Why is the Webjet (ASX:WEB) share price taking off on Monday?

The travel sector is getting a lot of attention today.

| 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 surged into the green on Monday despite no news having been released by the online travel agency.

However, the travel sector is facing a barrage of exciting news that might be piquing the market's interest in Webjet.

At the time of writing, the Webjet share price is $6.49, 3.02% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.23% while the All Ordinaries Index (ASX: XAO) has fallen 0.28%.

Let's take a look at the news that might be impacting Webjet's stock on Monday.

A little girl dressed as a pilot prepares to leap off the sofa and take flight.

Image source: Getty Images

What's driving the Webjet share price today?

The Webjet share price is soaring as the United States prepares to open its international borders, Sydney Airport (ASX: SYD) agrees to a longstanding takeover offer, and a plethora of travel shares surge higher.

The United States' international borders will reopen to vaccinated travellers from 12:01 am eastern standard time on Monday (3:01 pm AEST and 4:01 pm AEDT).

It will mark the first time non-essential travel will be allowed into the nation since its borders were slammed shut to stop the spread of COVID-19 in March 2020.

No doubt, some market watchers will be excited by the potential for a resurgence in holidays to the United States.

Meanwhile, in ASX-centric travel news, Sydney Airport has accepted a takeover bid posed to it by the Sydney Aviation Alliance. The alliance is made up of a consortium of infrastructure investors and super funds.

The accepted bid will see Sydney Airport shareholders handed $8.75 cash for every security they hold in the airport.

Like the Webjet share price, Sydney Airport's stock is in the green today. Right now, it is $8.45, 2.67% higher than its previous close.

As The Motley Fool reported this morning, the offer values Sydney Airport at nearly $32 billion.

The takeover is still subject to approval from the Foreign Investment Review Board and the Australian Competition and Consumer Commission. It will also need to pass a shareholder vote.

Perhaps unsurprisingly, the Webjet share price is not alone in its gains today.

Right now, the Flight Centre Travel Group Ltd (ASX: FLT) share price is up 5.01%, while Qantas Airways Limited (ASX: QAN) shares have gained 5.25%.

Motley Fool contributor Brooke Cooper 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 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

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Virgin Australia shares slide again as global turmoil rattles key partnership

Virgin Australia shares drop as the Middle East war hits international flights.

Read more »

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 »