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Preparatory to this week’s AGM Webjet provides the following general market advice:

• The travel market in general remains acutely bargain and sale sensitive. While underlying demand appears to have improved, particularly in business travel, leisure demand is heavily influenced and driven by sale initiation.
• Webjet’s results to the end of October indicate a profit increase (before tax) of approximately 15% compared with last year and a TTV increase of approximately 20%.
• However last year exhibited very strong results in both November and December and it is too early to assume that will occur this year with consumers facing interest rate rises and critically major utility cost increases.

Commenting, Webjet Managing Director David Clarke said:

Accordingly we do not yet forecast these two months and stay with our market advice given on 21 July, that results to the end of December are likely to be similar and the same, to the same half year ended 31 December 2009.

During the last six months Webjet has:

• Continued to gain market share including our New Zealand operations.
• Seen our USA operations exhibit strong growth.
• Completed the set up for Asian operation which is scheduled to commence in Hong Kong this week.
• Substantially converted to a merchant of record.

These strategic growth costs have been fully counted to profit and lost.

In addition we undertook an extensive analysis of a particular European acquisition but decided, after a rigorous and disciplined review, not to proceed with the particular opportunity. This process involved a team of accountants, legal and management resources in Australia and Europe and resulted in costs of approximately $250k which will be charged in full year results outside of market guidance.

Currently a number of global growth alternative strategies are now under active analysis.

Webjet’s current trading is satisfactory and although substantial airline capacity exists to supply growth there are short term uncertainties with airline A380 rescheduling. Accordingly we consider the macro economic factors to be unpredictable and as a result do not believe it is yet possible to provide a full year’s guidance.