Insights

Here’s why the Webjet (ASX:WEB) share price is lifting 4% on Friday

Webjet shares are flying higher as NSW announces planned border changes.
The post Here’s why the Webjet (ASX:WEB) share price is lifting 4% on Friday appeared first on The Motley Fool Australia. –

The Webjet Limited (ASX: WEB) share price is up around 4% amid the latest changes to borders and quarantine that have been announced by the New South Wales government.

What has NSW announced about borders and quarantine?

The NSW government has announced that the hotel quarantine program is going to end on 1 November 2021 according to reporting by various media, such as The Guardian.

Premier Dom Perrottet said:

From November 1st, those people returning Australians and tourists who want to come back, who want to visit Australia and coming to Sydney, hotel quarantine will be a thing of the past.

We will require, working with the Commonwealth government, that people coming into here, you’ll need to do a PCR test before you board the flight stop, you will need to show proof of your double vaccination.

For double vaccinated people around the world, Sydney, New South Wales is open for business.

We want people back. We are leading the nation out of the pandemic. Hotel quarantine, home quarantine is a thing of the past. We are opening Sydney and NSW to the world.

There will be no home quarantine either for those double vaccinated people who want to come to Australia.

However, there were questions raised about some of the journalists regarding what the federal government has agreed to because it’s the federal officials that control the international border.

Investors be weighing up their thoughts on the Webjet share price with another border that opened:

Victoria and NSW border to open

On 20 October (or 19 October at almost midnight), fully vaccinated NSW residents will be able to travel to Victoria without quarantine.

But, those people must test negative before crossing the border, then isolate and test again negative again.

So whilst there’s still a bit of a process, there won’t be the 2-week quarantine rule that has been in place.

However, the unvaccinated people that want to travel from NSW to Victoria must still test negative before arriving and quarantine for two weeks.

People coming from ‘orange zones’ won’t need to get tested and isolate until they receive a negative result. But they need to hold a valid permit.

How could more travel affect the Webjet share price and profit?

Investors seem happy to send Webjet shares higher.

Webjet itself said a couple of months ago that its online travel agency (OTA) business was profitable in April to July, and Online Republic was profitable in April and May, but the lockdowns stopped that profitability. Management said they were confident that both businesses would return to profitability as soon as the domestic Australian and New Zealand markets reopen. International borders opening could also help things.

Relating to WedBeds, Webjet said this business was profitable in July and August and was on track to be profitable in September. It has seen strong demand as travel restrictions ease in North America and Europe, “suggesting significant upside as more international markets reopen.”

The business has been working on reducing its costs by at least 20% for when the company can get back to scale. The ASX travel share believes it will have a higher market share, lower costs and greater profitability.

The post Here’s why the Webjet (ASX:WEB) share price is lifting 4% on Friday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Top broker sees 15% upside in the Webjet (ASX:WEB) share price

Why the Webjet (ASX:WEB) share price has beaten the ASX 200 in the last 6 months

Can the Webjet share price fly to $7 by the end of 2021?

It hasn’t been a great week so far for the Webjet (ASX:WEB) share price

These are the 10 most shorted ASX shares

Motley Fool contributor Tristan Harrison 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!