Flight Centre Travel Group (ASX:FLT) cut its fiscal 2026 underlying profit before tax guidance to between AU$275 million and AU$295 million from a previous range of AU$310 million to AU$345 million, citing the Middle East conflict's "significant short-term impact" on leisure travel, according to a Wednesday filing with the Australian bourse.

A peace deal to end the war provides a meaningful earnings tailwind, but is unlikely to change the company's result trajectory for the fiscal fourth quarter, per the filing.

The fiscal fourth-quarter disruption is expected to reduce leisure earnings by around AU$50 million compared with previous expectations, with a further AU$5 million impact in touring businesses and a AU$5 million to AU$10 million foreign exchange impact, the company said.

Additionally, Flight Centre Travel Group is launching an on-market issued capital buyback of up to AU$200 million over the next 12 months.