Systems and methods are provided for improving the operation of groups of reverse flow reactors by operating reactors in a regeneration portion of the reaction cycle to have improved flue gas management. The flue gas from reactor(s) at a later portion of the regeneration step can be selectively used for recycle back to the reactors as a diluent/heat transport fluid. The flue gas from a reactor earlier in a regeneration step can be preferentially used as the gas vented from the system to maintain the desired volume of gas within the system. This results in preferential use of higher temperature flue gas for recycle and lower temperature flue gas for venting from the system. This improved use of flue gas within a reaction system including reverse flow reactors can allow for improved reaction performance while reducing or minimizing heat losses during the regeneration portion of the reaction cycle.