March 10, 2020 / 10:30 PM / a month ago

BRIEF-Webjet Withdraws FY20 Earnings Guidance

March 11 (Reuters) - Webjet Ltd:

* WEBJET WITHDRAWS FY20 EARNINGS GUIDANCE

* WITHDRAWAL DUE TO CONTINUED UNCERTAINTY OF DURATION AND SCALE OF COVID-19

* WEBJET IS TAKING CAREFUL STEPS TO MITIGATE IMPACT OF COVID-19

* MANAGING DIRECTOR JOHN GUSCIC & BOARD OF DIRECTORS VOLUNTARILY AGREED TO REDUCE THEIR SALARY & DIRECTORS FEES BY 20% WITH IMMEDIATE EFFECT

* TO IMPLEMENT COST REDUCTION PROGRAMME TO MINIMISE OPERATING EXPENDITURE, EXPECTED TO RESULT IN A$10 MILLION IN SAVINGS FOR REMAINDER OF FY20

* MANAGING DIRECTOR HAS ALSO AGREED TO FORGO ANY BONUS THAT WOULD HAVE BEEN ACHIEVED IN FY20

* MD JOHN GUSCIC, BOARD VOLUNTARILY AGREED TO REDUCE SALARY, DIRECTORS FEES BY 20% WITH IMMEDIATE EFFECT UNTIL CONDITIONS RETURN TO NORMAL

* MANAGING DIRECTOR HAS ALSO AGREED TO FORGO ANY BONUS THAT WOULD HAVE BEEN ACHIEVED IN FY20.

* THERE HAS BEEN A MATERIAL ESCALATION IN CANCELLATION RATES OF NEAR-TERM TRAVEL AND A REDUCTION IN OVERALL TRAVEL BOOKING ACTIVITY

* CANCELLATIONS ARE NOW OCCURRING AT SHORT NOTICE PRIOR TO TRAVEL AND THEREFORE REDUCING VISIBILITY ON FUTURE EARNINGS Source text for Eikon: Further company coverage:

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