Why has the Webjet (ASX:WEB) share price taken off 11% in the past month?

It’s been a good 30 days for Webjet shareholders.

| More on:
A girl runs with model plane in a park with her parents in the background lying on the grass watching her.

Image source: Getty Images

It’s been a big month for the Webjet Limited (ASX: WEB) share price despite no news having been released by the company. However, the travel sector has had several recent victories.

At the time of writing, the Webjet share price is $6.50, 1.09% higher than its previous close and 11.5% higher than it was this time last month.

So, what exactly has sent Webjet’s stock soaring? Let’s take a look.

What’s driving the Webjet share price lately?

The Webjet share price has had 3 days of excellent trade over the past month, each seemingly spurred by outside influences.

The first was on 23 September when the Webjet share price surged 5.5% higher.

That same day, the United States government announced its plan to scrap travel restrictions for arrivals from 33 countries. The catch is, of course, international travellers arriving in the United States must be fully inoculated against COVID-19.

The next time Webjet’s shares recorded a notable gain came just days later. The company’s stock lifted 5.2% on 27 September.

That was also the first ASX trading day after Prime Minister Scott Morrison announced Australia’s international borders should reopen before Christmas.

 Finally, Webjet’s third-best session of the last 30 days was its most recent.

On Friday, the Webjet share price soared 4% higher after New South Wales Premier Dom Perrottet announced the state will soon scrap quarantine for vaccinated international arrivals.

The initial idea was the state would become Australia’s tourism mecca. That is, until other states catch up with its vaccination rate. Currently, 80.8% of those eligible to receive a COVID-19 vaccine in New South Wales have had both doses. That vaccination rate is only bested by the ACT.

However, Morrison soon overruled Perrottet’s plans. He announced the federal government would only be allowing Australian citizens and residents into the country for the time being.

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

Before you consider Webjet, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Webjet wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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.

More on Travel Shares

Female ASX travel shares investor with surprised expression drinks a cup of tea while reading the newspaper at her desk
Travel Shares

Are Virgin Australia shares set to rejoin the ASX soon?

Key points Virgin entered voluntary administration during the first year of the pandemic Bain Capital bought the airline later that …

Read more »

investor staring off into the distance wondering when Flight Centre might pay a dividend again as the share price rises today
Travel Shares

When will Flight Centre (ASX:FLT) pay a dividend again?

Needless to say, shareholders of Flight Centre Travel Group Ltd (ASX: FLT) have endured a turbulent journey over the past …

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

What might the WA border closure mean for the Webjet (ASX:WEB) share price?

Key points Webjet shares down 12% over the week due to market fears and WA border closure COVID-19 cases at …

Read more »

a man stands with travel documents in hand with a roller wheel suitcase and extended handle next to him holding his forefinger to his lip as he ponders his next move in a deserted airport. as the Qantas share price falls
Travel Shares

Qantas (ASX:QAN) share price falls amid rollercoaster day for ASX travel shares

Key points The Qantas share price leapt 3.2% in early trading today before falling back The company is fronting a …

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

The Flight Centre (ASX:FLT) share price just hit a 5-month low. Is now the time to buy?

Key points Flight Centre shares dip following slow recovery of travel market Border closures and restrictions impacting company sales First-half …

Read more »

a pensive looking woman sits on a chair with her chin on her hand looking into space with a large suitcase standing beside her.
Travel Shares

Flight Centre (ASX:FLT) share price falls amid potential legal action on borders

Key points The Flight Centre share price is down in early trade The company’s CEO Graham ‘Skroo’ Turner is planning …

Read more »

A sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price falls
Travel Shares

Why did the Webjet (ASX:WEB) share price fall 7% last week

Key Points Webjet shares impacted following latest announcements by the West Australian government No definitive reopening of domestic borders WebBeds …

Read more »

A woman wearing a mask at the airport gets ready to travel again with Qantas
Travel Shares

Why the Qantas (ASX:QAN) share price will be on watch today

Key Points Qantas shares on watch following a late Friday afternoon announcement Domestic capacity slashed by 10% International route via …

Read more »