Webjet shares hit fresh 18-month highs in September as travel optimism gathers momentum.
The post Here’s why the Webjet (ASX:WEB) share price gained 29% last quarter appeared first on The Motley Fool Australia. –
The Webjet Limited (ASX: WEB) share price showed promised in the September quarter, rallying 29% to an 18-month high of $6.34.
Webjet shares have largely been range bound since November last year, struggling to break above $6.30 but finding plenty of buying support around the $4.50 level.
Webjet share price rallies on travel optimism
A return to normal for the travel industry is on the horizon headlined by announcements coming out of the United States and more recently, Australia.
Earlier this month, the White House announced that it will reopen its borders in November to vaccinated air travellers from 33 countries including China, India, Brazil and most of Europe.
Unfortunately, Australia did not make it to that list.
Nonetheless, Prime Minister Scott Morrison announced this afternoon that “Australia is ready to take its next steps to safely reopen to the world, with changes coming to the international border.”
The Government’s intention is that once changes are made in November, the current overseas travel restrictions related to COVID-19 will be removed and Australians will be able to travel subject to any other travel advice and limits, as long as they are fully vaccinated and those countries’ border settings allow.
A preemptive move for travel shares?
In some ways, the Webjet share price and broader ASX-listed travel sector have moved ahead of any material changes for international travel.
The rising optimism also follows a record 1,438 new local COVID-19 cases in Victoria on Thursday.
Ignoring the ifs and buts, the Webjet share price made an encouraging push towards the upper bound of its range in the September quarter.
It’s now trading at the same levels as early March 2020, when the broader market began to collapse following the initial outbreak of COVID-19.
With November just a month away, investors might have to wait and see if these opportunistic plans for travel can materialise.
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Motley Fool contributor Kerry Sun 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.