easyJet to return to the FTSE 100

EasyJet has set its sights on returning to the FTSE 100 years after being hit by the pandemic.

The low-cost European airline said in 2021 that they lost over £1 billion during the pandemic and their shares fell by 1.5 percentage points to 638 pence. 

Susannah Streeter, a Hargreaves Lansdown senior investment and markets analyst, told City AM that the government’s easing of travel restrictions and the increase in bookings are helping Easyjet get back to pre-pandemic levels.

Last week, easyJet put around 90,000 extra seats on sale to some of Europe’s most popular ski and beach destinations, encouraging more Brits to book flights for the upcoming holidays. 

The airline’s share price went up to 706p on 11 February but has now fallen to 5% today (611p) as Russia launches its invasion of Ukraine. Many commercial airlines have halted flights to the country and economists say it could spike the inflation rate as a result. 

England, Denmark, Norway and Sweden are all on the way to lifting their Covid-19 restrictions on flights. Most importantly, France has scrapped the requirement for travellers who are vaccinated to take a test beforehand. 

easyJet commented on the decision to ease restrictions, saying the move is a ‘welcome step closer towards restriction free travel across the whole of Europe.’

The World Travel & Tourism Council’s (WTTC) President and CEO, Julia Simpson, said: “WTTC welcomes the sensible decision by the EU to drop travel restrictions before Easter.

Simpson continued: “The patchwork of rules and regulations did nothing to prevent the spread of COVID but did cause immense damage to the economy of Europe causing the loss of jobs and businesses. 

“Now it's time to rebuild Travel & Tourism and connect Europe to the world.”

easyJet could find its way back into the FTSE 100 should they decide to eject Cineworld and Dechra Pharmaceuticals and turn to airline stock.