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

The Webjet Limited (ASX: WEB) share price is back in the red on Monday despite the company’s silence.

Though, it’s not alone in its slip. Many S&P/ASX 200 Index (ASX: XJO) travel stocks are also trading lower today.

At the time of writing, the Webjet share price is $5.29, 1.86% lower than its previous close.

For context, the ASX 200 has spent most of Monday’s session in the green. It’s currently up 0.07%.

Meanwhile, Webjet’s home sector – the S&P/ASX Consumer Discretionary Index (ASX: XDJ) – has slipped 0.76%.

But what else could be weighing on the ASX 200 travel agency’s stock today? Let’s take a look.

What’s going on with the Webjet share price?

The Webjet share price is slipping lower again on Monday. It follows the stock’s 2.8% tumble on Thursday and 0.7% slip on Friday.

It comes amid reports of major delays facing Australians looking to travel in the lead up to the Easter holidays.

According to the Guardian, Sydney Airport has warned travellers that recent delays causing passengers to miss flights could last for weeks amid a shortage of security staff.

The airport previously said the Easter school holidays will be its busiest period for domestic air travel in more than 2 years.

Meanwhile, Qantas Airways Limited (ASX: QAN) apologised to customers facing long waits when trying to contact the airline on Thursday.

“Our call volume has increased from an average of 7,500 calls a day to 14,000 calls a day,” said Qantas.

“[C]alls on average [are] taking 50% longer to resolve than pre-COVID given the complexity of some itineraries across more than one airline where routes are re-opening and flights are re-starting at different times.”

Another factor that could be weighing on the Webjet share price is the company’s short position.

As The Motley Fool Australia’s James Mickleboro reported earlier today, Webjet is currently the ASX’s fourth most shorted stock. 10.2% of its shares are in the hands of short sellers, meaning market participants are betting against its future performance.

Additionally, international travel shares struggled at the end of last week, potentially driving sentiment for their Aussie counterparts lower today.

The share prices of Booking Holdings Inc (NASDAQ: BKNG), Expedia Group Inc (NASDAQ: EXPE), and Airbnb Inc (NASDAQ: ABNB) fell 2%, 1.2%, and 2% respectively on Friday.

Finally, the Webjet’s ASX travel peers are also seeing their share prices tumble today.

That of Flight Centre Travel Group Ltd (ASX: FLT) and Corporate Travel Management Ltd (ASX: CTD) are currently down 0.49% and 1.19%.

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

More reading

• These are the 10 most shorted ASX shares
• What went so wrong for ASX travel shares today?
• The Webjet share price is tumbling 5% on Thursday. Could this be why?
• ASX travel shares have been flying higher over the past month. Here’s why
• Why this broker thinks the Webjet share price can fly 26% higher

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. owns and has recommended Airbnb, Inc. and Booking Holdings. The Motley Fool Australia has recommended Booking Holdings, 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 Bruce Jackson.

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