Webjet “delivering results”

PARTS of Webjet Limited’s business have returned to profitability over the last two months, with CEO John Gucsic this morning confirming the company’s post-COVID strategy is “delivering results and the company will be operating cash flow-positive for the first half of financial year 2022”.

Gucsic said the WebBeds division was profitable in Jul and Aug, with strong demand as travel restrictions ease in North America and Europe “suggesting significant upside as more international markets reopen”.

Locally the Webjet OTA was also profitable during the Apr-Jul quarter, but has been subsequently impacted by the current lockdowns in Australia and New Zealand.

However the company is confident of a rebound as soon as the markets reopen, he said.

“We see a world of opportunity for Webjet...all our businesses have significant potential to grow market share by expanding into new market segments and benefiting from consumers shifting to buy travel online,” the company’s CEO added.

He said transformation initiatives were also set to reduce costs by at least 20% once the business returns to scale.

“While the exact timing is uncertain as our growth opportunities are driven by the opening of borders, we know demand for travel will return and we are absolutely ready to capture it,” Gucsic enthused.