Webjet managing director John Guscic has cut his pay by 20 per cent and will forgo any bonus this year as part of cost cutting efforts.Credit:Arsineh Houspian
While forward bookings beyond three months remain in line with previous expectations,it noted that cancellations were occurring at short notice just before travel which is"reducing visibility on future earnings."
The travel group said it was implementing cost cuts that would result in $10 million worth of savings in the current financial year. This includes the managing director John Guscic and the board reducing their salary and fees by 20 per cent until conditions return to normal. Mr Guscic has also agreed to forgo any bonus this year.
"With COVD-19 placing downward pressure on bookings,we are focused on mitigating the short-term impact to earnings but importantly we remain intent on retaining our leadership positions in our global WebBeds business and Australian Webjet OTA."
Helloworld staff are being asked to take paid or unpaid leave.Credit:AFR
Helloworld also said it was"not possible to provide meaningful guidance at this time"and said it would cut costs across its entire business,including asking staff to take paid or unpaid leave.
Helloworld chairman Garry Hounsell and the other directors will not be paid any fees for the rest of the financial year,chief executive Andrew Burnes will take a 30 per cent pay cut and his executive management team will also take a 25 per cent pay cut.
"Over the last two weeks we've seen a steady decline in bookings in some parts of our business,particularly cruise,inbound to Australia,wholesale to Asia and Europe and in corporate international travel,"Mr Burnes said.