Webjet raises US$170 million to stay afloat

Australia based online travel agency Webjet is raising A$275 million (US$170 million) to see it through the global coronavirus crisis.

It will raise funds through a placement and entitlement offer of A$101 million and A$174 million respectively.

That should be enough to cover costs until the end of 2020, it said.

“Webjet anticipates that any revenue contribution in the near-term will be nominal only, until the situation improves and travel activity resumes.”

The OTA has taken drastic measures to cut costs including making more than 400 positions redundant and implementing cuts to executive pay.

Most other staff are working a four-day week.

MMP