WEBJET CEO John Guscic will reduce his salary by 20% as part of a range of measures to mitigate the impact of COVID-19 on the company’s bottom line.
An update this morning confirmed a “material escalation in cancellation rates of near-term travel” along with 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,” Webjet said.
A company-wide cost-reduction program is targeting $10 million in savings for the remainder of the financial year, while “other initiatives are being implemented to ensure the company retains its strategic and competitive advantage when conditions normalise,” the company added.
Guscic said while he was focusing on the short-term earnings impact, “importantly, we remain intent on retaining our leadership positions in our global WebBeds business and Australian Webjet OTA.
“Our momentum prior to COVID-19 was well ahead of the market and we are preparing ourselves to take advantage of what is likely to be a faster-growing market when broad-based travel returns globally.”
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Source: traveldaily