Why is the Webjet share price having such a great start to the week?

A smiling boy holds a toy plane aloft while an unhappy girl watches on from a car near an airport runway.A smiling boy holds a toy plane aloft while an unhappy girl watches on from a car near an airport runway.

The Webjet Limited (ASX: WEB) share price is taking off on Monday, trading in the green despite no news having been released by the online travel agency.

However, one of its ASX travel peers released an optimistic update regarding its upcoming earnings this morning.  

At the time of writing, the Webjet share price is $5.13, 1.89% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.09% right now.

So, what’s bolstering the ASX 200 travel giant higher today? Let’s take a look.

What’s boosting the Webjet share price?

The Webjet share price is soaring alongside its ASX 200 travel peers today. Their gains are likely driven by promising news from Flight Centre Travel Group Ltd (ASX: FLT) camp.

The travel giant announced it had experienced strong demand for global travel towards the end of financial year 2022. So much so that it’s upgraded its guidance.

The travel agency now expects to post an underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of between $180 million and $190 million.

Previously, it expected to post an underlying EBITDA loss of between $195 million and $225 million.

It also expects to break even over the six months ended June and to post a healthy fourth-quarter profit.

Of course, that also likely bodes well for Webjet. The company returned to profit over the six months ended 31 March. It’s expected to release its full-year earnings in November.

The Webjet share price is also joined in the green by many other ASX 200 travel shares.

Notably, Qantas Airways Limited (ASX: QAN) and Corporate Travel Management Ltd (ASX: CTD). They’re currently up 1.8% and 5%, respectively.

The post Why is the Webjet share price having such a great start to the week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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