Here's why the Webjet (ASX:WEB) share price is taking off today

Let's take a closer look.

| 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 has soared more than 5% in today's session.

In addition, shares in the online travel company have had a stellar week thus far.

Let's take a look at what could be pushing the Webjet share price higher today.

couple heads off on holiday with suitcase

Image source: Getty Images

Possibility of Christmas travel boosts Webjet share price

Webjet has not released any price-sensitive news that could explain today's bullish price action.

As a result, shares in the online travel company could be flying on the prospect of interstate travel by Christmas.

According to an article in the AFR, Prime Minister Scott Morrison has urged states and territories to adhere to the national plan.

Based on 80% of the population being vaccinated, the national plan outlines unrestricted domestic travel for vaccinated Australians.

The prospect of interstate travel by December bodes well on the outlook for travel companies like Webjet.

This news follows reports earlier this month that New Zealand may re-open its borders to international travellers in the near future.

Snapshot of the Webjet share price

In addition to today's bullish price action, shares in the online travel company have had a stellar week thus far.

Since the start of the week, the Webjet share price has soared more than 16%.

As noted previously, Webjet hasn't released any price-sensitive news that could explain the share price movement.

However, it is important for investors to note that shares in Webjet are the most shorted on the market.

According to the most recent data, Webjet's share registry holds an 11.4% short interest.

As a result, the recent lift in Webjet's share price could be the result of short-sellers reducing their risk.

Earlier this year, Webjet released its full-year result for FY21.

The company's report was headlined by an earnings before interest, taxes, depreciation, and amortisation (EBITDA)  loss of $125.3 million.

Prior to the Delta variant outbreak in New South Wales and Victoria, Webjet was enjoying a prosperous few months.

In addition, the company also announced a new strategy earlier this year to help counter the pandemic.

Under this strategy, Webjet noted the pivot towards business-to-business opportunities through its WebBeds business.

With domestic and international travel restrictions still in place, the only reprieve for the Webjet share price is the rate of vaccinations.

Despite these disruptions, the Webjet share price remains more than 10% higher for the year.

Motley Fool contributor Nikhil Gangaram 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 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 Travel Shares

A woman wearing a mask at the airport gets ready to travel again with Qantas.
Travel Shares

Qantas shares flying through $105 million legal turbulence

Qantas is still working to absolve itself of COVID-related operating issues.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

How many Qantas shares do I need to buy for a $10,000 annual passive income?

Qantas shares resumed their passive income payouts in 2025.

Read more »

A man stands before a chalk board with line drawings of paper planes with various curling flight trajectories and paths.
Travel Shares

Nosedive: Why did Qantas shares crash 9% today?

Qantas stock is losing altitude fast this Monday.

Read more »

Smiling woman looking through a plane window.
Travel Shares

The Qantas share price is down 24% since its peak, is it a buy?

Is this a good time to invest in Qantas shares?

Read more »

a passenger plane is on the tarmac with passenger shute attached with a view of the surrounding land and sunset in the background.
Travel Shares

Qantas shares sink 13% in a week: What happened, and how long will it last?

Here's the latest update.

Read more »

Smiling woman looking through a plane window.
Travel Shares

Should I buy Qantas shares after their 9% decline?

The airline delivered strong profits, yet the shares fell 9%. Here’s how I see it.

Read more »

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

Brokers think these two travel shares could take off

Investors, pack your bags.

Read more »

Couple at an airport waiting for their flight.
Travel Shares

Qantas shares tumble 6% despite first-half earnings beat

The Flying Kangaroo has released its half-year results today.

Read more »