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Highlights
- Flight Centre shares surged 3.1% to AU$17.15, marking the top gain on the ASX 200 and the biggest intraday rise since mid-September.
- The company projects a 20% growth in underlying profit before tax (PBT) for FY25, with expected PBT in the range of AU$365 million-AU$405 million.
- Broader travel industry forecasted to return to pre-pandemic levels, supporting sustained growth.
Shares of Flight Centre Travel Group (ASX:FLT) climbed as much as 3.1% to AU$17.15 on the Australian Securities Exchange (ASX) in early trading, making it the top gainer on the benchmark ASX 200 index. This intraday rise, the largest since mid-September, signals renewed investor confidence as the company issued optimistic profit guidance for fiscal year 2025.
The travel management company projects underlying profit before tax (PBT) in the range of AU$365 million to AU$405 million (US$236.81 million - US$262.76 million) for FY25. This estimate represents a 20% growth from its FY24 results at the guidance midpoint, highlighting the company’s solid post-pandemic recovery in corporate travel demand. Flight Centre anticipates a positive outlook for the broader travel industry, which is expected to normalize as the impacts of the pandemic continue to fade.
With the stock reaching its highest level since October 23, Flight Centre has logged its eighth consecutive day of gains. However, despite the recent rally, the stock remains down 16% year-to-date as of the latest data. Analysts attribute this earlier decline to industry-wide challenges that Flight Centre, like many in the travel sector, has faced in recent years, though the company’s latest projections and market activity hint at a gradual recovery and potential growth for the upcoming fiscal year.
The company’s guidance reflects expectations that the travel sector will return to its usual trajectory as global restrictions ease and demand for business and leisure travel stabilizes. This improvement is particularly evident in corporate travel, where Flight Centre has seen increased demand, a trend expected to contribute significantly to its profit targets for FY25.
