Online booking engine Webjet sees 40 per cent rise in profit

A 40 per cent rise in net profit in the first half of the 09/10 financial year for online booking engine Webjet has the company “cautiously optimistic” about a recovery for air travel demand.

According to The Age, Webjet posted $5.2 million in net profit for the first six months of the financial year and attributed the increase to a rise in airfares, the strong Australian dollar and plans by airlines to up flight schedules.

The company would not declare the market was in full recovery but said it was cautiously optimistic about the second half of the year.

Despite the profit rise, analysts are questioning the viability of Webjet’s online model as it receives approximately two thirds of its revenue from booking fees, a charge which has been eliminated from competitor models.

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