Webjet Limited (ASX:WEB) reduces FY20 EBITDA guidance

Company News

by Rachael Jones

Due to the continued uncertainty of the duration and scale of the coronavirus, Webjet Limited (ASX:WEB) has today withdrawn the FY20 EBITDA guidance it issued to the market on 19 February 2020.

With Covid-19 spreading broadly to countries outside of China, there has been a material escalation in cancellation rates of near-term travel and a reduction in overall travel booking activity.

While forward bookings beyond three months remain in line with previous expectations, cancellations are now occurring at short notice prior to travel and therefore reducing visibility on future earnings.

As a result, there is insufficient insight into future performance to maintain earnings guidance at this time.

Shares in Webjet Limited (ASX:WEB) are trading 0.55 per cent lower at $7.26.