The Webjet Limited (ASX: WEB) share price failed to take off on Monday as travel shares received a clobbering.
By the end of the day, shares in the digital travel business were 3.72% worse off than yesterday, fetching $5.69 apiece.
Today's shift drop in travel shares comes as COVID-19 brandishes its capricious nature. There's been a sudden and sharp rise in cases across the United States and Europe in the last fortnight.
Image source: Getty Images
Risk of a new COVID-19 wave hits Webjet share price
With the northern hemisphere entering the icy months of winter, cases of COVID-19 have jumped. In fact, some countries across Europe are witnessing their highest number of cases on record, triggering the re-introduction of restrictions and lockdowns.
This development in the northern hemisphere follows Australia passing 85% of people over 16 years old being fully vaccinated. As the number of double-vaxed Aussies has climbed, so too has the share price of Webjet, Flight Centre Travel Group Ltd (ASX: FLT), and many others.
However, today's news has put a dent in the travel optimism that had been built over recent months. As my Fool colleague Tristan covered earlier today, some affected countries have reimposed mask mandates while others, such as Austria, have gone into a full lockdown.
In the US, efforts to combat the rising numbers has led to an uptick in the number of vaccine doses being administered per day. According to The Guardian, approximately 1.5 million doses are being delivered daily. In comparison, this figure was around 1.3 million two weeks ago.
The shifting COVID-19 landscape presents increased uncertainty. In August, Webjet had highlighted the strong travel demand and easing restrictions across North America and Europe. However, now the future looks less clear for Webjet and its share price.
Shares in Webjet are up 12% since the beginning of the year. This is mostly in line with the S&P/ASX 200 Index (ASX: XJO) which is up by just under 12%.
