The S&P/ASX 200 Index (ASX: XJO) is enjoying a pleasant end to the week so far this Friday after the savage selloff we saw earlier in the week. At the time of writing, the ASX 200 is up 0.73% at just over 7,400 points. But the Webjet Limited (ASX: WEB) share price is flying far higher.
Webjet shares are presently up by a healthy 1.9% at $5.99 a share at the time of writing, more than double the gains of the broader market.
So why are Webjet shares taking off so convincingly today?
Why is the Webjet share price soaring today?
Well, it's not entirely clear. There have been no announcements or developments from the company itself.
In saying that, there is a clear trend on the ASX boards today. Webjet shares are up convincingly. But so are the company's peers in the ASX travel sector. Take Qantas Airways Limited (ASX: QAN). Qantas shares are currently up by 1.74%. Flight Centre Travel Group Ltd (ASX: FLT) shares are up by an eerily similar amount with a 1.68% rise. And Corporate Travel Management Ltd (ASX: CTD) has managed a 1.69% bump.
This could be an extension of the trend we have seen with Webjet and other travel shares in recent weeks. With falling COVID case numbers in Australia, as well as the continued relaxation of travel restrictions around the world, investors seem to be warming to the future prospects of companies like Webjet, which are still recovering from the ravages of the pandemic.
Although, Webjet shares did suffer quite a bit earlier in the week in the midst of the market's selloff, so we could just be seeing a bounce back from that negative sentiment. Even after today's rise, Webjet shares remain down by almost 2% over the past five trading days.
Whatever the reason for the strength in the Webjet share price, as well as other ASX travel shares today, it will no doubt come as a welcome development for shareholders.
At the current Webjet share price, this ASX 200 travel share has a market capitalisation of $2.28 billion.
