Insights

What could Sydney Airport’s results mean for Webjet (ASX:WEB) shares?

What are the key takeaways for the Aussie travel industry?
The post What could Sydney Airport’s results mean for Webjet (ASX:WEB) shares? appeared first on The Motley Fool Australia. –

Webjet Limited (ASX: WEB) shares have been under pressure once again in 2021. Shares in the online travel agent have fallen 7.2% lower this year as COVID-19 restrictions continue to disrupt business.

Investors want to know that there’s light at the end of the pandemic tunnel. That’s where the August earnings season, including the recent Sydney Airport Holdings Pty Ltd (ASX: SYD) results, could be helpful to see what’s happening in the travel industry.

What could Sydney Airport’s results mean for Webjet shares?

For those who missed it, Sydney Airport released its latest half-year result on Friday. Some of the big takeaways were:

Net loss after tax benefit of $97.4 million, with losses increasing 81.7% on the prior corresponding period (pcp).
Revenue down 31.3% on the pcp to $351 million.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $210.8 million – a 29.8% loss on the pcp.
A negative cash flow of $565.5 million for the 6 months.

Webjet shares fell 1% lower on Friday with ASX travel shares across the board being hit hard. One notable item from Sydney Airport’s results was the overall passenger numbers. Australia’s busiest airport reported a 36.4% decline in pcp with a 91% drop in international arrivals.

In what Sydney Airport CEO Geoff Culbert described as a “challenging six months”, there were a couple of positives. One of those was the trend of increasing passenger numbers once border restrictions do ease in between lockdowns. That implies that there is still demand for domestic and limited international travel when available.

Webjet makes the majority of its earnings in commissions on travel bookings. That means investors looking ahead to post-pandemic life could be encouraged by trends of increasing demand and the potential impact on earnings.

Webjet shares have been smashed during the pandemic as the broader travel industry looks to re-invent itself. One possible saving grace that Sydney Airport is holding onto is the vaccine rollout programme.

Webjet investors will be hoping the country hits its vaccination targets sooner rather than later to reduce disruption and increase earnings potential.

The post What could Sydney Airport’s results mean for Webjet (ASX:WEB) shares? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 Weekly Wrap: Miners drag ASX back to earth

How do the Sydney Airport (ASX:SYD) results compare to Auckland Airport?
The ASX reporting wrap-up: Cochlear, Sydney Airport, TPG

ASX 200 midday update: Cochlear & TPG sink, Inghams jumps

Sydney Airport (ASX:SYD) share price slumps as losses skyrocket by 80%

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!