Webjet announces 40% increase in first-half profit

Online travel booking company Webjet has recorded a 40% increase in first half profit and higher transaction volumes despite the industry suffering from the effects of the global financial crisis.

The news comes as the airline industry named 2009 as the worst year for the industry, while Jetstar has announced it will be introducing SMS boarding passes in order to save time for travellers.

Webjet posted a consolidated profit of $5.197 million for the six months ending December 31, an increase of $3.7 million from the same period a year earlier. Transaction values were up 36.6% to $248 million, while an interim dividend of five cents was announced.

Net cashflow from operating activities was $3.3 million, while the company also said expectations for the second half were good.

“The transaction volumes are particularly encouraging given the global economic environment and are evidence of the continued consumer acceptance of Webjet’s high level of customer service, product offering and a carefully targeted aggressive marketing campaign as foreshadowed in the company’s previous annual report,” the company said.

The company also said unemployment was beginning to improve, there has been growth in airfares and capacities on flights are also expected to grow.

“Against this background, we are cautiously optimistic for the six months to June 2010 and, although we are not at this juncture providing formal market guidance, we would be disappointed if the profit in this period is not similar to the first half,” Webjet said.

Webjet also said its expansion into North America is scheduled to open on April 1, and that it has entered into an agreement with American Express.

Meanwhile, Qantas subsidiary Jetstar has said it will begin to roll out SMS boarding passes during 2010 in order to improve its customer service operations by reducing wait times.

Chief executive Bruce Buchanan said in a statement the move will involve boarding passes and codes being sent through standard SMS text messages, available on any phone.

“By introducing applications such as automatic web-check and SMS boarding passes, Jetstar saves real costs, which we are able to directly pass on to our customers with our low fares,” he said.

“The approach we are taking is firmly designed around improving, not reducing, the customer service and airport experience at increasingly busy terminals.”

But while the company is focused on reducing the amount of hassle experienced by customers by letting them do more, no staff will be let go. Instead, some will be moved into other departments.

Buchanan also announced a $US3.5 billion deal that will see the company purchase a number of new engines from International Aero Engines to be installed into existing aircraft.

“The agreements reflect Jetstar’s continued focus on cost-competitive outcomes and fostering long-term partnerships that help deliver sustainable low fares and growth.”