Webjet Delivers Solid 1H26 Results Amid Softer Travel Demand

About Webjet Group Ltd

Founded in 1998 and headquartered in Melbourne, Webjet Group Limited (ASX: WJL) is a leading online travel agency (OTA) specialising in flight, hotel, and package bookings across Australia and international markets. Through its flagship Webjet OTA business, as well as subsidiaries such as WebBeds and Locomote, the company provides comprehensive digital travel solutions to consumers and businesses. Webjet has long been recognised for its innovation in online travel technology, leveraging automation, AI, and advanced data analytics to enhance customer experience and streamline operations.

The company operates in a competitive global travel sector that continues to recover unevenly from post-pandemic disruptions. Against this backdrop, Webjet’s first-half FY26 performance highlights its ability to sustain profitability, manage costs effectively, and invest in future growth while navigating soft consumer sentiment and elevated airfare costs.

Financial Performance and Market Conditions

For the six months ended 30 September 2025, Webjet delivered underlying EBITDA of $14.4 million, a modest 9 per cent decline compared to the prior year, aligning with expectations. Underlying NPAT rose 16 per cent to $7.8 million, while statutory NPAT increased 51 per cent to $6.2 million, reflecting disciplined cost control and lower one-off expenses.

Revenue eased slightly by 1 per cent to $67.9 million, as bookings fell 8 per cent and total transaction value (TTV) decreased by 3 per cent to $726 million. The softness in domestic flight demand was partially offset by increased international bookings, particularly in short-haul destinations across Asia.

The broader travel sector faced headwinds during the period, including geopolitical instability in the Middle East, trade disruptions, cost-of-living pressures, and persistently high domestic airfares following Rex Airlines’ exit from major city routes. These factors contributed to subdued leisure travel demand and a cautious consumer environment.

Webjet also faced a temporary impact from an ACCC infringement notice, which was displayed on its websites for two months to the end of September 2025. The notice led to a decline in website traffic and bookings; however, management viewed the effect as temporary and used the period to prepare for a strategic relaunch of the Webjet brand later in the year.

Strategic Progress and Operational Excellence

Despite a challenging external environment, Webjet made significant progress on its FY30 Strategic Plan, centred around four key pillars: expanding international market share, growing hotel and package offerings, strengthening business travel services, and refreshing its brand and loyalty programs.

Under this plan, the company has continued investing in AI-driven technology and operational excellence initiatives, including automation projects that delivered material cost savings within the Cars & Motorhomes division. Webjet also advanced its digital transformation through a partnership with Amazon Web Services (AWS) to develop scalable, AI-powered travel technology solutions.

Webjet achieved several key milestones across its strategic priorities during the first half of FY26. International expansion remained a core growth driver, with overseas bookings now representing 22 per cent of total flight volume, supported by enhanced pricing structures, improved itineraries, and stronger service quality. The company also made meaningful progress in its hotels and packages division, launching a series of exclusive travel bundles that integrate accommodation, tours, and experiences through partnerships with major global suppliers.

In business travel, the acquisition of Locomote Holdings Pty Ltd in FY25 accelerated the rollout of Webjet’s next-generation corporate travel platform by approximately three years, with early post-acquisition results showing strong client adoption and scalability potential.

Additionally, the company continued to invest in brand and customer engagement initiatives, unveiling a refreshed brand identity and creative campaign to strengthen long-term loyalty, supported by the upcoming launch of a new rewards program in FY26.

Accounting Policy Revision

During FY25, Webjet undertook a comprehensive review of its accounting policies to ensure alignment with industry standards. The main change involved the derecognition of gift card liabilities, shifting from recognising revenue based on historical redemption patterns to recognising it upon expiry — typically after three years under Australian Consumer Law.

The adjustment was applied retrospectively and had no impact on cash flow, but enhanced transparency and comparability across reporting periods. Revised FY25 results reflected underlying EBITDA of $35 million and revenue of $135.3 million, down slightly due to timing differences in gift card recognition.

Outlook and Capital Management

Looking ahead, Webjet expects subdued market conditions to persist through the second half of FY26 as interest rates remain elevated and airfares stay high. The company forecasts underlying EBITDA between $30 million and $32 million for the full year, representing a 9–14 per cent decline compared to FY25. The company continues to prioritise financial discipline and strategic investment, particularly in its brand relaunch and digital marketing programs, which are designed to strengthen customer loyalty and brand visibility over time.

Conclusion

Webjet’s first-half FY26 performance underscores its resilience and strategic focus amid ongoing market headwinds. The company continues to balance disciplined cost management with targeted investment in growth areas such as AI technology, brand development, and international expansion.

With a robust balance sheet, a well-defined FY30 roadmap, and growing recognition within the travel industry — including multiple international awards — Webjet remains positioned for sustainable long-term growth. As the travel sector gradually normalises and technology-driven efficiencies take hold, the company is expected to leverage its strong brand, scalable platforms, and customer trust to drive renewed momentum and shareholder value in the years ahead.