UPDATE: The share price of Flight Centre Travel Group Ltd (ASX: FLT) is soaring, surging nearly 9% in morning trade following a significant acquisition announcement and an upgrade to its profit forecast for fiscal year 2026. As of today, shares have climbed to $15.19 each, up from $13.97 at close yesterday, while the broader S&P/ASX 200 Index has gained 0.7%.
This surge comes on the heels of Flight Centre’s agreement to acquire the UK-based online cruise agency Iglu for £100 million (approximately AU$201 million), with potential performance-based earnouts of up to £27 million. The acquisition aims to enhance Flight Centre’s presence in the lucrative cruise sector, which ranks as the third-largest market globally.
Flight Centre’s managing director, Graham Turner, emphasized the strategic value of this acquisition, stating,
“This acquisition delivers immediate shareholder value through EPS accretion and is a game-changer in terms of the future opportunities it unlocks in the global cruise market.”
With this acquisition, Flight Centre expects its cruise-related total transaction value (TTV) to nearly double to over $2 billion on an annualized basis during FY 2026, significantly ahead of previous targets. Both Flight Centre and Iglu have seen sales growth of 15% to 20% year-on-year, bolstered by a resilient customer base.
Iglu’s CEO, David Gooch, will continue to lead the company post-acquisition, asserting that leveraging Iglu’s advanced e-commerce platform with Flight Centre’s global expertise will position them well to capture more market share.
In addition to the acquisition news, Flight Centre has also upgraded its underlying profit before tax (UPBT) guidance for FY 2026 to between $315 million to $350 million, up from a prior estimate of $305 million to $340 million. The midpoint of this new range reflects a projected growth of 15% compared to the previous fiscal year’s UPBT of $289.1 million.
The acquisition is pending completion of procedural steps but is expected to finalize today, and analysts are optimistic about its long-term impact on Flight Centre’s business strategy and growth potential.
For investors looking to capitalize on this momentum, the developments surrounding Flight Centre signal a robust opportunity in the travel and cruise sector amid a recovering market.
This news is developing, and we will continue to monitor Flight Centre’s performance and upcoming announcements.
