Helloworld Travel (HLO) investor relations material

Trading environment and operational impacts

• Significant disruption to bookings and margins since March due to Middle East conflict, with Middle Eastern carriers halting flights and customers seeking alternatives, especially Asian midpoint carriers.

• Airline capacity through Middle Eastern carriers dropped from 150 per week to nil in March, now recovering to 82 per week.

• Approximately AUD 170 million in ticket refunds issued, with over half rebooked on alternative carriers, though not always to original destinations.

• Forward bookings for the June quarter shifted from +30% YoY in early March to -4% currently, representing several hundred million dollars less in CTV.

• Ongoing government travel warnings and lack of insurance for Middle East routes continue to constrain bookings and capacity.

Financial guidance and outlook

• FY EBITDA guidance revised to AUD 57–62 million, down from previous AUD 64–72 million, mainly due to war-related disruptions; prior year EBITDA was AUD 55.6 million.

• Override income shifted from Middle Eastern to lower-yielding Asian carrier partners.

• Expectation that travel will recover to previous levels within 60–90 days of conflict resolution.

• Forward bookings for July and the September quarter are up significantly YoY, with some deferred demand from June pushing into later quarters.

• Planning to declare a final dividend similar to last year, implying a fully franked yield of 7% at recent share price.

Business mix and strategic developments

• Air sales as a proportion of total sales have decreased, while higher-margin land and non-air sales have increased.

• Premium seat sales now represent 53% of air sales in Australia and 50% in New Zealand, both up from prior year.

• Strong commercial relationships with Asian and Chinese carriers have helped mitigate some disruption.

• Holds a 20.1% stake in Webjet Group Limited, with ongoing engagement to improve governance and performance.

• Operates a diversified travel business across retail, wholesale, business travel, and destination management in Australia, NZ, Fiji, and Greece.