The Webjet Limited (ASX: WEB) share price is launching higher on Thursday.
Its gains come amid news the United States’ Delta Air Lines Inc (NYSE: DAL) broke even last month and is forecasting more strong performance for the June quarter.
That’s likely inspiring positive sentiment of ASX travel shares, with many of Webjet’s peers recording similar gains today.
At the time of writing, the Webjet share price is $5.77, 6.07% higher than its previous close.
That makes it the second best performing S&P/ASX 200 Index (ASX: XJO) share behind Qantas Airways Limited (ASX: QAN) on Thursday. Right now, the ASX 200 has gained 0.6%.
Let’s take a closer look at what might be boosting the ASX 200 travel stocks on Thursday.
Is this boosting the Webjet share price?
The Webjet share price is taking off today amid news international airline, Delta Air has returned to profitability.
The airline recorded an adjusted operating margin of almost 10% for the month of March. That’s allowed it to recapture higher fuel prices.
It expects that will rise to between 12% and 14% in the June quarter, driven by robust demand and the increasing return of business and international travel.
The airline predicts its total revenue for this quarter will come to between 93% and 97% of that of 2019’s June quarter.
It also expects the price of fuel to increase in the current quarter.
Delta spent an average of US$2.79 per gallon of fuel in the March quarter. That’s expected to rise to between US$3.20 and US$3.35 in the June quarter.
Of course, such sentiment is likely good news for the broader travel industry and, in return, Webjet’s bottom line.
And it’s not just the Webjet share price on the up-and-up today. Right now, the Qantas share price is trading around 7.6% higher.
Meanwhile, the Flight Centre Travel Group Ltd (ASX: FLT) share price is up 5.2% and that of Corporate Travel Management Ltd (ASX: CTD) has gained 2.8%.
The post What’s sending the Webjet share price 6% higher on Thursday? appeared first on The Motley Fool Australia.
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More reading
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- Why AVZ, EML, Iluka, and Webjet shares are charging higher
- Webjet share price takes off following broker upgrade
- Why is the Webjet share price having such a lousy start to the week?
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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 recommended Delta Air Lines. 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 Bruce Jackson.
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