Last week, Webjet shares tumbled another 10%, taking its year to date drop to almost 50%. 

It's been tough sledding for ASX travel shares this year.

Sentiment has been negatively affected by global conflict, rising interest rates and cost of living pressures. 

As many investors are aware, Webjet provides online travel agency services. Its brands include Webjet OTA, Airport Rentals, Motorhome Republic, and Trip Ninja.

Why are investors exiting positions in Webjet shares?

Webjet shares endured a 10% fall last week largely on the back of its FY26 result.

The company reported: 

• A 1% increase in revenue to $136.4 million, while statutory net profit after tax (NPAT) increased 85% to $3.7 million.
• Underlying EBITDA fell 20% to $28.1 million, and underlying NPAT dropped 24% to $13.6 million.
• Bookings fell 7% to 1.4 million, while total transaction value declined 3% to $1.46 billion.

Perhaps the biggest disappointment of all was Webjet's update on its agreement with Virgin Australia.

Webjet said Virgin Australia will significantly reduce commission payments and commercial arrangements from July 2026, which would have cut FY26 revenue by about $3 million if applied for the full year. 

While the financial impact is relatively modest, investors may see it as another challenge for Webjet as it faces softer travel demand, airfare pressure, weak consumer confidence, and a tougher FY27 outlook.

What are experts saying?

Following the result, brokers downgraded their views on Webjet shares. 

Morgans said the FY26 result was weak but in line with guidance. 

It pointed out that FY26 was impacted by subdued trading conditions and material investment in the business. 

FY27 is going to be a particularly challenging year for WJL given the Middle East conflict, cost of living pressures, Virgin Australia materially reducing its commission and overrides and the RBA surcharging regulation changes. 

We have made significant revisions to our already well below consensus forecasts. In the absence of corporate activity, shareholders will need to be patient given the current challenges WJL needs to overcome while investing in its business for longer term success. We retain a Hold rating with a new price target of A$0.40.

Similarly, Jefferies cut its price target on Webjet shares by 38% to 40 cents per share.

After closing last week at 45 cents per share, it appears brokers expect more downside for Webjet shares in the short term. 

The post Are Webjet shares a buy after crashing 10% last week? appeared first on The Motley Fool Australia.

The most concerning factor for consumer discretionary retailers right now is falling consumer sentiment.

And it's no surprise that Aussies are feeling pessimistic and tightening their purse strings.

What's bringing consumers down?

The Reserve Bank has raised interest rates three times this year amid resurgent inflation exacerbated by the global oil shock.

The Westpac–Melbourne Institute Consumer Sentiment Index fell to an "extreme low" of 80.1 in April due to the Iran war.

That was the worst result since the pandemic, and there was only a small uptick of 3.5% this month.

Matthew Hassan, Head of Australian Macro-Forecasting at Westpac Banking Corp (ASX: WBC), said:

Despite a small improvement, consumers remain deeply pessimistic.

Forward views are clearly still being weighed down by uncertainty around global energy supply with the Strait of Hormuz still effectively shut.

However, rate rise fears are also in the mix.

Hassan said consumers expect variable home loan rates to rise further.

Even with three hikes already done this year, 85% of consumers still expect mortgage rates to increase further over the next 12 months.

That is closer to 90% across consumers with a mortgage.

Impact of the Federal Budget

Hassan said the personal impact of the Federal Budget for consumers was "very mixed", according to this month's survey.

Key announcements included proposed changes to capital gains tax (CGT) on all assets, including property, shares, and businesses.

Hassan said:

Among 'baby boomers' and 'Generation X', those expecting to be worse off outnumbered those expecting to benefit by 30–36% compared with a gap of just 9% for 'Millennials' and small net positive spread (+1%) among 'Generation Z' (or 'zoomers').

This week, the market was also surprised by weaker-than-expected jobs data, with unemployment lifting from 4.3% to 4.5%.

Commonwealth Bank of Australia (ASX: CBA) Senior Economist Ashwin Clarke was expecting employment to rise by 15,000 people.

Instead, employment decreased by 18,600 people in April.

Broker cuts price targets on 5 ASX retail shares

All of this factored into broker Jefferies slashing its 12-month share price target on ASX retail share Nick Scali Ltd (ASX: NCK) today.

The Nick Scali share price is $13.38, down 2.3% today and down 43% in the calendar year to date (YTD).

Jefferies downgraded Nick Scali shares from buy to hold and cut its target by 44% to $14 per share.

Analyst Michael Simotas forecasts lower profits ahead due to poor consumer sentiment and headwinds for the property market.

Even before the proposed CGT changes, the Australian property market had already begun to weaken on higher interest rates.

Latest data from Cotality shows a 0.6% fall in property values in Sydney and Melbourne in April and no growth in Canberra.

Last week, Sydney's preliminary clearance rate fell 6% to 49.2%, the weakest result since the early COVID period in April 2020.

Simotas said his profit forecast downgrades for the ASX retail share were due to "operating deleverage in Australia, New Zealand and U.K. due to softening macroeconomic conditions and given Nick Scali's sales are strongly correlated to housing market".

Simotas cut his FY26 net profit forecast by 8%, and said he has cut forecasts for future years by up to 30%.

Other ASX retail shares with slashed price targets

Jefferies cut its share price targets on several other ASX retail shares today.

These include fellow furniture retailer, Harvey Norman Holdings Ltd (ASX: HVN).

The Harvey Norman share price is $4.37, down 1.5% on Friday and down 38% YTD.

Jefferies downgraded its 12-month price target for this ASX retail share by 27% to $4.40 per share.

Jefferies also cut its price target on ASX travel retail share Webjet Group Ltd (ASX: WJL) by 38% to 40 cents per share.

The Webjet share price is currently 47 cents, down 2.1% today and down 47% YTD.

Wesfarmers and JB Hi-Fi shares receive price target reductions

Jefferies cut its 12-month target for Wesfarmers Ltd (ASX: WES) shares by 5.9% to $72.

The Wesfarmers share price is $74.71, down 0.1% today and down 8.6% YTD.

ASX electronics retail share JB Hi-Fi Ltd (ASX: JBH) also attracted a 6% price target cut to $75.

The JB Hi-Fi share price is $73.18, up 1.7% on Friday and down 24% YTD.

The following chart shows the share price percentage falls for these 5 ASX retail shares.

The post 5 ASX retail shares whose 12-month price targets just got slashed appeared first on The Motley Fool Australia.

Today's jump has helped recover some of the losses the stock has shed over the past month, but the share price is still down 30% for the year to date and 25% lower than when the company launched on the ASX in late June last year.

What is driving the airline's shares higher today?

There isn't any price-sensitive news out of Virgin Australia today to explain the current share price surge.

However, investors could be flocking to the ASX airline share following an announcement out of Webjet Group Ltd (ASX: WJL) yesterday.

The company announced a change to its commercial agreements with Virgin Australia ahead of the ASX open on Wednesday. 

Webjet said its Webjet Marketing subsidiary has been receiving commission payments from Virgin Australia Airlines and Virgin Australia International Airlines relating to the sale of Virgin flights and ancillaries, along with specified performance targets.

But the online travel agency said that Virgin Australia has told Webjet it will substantially reduce its commission streams and commercial arrangements from the 1st of July 2026.

A turnaround in sentiment could also be supporting Virgin Australia's share price increase today. Investors are reacting positively to resilient travel demand and stabilising fuel costs. 

There is growing optimism around an imminent peace agreement between the US and Iran, which would help jet fuel supply.

The company also recently confirmed its FY26 guidance, which has helped gather more confidence from investors.

In April, Virgin Australia said its FY26 financial guidance is unchanged. Despite fuel prices almost doubling, the airline said it still expects its underlying EBIT to improve in the second half of FY26.

The airline's fuel costs are expected to be around $30 million to $40 million above its earlier forecasts. But it has strong hedging (92% of its Brent crude and 71% of refining margin exposure is hedged for the remainder of FY26), which means the group is protected against most price rises. 

Virgin Australia shares have been under pressure this year

The sentiment shift comes on the back of several headwinds facing the airline over the past couple of months.

Ongoing conflict in the Middle East severely restricted the supply of jet fuel (which is derived from refined crude oil). 

The airline has previously raised its domestic airfares in response to rising jet fuel costs in an effort to maintain or even boost revenue. But investors were still concerned about the airline's operating costs and profits, and many turned their backs on the shares.

Can Virgin Australia shares keep climbing?

Analysts are very bullish about the outlook for the ASX travel stock over the next 12 months.

TradingView data shows that all eight analysts have a buy consensus on the shares. The average $3.59 target price implies a potential 47% upside ahead, at the time of writing. But others think Virgin Australia's shares have the potential to fly another 70% higher to $4.15.

The post Why are Virgin Australia shares booming 8% higher today? appeared first on The Motley Fool Australia.

Let's see if the broker has responded positively to them. Here's what the broker is saying:

James Hardie Industries plc (ASX: JHX)

Morgans was pleased with this building materials company's FY 2026 result, highlighting that it was in line with consensus expectations.

And while market conditions remain weak, the broker is cautiously positive on its outlook and has named James Hardie shares as a buy with a $39.00 price target. It said:

FY26 result was in line with Consensus (and a slight beat vs prior guidance), while Consensus for FY27 was at the top end of guidance. To this end, the company is forecasting FY27 pro forma growth of 4-8%, with siding back to organic growth. Market conditions remain subdued, citing lower builder activity and affordability pressures – looking forward management assumes no market recovery in FY27.

As such, FY26 can be chalked up as a transformational but financially dilutive year, while FY27 is about margin and cash-recovery driven by synergies rather than any improvement in the housing market. Buy retained, with a A$39.00/sh price target.

TechnologyOne Ltd (ASX: TNE)

This enterprise software provider's performance in the first half of FY 2026 was in line with Morgans' expectations.

In light of this and its strong sales pipeline, the broker has upgraded TechnologyOne's shares to an accumulate rating with a $32.30 price target. It explains:

TNE's 1H26 result came in largely as expected, albeit with some FX headwinds, which otherwise would have seen its underlying result land ahead of consensus. The group enters 2H26, with a strong pipeline of 'Plus' leads, which sees TNE well positioned to achieve the top end of its re-affirmed FY26 ARR/PBT Guidance. The pullback in TNE's share price sees our TSR lift to 18% and we therefore move to an Accumulate rating with a $32.30 price target.

Webjet Group Ltd (ASX: WJL)

Morgans wasn't overly impressed with this online travel agent's FY 2026 results.

And with trading conditions set to remain challenging in FY 2027, the broker has reduced its estimates meaningfully.

As a result, the broker has retained its hold rating on Webjet's shares with a heavily reduced price target of 40 cents. It said:

WJL's FY26 result was weak but in line with guidance. FY26 was impacted by subdued trading conditions and material investment in the business. FY27 is going to be a particularly challenging year for WJL given the Middle East conflict, cost of living pressures, Virgin Australia materially reducing its commission and overrides and the RBA surcharging regulation changes.

We have made significant revisions to our already well below consensus forecasts. In the absence of corporate activity, shareholders will need to be patient given the current challenges WJL needs to overcome while investing in its business for longer term success. We retain a Hold rating with a new price target of A$0.40.

The post Buy, hold, sell: James Hardie, TechnologyOne, and Webjet shares appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are tumbling:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 10% to $7.95. Investors have been selling this defence and space company's shares following the completion of an institutional placement. According to the release, EOS has raised $150 million via a fully underwritten institutional placement. These funds were raised at a price of $8.00 per new share, which represents a 9.3% discount to its last close price. In addition, the company has raised $40 million through a private placement to an entity related to Calidus, which is a major provider of defence equipment, technology, and services based in Abu Dhabi, United Arab Emirates. These funds will be used to fund the acquisition of MARSS and increase balance sheet flexibility.

Newmont Corporation (ASX: NEM)

The Newmont Corporation share price is down 4.5% to $146.23. Investors have been selling Newmont's shares despite there being no news out of the gold miner. However, most ASX gold stocks are falling today after a spike in US treasury yields put pressure on the gold price. This has led to the S&P/ASX All Ordinaries Gold index falling 4.4% this afternoon.

Webjet Group Ltd (ASX: WJL)

The Webjet share price is down 10% to 44 cents. This follows the release of the online travel agent's results and an update on its commercial arrangements with Virgin Australia Holdings Ltd (ASX: VGN). Webjet has been receiving commission payments from Virgin Australia for the sale of flights and ancillaries, along with specified performance targets. However, this agreement is now coming to an end on 1 July. Webjet advised that if the agreement had ended at the start of the year, it would have impacted FY 2026 revenue by $3 million. Speaking of which, Webjet posted a 1% increase in revenue to $136.4 million for FY 2026, but a 24% decline in underlying net profit to $13.6 million.

WIA Gold Ltd (ASX: WIA)

The WIA Gold share price is down 13% to 43.5 cents. This has been driven by the completion of a capital raising by the gold developer. WIA Gold has raised $92 million at 46 cents per new share. This represents an 8% discount to its last close price. The company's CEO, Henk Diederichs, said: "We are very pleased with the strong demand for this Placement, particularly from high-quality offshore institutional investors who recognise Kokoseb's potential to emerge as one of Africa's next major gold mines. This Placement materially strengthens our balance sheet at a pivotal stage in the Project's development and provides a clear pathway to advance key workstreams as we progress towards DFS completion and ultimately production."

The post Why EOS, Newmont, Webjet, and WIA Gold shares are tumbling today appeared first on The Motley Fool Australia.

One of the popular ASX stocks is outperforming the 1% losses posted by the S&P/ASX 200 Index (ASX: XJO) during the Wednesday lunch hour, while two are trailing those losses.

Here's what's catching investor interest.

Webjet shares trounced on Virgin Australia news

Webjet shares are taking a beating today.

Shares in the All Ordinaries Index (ASX: XAO) travel agency are down 11.2% at the time of writing, trading for 44 cents each.

Investors are overheating their sell buttons after the company announced that commencing on 1 July, Virgin Australia Holdings Ltd (ASX: VGN) will "substantially reduce" the current commission streams and commercial arrangements.

The company noted that if this change had been in place since the beginning of FY 2026, it would have impacted full-year revenue by around $3 million.

"Webjet remains focused on delivering value to customers and shareholders, notwithstanding the evolving commercial environment," Webjet CEO Katrina Barry said.

"In response to these changes, Webjet will adjust its commercial and partnership strategy and focus to optimise outcomes."

The company also released some mixed full-year FY 2026 results this morning.

Webjet shares are now down 50% in 12 months.

Flight Centre shares slip despite strategic $7 million investment

Flight Centre shares are also underperforming today.

Shares in the ASX 200 travel stock are down 2.7%, trading for $9.71 each.

The selling pressure comes despite Flight Centre announcing that it has invested US$5 million (AU$7 million) in United States-based corporate travel payments technology company, Blockskye.

Commenting on the strategic investment, Flight Centre CEO Chris Galanty said:

This investment provides FCM with access to emerging payment technology that solves some of the corporate card and expense management challenges that corporate travellers typically encounter.

Flight Centre shares are now down 28% in 12 months.

Which brings us to…

James Hardie shares supported by sales boost

Joining Flight Centre and Webjet shares in making waves today, we find James Hardie.

Shares in the ASX 200 building materials company have recovered from earlier losses to be up 0.2% at the time of writing, swapping hands for $26.84 apiece.

This follows the release of James Hardie's full-year FY 2026 results.

It was a mixed report, with the company revealing a 25% year-on-year increase in net sales to US$4.84 billion. This was driven by additional sales from James Hardie's AZEK acquisition, a US-based outdoor building products company.

Excluding that acquisition, organic net sales declined by 2% from FY 2025.

And on the bottom line, the company reported a 75% year-on-year decline in net profit after tax (NPAT) to US$104 million.

James Hardie shares are down 30% in 12 months.

The post Why James Hardie, Flight Centre and Webjet shares are making waves on Wednesday appeared first on The Motley Fool Australia.

At the time of writing, the Webjet share price is down 15.31% to 41.5 cents.

This adds to what has already been a brutal year for shareholders. The ASX travel stock is now down 28% over the past month and 52% since the start of the year.

The fall comes after Webjet updated investors on its commercial arrangements with Virgin Australia Holdings Ltd (ASX: VGN).

It also released its FY26 results, which showed a business still dealing with softer trading conditions, higher investment, and pressure on margins.

Virgin revenue hit

The main issue today is Webjet's update on its agreement with Virgin Australia.

Webjet said its Webjet Marketing subsidiary has been receiving commission payments from Virgin Australia Airlines and Virgin Australia International Airlines.

These payments relate to the sale of Virgin flights and ancillaries, along with specified performance targets.

Virgin has now told Webjet it will substantially reduce its commission streams and commercial arrangements from 1 July 2026.

Webjet said the change would have had a financial impact of around $3 million on FY26 revenue if it had applied from the start of the year.

While the amount isn't huge, investors are unlikely to welcome another revenue hit when the business is already facing a tougher FY27.

Webjet is already dealing with softer demand in parts of its online travel agency business, higher airfare pressure, and weak consumer confidence.

Losing revenue from a major airline partner would add another headwind going into FY27.

Profit falls despite higher revenue

Webjet's FY26 result had some positives, but investors appear to be focused on the weaker parts.

Revenue rose 1% to $136.4 million, while statutory net profit after tax (NPAT) increased 85% to $3.7 million.

However, underlying EBITDA fell 20% to $28.1 million, and underlying NPAT dropped 24% to $13.6 million.

Bookings fell 7% to 1.4 million, while total transaction value declined 3% to $1.46 billion.

The Webjet OTA business remained the biggest earnings contributor, with EBITDA of $38.7 million. But even there, bookings were down 9%, and EBITDA fell 18%.

The Cars and Motorhomes division held up better, lifting EBITDA to $4.3 million from $1.6 million.

Webjet also declared a final fully-franked dividend of 2 cents per share.

This takes FY26 dividends to 4 cents per share, which was above 100% of underlying NPAT.

A tough year ahead

Webjet said FY27 trading is expected to be materially affected by lower airline commissions, RBA surcharging regulation changes, and lower variable revenue items.

It also said operating conditions remain fluid and challenging, with geopolitical conflict, inflationary pressure, and low consumer sentiment weighing on demand.

Management pointed to cost control, automation, AI, capital discipline, and balance sheet strength as key priorities.

The balance sheet is still in decent shape, with $93.9 million in net cash and no borrowings at 31 March.

The post Webjet shares crash 15% as Virgin Australia blow hits outlook appeared first on The Motley Fool Australia.

The ASX travel stock was placed in a trading halt on Tuesday, with its shares last sitting at 49 cents.

It has been a rough year for shareholders, with the stock down around 44% in 2026 and 44% over the past year.

The halt comes as investors wait for a potentially major update that could materially affect its financial outlook.

Here's what we know so far.

Webjet calls a trading halt

In a statement to the ASX, Webjet said it had requested an immediate trading halt pending an announcement.

The company said the update relates to "future material changes to a certain commercial arrangement".

Webjet also said the change is currently expected to have a material impact on its financial outlook.

No other details were provided in the trading halt request.

The halt is expected to remain in place until the earlier of the announcement being released or normal trading beginning on Wednesday, 21 May 2026.

The timing is also notable because Webjet is due to hold its FY26 results briefing tomorrow morning.

The company said CEO and Managing Director Katrina Barry, along with CFO Layton Shannos, will discuss its half-year results, strategy, and outlook.

More change at the top

The halt comes at a sensitive time for the business.

Barry is leaving the business this week after less than 2 years in the top job.

Her departure follows the recent exit of deputy CEO David Galt.

Chairman Don Clarke is also due to retire on Wednesday.

That leaves Webjet dealing with several leadership changes while shareholders wait for more details on the commercial update.

The company previously said Barry would remain through the completion of the company's full-year results in May.

Webjet has also reaffirmed its FY26 earnings before interest and tax (EBIT) guidance of $28 million to $29 million.

That guidance excludes Webjet Bizness Travel, which is delivering in line with plan.

It also excludes Hive, which is expected to reduce second-half earnings by $600,000 to $900,000.

Why bidders may still be watching

The leadership changes are also feeding renewed takeover speculation.

The Australian reported that RBC Capital Markets analyst Wei-Weng Chen believes the departures of Barry and Galt could create a leadership vacuum.

He said this could potentially play into the hands of suitors Helloworld Travel Ltd (ASX: HLO) and BGH Capital.

Both groups had previously shown interest in Webjet.

BGH Capital had offered 91 cents per share, while Helloworld had offered 90 cents per share.

Those takeover talks were terminated earlier this year, with uncertainty around an acceptable binding proposal blamed for the end of discussions.

Since then, Webjet shares have fallen more than 15%.

The post Why this ASX travel stock is halted after crashing 44% in 2026 appeared first on The Motley Fool Australia.

Amid ongoing market volatility due to the war in Iran, brokers have reduced their ratings on five ASX All Ords shares.

Let's take a look.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price is $20.89, down 3.3% today.

Over the past month, this ASX All Ords gold share has edged 2.6% higher.

Ord Minnett downgraded Northern Star shares to a hold rating this week.

The lowered rating follows the miner's third-quarter update last week.

The miner revealed ongoing cost pressures and a continued increase in capital expenditure.

Ord Minnett reduced its 12-month price target from $23.70 to $22.70.

This still implies a potential 9% upside ahead.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $19.90, down 1.6% today.

Over the past month, this ASX All Ords mining share has fallen 2%.

Bell Potter downgraded Fortescue shares to a sell rating with an $18.15 target today.

This implies a potential 9% downside ahead.

The broker said:

FMG's core iron ore operations continue to perform very well and benefit from an elevated iron ore price.

However, we anticipate higher costs to emerge in 2HCY26 as low-cost inventories are exhausted, putting pressure on earnings.

We are wary of the "portfolio optimisation" review encompassing Iron Bridge.

Webjet Group Ltd (ASX: WJL)

The Webjet Group share price is 54 cents, up 1.9% today.

Over the past month, this ASX All Ords travel share has risen 1.9%.

Ord Minnett downgraded Webjet shares to a hold rating this week.

The broker slashed its 12-month price target from $1.15 to 67 cents.

This implies a potential near-30% share price fall over the next year.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $16.93, down 0.3% today.

Over the past month, this ASX All Ords financial share has lifted 4.9%.

Morgans downgraded Suncorp shares to a hold rating yesterday.

However, the broker increased its 12-month price target from $17.01 to $17.79.

This suggests there is still upside ahead, but less than 5%.

In a note, Morgans said:

SUN has provided an update on its aggregate reinsurance cover and its FY26 outlook. Overall, in our view, SUN securing an aggregate reinsurance cover will reduce future earnings volatility, whilst 2H26 claims are tracking below our expectations.

We believe SUN's management has executed well in recent years, successfully steering the company's strategy as a pure play general insurer. However, with the upside to our price target now more limited, we move to a HOLD recommendation.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $6.15, up 2.8% today.

Over the past month, this ASX All Ords lithium share has skyrocketed 20%.

The PLS Group share price hit a record $6.17 on Tuesday.

Morgans downgraded PLS shares from hold to trim after the miner's 3Q FY26 update.

The broker said:

Record production +8% ahead of consensus expectations and costs -13% ahead of consensus expectations highlights PLS' strong operating leverage. Strong cash build supports growth and potential shareholder returns.

PLS is our preferred lithium exposure, but we see much of the near-term upside priced in and suggest selectively trimming positions.

Morgans kept its price target at $5.40, suggesting a potential 12% fall from here.

The post 5 ASX All Ords shares downgraded by brokers this week appeared first on The Motley Fool Australia.

The de-merger saw Webjet Ltd (ASX: WJL) strengthen its focus on business-to-consumer (B2C) travel. Web Travel Group Ltd (ASX: WEB) focuses on business-to-business (B2B) travel, primarily through WebBeds, a platform that connects travel agents and hotels, airlines and online travel agencies.

The share price of Web Travel Group is down 30% over the past year, currently trading at around the $2.80 mark, down from the $5 range at the tail end of FY25. While Webjet has seen small growth, around the 10% mark, over the last 12 months to $0.58, it doesn't appear that the value investors hoped the de-merger would release has materialised. 

So, what's happening now? Is it just the current climate or is there more to the story? And are these ASX travel shares a buy right now? 

What's happening in the broader travel space?

Australians love to travel. And although cost-of-living pressures, concerns about the fuel crisis and the safety of travel during the Middle East war are putting the brakes on for some travellers, Australian travel authorities are still forecasting growth in the coming months.

But when household budgets are squeezed, travel is often one of the first items on the chopping block. And current airfare elevation due to fuel prices and supply concerns is not sweetening the pot for already stretched travellers.

Business travel is, of course, less likely to be affected by cost. However, many companies are showing caution, possibly due to safety concerns and/or the optics of extensive travel as the fuel crisis continues. In late March, it was reported that Wesfarmers Ltd (ASX: WES) had suspended travel for all corporate team members.

Is Webjet a buy right now?

As a B2C travel brand, Webjet is feeling the pinch. Despite positive volume forecasts within the travel industry, investors are wary. Its 1H26 reporting showed a 3% decline in Total Transaction Value (TTV) on the prior corresponding period (PCP).

Webjet's discretionary, consumer-facing and volume sensitive model is exactly the kind investors tend to avoid late in an economic cycle.

That said, the business itself is not in bad shape. It has good margins within an industry known for thin ones and a net cash balance of $111.9 million with no debt. In addition, its non-air income streams are a solid contributor at over 30% of OTA revenue.

So is this ASX travel share a buy? If you believe that global travel volume will bounce back, the current share price is an attractive entry point for a business with a good balance sheet.

Is Web Travel Group a buy right now?

Web Travel Group is a different proposition as it doesn't work directly with consumers and isn't as tied to the Australian economic context. It earns its revenue from transaction volumes across a diversified global network.

It delivered some solid 1H26 results:

• TTV up 22% on the prior corresponding period (PCP)
• Above guidance TTV margin
• WebBeds EBITDA up 21% on PCP
• Solid cash position with $481 million cash, $699 million available liquidity and a $200 million undrawn revolving credit facility

Of course, this was before the Middle East war and the resulting impact on travel. Investors are clearly unsettled across the sector, with most ASX travel shares seeing significant volatility. There may also be some poor sentiment, with some investors feeling the de-merger has not delivered on its promises yet.

In addition, Web Travel Group is a more complex model, deriving revenue from across multiple jurisdictions and currencies. This complexity can make it less appealing to investors when there are significant sector-wide cyclical challenges.

That said, in my opinion, Web Travel Group is a buy right now. While it may not have fully delivered on its de-merger promises yet, for me, it is a solid global travel platform that has been temporarily mis-priced due to macro and sector uncertainty.

The post Webjet and Web Travel Group: Are these ASX travel shares a buy? appeared first on The Motley Fool Australia.

Shares in the All Ordinaries Index (ASX: XAO) travel agency closed Friday trading for 52.5 cents. In morning trade on Monday, shares are changing hands for 55 cents apiece, up 4.8%.

For some context, the All Ords is down 0.9% at this same time.

As you're likely aware, Webjet first listed as an independent entity on the ASX in September 2024. That followed its spin-off from Web Travel Group Ltd (ASX: WEB).

Since listing, the Webjet share price has experienced some steep ups and downs, with 2026 seeing shares take another sharp fall, down 37.5% since 2 January.

Today, investors learned that the company will be searching for new leadership.

Webjet share price gains on CEO departure

Investors are bidding up the Webjet share price today after the company announced that CEO and managing director Katrina Barry has resigned from her position.

Barry took the reins as CEO at Webjet in June 2024 in the lead-up to its demerger from Web Travel.

Webjet said that Barry will remain aboard until May to support the transition to new leadership and help manage the full-year results release.

The board said it will now launch a search process for her successor.

What did management say?

"Katrina led the business during the successful demerger and ASX listing of the group's B2C business to become Webjet Group," Webjet chairman Don Clarke said about the changing of the guard that's looking to help boost the Webjet share price today.

"She then developed a new five-year strategic roadmap for the group and focused on the upgrade of the company's brand, marketing, and technology capabilities", he added.

Commenting on her time as CEO of Webjet, Barry said:

Over the past 21 months, we have made remarkable progress: setting a new five-year strategy and growth plan for the group, revitalising the iconic OTA brand and marketing strategy, driving profitability in the New Zealand business units, initiating evolution and enhancement of the technology and business travel platforms, and uplifting leadership capability.

How could the Middle East conflict impact the Webjet share price?

Turning to potential travel disruptions caused by the war in Iran, management noted:

While global uncertainty continues to influence travel behaviour, demand to date has remained resilient, with travellers increasingly favouring domestic and short-haul destinations across Asia and the Pacific.

The Webjet share price looks to be catching tailwinds with the company reaffirming its full-year FY 2026 guidance of underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) in the range of $28 million to $29 million. That excludes the Webjet Business Travel segment, which is expected to reduce underlying EBITDA by $600,000 to $900,000 in the second half of FY 2026.

The post Webjet share price lifting off on CEO bombshell appeared first on The Motley Fool Australia.

Three that the broker has been looking at are in this article. Let's see whether it rates them as buys, holds, or sells. Here's what you need to know:

Cochlear Ltd (ASX: COH)

Morgans was a touch disappointed with this hearing solutions company's half-year results. It notes that the Nucleus Nexa system was to blame, with contracting taking longer than anticipated.

In response to its results, the broker has retained its hold rating with a trimmed price target of $214.93. It said:

The 1H26 result was softer than expected, with revenue, margins and profit negatively impacted mainly on longer than anticipated contracting for the newly launched Nucleus Nexa system (Nexa). Soft Cochlear Implants (CI) growth mis-matched sales, reflecting unfavourable emerging market mix and delayed developed market momentum, while Services was flat and Acoustics surprised to downside on increased competitive pressures.

While Nexa adoption accelerated late in the half and management maintained FY26 guidance, but now is targeting the lower end of the range, it increases reliance on a strong 2H recovery which appears optimistic, especially in light of flat GM and FX headwinds. We adjust our FY26-28 estimates and lower our target price to A$214.93. We maintain a cautious stance, but move to HOLD on share weakness.

Deep Yellow Ltd (ASX: DYL)

Another ASX share that Morgans has been looking at is uranium developer Deep Yellow.

The broker has made some changes to its financial model to reflect first production timing, its cash balance, and its uranium price assumptions. This has resulted in the broker retaining its speculative buy rating with an improved price target of $2.56. It said:

We update our outlook and forecasts for DYL to reflect a series of changes at the corporate, project and macro level since our last update. Key revisions include adjustments to first production timing at Tumas, cash position and an uplift to our bull-case uranium price assumption. We maintain our SPECULATIVE BUY rating and increase our price target to A$2.56ps (from A$1.92ps).

Webjet Group Ltd (ASX: WJL)

A third ASX share Morgans has been looking at is online travel agent Webjet. It notes that takeover talks have ended and Webjet has downgraded its earnings guidance.

The broker appears to believe that this may not be the last downgrade and has concerns over cyclical and structural threats. As a result, it has put a hold rating and 61 cents price target on its shares. It said:

WJL announced that potential takeover discussions with both Helloworld (HLO) and BGH Capital have ceased. WJL has downgraded its FY26 EBITDA guidance by another 7-9%. Earnings uncertainty remains high given cyclical and structural threats and at a time when WJL is investing in its business for longer term success. Given WJL is no longer in play, focus returns to the fundamentals of the business which look challenged in the near term. We retain a Hold rating with a new price target of A$0.61.

The post What is Morgans saying about Cochlear, Deep Yellow, and Webjet shares? appeared first on The Motley Fool Australia.

Webjet is an Australian online travel company known for its popular website that allows customers to compare and book flights, hotels, and holiday packages.

Yesterday, its share price tumbled 2.6%. 

This follows on from the losses from Friday last week which saw Webjet shares tumble more than 20% after the announcement of a failed takeover bid.

What happened?

Helloworld Travel Ltd (ASX: HLO), which already owns a stake in Webjet, made a conditional offer to buy the rest of the company late last year. 

Here is the timeline: 

• 19 November 2025 Webjet announced it had received a non-binding and indicative offer from Helloworld Travel o acquire 100% of the shares in Webjet that Helloworld did not already own by way of a scheme of arrangement at an all-cash price of A$0.90 per share. 
• 21 November 2025 Webjet announced it had received a revised non-binding and indicative offer from BGH Capital to acquire all the shares in Webjet not already owned by BGH and its associates via an off-market takeover at an all-cash price of A$0.91 per share (Revised BGH Proposal).

However, after several weeks of due diligence and negotiations, neither Helloworld nor BGH Capital submitted a formal binding proposal that Webjet's board felt was certain and attractive enough. 

According to a release Webjet ended the talks and the proposed takeover ended. 

What now?

Webjet management reinforced that its time, focus and resources should return wholly to executing the company's existing strategy.

After yesterday's share price fall, Webjet shares are trading at $0.56. 

That's a decline of 26% across two days of trading. 

It now sits almost 36% lower than the start of the year. 

So, could this be an opportunity to buy the dip?

Morgans weighs in 

In a note out of the team at Morgans, the broker said Webjet has downgraded its FY26 EBITDA guidance by another 7-9%.

Earnings uncertainty remains high given cyclical and structural threats and at a time when WJL is investing in its business for longer term success. 

Given WJL is no longer in play, focus returns to the fundamentals of the business which look challenged in the near term.

The broker has retained a hold rating on Webjet shares. 

It also has updated its price target to $0.61.

From yesterday's closing price, that indicates an upside of approximately 9%. 

Based on this target, it seems any further share price dip could make it an attractive buy-low option. 

The post Where to next for Webjet shares after a 26% crash? appeared first on The Motley Fool Australia.

Webjet shares jumped significantly when the potential takeover was first announced in mid-November, increasing from 76 cents to 88 cents in one session.

At the time, Helloworld said that it had submitted a non-binding, indicative proposal to the board of Webjet, to acquire the company for 90 cents per share.

The company went on to say:

Helloworld believes the proposal represents a compelling offer for all Webjet's shareholders, with the opportunity to realise a premium valuation and 100% cash consideration. Further we believe that Helloworld and Webjet are logical partners and that a combination provides a strong platform for both companies to achieve their long-term strategic objectives.

The proposal was conditional on the satisfactory completion of due diligence by Helloworld, required regulatory approvals, and a unanimous recommendation in favour by the Webjet board.

A competing takeover offer from BGH Capital at 91 cents per share was also pitched in November.

Talks called off

Webjet said on Friday morning in a statement to the ASX that neither party had put forward a proposal which they could take to shareholders.

The company said:

Over the last 12 weeks, Webjet has engaged constructively with Helloworld and BGH, providing both parties with due diligence access. The Webjet Board has not however received a proposal from either party that is consistent with the respective indicative proposals or capable of being put to shareholders. The Webjet Board does not believe there is sufficient certainty that a binding proposal that is capable of being recommended by the Webjet Board will be received from either party within an acceptable timeframe. As a result, the Webjet Board has determined that management's time, focus and resources should return wholly to executing the Company's existing strategy. Accordingly, discussions with both Helloworld and BGH have now ceased.

The company said its board remained open to engaging with parties on any change of ownership proposal in the future about a "proposal that represents compelling value for shareholders and offers sufficient certainty of execution within an acceptable timeframe''.

The company also updated the market as to trading conditions, saying it had been a challenging period, and underlying EBITDA for FY26 was expected to be in the range of $28 to $29 million, excluding Webjet Business Travel, "which is delivering in line with plan and as foreshadowed is expected to reduce underlying EBITDA by circa $600-900 thousand in 2H26''.

Webjet also said it would restart its $25 million share buyback, which was put on hold while the takeover talks were on foot.

Webjet shares were changing hands for 60 cents on Friday morning, down 22.6%.

The post Webjet Group shares plunge as Helloworld takeover plans fall through appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Gentrack Group Ltd (ASX: GTK)

The Gentrack share price is up 7.5% to $6.82. This morning, this billing software company revealed that its new g2 platform has been selected to enhance operations and customer experience at Pennon Water Services. It is one of the UK's leading business water and wastewater retailers. This marks the first customer to adopt g2 in the UK, and the first g2 water implementation. In other news, Bell Potter reaffirmed its buy rating on Gentrack's shares with a reduced price target of $9.80. It said: "We are positive on secular tailwinds in decentralised energy driving utility billing stack transformations broadly."

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up over 1% to $3.03. Investors have been buying this online retailer's shares following the release of an update at its annual general meeting. Kogan revealed that in the first four months of FY 2026, adjusted EBITDA was $10.1 million with a margin of 6.5%. The latter is within its guidance range of 6% to 9%.

Webjet Group Ltd (ASX: WJL)

The Webjet share price is up over 2% to 91 cents. This has been driven by news that the online travel agent has received another takeover offer. Helloword Travel Ltd (ASX: HLO) made an offer of 90 cents per share earlier this week, but this morning BGH Capital has joined the bidding with a 91 cents per share proposal. In response, the company said: "After carefully considering the revised BGH proposal, the Webjet board has agreed with BGH's request to provide BGH with an opportunity to conduct due diligence, subject to the parties agreeing to a mutually acceptable non-disclosure agreement."

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is up 4% to $66.82. This morning, this logistics solutions technology company released its annual general meeting update and reaffirmed its guidance for FY 2026. WiseTech's new CEO, Zubin Appoo, said: "Looking ahead, we reconfirm our guidance and expect revenue between $1.39 and $1.44 billion and EBITDA of $550 to $585 million. As outlined when we announced our FY25 Results in August, the e2open integration will temporarily impact margins – and that is exactly as planned. We have a clear execution roadmap, backed by more than three decades of successfully integrating strategic acquisitions and rebuilding margin strength. We know how to do this."

The post Why Gentrack, Kogan, Webjet, and WiseTech shares are pushing higher today appeared first on The Motley Fool Australia.

However, analysts at RBC Capital Markets believe that yet another bidder could enter the fray, potentially driving the price paid for the company even higher.

HelloWorld lobbed a potential bid for Webjet earlier this week, stating it would look to acquire the company for $0.90 per share, subject to due diligence and other conditions, including a unanimous recommendation from the Webjet board in favour of the deal.

This has been followed on Friday morning by a once again non-binding offer from BGH priced at 91 cents per share, which is also seeking a unanimous recommendation from the Webjet board.

The BGH bid follows a previous proposal put to Webjet in May this year to buy the company for 80 cents per share.

BGH already controls major stake

Webjet said in a statement to the ASX on Friday that BGH already had control over a significant proportion of the company's issued capital.

As it told the ASX:

Pursuant to a co-operation agreement with Portfolio Services Pty Ltd, an entity associated with Ariadne Australia Ltd and Gary Weiss, BGH has a total relevant interest of 18.3% in Webjet ordinary shares.

Conditions associated with the BGH bid include that it attain control over at least 75% of Webjet shares and the required regulatory approvals.

Similar to the HelloWorld bid, the Webjet board will now allow BGH access to its books to conduct due diligence.

As the company said:

After carefully considering the revised BGH proposal, the Webjet board has agreed with BGH's request to provide BGH with an opportunity to conduct due diligence, subject to the parties agreeing to a mutually acceptable non-disclosure agreement.

Webjet shares were trading at 91.5 cents on Friday morning, up 2.5 cents.

Analysts at RBC Capital Markets believe that the takeover tussle may intensify even further, as they said in a note issued to clients on Friday.

Two competing bidders, with the board granting both access to due diligence would indicate to us that Webjet is very much in play. We continue to believe Webjet possesses attributes (strong market position, brand awareness, cash generation and cash balance etc.) that would appeal to both trade and financial buyers alike. We do not consider it unreasonable that another bidder may enter the fray.

RBC has a price target of $1.10 on Webjet shares.

Solid first-half results

Webjet earlier this week reported its first-half results and declared an inaugural dividend of 2 cents per share.

The company announced on Wednesday that its first-half revenue totalled $67.9 million, representing a 1% decrease from the same period last year, while net profit increased to $6.2 million, a 41% rise.

Webjet said it was a "challenging trading environment for the group", with bookings down 8% and total transaction volumes down 3%.

Domestic bookings were down by 10%, while international bookings were up 4% and made up 22% of total flight bookings.

The company will pay a 2-cent first-half dividend, equivalent to 100% of underlying net profit, "consistent with the announced intention of maximising the distribution of franking credits as they become available, including the payment of special dividends above the target ratio".

Webjet said a proposed buyback program was on hold for now.

Webjet Managing Director Katrina Barry said the results were "broadly in line with expectations, demonstrating the resilience of our business, despite experiencing challenging market conditions".

The post How high could the bidding war for Webjet go? appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Nufarm Ltd (ASX: NUF)

The Nufarm share price is up 9% to $2.33. This follows the release of the agricultural chemicals company's FY 2025 results. Nufarm reported a 3% decline in underlying EBITDA (uEBITDA) to $302.5 million for the 12 months. But, excluding the impact of the emerging Omega-3 and Bioenergy platforms, the company's uEBITDA was up 10% on the prior corresponding period. Management is guiding to earnings growth and positive cash generation in FY 2026. Nufarm's outgoing CEO, Greg Hunt, said: "In FY26, we have good momentum in Crop Protection, clear direction and opportunity in Seed Technologies and are well placed to grow earnings, generate cash and reduce leverage."

Nuix Ltd (ASX: NXL)

The Nuix share price is up 4% to $1.93. This has been driven by the release of a trading update ahead of its annual general meeting. The investigative & analytics software provider revealed that its annualised contract value (ACV) currently stands at $230 million. This represents a 12.1% increase on the prior corresponding period and a modest 0.7% lift since June 2025. Looking ahead, it expects its full year ACV to be in the range of $240 million to $260 million in FY 2026.

Silver Mines Ltd (ASX: SVL)

The Silver Mines share price is up almost 10% to 17 cents. This follows the release of strong diamond drilling results at the Bowdens silver deposit. Silver Mines' managing director, Jo Battershill, commented: "It's quite unbelievable that even after 36 years of exploration, resource, infill and extensional drilling at the Bowdens Silver Deposit, we have just drilled the largest ever silver mineralised intercept at this incredible deposit! These results are validation of the quality of the Bowdens Silver Deposit and of the hard work and targeting the technical team have undertaken to deliver this program."

Webjet Group Ltd (ASX: WJL)

The Webjet share price is up 17% to 88.5 cents. Investors have been buying this online travel agent's shares after it received a takeover approach from rival Helloworld Travel Ltd (ASX: HLO). Helloworld has made a proposal to acquire all Webjet's shares for a cash consideration of 90 cents per share. This represents a 19% premium to its last close price. Helloworld's CEO, Andrew Burnes AO, said: "Our proposal represents compelling value for Webjet shareholders. A combination of Webjet and Helloworld would create a powerful business proposition in the dynamic travel bookings industry. We are committed to working collaboratively with Webjet's Board and management team to progress this transaction expeditiously and with minimum disruption to the Company." The Webjet Board has agreed to provide Helloworld with an opportunity to conduct due diligence.

The post Why Nufarm, Nuix, Silver Mines, and Webjet shares are roaring higher today appeared first on The Motley Fool Australia.

The conditional Helloworld bid is priced at 90 cents per share, 19.2% higher than the 75.5 cents closing price of Webjet shares on Tuesday.

The price is also lower than the levels at which Webjet shares were trading as recently as August.

Due diligence kicks off

Webjet said in a statement to the ASX on Wednesday that the board had considered the offer and agreed to provide Helloworld with an opportunity to conduct due diligence, but cautioned there was no guarantee any deal would eventuate.

The proposal is conditional on the satisfactory completion of due diligence by Helloworld, required regulatory approvals, and a unanimous recommendation in favour by the Webjet board.

As Webjet said in a statement to the ASX:

The Webjet board notes that there is no certainty that the Helloworld proposal will result in a binding offer for the company or a completed transaction. Further announcements will be made in relation to the Helloworld Proposal as appropriate.

Results reflect challenging conditions

Also on Wednesday, Webjet announced its first-half financial results, including the payment of an inaugural 2 cents per share, fully franked dividend.

The company said on Wednesday that first-half revenue came in at $67.9 million, down 1% on the same period last year, while net profit was $6.2 million, up 41%.

Webjet said it was a "challenging trading environment for the group", with bookings down 8% and total transaction volumes down 3%.

Domestic bookings were down by 10%, while international bookings were up 4% and made up 22% of total flight bookings.

The company will pay a 2-cent first-half dividend, equivalent to 100% of underlying net profit, "consistent with the announced intention of maximising the distribution of franking credits as they become available, including the payment of special dividends above the target ratio''.

Webjet said a proposed buyback program was on hold for now.

Webjet managing director Katrina Barry said the results were "broadly in line with expectations,  demonstrating the resilience of our business, despite experiencing challenging market conditions''.

She went on to say:

As communicated last week as part of the update on preliminary 1H26 results and outlook for the balance of the year, with the expectation of a softer market continuing into 2H26, we have made prudent adjustments to our plans to ensure capital is deployed responsibly in the current environment on a balanced basis. Importantly, while remaining vigilant to near term trading conditions, our focus on delivering sustainable long-term growth remains unchanged.

Ms Barry said the company was confident that its FY30 strategic plan provided the right framework to maximise shareholder value, "with doubling total transaction volume as a key – though not the sole – measure of success''.

She added:

We have the right capabilities to deliver on this plan – with deep sector experience, proven execution in scaling travel businesses, and a blend of seasoned executives and fresh perspectives. This positions the business well to continue to progress the next stage of growth and evolution to deliver enhanced shareholder value over the medium term.

The post This travel company has announced a takeover offer and an inaugural dividend on the same day appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 30% to $2.29. Investors have been hitting the sell button today after insiders sold down their holdings. This includes its CEO, Oleg Vornik, offloading approximately 14.8 million shares through an on-market for $49.5 million. But it is worth remembering that he retains a significant amount of vested and unvested equity in the business. As a result, it is fair to say that his interests remain firmly aligned with shareholders.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is down 10% to $8.01. This follows the release of the grain exporter's full year results. Graincorp posted a net profit after tax of $40 million, which is down 35% from $62 million a year earlier. The company's managing director and CEO, Robert Spurway, commented: "Disciplined planning and focused execution enabled GrainCorp to deliver a resilient FY25 result, as we responded effectively to a challenging global margin environment."

Webjet Group Ltd (ASX: WJL)

The Webjet Group share price is down 21% to 68.5 cents. This follows the release of a trading update from the online travel booker. Webjet revealed that revenue is expected to be down 1% to $67.9 million in the first half, with underlying EBITDA falling 9% to $14.4 million. Webjet's CEO, Katrina Barry, said: "The subdued near-term outlook for the business has not altered our focus on delivering sustainable long-term growth. Whilst market conditions and performance have become challenging in the past few months, our strategy and long-term growth trajectory remain unchanged. Near-term market conditions impact timing, but not the underlying strength of our business or the value creation opportunity ahead. We remain confident that our FY30 Strategic Plan is the right path to maximise shareholder value."

Xero Ltd (ASX: XRO)

The Xero share price is down almost 6% to $131.89. This is despite the cloud accounting platform provider delivering a strong half year result this morning. Xero posted a 20% increase in operating revenue to NZ$1,194 million and a 21% jump in EBITDA to NZ$377.9 million. Xero's CEO, Sukhinder Singh Cassidy, said: "Xero's H1 FY26 results reinforce our ability to deliver as we continue to do what we said we would do, in line with our strategy. We have demonstrated strong momentum, with our portfolio of large markets and our products contributing to our macro-resilient growth."

The post Why DroneShield, Graincorp, Webjet, and Xero shares are sinking today appeared first on The Motley Fool Australia.

The company was putting a positive spin on its first half results, saying the underlying EBITDA of $14.4 million was in line with expectations and the company had shown "resilience in (a) tough trading environment".

But the company's forecast for full-year earnings was downgraded by 9% to 14% to $30 to $32 million in an "ongoing subdued trading environment".

The company's shares fell as low as 68.5 cents before recovering to be 16.7% lower at 72.5 cents in early trade.

Bookings down

Among other metrics reported on Thursday, Webjet said bookings were down 8% against the same period last year, revenue was 1% lower at $67.9 million, and underlying net profit was $7.8 million, up 16%.

The company said in its statement to the ASX:

Webjet Group's underlying results for the first half of FY26 were broadly in line with the company's expectations, demonstrating resilience in a challenging trading environment across the industry and investment for future growth.

The travel industry suffered a number of shocks in the half the company said, including heightened tension in the Middle East, tariff-related trade disruptions, general cost of living pressures, and higher Australian domestic airfares.

For (Webjet's) core flights product, the above meant the domestic leisure market remained subdued. The international outbound sector saw some strong demand, however predominantly in lower-revenue short-haul Asian destinations rather than the higher revenue long-haul destinations to Europe and North America.

Webjet said it had an "unleveraged balance sheet" and would give more guidance on capital management plans at its annual general meeting on 19 November.

On the outlook, the company said it was sticking to its FY30 Strategic Plan; however, it would pull back on investment while times were tough.

Any further pull-back of discretionary spend would only disrupt the Company's clearly defined transformation roadmap, enable competitors to move ahead in a fast-paced environment, and limit the focus on creation of long-term shareholder value. Importantly, with the necessary investment for growth, Webjet Group will be better placed, ready to leverage its brand value when the market returns.

Shares still looking cheap

RBC Capital Markets said they expected investors might view the results announcement cynically, and said first-half earnings were about a 17% miss against consensus estimates.

The broker went on to say:

Management are expecting FY26 earnings to be down 9-14% however, this update is closer to a 16-21% downgrade versus consensus expectations of $38 million. The downgrade is even larger when considering that Locomote, a recent acquisition, is expected to generate underlying EBITDA losses of $600-900k in the second half of 2026 – these losses have been excluded from guidance.

RBC has a price target of $1.30 on Webjet shares.

The post Why are Webjet shares getting smashed today? appeared first on The Motley Fool Australia.