Why are Flight Centre shares jumping higher in Tuesday’s sinking market?

Flight Centre Travel Group Ltd (ASX: FLT) shares are lifting off today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $10.16. In morning trade on Tuesday, shares are changing hands for $10.42 apiece, up 2.6%.

For some context, the ASX 200 is down 0.6% at this same time.

This outperformance follows the company’s presentation and trading update at the annual Macquarie Group Ltd (ASX: MQG) Conference.

Here’s what we know.

Flight Centre shares lift on profit growth

In a trading update cover the nine months to 31 March, the ASX 200 travel stock reported a 7.6% year on year increase in total transaction value (TTV) to $19.5 billion.

Management noted that the third quarter showed strong momentum, with Q3 TTV up 6.8% to $7 billion, representing 9.4% growth in constant currency.

Flight Centre shares also look to be getting a lift from the 9.7% year-on-year increase in underlying profit before tax (UPBT), which reached $226.4 million over the nine months.

The company’s corporate segment enjoyed a 23% increase in UPBT, while profits in its leisure segment were up 2% from the same nine-month period last year.

And if you held Flight Centre stock at market close on 24 April, you’ll have received the fully franked interim dividend of 12 cents per share on 16 April.

The first nine months of FY 2026 also saw the company complete its $200 million share buyback program.

“We’ve seen strong momentum in both our corporate and leisure businesses, despite a challenging travel environment,” Flight Centre chief financial officer Adam Campbell said.

“Our people have gone above and beyond for customers, and our focus on technology and efficiency continues to deliver returns,” he added.

What’s next for the ASX 200 travel stock?

Looking to what could impact the Flight Centre share price in the months ahead, investors would do well to keep an eye on potential disruption from the Middle East conflict.

Today, management reaffirmed the company’s full year FY 2026 UPBT guidance of $315 million to $350 million.

But Flight Centre said that it is continuing to closely monitor the impact of world events on its short-term results, with hostilities in the Middle East “creating near-term uncertainty and temporarily disrupting international travel patterns”.

For now, investors will have to settle for some ongoing uncertainty, with Flight Centre noting that the impact of ongoing unrest and potential future fuel supply disruptions are “not currently clear heading into the key May-June trading period”.

While the company said its global corporate business has not yet been significantly impacted, its leisure business took an estimated $10 million profit hit in April amid the ongoing hostilities.

With today’s intraday gains factored in, Flight Centre shares remain down 19% since this time last year, not including dividends.

The post Why are Flight Centre shares jumping higher in Tuesday’s sinking market? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.