Here's why the Webjet (ASX:WEB) share price is taking off today

Let's take a closer look.

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The Webjet Limited (ASX: WEB) share price has soared more than 5% in today's session.

In addition, shares in the online travel company have had a stellar week thus far.

Let's take a look at what could be pushing the Webjet share price higher today.

couple heads off on holiday with suitcase

Image source: Getty Images

Possibility of Christmas travel boosts Webjet share price

Webjet has not released any price-sensitive news that could explain today's bullish price action.

As a result, shares in the online travel company could be flying on the prospect of interstate travel by Christmas.

According to an article in the AFR, Prime Minister Scott Morrison has urged states and territories to adhere to the national plan.

Based on 80% of the population being vaccinated, the national plan outlines unrestricted domestic travel for vaccinated Australians.

The prospect of interstate travel by December bodes well on the outlook for travel companies like Webjet.

This news follows reports earlier this month that New Zealand may re-open its borders to international travellers in the near future.

Snapshot of the Webjet share price

In addition to today's bullish price action, shares in the online travel company have had a stellar week thus far.

Since the start of the week, the Webjet share price has soared more than 16%.

As noted previously, Webjet hasn't released any price-sensitive news that could explain the share price movement.

However, it is important for investors to note that shares in Webjet are the most shorted on the market.

According to the most recent data, Webjet's share registry holds an 11.4% short interest.

As a result, the recent lift in Webjet's share price could be the result of short-sellers reducing their risk.

Earlier this year, Webjet released its full-year result for FY21.

The company's report was headlined by an earnings before interest, taxes, depreciation, and amortisation (EBITDA)  loss of $125.3 million.

Prior to the Delta variant outbreak in New South Wales and Victoria, Webjet was enjoying a prosperous few months.

In addition, the company also announced a new strategy earlier this year to help counter the pandemic.

Under this strategy, Webjet noted the pivot towards business-to-business opportunities through its WebBeds business.

With domestic and international travel restrictions still in place, the only reprieve for the Webjet share price is the rate of vaccinations.

Despite these disruptions, the Webjet share price remains more than 10% higher for the year.

Motley Fool contributor Nikhil Gangaram 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.

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