It’s been a tough 18 months for investors in Webjet Limited (ASX: WEB) shares. The Aussie travel group’s value has halved since 21 February 2020 when the coronavirus pandemic really kicked in here. Here are a few things Webjet investors will be watching in August.
What to watch in August if you own Webjet shares
August means the ASX reporting season is upon us. For many Aussie companies with a 30 June financial year-end, that means full-year earnings results.
Webjet investors will be understandably keen to see COVID-19 restrictions ease both domestically and internationally. Webjet generates revenue through customer bookings, so if traffic is reduced, that’s not good news for earnings.
Shareholders will likely be keeping an eye on the major travel players for commentary around the FY2022 outlook. The Aussie travel market, particularly regarding air travel, is concentrated. That means insights from the likes of Qantas Airways Ltd (ASX: QAN) and Regional Express Holdings Ltd (ASX: REX) could be valuable.
Webjet shares have recovered 66.1% in the last 12 months after being smashed in the March 2020 bear market. However, it’s still a long way back to pre-COVID share price levels.
Clearly, the key to Webjet’s value increasing is for booking numbers and travel to pick back up. Current COVID-19 restrictions haven’t helped, but investing is a long-term game. That means any indication in August of increasing discretionary consumer spending could be good news for the likelihood of a travel rebound.
Apart from the airlines, investors might also be keeping an eye on rivals’ results in the August reporting season. That means watching Corporate Travel Management Ltd (ASX: CTD) and Flight Centre Travel Group Ltd (ASX: FLT). This might provide an indication of how Webjet is travelling compared to its peers and the broader industry.
There’s also the Sydney Airport Holdings Pty Ltd (ASX: SYD) result to watch. Sydney Airport is Australia’s busiest airport which means traffic updates and FY2022 commentary is a useful barometer.
Webjet shares remain under pressure heading into the August reporting season. Shareholders will likely be watching for any signs of COVID-19 restrictions easing, how Webjet’s performance stacks up against its peers and the FY2022 outlook from major travel industry stakeholders.