Webjet Group shares plunge on FY earnings, Virgin Australia commission hit
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More news: Shares in Webjet Group plummeted in early trade after Virgin Australia reduced commissions and commercial agreements for its subsidiary Webjet Marketing, flagging a potential $3 million revenue hit.
Shares slumped 11.22% to 43 cents at 11:53am AEST.
Virgin to cut commissions and commercial agreements for Webjet, faces $3m revenue hit
The news: Webjet’s subsidiary Webjet Marketing will receive lower commissions and reduced benefits from its commercial agreements from Virgin Australia, effective 1 July.
The company noted that a $3 million revenue reduction would have occurred had the changes been implemented at the start of FY26.
The numbers: For the year ended March 2026, underlying group EBITDA fell 20% year on year to $28.1 million, however statutory net profit after tax (NPAT) saw an 85% increase to $3.7 million compared to the prior year.
Underlying NPAT dropped 25% to $13.6 million. Total bookings declined 7% to 1.4 million, while total transaction value fell 3% year on year.
The context: Webjet said that the weaker full-year group performance reflected a challenging operating environment, including geopolitical tension, elevated airline fares and persistent cost of living pressures.
First-half trading was also impacted by an investigation launched by the ACCC last year regarding misleading statements about flight prices and booking confirmations, for which the company paid a $9 million penalty.
The company expects its FY27 performance to be materially impacted by lower airline commissions, alongside RBA surcharging regulation changes and lower variable revenue items.
What they said: “In this environment, Webjet Group is counting to adopt a cautious and disciplined approach, with a focus on cost control and operational efficiency, increased use of automation and AI, and preservation of balance sheet strength and liquidity,” CEO Katrina Barry said.
