Flight Centre Travel Group's (ASX:FLT) cut to its fiscal year 2025 underlying profit before tax (PBT) guidance was driven by one-off issues and is likely to be cycled through, according to a Thursday filing with the Australian bourse.

On Wednesday, the company said its underlying PBT for the fiscal year is expected to be in the range of AU$285 million to AU$295 million, lower than its previous guidance of AU$300 million to AU$335 million, citing challenges in Asia and softer volumes linked to geopolitical tensions in the Middle East.

However, total transaction value (TTV) guidance of AU$24.5 billion was 1% ahead of market expectations, supported by foreign exchange movements and solid performance in the corporate segment.

Jarden said future growth should be supported by a stronger corporate travel market, improving global sentiment, and rising demand for luxury and high-touch travel.

The brokerage forecasts 17% PBT growth in the first half of fiscal year 2026, though it noted risks if current headwinds persist.

The broker also believes the company is well positioned to capitalise on the potential recovery, and if confidence builds, it sees scope for the stock price to re-rate above AU$26 per share.

The firm maintained Flight Centre's buy rating but lowered its price target to AU$18.50 from AU$19.30.