Jefferies flags deteriorating outlook for Australia's Webjet

Virgin Australia Holdings

20/05/2026 19:54

** Jefferies notes that FY27 has started "poorly" for Webjet Group WJL.AX due to structural headwinds in the form of cost-of-living pressures, elevated airfares and international shift to short-haul Asian destinations

** The online travel agency on Wednesday logged FY26 underlying NPAT of A$13.6 million ($9.73 million), down 24% from last year

** Co sees FY27 to be materially impacted by lower airline commissions, among other factors

** Jefferies says headwinds for co are compounded by Virgin Australia's VGN.AX material reduction in commissions

** Adds impending RBA surcharge represents a "material and difficult-to-offset" earnings risk given limited pricing power

** Against this backdrop, online travel agency demand remains soft, and while growth in business travel and ancillary revenue is encouraging, these are not yet large enough to offset core weakness - Jefferies

** Stock down 50.6% YTD, including the day's moves

($1 = 1.3974 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))