The Webjet Limited (ASX: WEB) share price is among the ASX travel shares moving higher towards the end of Monday’s trade.
Shares in the Aussie travel company are down 1.2% for the day but have climbed 3.6% since midday.
Why is the Webjet share price surging higher?
The big news pushing travel shares higher was the announcement of a potential Trans-Tasman travel bubble. New Zealand Prime Minister Jacinda Ardern on Monday confirmed an in-principle agreement to open up a bubble with Australia in early 2021.
The move comes with Australia already allowing many New Zealand travellers into the country in recent months. However, today’s announcement paves the way for a potential two-way opening of the regional borders.
That’s good news for ASX travel companies like Webjet which have been surging higher this afternoon. Opening borders means more potential travel routes and demand for travel companies’ services.
Flight Centre Travel Group Ltd (ASX: FLT) shares are up 3.8% since midday with Corporate Travel Management Ltd (ASX: CTD) shares climbing 1.01% this afternoon.
It hasn’t been all smooth sailing to start the week, with all three major ASX travel shares still in the red at the time of writing.
Which other shares are surging higher?
Some of the biggest fish in the market are climbing higher to start the trading week. That includes the likes of Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and Wesfarmers Ltd (ASX: WES).
The S&P/ASX 200 Index (ASX: XJO) has jumped 0.7% higher to 6,687 points on the back of strong gains.
The Afterpay share price has rocketed 9.7% higher to a new all-time high of $110.83 per share. Fellow large-caps Wesfarmers and Xero have also hit their own all-time highs in a positive start to the week.
Foolish takeaway
ASX travel shares stumbled in early trade but are rebounding strongly on the back of a potential Trans-Tasman travel bubble.
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More reading
- Why energy shares Woodside (ASX:WPL) and Santos (ASX:STO) plan to go green with gas
- Why the Xero (ASX:XRO) share price just hit a new record high
- ASX stock of the day: Afterpay (ASX:APT) hits yet another new all-time high
- Why I’m sticking with my Afterpay shares: fundie
- Leading brokers name 3 ASX shares to buy today
Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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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