Flight Centre Travel Group (FCTG) has attributed year-on-year profit growth in the corporate division in Australia (as recently announced in its FY25 Results) to a growing leaning towards premium travel options, and businesses’ willingness to spend on travel comforts, especially on longer-haul international flights.
“We’re seeing an uptick in the Premium Economy and Business Class cabins in particular, both domestically and internationally,” said Melissa Elf (pictured), global COO, FCM Travel and Corporate Traveller. She added that Premium Economy bookings were growing at the fastest rate, up nine per cent in the year to date, compared to the previous year. Business Class followed, up close to five per cent during the same period.
Bookings in the economy cabin out of Australia remained relatively flat, the group reported, with First Class bookings dropping. “Rising popularity at the front end of the plane reflects growth and stability across Australian businesses, and it echoes our recent findings that FCM Travel and Corporate Traveller customers are looking to spend more on travel in the year ahead,” Elf added.
Globally, 45% of FCTG’s corporate customers say they intend to increase their travel spend in the current financial year versus the previous. In Australia, the intention to spend more jumps to 47% of businesses surveyed*.
Business Class travellers are also reaping the rewards of fairly flat airfares, which have remained at the same level year on year, while Premium Economy has risen with demand Overall change in international return airfares ex. Australia, in August 2025 vs August 2024, according to FCTG were: Economy cabin: +2%, or up $38 Premium Economy: +10% , or up ~$400 Business Cabin: essentially flat (+0.1%), or an uplift of $10 First Class: +3%, or up ~$550.
“Companies are aware that the cost of doing business is getting more expensive, so those focused on growth are committing budget to activity that deliver returns, and travel is one of those non-discretionary areas of spend that drives revenue,” Elf said. “On top of that, there’s a real flock to the front of the plane, and businesses are willing to pay for the more expensive cabin classes to get the greatest level of productivity and loyalty out of their travelling staff.”
Elf added that FCTG was seeing a slowdown in First Class bookings due to vast improvements on offer in the Business cabin. “Airlines are certainly prioritising the premium traveller. Recently, we have seen carriers reconfigure aircraft layouts to not only expand the volume of Premium Economy and Business Class seating but also innovate the top cabin offering and set a point of difference as the aviation sector gets increasingly more competitive,” she said.
“First Class will offer that next level of exclusivity and privacy, but it’s a big jump in price from Business Class, and tends to mainly attract the ultra-high-net-worths and our extra VIP business owners, board members and high-level executives. While there will always be some appetite for First Class, it’s not seeing bookings growth by any means.
“This growth in the business and premium economy cabins comes in a period of economic uncertainty, and it goes to show that despite many businesses feeling the pinch of the cost of doing business, travel continues to be a necessity for corporate success and survival.”
*The State of the Market survey was conducted in June and July 2025. The target respondents were Corporate Traveller and FCM Travel customers, specifically decision-makers, travel managers, and authorised travel bookers. A random sample of 1,234 responses was obtained, of which 524 were ANZ-based businesses.
