Budget airline easyJet plc has “revenge travel” to thank for its readmittance into the FTSE 100 list of blue chips.
This is according to Susannah Streeter, head of money and markets at Hargreaves Lansdown, who wrote: “While recovering pre-pandemic form is still proving highly elusive, easyJet’s continued progress has cheered investors, with shares up 9% year to date".
“The ‘revenge travel’ trend is still proving strong, with people still determined to see more of the world again after being cooped up at home during the Covid crisis.
“Consumers still appear to be ring-fencing chunks of disposal income to spend on airfares, seat upgrades and treats on board, with the desire to travel higher up wish-lists than home purchases like furniture and TVs.”
easyJet has also been safeguarded against “the turbulence caused by flight disruptions in the Middle East” with summer bookings building well, added Streeter.
The airline was first scratched from the lead index in June 2020, at the height of Covid-19 lockdowns.
But after the rebalancing of the lead index, it will replace Endeavour Mining, whose shares have fallen by nearly a third this year.
Endeavour shares have been weighed down after the group fired its chief executive Sébastien de Montessus in January due to “serious misconduct” allegations.
The gold miner will therefore be punted to the FTSE 250 set when the rebalancing takes effect on 18 March.