The Webjet Limited (ASX: WEB) share price is flying high.
At the time of writing, shares in the online travel agency are trading for $5.68. That's down 1.05% on the day but it's up 14% in a month. While the company has had one price-sensitive announcement in that time, it doesn't fully explain what's going on.
Let's take a closer look at what's going on for the company.
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What's going on with Webjet?
In Webjet's only price-sensitive announcement of the month, the company revealed its accommodations booking service, WebBed, has returned to profitability. As well, the company said the COVID-19 pandemic is "accelerating the structural shift to online booking".
The Webjet share price rose 3.5% on this news.
However, the company had upward momentum going into this positive trading announcement. So, what's going on?
For starters, many of the top ASX travel shares had an incredible rally between 20 August and 26 August. Webjet shares rose 18.2%, Qantas Airways Limited (ASX: QAN) appreciated 18.6%, and the Flight Centre Travel Group Ltd (ASX: FLT) share price rocketed 23.8%.
While it's hard to know for certain what exactly causes share prices to move as they do, one possible answer may be renewed optimism over vaccines and international travel.
Both the Prime Minister, Scott Morrison, and the NSW Premier, Gladys Berejiklian, have in recent days talked of the prospect of opening international borders once 80% of the population is fully vaccinated. Australia's inoculation uptake has accelerated at an incredible pace in recent months. For example, 70% of eligible NSW residents are expected to have received their first dose by the end of today.
Not everyone shares this confidence in the Webjet share price, however. In the most recent data, it was revealed Webjet shares are the most-shorted on the ASX. As Motley Fool has reported, concerns remain the highly infectious Delta strain of the coronavirus could delay the full reopening of the travel market.
Webjet share price snapshot
Over the past 12 months, the Webjet share price has soared by 56%. It's outpaced the S&P/ASX 200 Index (ASX: XJO) by an incredible 34 percentage points. Year-to-date, however, it is up 11% – roughly even with the benchmark index.
Webjet has a market capitalisation of around $2.2 billion.
