The Webjet Limited (ASX: WEB) share price failed to take off on Monday as travel shares received a clobbering.
By the end of the day, shares in the digital travel business were 3.72% worse off than yesterday, fetching $5.69 apiece.
Today’s shift drop in travel shares comes as COVID-19 brandishes its capricious nature. There’s been a sudden and sharp rise in cases across the United States and Europe in the last fortnight.
Risk of a new COVID-19 wave hits Webjet share price
With the northern hemisphere entering the icy months of winter, cases of COVID-19 have jumped. In fact, some countries across Europe are witnessing their highest number of cases on record, triggering the re-introduction of restrictions and lockdowns.
This development in the northern hemisphere follows Australia passing 85% of people over 16 years old being fully vaccinated. As the number of double-vaxed Aussies has climbed, so too has the share price of Webjet, Flight Centre Travel Group Ltd (ASX: FLT), and many others.
This daily infographic provides the total number of vaccine doses administered in Australia
as of 21 November 2021
Stay up to date with COVID-19 vaccine information here: https://t.co/lsM33j9wMW pic.twitter.com/JPVCYlKsCd
— Australian Government Department of Health (@healthgovau) November 22, 2021
However, today’s news has put a dent in the travel optimism that had been built over recent months. As my Fool colleague Tristan covered earlier today, some affected countries have reimposed mask mandates while others, such as Austria, have gone into a full lockdown.
In the US, efforts to combat the rising numbers has led to an uptick in the number of vaccine doses being administered per day. According to The Guardian, approximately 1.5 million doses are being delivered daily. In comparison, this figure was around 1.3 million two weeks ago.
The shifting COVID-19 landscape presents increased uncertainty. In August, Webjet had highlighted the strong travel demand and easing restrictions across North America and Europe. However, now the future looks less clear for Webjet and its share price.
Shares in Webjet are up 12% since the beginning of the year. This is mostly in line with the S&P/ASX 200 Index (ASX: XJO) which is up by just under 12%.
The post Here’s why the Webjet (ASX:WEB) share price is having a lousy start to the week appeared first on The Motley Fool Australia.
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More reading
- Here’s why ASX 200 travel shares are getting hammered today
- ASX 200 (ASX:XJO) midday update: Lithium miners jump, Flight Centre tumbles
- These are the 10 most shorted ASX shares
- Why all eyes will be on the Webjet (ASX:WEB) share price next week
- Top brokers name 3 ASX shares to buy today
Motley Fool contributor Mitchell Lawler 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 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 Bruce Jackson.
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