Jetset Travelworld Group(JTG) has admitted its trading performance in March and April has failed to meet expectations with a full review of its business now underway.
Describing economic conditions as “challenging and volatile”, the company said it had experienced “a softening of consumer demand” over what is normally a robust trading period.
Despite a rise in year-on-year transactions across the domestic and outbound air market, international airfares were below last year and hitting revenue.
“Given the group’s strong weighting to outbound air, group TTV (Total Transactional Value) for this period was below expectations,” the company said in a statement on the stock exchange.
The Travel Management segment has also been singled out as one that continues to incur losses, chiefly owing to the costs of servicing the Australian Government’s travel management business.
Subject to trading in May and June, JTG “may take action to improve performance and will review the carrying value of all assets”.
The intangible assets of its corporate business is $11.8 milion.
JTG said it is reviewing all areas of the business “in light of the trading conditions”.
With May and June its busiest trading periods across all segments, JTG said it would be “premature to provide earnings guidance fo the full year at this time”.
