June was a rough month for the Webjet Limited (ASX: WEB) share price. The online travel agency's stock slumped 10.55% last month for no obvious reason.
After finishing May at $5.97, the Webjet share price was trading at$5.35 as of the final close of June.
For context, the S&P/ASX 200 Index (ASX: XJO) slumped 8.9% last month while many of Webjet's ASX 200 travel peers also suffered.
So, what dragged on many ASX travel giants last month? Let's take a look.
Image source: Getty Images
Why did the Webjet share price plunge 11% in June?
The Webjet share price struggled last month. Though, it ultimately outperformed many other ASX 200 travel shares.
The share price of Qantas Airways Limited (ASX: QAN), for instance, tumbled nearly 19% in June. Meanwhile, that of Flight Centre Travel Group Ltd (ASX: FLT) slumped 15%.
However, unlike the above-mentioned stocks, Webjet was silent last month.
In fact, the last time the market heard from the company was back in May when it announced it returned to profit in the second half.
So, what weighed on Webjet's share price might be the same happening that seemingly dragged on the broader market last month. And that was inflation and interest rates.
The Reserve Bank of Australia hiked interest rates by 0.5% in June, sending the cash rate to 0.85% in a bid to tackle inflation.
That likely had many Australians' pockets feeling lighter and potentially impacted sentiment for travel stocks.
On top of that, Webjet remained one of ASX's most shorted shares throughout June.
The company had a short position of 7.85% as of 28 June. That basically means 7.85% of its register is betting against its recovery.
Despite the Webjet share price's poor June performance, the stock has been outperforming the ASX 200 lately. It has slipped just 1.2% this year while the index is recording a 12.5% year-to-date tumble.
