The Webjet Group Ltd (ASX: WJL) share price dropped 18% after releasing its FY26 result.
Webjet is best-known for being an online travel agent (OTA) business for local and international travel.
FY26 result
Here are some of the highlights from the 12 months to 31 March 2026:
- Total transaction value (TTV) fell 3% to $1.46 billion
- Revenue grew 1% to $136.4 million
- Underlying EBITDA (EBITDA explained) dropped 20% to $28.1 million
- Underlying net profit after tax (NPAT) dropped 24% to $13.6 million
- Statutory net profit jumped 85% to $3.7 million
What happened in this result?
Webjet said that total bookings for FY26 were 1.4 million, a decrease of 7% year on year. The TTV only fell 3% because of the inclusion of higher-value transactions from Webjet business travel in the second half of FY26 and higher average booking values in Webjet OTA.
Webjet business travel contributed $1.2 million of revenue in its initial period and an EBITDA loss of $0.6 million.
EBITDA declined amid targeted investment in talent, technology and marketing to support long-term growth, partially offset by savings from cost management and AI-enabled efficiencies.
Cars and motorhomes delivered a materially improved EBITDA of $4.3 million, while the core Webjet OTA business delivered an EBITDA of $38.7 million.
Agreement changed
Webjet also announced that Virgin Australia Holdings Ltd (ASX: VGN) has changed the existing agency and ancillary agreements.
Under the current agreement Webjet is entitled to receive commission payments on the sale of Virgin flights and ancillaries, and achieving specified performance targets.
Starting from 1 July 2026, Virgin will substantially reduce its commission streams and commercial arrangements.
If this change had been implemented at the start of FY26, it would have reduced Webjet’s revenue by $3 million.
Outlook for the Webjet share price
The company said operating conditions are “fluid and challenging” with the ongoing situation in the Middle East, inflationary pressures and low consumer confidence.
FY27 is also expected to be impacted by lower airline commissions, RBA surcharge regulations and lower variable revenue items.
At 17 May 2026, year on year, Webjet OTA had seen bookings and TTV down 12% and 15% with international leisure demand continuing to shift toward short-haul Asian destinations, leading to the lower average booking values and TTV.
Domestically, the Webjet OTA business has seen leisure demand remain constrained by cost-of-living pressures, low consumer confidence and elevated airfares.
Cars and motorhomes bookings and TTV were down 5% in constant currency terms.
The Webjet business travel segment has seen direct-to-business bookings and TTV grow by approximately 20%, though demand is moderating.
It continues to target its medium-term strategic objectives.
Is this a good time to invest in Webjet shares? It went the lowest it has been since it split into two different businesses. It could be an undervalued buy, though the Virgin change is not ideal.
There are other ASX growth shares that could be a better buy right now.
