Key Points
- Webjet shares 10% higher over the past week due to falling COVID-19 numbers and potential re-opening of Australia's borders
- Webjet gearing up for the resumption of travel
- FY22 results expected to be released in late May 2022
The Webjet Limited (ASX: WEB) share price has rebounded strongly since last Friday to post a gain of 11.06%.
This follows the S&P/ASX 200 Index (ASX: XJO) which rallied 3.38% after investors shrugged off concern about interest rate rises.
At the time of writing, the online travel agent's shares are flat at $5.12 apiece.
What's driving Webjet shares higher?
As COVID-19 numbers continue to decline across the country, Webjet is gearing up for Australia's potential international re-opening in April.
Although Western Australia's borders are indefinitely shut, for now, it appears investors are looking at the bigger picture.
Last week, Australian prime minister Scott Morrison indicated that international tourists should be able to visit by Easter.
With the world starting to learn to live with the virus, a degree of normality may not be too far away for Australians. This prospect would, undoubtedly, be very pleasing for Webjet.
In its FY22 first-half results, the company noted that competition has decreased due to financial pressures impacting the travel industry.
As such, management highlighted that the WebBeds business is poised to deliver significant revenue growth.
Furthermore, Webjet has focused on expanding its domestic offering and increased penetration into the North American B2B market. This segment is the company's second-biggest market, behind the Asia Pacific region in terms of booking numbers.
Even with Western Australia still closed, Webjet will be hoping to soon churn out a profit due to its geographical spread.
Webjet also boosted and optimised its API (application programming interface) connections for key business to consumer (B2C) clients. It stated that the financial strength of the company makes it a trusted partner for hotel suppliers.
Looking ahead, Webjet is scheduled to report its FY22 results towards the backend of May 2022.
Webjet share price summary
It's been a rollercoaster of 12 months for Webjet investors, with its shares up 2% over the period. Year to date, Webjet shares are down almost 1%.
Based on valuation grounds, Webjet has a market capitalisation of around $1.95 billion, with approximately 380.51 million shares on issue.
