The Webjet Limited (ASX: WEB) share price fell by more than 3% today. What happened?
Webjet is one of the largest travel businesses on the ASX, with a global presence thanks to its WebBeds business.
There has been a lot for investors to think about in recent weeks.
Not only has the chatter about inflation and interest rates soared as high as the International Space Station, but Ukraine being invaded by Russia has also increased uncertainties.
What's happening with the Webjet share price?
The global travel market is underpinned by safety and access to most countries and open air travel.
Conflict between two countries may not be calming for global travellers or the global market.
Most European nations, including the UK, Finland, Poland and so on have shut their airspace to Russian planes, including the private jets of oligarchs. They are not allowed to fly over any EU nation, or land there.
In retaliation, Russia has banned flights from some European nations.
This will add extra flying time to different airlines from different destinations as they avoid the airspace from Ukraine and Russia. Qantas Airways Limited (ASX: QAN) will use a flight path that takes longer between Darwin and London where it's not passing over Russia.
Russian economic plunge
Various economic areas of Russia have plunged. Over the last five days the Russian share market has plunged 35%.
According to reporting by CNBC, the Russian currency fell almost 30% against the US dollar on Monday morning.
Whilst Russia is not exactly a major market for Webjet, this can add to the uncertainty for the market.
ASX share market response
Whilst the Webjet share price fell by more than 3% today, the S&P/ASX 200 Index (ASX: XJO) rose by 0.7%. So there was a difference in performance of around 4% today.
However, Webjet wasn't the only one to suffer a decline today in the ASX travel sector. The Corporate Travel Management Ltd (ASX: CTD) share price dropped 2% and the Flight Centre Travel Group Ltd (ASX: FLT) share price went down 3.4%.
The last couple of years has been a volatile time for Webjet. COVID-19 sent ASX travel shares dramatically down. In November 2021, the Omicron variant caused another sell-off. The Webjet share price has fallen more than 10% over the last couple of weeks.
Is the Webjet share price an opportunity?
UBS certainly thinks so. It rates it as a buy, with a price target of $6.85. That implies a possible upside of almost 30% over the next several months.
