FLIGHT Centre Travel Group (FCTG) has revealed that leisure profits in April were impacted by the Iranian war to the tune of about $10 million.
In a presentation delivered this morning, the company said that unlike its corporate division – which has not experienced any material impacts – leisure sales have been buffeted by near-term uncertainty caused by the ongoing military conflict.
FCTG confirmed that mass market customers have been the worst affected, with 25,000 bookings disrupted and around 6% of people cancelling trips.
In some positive news however, the travel giant said “most” clients were rebooking travel after cancelling.
The cruise and touring sectors have been the “hardest hit” by the instability, with higher airfares longer routings, and general customer hesitation cited as the main factors.
When it comes to luxury bookings, the picture looked brighter for the business, with the war in the Middle East causing more rerouting, not cancellations.
While its underlying profit before tax target of $315-350 million remains unchanged for FY26, FCTG conceded it was difficult to assess the potential impact that fuel supply disruptions and ongoing unrest will have on the key trading months of May and June.
