Flight Centre Travel Group Limited (ASX: FLT)Share Price and News

Introduction to Flight Centre (ASX:FLT)

Flight Centre Travel Group Limited is an Australian-based global travel retailer and corporate travel management company. Established in 1982, the company has grown into one of the world’s largest travel agencies, offering a wide range of services, from booking flights and accommodation to providing corporate travel management solutions.

Flight Centre operates through multiple brands across different segments of the travel market, including leisure, corporate, and wholesale travel. The company maintains a strong global presence, operating in over 20 countries with a streamlined network of retail locations and digital platforms.

Known for its customer-centric approach, Flight Centre is recognised for offering a broad selection of travel products, catering to both individual and corporate clients. The company stands out with a robust online presence, offering customers the flexibility to book through both traditional travel agencies and digital platforms.

Flight Centre's History

Founded by Graham Turner and Geoff Harris, Flight Centre started in 1982 as a single shopfront in Brisbane, Queensland. It traces its origins to the 1970s when its founders operated 'Top Deck' travel that offered European Camping Tours.

Upon their return to Australia, they opened their first outlets and they quickly expanded overseas including into the UK in 1984 and New Zealand in 1987. In 1988, the company had its first ads with 'The Captain' and the 'Lowest Airfares Guaranteed' slogan - and business took off.

Over the years, it expanded rapidly through organic growth and acquisitions. In the 1990s, Flight Centre launched its online booking platform, positioning itself as a pioneer in digital travel retail. The company went public in 1995, listing on the Australian Securities Exchange (ASX) under the stock symbol FLT.

The 2000s were a difficult period with multiple travel downturns including 9/11, SARS and the GFC, but the company gradually expanded into other travel sub-markets through acquisitions such as Cruiseabout, Quickbeds and Internet Travel Group. The biggest of then was the launch of forex business Travel Money in 2007 that had become the second-largest retail brand in the Group within a decade.

The pandemic was a difficult time for the company as demand for travel was wiped out. The company had to issue $1bn in refunds in Australia alone and stand down 15,000 employees. But it used the opportunity to become more efficient in closing unprofitable brick and mortar stores.

Future Outlook of Flight Centre

The future outlook for Flight Centre Travel Group is mixed. On one hand it is promising that it has survived so many crises in its history. The other is that these crises pop up and shares are volatile. 2025 looked that things were finally 'back to normal' with travel are pre-COVID levels, only for Trump's tariffs to hit travel (at least to the US). The company had guided to a $365-405m underlying pre-tax profit for FY25, only to downgrade it to $300-335m.

That said, the company is optimistic about the long-term. It is focusing on growing its corporate travel division, which now represents a larger share of its overall revenue. Additionally, Flight Centre has committed to expanding its footprint in the digital space, strengthening its online booking platforms to meet the increasing demand for digital travel solutions.

Strategically, Flight Centre continues to focus on global expansion, particularly in the US and UK markets, while also targeting new regions for growth.

But again, challenges such as economic uncertainty and inflationary pressures may impact consumer spending on travel, posing risks to the company’s growth trajectory.

Is Flight Centre a Good Stock to Buy?

Flight Centre offers potential growth opportunities for the reasons mentioned above, but its performance is closely tied to macroeconomic factors such as fuel prices, currency fluctuations, and geopolitical tensions, which can significantly affect profit margins.

Potential investors should closely monitor market conditions, especially in the face of any global disruptions. The company has survived several crises in the sense that it hasn't fallen over, but it has been affected and taken some time to recover every time.