Major online travel agency Webjet will take a hit on commissions after Virgin Australia said it would return to the holiday packages market under its own label.
The change by Virgin, which includes other Webjet commercial arrangements and is likely to impact other online travel businesses, will take effect from July 1.
Webjet, which on Wednesday released its full-year results, said that if the change had started at the start of 2026 it would have cost the group $3 million in underlying revenue.
Chief executive Katrina Barry said the impact of Virgin's decision was substantial, although the carrier remains a "valued partner".
"This does have a significant impact on our future commercials," she told an earnings briefing.
Webjet, which mainly serves the Australian and New Zealand markets, provides digital platforms for consumers to plan and book flights, hotels, holiday packages, and car hires.