The Webjet Limited (ASX: WEB) share price rocketed higher on Tuesday afternoon after the unveiling of the Trans-Tasman Travel Bubble.
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Travel bubble sees Webjet share price surge
ASX travel shares rocketed higher on Tuesday afternoon after the much-anticipated announcement from New Zealand Prime Minister Jacinda Ardern. Ms Ardern said plans were in place for an April 19 two-way travel bubble between Australia and New Zealand.
That marks the first quarantine-free travel arrangement for Australia since the coronavirus pandemic began over 12 months ago. Naturally, investors piled into ASX travel shares following the good news for the sector.
The Webjet share price was no exception as it closed 5.7% higher on Tuesday. It was also a good day for other ASX travel shares given the broad boost to the travel sector.
Qantas Airways Limited (ASX: QAN) shares closed 3.1% higher at $5.26 per share while Air New Zealand Limited (ASX: AIZ) shares rocketed 8.2% higher on the news.
The S&P/ASX 200 Index (ASX: XJO) also had a broadly strong day across the board. The benchmark index closed up 0.8% at 6,885.9 points on Tuesday afternoon.
What's the deal with the travel bubble?
The two-way bubble will open in less than a fortnight despite warnings from Ms Ardern that borders could be closed in the event of outbreaks. The arrangement will allow for both Australian and New Zealand tourists to visit across the ditch without hotel quarantine procedures.
A traffic light system has been introduced to help manage any potential outbreaks across the two countries. That announcement was good enough for investors who sent the Webjet share price surging on Tuesday.
Foolish takeaway
Tuesday was a strong day of trade for many ASX 200 shares. However, the Webjet share price was among a select group of ASX travel shares that rocketed higher on the back of the Trans-Tasman Travel Bubble news in the early afternoon.
