Flight Centre

(AI video summary)

This video was created on 11 December 2025 for IG audiences by ausbiz.

ASX code: FLT

Flight Centre raises FY2026 guidance after Iglu acquisition

Flight Centre has gained renewed investor attention after acquiring UK-based cruise agency Iglu and upgrading its financial year (FY) 2026 profit outlook. The company now expects FY2026 underlying profit of $350 million to $360 million, a 3% uplift supported by Igloo’s contribution.

The company continues to shift into less commoditised, higher-margin categories, including luxury travel and cruising. Management also pointed to growing digital capability, noting accelerating AI adoption and the rollout of a new loyalty programme.

Ongoing pandemic-related risk

Analysts acknowledged that Flight Centre remains a well-managed operator but highlighted the lasting operational and financial risks revealed during the Covid-19 pandemic. Although the balance sheet has improved since FY2020 and FY2021, pandemic disruption is now viewed as a structural consideration for travel companies. 

Investment outlook

Analysts also pointed to broader macroeconomic headwinds. Weaker consumer spending, fading post-pandemic travel demand and persistent pricing pressure from airlines continue to weigh on the travel sector. Slowing global growth and recent capital raisings during the pandemic mean valuation comparisons with pre-pandemic levels are less relevant. The sector’s near-term outlook remains challenging.