Why the Webjet (ASX:WEB) share price closed 5% higher today

The Webjet Limited (ASX: WEB) share price surged higher towards Tuesday's close after the latest Trans-Tasman Travel Bubble announcement.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Webjet Limited (ASX: WEB) share price rocketed higher on Tuesday afternoon after the unveiling of the Trans-Tasman Travel Bubble. 

Travel bags sit by an airport lounge window overlooking a grounded plane on the tarmac

Image source: Getty Images

Travel bubble sees Webjet share price surge

ASX travel shares rocketed higher on Tuesday afternoon after the much-anticipated announcement from New Zealand Prime Minister Jacinda Ardern. Ms Ardern said plans were in place for an April 19 two-way travel bubble between Australia and New Zealand.

That marks the first quarantine-free travel arrangement for Australia since the coronavirus pandemic began over 12 months ago. Naturally, investors piled into ASX travel shares following the good news for the sector.

The Webjet share price was no exception as it closed 5.7% higher on Tuesday. It was also a good day for other ASX travel shares given the broad boost to the travel sector.

Qantas Airways Limited (ASX: QAN) shares closed 3.1% higher at $5.26 per share while Air New Zealand Limited (ASX: AIZ) shares rocketed 8.2% higher on the news.

The S&P/ASX 200 Index (ASX: XJO) also had a broadly strong day across the board. The benchmark index closed up 0.8% at 6,885.9 points on Tuesday afternoon.

What's the deal with the travel bubble?

The two-way bubble will open in less than a fortnight despite warnings from Ms Ardern that borders could be closed in the event of outbreaks. The arrangement will allow for both Australian and New Zealand tourists to visit across the ditch without hotel quarantine procedures.

A traffic light system has been introduced to help manage any potential outbreaks across the two countries. That announcement was good enough for investors who sent the Webjet share price surging on Tuesday.

Foolish takeaway

Tuesday was a strong day of trade for many ASX 200 shares. However, the Webjet share price was among a select group of ASX travel shares that rocketed higher on the back of the Trans-Tasman Travel Bubble news in the early afternoon.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors ended the trading week on a sour note today.

Read more »

Wife and husband with a laptop on a sofa over the moon at good news.
Share Gainers

3 ASX 200 stocks storming higher in this week's slumping market

These three ASX 200 stocks have gained 10% to more than 25% this week despite the broader market retrace. Here’s…

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Cobram Estate, EOS, Magellan, and Rio Tinto shares are storming higher today

These shares are ending the week on a positive note. But why?

Read more »

3 children standing on podiums wearing Olympic medals.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were back to hitting the sell button today.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Share Gainers

Why Collins Foods, St George Mining, Whitehaven Coal, and Woodside shares are pushing higher today

These shares are having a good session on Thursday. But why?

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
Share Gainers

Here are the top 10 ASX 200 shares today

Investors continued to pull the markets back up today.

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
Share Gainers

Why Brazilian Rare Earths, Lynas, Macquarie Technology, and Ora Banda shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

A woman stands in a field and raises her arms to welcome a golden sunset.
Gold

Why this little-known ASX gold share is leaping 28% on Wednesday

Investors just sent this ASX gold share up more than 28%. But why?

Read more »