The Webjet Ltd (ASX: WEB) share price has been taking flight in the past couple of weeks.
The company's shares have soared 9% between market close on 8 March to today.
Let's take a look at what could be helping Webjet lately?
Image source: Getty Images
Travel restrictions ease
The Webjet share price has lifted amid positive travel recovery sentiment and some travel restrictions easing in world markets.
New Zealand recently announced it would lift travel restrictions on Australians travelling across the ditch. Australians will be able to travel to NZ from 12 April, free from quarantine requirements. The United Kingdom also lifted testing requirements for international arrivals last week.
Webjet is a digital travel business with a presence in Australia, New Zealand, and destinations around the world.
Positive broker sentiment could also be helping the Webjet share price. As my Foolish colleague James reported, Goldman Sachs recommends the share as a buy with a $6.90 price target. This is 24% more than the current share price.
Retreating oil prices over the past two weeks could also have helped Webjet. Since 8 March, international benchmark Brent Crude Oil has dropped nearly 5% from US$124.8 per barrel to $118.81, Trading Economics data reveals. Jet fuel is one of the largest costs for airlines.
In today's news, Prime Minister Scott Morrison has announced the federal government is investing $60 million to bring international visitors back to Australia. Morrison said:
Our Government is backing Australia's tourism industry with a $60 million plan to bring back international visitors, especially to the regions that have been hardest hit.
As the world reopens, and travellers get out and see the world again, we want to ensure that at the top of every must-see-list is Australia.
Webjet share price snapshot
The Webjet share price has ascended 8% year to date but is almost 10% lower than it was a year ago.
In the past month, the travel company's shares have dropped 6.75% but are up around 1% in a week.
Webjet has a market capitalisation of about $2.1 billion based on the current share price.
