Fund Manager Summary
The fund managers believe that the outlook for Flight Centre Travel Group Ltd presents a significant opportunity despite recent volatility. They note that while the company experienced a decline in share price due to a softer Q1 trading update, in their opinion, the business is now more efficient and productive than pre-COVID times. The fund managers highlight that over half of the legacy retail store network has been closed and the remaining stores optimized for better returns, with a shift towards luxury travel and independent store networks. Moreover, the corporate segment continues to grow, positioning Flight Centre as the third largest corporate travel manager globally. With a target of achieving a 2% underlying profit before tax margin and trading at approximately 13x FY25 consensus earnings, they view the current share price as an attractive entry point.
Source: Trading View
Commentary From The Managers
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1851 Capital
20 Nov 2025
$12.00
Summary
- Flight Centre is viewed as a standout investment opportunity.
- Currently trading near its COVID-19 lows from 2020, while the Small Ords have more than doubled in the same period.
- Stock trades on a low PE ratio of 12, and is virtually debt-free.
- Despite being the seventh most shorted stock on the ASX, 1851 Capital sees potential upside.
- The company has faced significant challenges, including pandemics and soft consumer confidence, over the past five years.
- While the leisure segment has struggled, Flight Centre has successfully developed a robust corporate travel business, which is now a key earnings driver.
- Expectations in the market are very low, which can lead to potential outperformance.
- 1851 Capital continues to hold because of new contract wins in corporate travel and easing macro headwinds for leisure.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
1851 Capital
20 Nov 2025
$12.00
- Flight Centre is viewed as a standout investment opportunity.
- Currently trading near its COVID-19 lows from 2020, while the Small Ords have more than doubled in the same period.
- Stock trades on a low PE ratio of 12, and is virtually debt-free.
- Despite being the seventh most shorted stock on the ASX, 1851 Capital sees potential upside.
- The company has faced significant challenges, including pandemics and soft consumer confidence, over the past five years.
- While the leisure segment has struggled, Flight Centre has successfully developed a robust corporate travel business, which is now a key earnings driver.
- Expectations in the market are very low, which can lead to potential outperformance.
- 1851 Capital continues to hold because of new contract wins in corporate travel and easing macro headwinds for leisure.
Summary
Contact Asset Management
30 Sept 2025
$11.57
- Flight Centre (ASX:FLT) has faced challenges over the past year, leading to management resetting expectations due to volatile end markets.
- Market sentiment remains cautious, indicated by expanded short interest reflecting investor skepticism regarding margin compression from supplier costs and geopolitical risks.
- Contact Asset Management believes that these concerns are largely reflected in the current price, with FLT trading at a 25% discount to historical multiples.
- The company possesses a solid balance sheet, is engaged in an ongoing buyback, and is supported by an experienced management team.
- Contact Asset Management continues to hold FLT as it is viewed as a defensive growth play for investors looking to capitalize on the cyclical upswing in travel amid stabilizing inflation.
Summary
Selector Funds Management
31 Aug 2025
$12.78
- Flight Centre Travel Group is a major player in the global travel agency market with operations in over 100 countries and 30 brands.
- Founded in the early 1980s, it expanded into the Corporate market in 1993, employing 12,411 full-time employees, down from 20,092 in FY19.
- The company aims for a 2%+ profit before tax total transaction value (TTV) margin, last achieved in FY15.
- In FY25, Flight Centre reached a record TTV of $24.5 billion, despite facing industry headwinds.
- Management plans to hold underlying costs flat in FY26 while closing underperforming assets.
- Flight Centre's balance sheet remains flexible, with $622 million in cash and $141 million in debt.
- The Corporate segment reported record TTV of $12,343 million with flat revenue of $1,144 million.
- Corporate Traveller and FCM are focused on enhancing technology for better client personalisation and efficiencies.
- Customer satisfaction is improving, with NPS for bookers increasing by 23% to +54.
- The Leisure segment saw TTV growth of 6.7% to $11,847 million, although profits decreased due to reduced long-haul bookings.
- Management announced a new customer loyalty program aimed at enhancing digital personalisation and increasing revenue streams.
- While no formal guidance was provided, underlying profit before tax is expected to remain flat in the first half of FY26.
- Flight Centre has a market capitalisation of $2.6 billion and is focused on digitisation and standardisation.
- Despite external challenges, the company is reshaping its offering and enhancing customer experience through self-service capabilities.
Summary
Selector Funds Management
31 July 2025
$11.94
- Selector Funds Management continues to hold a positive outlook on Flight Centre Travel Group (ASX:FLT) despite recent challenges.
- Preliminary FY25 trading results indicate a revision in expected underlying profit before tax to $285m-$295m, down from $300m-$335m.
- Total transaction value (TTV) is projected to reach a record $24.5b for the year.
- The guidance revision is attributed to underperformance in Asia and industry headwinds from escalating tensions in the Middle East.
- There is a noted global downturn in travel bookings to the U.S., with customers opting for closer-to-home holidays.
- Transactional volume growth in lower margin brands has negatively impacted operating margins.
- Flight Centre is accelerating initiatives within its Global Business Services unit to enhance operational efficiency and automation.
- The company is simplifying its product portfolio by closing underperforming assets, including Student Universe.
- Targeting a 15%-20% reduction in capital expenditure for FY26.
- A leisure loyalty offering is set to launch by the end of 1H FY26, initially covering the Flight Centre, Cruiseabout, and Travel Associates brands in Australia.
- Flight Centre Travel Group currently has a market capitalisation of $2.6b.
Summary
Selector Funds Management
30 Apr 2025
$12.77
- Flight Centre Travel Group downgraded FY25 underlying profit before tax guidance from $365m-$405m to $300m-$335m.
- U.S. policy changes have impacted business and consumer confidence, slowing Corporate and Leisure Total Transaction Value (TTV) growth.
- Despite the uncertainty, the business is on track to deliver record TTV and exceed pre-pandemic profitability levels for FY25.
- CEO Graham Turner emphasized maintaining cost discipline and implementing strategies to boost productivity and enhance customer experience.
- The company maintains a strong balance sheet, enabling investments in growth drivers and potential acquisitions.
- Flight Centre is investing in systems to enhance productivity, including initiatives in the Global Business Services division to reduce a monthly cost base of $20m.
- Ongoing productivity initiatives are in place for Corporate and investments within the Cruise sector in Leisure.
- Flight Centre announced an on-market share buyback of up to $200m, set to start mid-May and complete within 12 months.
- The company has a market capitalisation of $3b.
Summary
Ten Cap
31 Jan 2025
$17.87
- Ten Cap reduced their position in Flight Centre (FLT) due to declining confidence in its future earnings.
- The larger-than-usual second-half skew adds further risk to the investment.
- While a depressed multiple offers some degree of downside protection, greater confidence exists in other opportunities.
Summary
L1 Capital
31 Dec 2024
$16.68
- Flight Centre shares fell -25% following a softer Q1 trading update.
- Market impacts attributed to airfare price deflation and downtrading in some corporate accounts.
- Despite near-term volatility, L1 Capital believes the business is now more efficient and productive than pre-COVID levels.
- On the Leisure side, more than half of the legacy retail store network has been closed and the remaining footprint optimised.
- The company has shifted focus towards luxury travel and independent store networks.
- In corporate travel, Flight Centre is the third largest corporate travel manager globally.
- The company aims for a 2% underlying profit before tax (PBT) margin in the medium term.
- If the margin target is achieved, it could imply a 50% increase in PBT from 2024 levels.
- Currently trading at only ~13x FY25 consensus earnings with a strong balance sheet.
- L1 Capital remains optimistic and has used the recent sell-off to add to their position.
Summary
Blackwattle Investment Partners
31 Oct 2024
$15.98
- Flight Centre (FLT) experienced a decline in performance due to a Q1 trading update that was weaker than consensus expectations.
- Underpinning quality improvements have been noted in the business since 2020, especially with the growth of the FCM corporate travel division.
- Total corporate transaction value has surged over 30% to $12bn since 2019, reflecting organic market share gains despite a market still down 10-15% from pre-pandemic levels.
- A leaner cost structure and new corporate mandates are expected to enhance profitability over time.
- While leisure travel has peaked, increasing airline capacity and reduced demand may lead to elevated commissions for distributors like Flight Centre.
- Under the leadership of founder Graham “Scroo” Turner, Flight Centre has demonstrated a consistent history of innovation and resilience.
- The travel industry has seen significant disruptions, impacting traditional travel agencies significantly.
- Blackwattle Investment Partners continues to hold this position due to the observed improvements and potential for future growth.
Summary
L1 Capital
31 Oct 2024
$15.98
- Flight Centre shares have fallen by 29% following a softer Q1 trading update.
- Impacts noted from airfare price deflation and downtrading in some corporate accounts.
- Despite near-term volatility, L1 Capital believes the business is more efficient and productive compared to its pre-COVID status.
- Over half of the legacy retail store network has been closed and the remaining stores have been optimized.
- The company is shifting towards more luxury travel and independent store networks.
- The corporate division continues to grow and is now the third largest corporate travel manager globally.
- L1 Capital anticipates a 2% underlying profit before tax (PBT) margin in the medium term, implying a potential over 50% increase in PBT from 2024 levels.
- Trading at approximately 13x FY25 consensus earnings and with a strong balance sheet, L1 Capital sees Flight Centre as an attractive opportunity.
- Following the recent sell-off, L1 Capital has added to its position.
Summary
Yarra Capital Management
31 Oct 2024
$15.98
- Flight Centre (FLT, overweight) experienced underperformance following its operational review and trading update for FY25.
- FLT reported a soft trading update, attributing this to airline ticket deflation and a soft macro environment.
- The Leisure and corporate division are anticipated to benefit from pent-up demand in the longer-term.
- The corporate division has been gaining significant market share.
- As group earnings improve, additional value is expected to be released from restructuring the balance sheet.
Summary
Contract Asset Management
31 Oct 2024
$15.98
- Flight Centre Travel (FLT) has provided updated guidance indicating steady year-over-year growth.
- Results are currently lagging behind management’s ambitious expectations.
- The company's underlying profit is continuing to expand, despite month-to-month trading volatility.
- Deflation in international airfares is dampening the benefits of increased travel volumes.
- The corporate travel sector shows a mixed picture of recovery.
- FLT aims for a 2% pre-tax profit margin in the coming years, which could significantly boost earnings.
- Contract Asset Management views the current volatility as a buying opportunity.
Summary
Selector Funds Management
30 Sept 2024
$22.35
- Flight Centre Travel Group has achieved Total Transaction Value (TTV) growth in 37 of its 42 years of corporate history.
- Misses in TTV occurred during or after COVID, specifically from 2020 to 2023.
- Post-COVID, the company aims to build a lower cost and more profitable business by focusing on its core travel segments: Corporate and Leisure.
- Management targets a 2% profit before tax margin, a level last reached in 2015.
- The workforce has reduced to 12,514 employees, down from 13,065 in FY23, while maintaining a global presence.
- Ranked among the top five corporate travel operators worldwide.
- In 2024, the company reported a record TTV, surpassing its 2019 peak and increasing by 8% from 2023.
- Profit before tax rose by 37% to $320m, with a profit to TTV margin improvement from 0.6% in 2023 to 1.3%.
- Transaction volumes increased by 11%, while cost per transaction decreased by 2% due to technology improvements and scale.
- Both Corporate and Leisure segments achieved a PBT margin of 1.7%.
- Corporate delivered TTV of $12.1b and PBT of $211m, while Leisure achieved TTV of $11.0b and PBT of $188m.
- The company operates with net cash of $60m, excluding convertible notes, and aims to strengthen its balance sheet.
- Ongoing dividends represented a second-half payout of 38%, alongside a buyback of convertible notes.
- CEO Graham Turner stated a focus on profitable growth and a clear path to achieving the 2% underlying profit margin by FY25, although it remains a stretch target.
- Flight Centre Travel Group currently has a market capitalisation of $4.8b.
Summary
Contract Asset Management
31 July 2024
$22.21
- Contract Asset Management updates its investment thesis on Flight Centre Travel Group Ltd (FLT).
- FLT’s near-term guidance was amended down marginally.
- However, margins were stronger than expected, indicating positive prospects for FLT's 2% margin target in FY25.
- The market remains sceptical about FLT's ability to deliver.
- Contract Asset Management views this skepticism as an opportunity.
Summary
Milford Asset Management
31 July 2024
$22.21
- Milford Asset Management has made a recent addition to the Fund with a focus on travel company Flight Centre, which has rallied 10.1%.
- Flight Centre is now a larger, leaner, and higher Return on Invested Capital (ROIC) business compared to pre-Covid levels.
- Approximately 60% of bricks and mortar retail sites have been closed, but this has been offset by expansion into higher ROIC segments.
- This expansion includes luxury, cruise, corporate, and independent agencies.
- Flight Centre has emerged as a top three provider of corporate travel services in the US.
- The leisure segment of Flight Centre targets demographics that are less impacted by mortgage stress, particularly luxury and baby boomer segments.
Summary
Blackwattle Investment Partners
31 May 2024
$18.85
- Shares in Flight Centre were down 11% in May.
- Recent share price weakness in travel stocks linked to outlook from Corporate Travel (CTD).
- CTD's issues appear somewhat self-inflicted.
- Flight Centre on track to deliver 2% PBT target in FY25.
- Consensus estimates still below this target.
- Potential for upgrades as aspirational target shifts to 12-month guidance at FY24 result.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"While near-term turbulence looms, Flight Centre appears poised for a robust rebound, leveraging a leaner structure and a shift towards luxury travel. With a strong balance sheet and competitive positioning, this dip may just be the launchpad for future growth."
Last Updated: 20 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Flight Centre Travel Group Ltd (ASX:FLT)?
Fund managers including L1 Capital, Ten Cap, Milford Asset Management, Blackwattle Investment Partners, Yarra Capital Management, Contract Asset Management, Selector Funds Management, Contact Asset Management and 1851 Capital have invested in Flight Centre Travel Group Ltd (ASX:FLT).
Why do fund managers invest in Flight Centre Travel Group Ltd?
Fund managers are investing in Flight Centre Travel Group Ltd due to its improved operational efficiency and strategic shifts post-COVID, despite recent share price volatility. The company has optimized its retail footprint and is focusing on luxury travel, while also strengthening its position as a leading corporate travel manager. With a target of achieving a 2% profit margin and trading at a favorable earnings multiple, fund managers see significant growth potential and a strong balance sheet, making it an attractive investment opportunity.
What happened to Flight Centre Travel Group Ltd (ASX:FLT)?
Fund managers are investing in Flight Centre Travel Group Ltd due to its strong market position and potential for recovery despite recent headwinds. The company reported record total transaction value (TTV) of $24.5 billion in FY25 and is focusing on operational efficiency through cost reductions and portfolio simplification. With a solid balance sheet, ongoing buybacks, and an experienced management team, Flight Centre is viewed as a defensive growth opportunity. The corporate travel segment is robust, driving earnings growth, while the leisure division is set to benefit from a new loyalty program aimed at improving customer retention and experience. Despite trading at a discount to historical multiples, the market's low expectations provide a conducive environment for potential outperformance.