The Webjet Limited (ASX: WEB) share price has taken off over the past month despite no announcements from the company.
However, September has been an exciting time for the travel industry and wanderlusting Australians as the pathway back to travel becomes clearer.
The Webjet share price finished Friday’s session trading for $6.14, which is 1.76% lower than Thursday’s close and 16.7% higher than its closing price on 24 August.
Let’s take a look at the news that might be driving Webjet’s stock higher.
Why is the Webjet share price flying recently?
The Webjet share price has performed brilliantly over the past month. And what’s boosting the online travel agent’s stock is likely also boosting the spirits of Australians in need of a holiday.
Late last month Qantas Airways Limited (ASX: QAN) led the pack in predicting the restart of international travel. The airline expects Australians to be back overseas by December. However, its international network won’t be fully operational again until April 2022.
That means this time last month, Webjet and the market had a strong indication of the direction and timeframe for the restart to international travel.
Then, on 31 August, Webjet announced its business-to-business accommodation service, WebBeds, has returned to profitability. The turnaround was driven by the easing of travel restrictions in North America and Europe.
Additionally, the number of Australians who have been vaccinated against COVID-19 has increased exponentially over the past 30 days. This time last month, 55.2% of Australians had received one jab and 32.3% were fully vaccinated. As of Friday, nearly 3 in 4 of us have had our first dose of a vaccine. Even better, more than half are double jabbed.
As the vaccination rate has sped up, the governments of NSW and Victoria have both flagged an end to lockdowns. Meanwhile, the Victorian Government has announced that it plans to open the state’s border to NSW in November.
Finally, the Webjet share price may also be responding to news from the US. Just yesterday, the White House announced its plans to reopen its borders to fully vaccinated travellers from 33 countries in November.
Unfortunately for travellers, Australia is not on that list but it’s still good news for Webjet and its share price.
Thus, the past month has been a good one for the travel sector and by extension, Webjet shareholders.