Flight Centre Limited (ASX:FLT) has logged its strongest session in nine months, with shares climbing more than 8% to $15.11 in early trading after unveiling a major UK cruise acquisition described as a “game-changer” by management.
Shares have come off slightly in early afternoon trade, but are still up by 5.73% intraday to $14.77.
The company announced after market close on Wednesday that it will acquire UK cruise specialist Iglu in a £127 million ($254 million) deal, which it calls “transformational” for its growing cruise division and exposure to higher-margin travel segments.
Following the transaction, Flight Centre has upgraded its FY26 profit guidance to a range of $315 million–$350 million, a 3% uplift reflecting Iglu’s expected part-year contribution. The group now expects annualised cruise-related total transaction value to exceed $2 billion in FY26, reaching that milestone 2 years earlier than previously planned. It has also set a $3 billion “stretch target” for FY28, supported by a cruise network spanning online, offline and wholesale channels.
The deal comprises a £100 million upfront payment and up to £27 million in performance-based earnouts. Flight Centre expects the acquisition to be earnings per share accretive in FY26, citing “strong growth potential and further synergies available in the medium term”.
Managing director Graham Turner said the transaction “is a game-changer in terms of the future opportunities it unlocks in the global cruise market”, adding that “Iglu brings a strong brand and a scalable technology platform that aligns with FLT’s strategic objectives.”