WEBJET GROUP LIMITED (WJL)
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21/05/2026

3

Hold

$0.41

5.13%

Morgans describes Webjet Group's FY26 result as weak but in line with guidance, with subdued travel demand and elevated investment weighing on earnings and margins.

FY27 is expected to remain challenging given geopolitical tensions, cost-of-living pressures, lower Virgin Australia ((VGN)) commissions and changes to RBA surcharging regulations.

Morgans also warns there is a risk Qantas Airways ((QAN)) could eventually follow Virgin in reducing online travel agency (OTA) incentives.

The broker's forecast downgrades are significant, reflecting weaker trading conditions and ongoing investment in the business. Hold rating maintained and target lowered to $0.41 from $0.61.

FORECAST
Morgans forecasts a full year FY27 dividend of 2.00 cents and EPS of 1.10 cents.
Morgans forecasts a full year FY28 dividend of 2.00 cents and EPS of 1.40 cents.

01/06/2026

2

Overweight

$0.60

53.85%

Jarden maintains an Overweight rating for Webjet Group with its target price reduced to $0.60 from $0.80 following an industry review of geopolitical conflicts.

Projections reflect an underestimation of lower airline commissions and the Reserve Bank of Australia payment surcharging ban taking effect from October 2026.

Revenue margins face a contraction of -35bps to -40bps, leading to downward revisions to underlying intermediate earnings parameters.

Customer engagement remains soft compared to direct online operators, though the structural rollout of digital initiatives supports the longer-term recovery thesis, commentary suggests.

The suggestion made is that valuation metrics trading at a steep discount to global peers alleviate broader structural risks.