Why the Webjet (ASX:WEB) share price has soared 24% in 4 weeks

The Webjet share price is having a roaring few weeks on the ASX. Here’s why.

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The Webjet Limited (ASX: WEB) share price is taking off this month amid anticipation Australians might soon be doing the same.

Over the last 4 weeks, Webjet has only released 1 piece of news to the market. However, it was an exciting announcement.

Additionally, Australia is inching closer to vaccine targets that the federal government expects will see the country opening to both domestic and international travel once more.

Right now, the Webjet share price is $5.96, 1.3% lower than its previous close but 24.2% higher than it was 4 weeks ago.

Let’s take a closer look at what the ASX 200 travel company has been up to over the last 4 weeks.

What’s driving the Webjet share price lately?

The Webjet share price is having a great few weeks’ trade on the ASX.

The single announcement the company released to the market in the last 4 weeks was overwhelmingly positive. It noted that the company’s WebBeds business finally returned to profitability.

A reopening of travel in North America and Europe has sparked WebBeds’ return to profitability. The company suggests WebBeds will bounce back quickly when international travel resumes.

Additionally, the company’s Australian online travel agency was profitable from April 2021 to June 2021. That was before the current lockdowns began in New South Wales and, later, Victoria and the Australian Capital Territory.

The positive news and hopeful outlook saw the Webjet share price gain 3.45% on the day of the release.

However, it is outside influences that seem to have spurred on most of Webjet’s gains.

Potentially, Qantas Airways Limited (ASX: QAN) could have helped Webjet’s stock. The airline announced its plan back to international travel on 26 August, perhaps inspiring confidence in the sector.

Additionally, the Webjet share price might be rallying alongside Australia’s COVID-19 vaccine rollout.

Under the federal government’s plan, lockdowns will become sporadic and international arrival caps will be raised when 70% of Australians are fully vaccinated. The government expects international travel to restart when 80% of Australians are fully vaccinated.

As of yesterday, 68.5% of Australians have had their first COVID-19 jab.

Should you invest $1,000 in Webjet right now?

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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 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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