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Online travel company Webjet Group (ASX: WJL) has posted a 24 per cent decline in full-year underlying net profit to $13.6 million as elevated domestic airfares and cost-of-living pressures weighed on consumer demand for holidays.
The FY26 result reflects softer trading conditions across the group's Webjet OTA platform, with underlying EBITDA falling 20 per cent to $28.1 million from $35.0 million in the prior year.
Webjet Group also attributes the weaker performance to the impact of an Australian Consumer and Competition Commission (ACCC) corrective notice that was displayed on its platforms during August and September 2025.
The notice related to a Federal Court ruling, including a $9 million penalty, that found Webjet utilised "drip pricing" by failing to include unavoidable booking fees in advertised airfares and provided false booking confirmations.
Total transaction value slipped 3 per cent to $1.457 billion while total bookings fell 7 per cent to 1.4 million.
Despite the weaker performance, Webjet Group is paying total dividends that exceed its earnings on a per-share basis for the year as the board moves to maximise the distribution of available franking credits.
The fully franked final dividend of 2c per share brings total FY26 distributions to 4c per share - or well above the 3.46c per share the underlying NPAT represents.
Webjet Group’s businesses comprise the Webjet OTA (online travel agency) divisions, GoSee, a car and motorhome rental platform, and Trip Ninja, a travel technology business that helps travel companies improve their booking systems.
Webjet group CEO Katrina Barry says the company managed to maintain financial discipline and progressed its strategic growth plan amid a "volatile and at times challenging operating environment".
"We have acted on our priorities and laid the groundwork for the next phase of growth," says Barry.
"A significant milestone within the year was the refresh of the Webjet brand . Our Go Somewhere campaign is delivering encouraging early results - lifting brand awareness, increasing new visitors to site, improving the efficiency of our performance marketing channels, and strengthening customer engagement.
"Over time, and with continued investment in brand marketing, we expect these initiatives to support stronger booking growth and further deepen customer connection with the brand."
Statutory net profit after tax came in at $3.7 million, up 85 per cent on the prior year but significantly below the underlying figure due to $2 million in share-based payment expenses, $7.9 million in non-operating expenses and $3.3 million in impairments.
The result landed at $28.1 million in underlying EBITDA on a reported basis, which is at the bottom of the $28 million to $29 million guidance range issued in February 2026.
Despite the robust dividend payment, shareholders sold down Webjet Group with the stock closing 11 per cent lower at 43.5c each today.
Looking ahead, Webjet Group warns of further headwinds in FY27 including what it describes as "materially" lower airline commission rates, regulatory changes to RBA surcharging rules and lower variable revenue items.
Early trading data reinforces the cautious outlook, with Webjet OTA bookings and total transaction value down 12 per cent and 15 per cent respectively as at 17 May 2026.
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