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Webjet takes hit from Thomas Cook collapse

Webjet takes hit from Thomas Cook collapse
Online travel agent Webjet looks set to take an earnings hit and could write off $43.7 million following the collapse of UK travel company Thomas Cook.
Webjet on Monday said it had expected to earn between $150 million and $200 million in FY20 total transactional value from Thomas Cook, which owed Webjet about $43.7 million when it collapsed over the weekend.
"The impairment of any unpaid receivables will be treated as a one-off expense to the income statement," Webjet said in a statement to the ASX.
The firm said the write-off would be covered by existing cash reserves that stood at $211.4 million at June 30 plus undrawn debt facilities.

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The demise of the 178-year-old Thomas Cook is also expected to reduce the $27 million to $33 million in additional earnings Webjet had anticipated from its WebBeds accommodation business by as much as $7 million.
Webjet shares dropped as much as 6.0 per cent but rallied by 1246 AEST to sit just 1.6 per cent lower at $11.33.
Thomas Cook, which was founded in 1841 by a cabinet-maker of the same name to carry anti-alcohol campaigners between English cities, ceased trading after failing to secure a last-ditch rescue deal over the weekend.
The company was unable to secure an extra $368 million demanded by its lenders, leaving 150,000 Britons stranded overseas.
© AAP 2019