Webjet (ASX:WEB) share price weakens as COVID cases continue

It appears that COVID-19 woes continue to weigh on the Webjet share price…
The post Webjet (ASX:WEB) share price weakens as COVID cases continue appeared first on The Motley Fool Australia. –

Travel shares are sliding at the start of the week as Australian states struggle to contend with the COVID-19 resurgence. In particular, the Webjet Limited (ASX: WEB) share price is off by 1.7% today, at $4.84 apiece.

Since March, shares in the travel agent have been moving to the downside. As a result, the Webjet share price has lost 20% in approximately 4 months. The uncertainty that has been introduced by the Delta variant has suppressed investor sentiment.

Latest COVID-19 updates

New South Wales has started the week off with 145 new locally acquired cases overnight. Unfortunately, 51 of those cases were in the community during their entire infectious period.

NSW recorded 145 new locally acquired cases of COVID-19 in the 24 hours to 8pm last night.

— NSW Health (@NSWHealth) July 26, 2021

Additionally, NSW Premier Gladys Berejiklian is expected to announce changes to restrictions soon, with a possible tightening in some instances. This follows protests in Sydney, which the state fears could end up being a ‘super spreader event’. With another protest planned for the coming weekend, NSW police commissioner Mick Fuller said:

We will be heavily policing that event. We will take the ground very early. You will be arrested. The community has spoken about that behaviour. The Premier has spoken about that behaviour and it won’t be tolerated again.

Despite having been in lockdown for a month now, Sydney has continued to post high daily cases of COVID-19.

The continued lockdowns have weighed on many industries, including travel. In fact, the estimated cost to the economy per week of the NSW lockdown is $1 billion, according to the Australian Financial Review. With millions of people across the country under some form of restriction or lockdown, the impact is taking its toll on the Webjet share price.

On a positive note, South Australia expects to be let out of lockdown at 12:01am on Wednesday. However, an additional week of restrictions will be imposed to remain vigilant. Meanwhile, Victoria has delayed its verdict on a lockdown lift until tomorrow.

Webjet share price recap

Despite the recent events, the Webjet share price is up 57.1% in the last 12 months. Comparatively, the S&P/ASX 200 Index (ASX: XJO) has rallied 22.4%.

Fortunately for Webjet shareholders, the company has raised plenty of capital to sustain itself throughout this tumultuous period. At the end of March, Webjet held $262 million. In addition to this, the company also raised a further $250 million through a convertible note offering in April.

The Webjet share price has fallen roughly 8% since announcing its convertible note offering.

The post Webjet (ASX:WEB) share price weakens as COVID cases continue appeared first on The Motley Fool Australia.

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More reading

These are the 10 most shorted ASX shares

6 ASX shares to rocket when COVID Delta passes

Webjet shares (ASX:WEB) are among the most shorted on the ASX
Why the Webjet (ASX:WEB) share price has fallen 10% in a month
What happened on the US stock market overnight and how could it impact ASX shares?

Motley Fool contributor Mitchell Lawler 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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