Webjet FY25 EBITDA Holds Steady as International Bookings Surge

FY25 Financial Performance

Webjet Group Limited closed FY25 with an underlying EBITDA of $39.4 million, maintaining a robust 43% margin despite a 7% decline in total bookings. Revenue dipped slightly by 1% to $139.7 million, reflecting subdued domestic flight demand, notably impacted by the voluntary administration of regional carrier REX Airlines. This exit removed a key domestic capacity provider, contributing to a 9% drop in domestic bookings.

However, the company’s international flight bookings grew by 11%, now representing 21% of total flight bookings, up from 18% the previous year. This shift towards higher-margin international travel helped offset domestic softness and was supported by ongoing product enhancements and the integration of Trip Ninja’s itinerary automation technology.

Segment Highlights and Operational Progress

The Cars & Motorhomes division, formerly GoSee, reported EBITDA of $1.6 million, with second-half gains reflecting successful restructuring efforts. Despite challenges from reduced domestic travel and a constrained global motorhome market, operational simplifications and cost savings initiatives are on track.

Webjet’s customer service transformation, including the establishment of an in-house call centre in Manila and AI-powered assistance, has improved customer satisfaction and reduced operational costs. The company also refreshed its key brands, Webjet OTA, Airport Rentals, and Motorhome Republic, and expanded affiliate partnerships to broaden market reach.

Strategic Growth and Outlook

Looking ahead, Webjet has outlined an ambitious FY30 strategic plan targeting over $3.2 billion in total transaction value, aiming to double its size within five years. Key initiatives include revitalising the Webjet brand, expanding international flight market share to 25-30%, scaling hotel and package offerings, and launching a new loyalty program to capture more of the travel wallet.

FY26 guidance anticipates underlying EBITDA broadly in line with FY25, with investments of up to $15 million planned to support growth initiatives, including a significant brand relaunch and technology development. Early FY26 trading shows mixed signals with international bookings up 5% year-on-year but domestic bookings down 11%, reflecting ongoing market softness and the lingering impact of REX’s exit.

Financial Position and Capital Management

Webjet maintains a strong balance sheet with net cash of $118.1 million, up from $57.4 million the previous year, and remains debt-free. The company is committed to sustainable dividends starting FY26 and plans to resume share buy-backs when market conditions allow, having deferred them following a rejected acquisition approach from BGH Capital.

Non-operating expenses in FY25 included an accrual for a proposed ACCC penalty, subject to final court orders, and restructuring costs related to the demerger and strategic repositioning.