Webjet Sinks 22 Percent After Softer H1 Results and Weak Domestic Demand

Webjet Falls 22 Percent After H1 Revenue Dips and Domestic Flight Demand Softens

Webjet (ASX: WJL) opened down 22 percent today after releasing its H1 26 results, which delivered a softer near term performance. The downturn was driven by weaker domestic flight demand, which fed directly into revenue that slipped 1 percent to A$68 million. Bookings also fell to 724 thousand compared to 784 thousand last year, an 8 percent decline. The market response reflects this short term pressure, yet management remains confident in the long term economics of the business and its broader industry positioning.

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Webjet Faces Near Term Headwinds as Domestic Pressure Rises and Booking Mix Shifts

Competitive intensity increased in the airline market and fares stayed elevated following the exit of Rex, which placed additional pressure on domestic volumes. The bright spot in the result was international travel, which continued to grow and now represents 22 percent of total bookings. However, the mix shifted toward lower revenue regions such as Asia rather than higher margin travel to Europe. Overall, the result highlights a challenging near term environment but does not materially alter the longer term outlook that Webjet continues to emphasise.

Webjet’s EBITDA Slips 9 Percent as Domestic Softness Hits Earnings Despite NPAT Lift

When assessing profitability this half year, Webjet reported underlying EBITDA of A$14.4 million, a 9 percent decline compared to the prior corresponding period. The softer domestic environment reduced operating leverage, which flowed directly into earnings. Despite this, NPAT increased 16 percent, supported by cost controls and a more favourable mix from parts of the international segment. Management also noted that website traffic fell after the ACCC issued industry notices, which led to lower lead generation and contributed to the moderation in booking volumes.

The Outlook For WJL

Webjet has lowered its FY26 outlook by 9 to 14 percent, reflecting management’s expectation of continued softness in domestic demand and ongoing supply chain constraints that may hold back profitability in the near term. When putting the pieces together, the result shows a business that is still demonstrating a resilient economic engine despite operating through a clear slowdown in domestic travel. Revenue held almost flat, bookings declined, and margins compressed, yet the overall earnings profile remained steady and well managed.

The broader picture is that Webjet continues to operate like a fundamentally sound business navigating a cyclical trough rather than a structural decline. The company is behaving in a manner consistent with long term value creation by maintaining discipline, investing through the cycle and protecting the strategic advantages that support its long term economics.