The Webjet Ltd (ASX: WEB) share price travelled 8% higher last month after a sluggish run earlier on.
While the company's shares wobbled during the early days of April, the easing of COVID-19 restrictions around the world sparked a turnaround.
Popular international destinations such as Bali and Thailand have driven demand yet again in the travel industry.
Indeed, this led Webjet shares to finish strongly at the backend of the month.
Notably, the company's shares touched a two-month high of $6.15 on 22 April, before closing out April at $6.03 apiece.
What's behind Webjet shares rise?
While it has been relatively quiet period on the news front from the company, the Webjet share price has gradually been moving on an upwards trend.
This is because after a two-year hiatus, countries are now learning to live with the virus, thus easing restrictions.
Nonetheless, Webjet has been busy taking advantage of its opportunities while the market had been in a downturn.
Webjet reported a cash surplus of $3.5 million per month in its first-half results, a significant turnaround compared to FY21. Harsh lockdowns led the company to record an average monthly cash burn of $5.5 million in the previous financial year.
Expenses were also down materially compared to pre-COVID times, reflecting strategic initiatives implemented by the company.
In addition, total transaction volume (TTV) stood at 63% of pre-COVID volumes in its WebBeds' B2B business. And this is before many travel markets had reopened.
If the travel sector continues on its trajectory, Webjet's TTV could reach pre-COVID levels by the second-half of FY23. On top of that, its group portfolio will be a much leaner business, having trimmed 20% of operating costs.
Webjet is scheduled to report its FY22 results towards the backend of this month.
Webjet share price summary
In the last 12 months, the Webjet share price has risen 22% following positive investor sentiment across the travel sector.
This represents a 32% gain from where its shares trade today compared to the 11 month low of $4.61 on 27 January.
When looking year to date, the company's shares are up 18% after finishing Monday's trading session at $6.10.
Based on valuation grounds, Webjet has a market capitalisation of around $2.32 billion.
