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Why is the Webjet (ASX:WEB) share price underperforming Corporate Travel lately?

The market is boosting Corporate Travel’s stock into the green while Webjet’s suffers. We take a closer look
The post Why is the Webjet (ASX:WEB) share price underperforming Corporate Travel lately? appeared first on The Motley Fool Australia. –

Both domestic and international travel is back on the cards for millions of Australians. So why is the Webjet Limited (ASX: WEB) share price struggling compared to that of its business-focused peer, Corporate Travel Management Ltd (ASX: CTD)?

Despite plenty of positive news regarding the Australian travel sector, the Webjet share price has fallen 4.3% over the past month. Shares in the online travel agent are currently trading for $6.33 apiece.

That’s a notably worse performance than that of the Corporate Travel share price. It has gained 0.5% in the same time frame to reach $24.60.

Though, both are underperforming against the broader market. The S&P/ASX 200 Index (ASX: XJO) has gained 3% over the last month.

Australia’s return to travel

On Monday, international borders reopened in Victoria and New South Wales after both states agreed to scrap quarantine for fully vaccinated arrivals. Additionally, residents eager to head overseas once more have been given the green light to do so.

And in more good news for wandering Aussies, travel between Victoria, New South Wales, and the ACT resumed today.

Though, the news hasn’t been enough to boost the Webjet share price back into the green.

What’s weighing on the Webjet share price?

There’s no news on which to pin the recent poor performance of the Webjet share price compared to that of Corporate Travel.

It could be due to the market believing business travel will restart quicker than leisure travel. Though, that doesn’t take into account the online travel agent’s business-to-business branch, WebBeds, which services the travel industry.

Additionally, Webjet has previously predicted it will be turning a profit at the same time as Corporate Travel.

At Webjet’s annual general meeting, the company’s managing director said the business is expected to be cash-flow positive in the first half of financial year 2022.

Whereas, Corporate Travel recently predicted it will return to profitability in the final quarter of the 2021 calendar year.

Unfortunately, there’s no clear answer as to why the Webjet share price is underperforming that of Corporate Travel.

But, at least Webjet’s stock isn’t alone in its struggles. Plenty of ASX travel shares are battling to get back into the green.

The Qantas Airways Limited (ASX: QAN) share price has fallen 2.1% over the last month, while that of Flight Centre Travel Group Ltd (ASX:  FLT) has slumped 17.6%.

The post Why is the Webjet (ASX:WEB) share price underperforming Corporate Travel lately? appeared first on The Motley Fool Australia.

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More reading

These are the 10 most shorted ASX shares

Why has October been such a lousy month for the Webjet (ASX:WEB) share price?

Brokers name 3 ASX shares to buy today

Corporate Travel (ASX:CTD) share price gains as dividends flagged to return

When was the worst ever day on the Webjet (ASX:WEB) share price chart?

Motley Fool contributor Brooke Cooper 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 Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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