Own Webjet (ASX:WEB) shares? Here's what to look at during reporting season

A few things to watch for investors in the Aussie travel share.

| More on:
hand holding miniature plane suspended by face mask representing asx travel share price

Image source: Getty Images

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

It's been a tough 18 months for investors in Webjet Limited (ASX: WEB) shares. The Aussie travel group's value has halved since 21 February 2020 when the coronavirus pandemic really kicked in here. Here are a few things Webjet investors will be watching in August.

What to watch in August if you own Webjet shares

August means the ASX reporting season is upon us. For many Aussie companies with a 30 June financial year-end, that means full-year earnings results.

Webjet investors will be understandably keen to see COVID-19 restrictions ease both domestically and internationally. Webjet generates revenue through customer bookings, so if traffic is reduced, that's not good news for earnings.

Shareholders will likely be keeping an eye on the major travel players for commentary around the FY2022 outlook. The Aussie travel market, particularly regarding air travel, is concentrated. That means insights from the likes of Qantas Airways Ltd (ASX: QAN) and Regional Express Holdings Ltd (ASX: REX) could be valuable.

Webjet shares have recovered 66.1% in the last 12 months after being smashed in the March 2020 bear market. However, it's still a long way back to pre-COVID share price levels.

Clearly, the key to Webjet's value increasing is for booking numbers and travel to pick back up. Current COVID-19 restrictions haven't helped, but investing is a long-term game. That means any indication in August of increasing discretionary consumer spending could be good news for the likelihood of a travel rebound.

Apart from the airlines, investors might also be keeping an eye on rivals' results in the August reporting season. That means watching Corporate Travel Management Ltd (ASX: CTD) and Flight Centre Travel Group Ltd (ASX: FLT). This might provide an indication of how Webjet is travelling compared to its peers and the broader industry.

There's also the Sydney Airport Holdings Pty Ltd (ASX: SYD) result to watch. Sydney Airport is Australia's busiest airport which means traffic updates and FY2022 commentary is a useful barometer.

Foolish takeaway

Webjet shares remain under pressure heading into the August reporting season. Shareholders will likely be watching for any signs of COVID-19 restrictions easing, how Webjet's performance stacks up against its peers and the FY2022 outlook from major travel industry stakeholders.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Travel Shares

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Did Flight Centre, Air New Zealand, or Qantas shares fly highest in FY25?

How did these ASX travel shares perform last financial year?

Read more »

Man waiting for his flight and looking at his phone.
Travel Shares

The Virgin Australia share price just slipped back below IPO levels. Should I buy shares today?

A leading expert offers his forecast on the struggling Virgin Australia share price.

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

The Qantas share price flew 88% higher in FY 2025! Here's how

Qantas shares surged 88% in FY 2025 to new all-time highs. Here’s what happened.

Read more »

Woman sitting looking miserable at airport
Travel Shares

Qantas shares tumble on cyber attack impacting 6 million customers

Australia's flag carrier airline has been hit with a major cyber incident.

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Travel Shares

Up 86% in a year, should I still buy Qantas shares today?

Can Qantas shares keep flying higher into 2026? A leading expert reveals his forecast.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Is the Qantas share price a buy after the Virgin listing?

Should investors be excited or worried about the Virgin listing?

Read more »

A woman stands at her desk looking a her phone with a panoramic view of the harbour bridge in the windows behind her with work colleagues in the background.
Travel Shares

1 amazing Aussie stock down 40% to buy and hold

Let's see why analysts think this top stock could be a buy after a significant pullback.

Read more »

A pilot stands in an empty passenger cabin smiling with his arms crossed looking excited
Travel Shares

Virgin Australia shares take flight on ASX return after IPO

The airline's long-awaited return has started strongly.

Read more »