Easyjet on track to rejoin FTSE100
Low-cost carrier Easyjet is on track to be added into the FTSE100, almost two years after falling from the index as a result of the pandemic’s economic impact.
In an indicative review sent around today, benchmarking provider FTSE Russell reported the company’s potential addition to the index, adding the confirmation will be announced after market closure on 2 March.
According to Hargreaves Lansdown’s senior investment and markets analyst Susannah Streeter, the easing of travel restrictions and the consequent ramp up in bookings are helping Easyjet get back to pre-pandemic levels.
“The focus on short haul travel puts easyJet in a better position than its long haul rivals when it comes to capturing returning passengers,” she said. “UK beach and leisure routes look set to benefit from pent up travel demand in the months to come as holiday-starved families seek out a temporary stint in the sun.”
Streeter warned that the increasing threat of a Russian invasion of Ukraine could spook the travel industry.
“If the Ukraine situation deteriorates it could be yet another setback in the far from easy path easyJet is attempting to follow to get back into the blue chip index.’’
Easyjet’s reinstatement comes on the same day the European Council decided to scrap pre-departure testing for fully vaccinated travellers from third countries such as the UK, CityAM reported.
The decision, which will apply to all those who have received either a second or booster dose within 270 days before their arrival into the bloc.
Travel and tourism firms welcomed the news, with the World Travel and Tourism Council (WTTC) calling it a “sensible decision.”
“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,” said WTTC’s chief executive Julia Simpson.
“Now is time to rebuild Travel & Tourism and connect Europe to the world.”