FCM Meetings & Events and Stage, Screen and Sports also enjoyed European growth,¡± said Steve Norris, Flight Centre Travel Group managing director, EMEA.

¡°Positive macro-economic milestones are on the horizon, like the ratification of the UK-USA trade deal, meaning that businesses will need to ramp up their travel to ensure they are ¡®first¡¯ in what is ultimately a contact sport to secure new contracts and deals,¡± he added.

Positive 2026 outlook as clients anticipate spend growth

This positive outlook was backed by results from Flight Centre¡¯s latest State of the Market survey, where 45 per cent of FCM and Corporate Traveller clients expect to increase their travel spend in 2026.

More than 1,200 global corporate clients (travel managers and travel bookers) completed the survey, fielded between June and July 2025. Nine per cent of respondents said their company intends to increase travel spend by more than 20 per cent, 36 per cent plan to increase spending by up to 20 per cent, and 37 per cent believe travel budgets will remain on par with the previous year. Only eight per cent anticipate a reduction in business travel spend.

In EMEA, 46 per cent of clients expect travel budgets to rise in 2026, up from 39 per cent that expected a spending boost in 2025. Only seven per cent of buyers in the region expect to reduce travel spending next year, compared to 21 per cent in 2025.

Flight Centre Travel Group global corporate CEO Chris Galanty said the findings ¡°paint a positive picture for the world of business travel in the new financial year¡±.

¡°There¡¯s no question corporate travel is deemed to be a non-discretionary spend for businesses as a critical facet to surviving and thriving worldwide ¨C this is now evidenced by a significant percentage of our customers planning to increase their travel spend in FY26,¡± he said.