Travel groups Webjet and Helloworld say the growing impact of the coronavirus is making it impossible to offer any financial visibility their respective businesses.
Travel groups Webjet and Helloworld have both withdrawn earnings guidance provided as recently as last month and slashed the pay of their boards and senior executives saying the growing impact of the coronavirus is making it impossible to offer any financial visibility their respective businesses.
Webjet managing director John Guscic has cut his pay by 20 per cent and will forgo any bonus this year as part of cost cutting efforts.While forward bookings beyond three months remain in line with previous expectations, it noted that cancellations are occurring at short notice just before travel which is "reducing visibility on future earnings."
"With Covid-19 placing downward pressure on bookings, we are focused on mitigating the short-term impact to earnings but importantly we remain intent intent on retaining our leadership positions in our global WebBeds business and Australian Webjet OTA."Helloworld also said it is "not possible to provide meaningful guidance at this time" and said it will cut costs across its entire business, including asking staff to take paid or unpaid leave.
"Over the last two weeks we've seen a steady decline in bookings in some parts of our business, particularly cruise, inbound to Australia, wholesale to Asia and Europe and in corporate international travel," said Mr Burnes.At the same time the travel group is seeing cancellations increase in these areas and it expects lower demand to continue into the first quarter - and possibly into the second quarter of the next financial year.
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