Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why

International travel could be on the cards next month, driving a sharp re-rate for Webjet shares.
The post Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why appeared first on The Motley Fool Australia. –

The Webjet Ltd (ASX: WEB) share price joins the list of bullish travel and airline shares on Monday, trading at levels not seen since late March last year.

At the time of writing, Webjet shares are up 4.95% to $6.79.

Webjet share price re-rates on Australian travel optimism

The travel industry is gathering momentum amid hopes of reopened borders as soon as next month.

Prime Minister Scott Morrison announced last Friday that international borders are set to reopen in November for states that reach the 80 per cent vaccination prerequisite.

The government is finalising new arrangements for fully vaccinated Australians and permanent residents arriving in NSW. It’s expected arrivals will be able to home quarantine for a week instead of being forced into an expensive two-week hotel quarantine.

Mr Morrison said 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 another travel advice and limits”.

The positive news helped the Webjet share price withstand the sharp selloff last Friday when the S&P/ASX 200 Index (ASX: XJO) plunged 2%.

White House to lift travel restrictions by November

Similarly, the White House announced on 23 September that it will also be lifting travel restrictions for fully vaccinated travellers from select countries.

The list of 33 countries includes China, India, Brazil and most of Europe. Unfortunately, Australia was not one of them.

Nonetheless, the Webjet share price still rallied 5.22% to $6.25 on the day of the announcement.

International travel stocks jump last Friday

The US Global Jets Exchange Traded Fund (ETF) rallied 5.33% on heavy volume to a 3-month high last Friday night.

By US market close, 15.9 million shares had traded hands compared to the ETF’s 10-day average of 8.8 million.

The Jets ETF tracks an index of companies involved in the air travel industry, including airline operators, airports and terminal services. The bulk of its holdings are in US-listed airlines, with smaller allocations in the likes of Sydney Airport Holdings Pty Ltd (ASX: SYD) and Qantas Airways Limited (ASX: QAN).

The post Up 5%, the Webjet (ASX:WEB) share price is back to March 2020 levels. Here’s why appeared first on The Motley Fool Australia.

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More reading

Here’s why the Webjet (ASX:WEB) share price gained 29% last quarter
Why the Webjet (ASX:WEB) share price is on the rise today
2 ASX shares that could be buys in October 2021

Why this top broker rates the Webjet (ASX:WEB) share price a buy
5 things to watch on the ASX 200 on Wednesday

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.

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