Why is the Webjet (ASX:WEB) share price taking off 5% today?

Here’s what might be driving Webjet shares higher on Tuesday

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The Webjet Limited (ASX: WEB) share price is surging higher today despite no news having been released by the company.

However, the global market seemingly recovered overnight, potentially due to reduced fears surrounding the Omicron COVID-19 variant.

At the time of writing, the Webjet share price is $5.47, 5.29% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green today. It is currently up 1.14%.

Let’s take a look at what’s going on with the travel company and its peers on Tuesday.

What’s boosting the Webjet share price?

The Webjet share price is taking off, as are plenty of other ASX travel stocks. The upwards trajectory might have been spurred my movements in US markets overnight.

Many NASDAQ-listed travel stocks bounced back on Monday following a disastrous end to last week.

While much of Australia slept, the Expedia Group Inc (NASDAQ: EXPE) share price recorded a 4% gain. The Airbnb Inc (NASDAQ: ABNB) share price also surged 3.5% while the Booking Holdings Inc (NASDAQ: BKNG) share price increased 1.2%.

Back home, plenty of other ASX 200 travel shares are also in the green.

That’s despite Prime Minister Scott Morrison putting on hold the plan to welcome student, humanitarian, working holiday, and family visa holders, as well as travellers from Japan and South Korea, back into the country.

Those affected were meant to start flying into Australia tomorrow, but the reopening has been ‘paused’ until 15 December. The extra time will allow officials to gather more information on the Omicron variant.

Additionally, travel from 8 African countries has been halted amid the emergence of the variant.

Australian citizens, residents, and their immediate families can still return from the 8 nations. Though, they must spend 14 days in hotel quarantine on arrival.  

However, in an interview with Today‘s Sylvia Jeffreys, Morrison said symptoms of the variant seem to be less severe than those of other COVID-19 mutations.

The knowledge that Omicron might not be as large a threat as previously anticipated might have helped calm the market on Tuesday.

Right now, the Webjet share price gain is similar to that of fellow travel agent Flight Centre Travel Group Ltd (ASX: FLT). Flight Centre’s shares are up 5.18% at the time of writing. The Qantas Airways Limited (ASX: QAN) share price is also in the green, sporting a 2.65% gain.

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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 has recommended Booking Holdings, Flight Centre Travel Group Limited, and 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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