Flight Centre Travel Group's stock surged 5.08% during intraday trading on Wednesday, marking a significant upward movement for the travel company.

The sharp rise follows the company's announcement that it will initiate an on-market share buyback of up to A$200 million. This corporate action, which returns capital to shareholders, is viewed positively by the market and appears to be the primary driver behind the stock's strong performance.

Concurrently, the company revised its underlying profit before tax guidance for FY26 to a range of A$275 million to A$295 million, citing disruptions from the Middle East conflict affecting international leisure travel. Despite this guidance adjustment, investor focus has centered on the capital return initiative, propelling the share price to a multi-month high.