Analysis of Easyjet share price

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The stock market assets of airline companies are often quite popular, even more so if these companies distinguish themselves in the budget sector. This is the case with EasyJet and this company’s shares can be traded in real time on CFD platforms. Wait no longer to read useful information about this asset as well as some explanations for analysing the price of this share with stock market charts and a historical analysis of the last ten years.  

Latest news

Easyjet share falls after a fund raising

26/06/2020 - 10h35

Discover the operation announced yesterday by Easyjet concerning a major fund raising which led to the fall of this share on the London market on the morning of Thursday 25 June 2020.

Elements that can influence the price of this asset:

Analysis N°1

We would notably suggest following the development of training for future Easyjet employees that use the academy created by the group as well as the supplementary revenue generated by it.

Analysis N°2

We would also recommend following the development of supplementary services offered by the airline company such as the rental of hotel rooms or the sale of tour package holidays. 

Analysis N°3

The rental services of the Easyjet airline fleet during the less volatile periods of its activity are also major indicators.

Analysis N°4

Any change in the government policies or airline regulations could also have a major impact on this group’s activities.

Analysis N°5

It is recommended to also monitor the competitors to this group and in particular the development of the low price flight offers of the major airlines in this sector.

Analysis N°6

Finally, the implementation of new destinations for this company’s flights should be closely followed. 

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About the EasyJet Group:

The EasyJet Group is currently one of the major budget airlines in Europe. Although the vast majority of its turnover is derived from passenger transport with over 64 million passengers in 2013/2014, representing 98.6% of the turnover, it also offers baggage services, restaurant services, car rental and others.

The current fleet of this company totals 226. EasyJet makes the majority of its profits through the United Kingdom as well as Northern and Southern Europe.


The business model of the EasyJet Company:

Contrary to certain other airline companies, EasyJet is a ‘low cost’ company with a ‘Buy On Board’ strategy. Therefore all the services normally included with the flights of classic airline companies such as hold baggage, on board meals, or even flight changes are payable with EasyJet. With this system, EasyJet can make savings and offer attractive prices for its air flights.

In any case, EasyJet has also implemented a new range of fees since 2012, called ‘Flexi Fare’ which includes certain services such as checked luggage, priority boarding access and limited free flight changes. This is to compete with the other standard flight companies.

EasyJet of course offers a payable in-flight restaurant service as well as a duty free range of products. It is therefore possible to purchase sweet and savoury snacks, alcoholic and non-alcoholic drinks, perfumes, cosmetic items, travel accessories and children’s toys and souvenirs. The prices for these items and services are available in the in-flight brochure. Each month ‘The Traveller’ in-flight magazine is available to flight passengers free of charge.


The major competitors of EasyJet:

The EasyJet airline company is specialised in low cost flights, principally in Europe. It therefore faces direct competition from other airline companies in the same industry that exercise their activities in the same geographical sector. To assist you in better identifying the competitors of this company and using the data obtained to create your fundamental analyses of this stock market asset, here is a list of the major competitors of EasyJet:

The financial results and new destinations of these airline companies should be monitored and compared with those of EasyJet in order to achieve a pertinent analysis of the growth possibilities of its stock market share price.


The major partners of EasyJet:

And to conclude here are some of the recent partnerships implemented by EasyJet.


Price analysis of EasyJet shares:

The price of EasyJet shares is currently quoted on the Main Market of the London Stock Exchange and is included in the calculation of the FTSE 100 stock market index.


Important stock market data relating to Easyjet Company shares:

The position of the Easyjet Company in the financial sector is highly important if you envisage trading in this asset online using CFDs. To learn more about the quote of this share asset we have gathered together the major stock market information to assist you in identifying its importance relative to the stock markets.

The shareholdings of the EasyJet Company actually comprise the following: 33.73% by Mr Polys Haji Loannou, 5.15% by the Invesco Investment Fund, 5.07% by BlackRock. The remainder is held by individual and private investors.


Some key figures about the EasyJet Company:


The advantages and strengths of the Easyjet share as a stock market asset:

To enable you to refine an investment strategy on the Easyjet share price, particularly if you plan to invest in this asset over the medium to long term, you should examine this company’s growth capabilities. To do so, we recommend you particularly compare the strengths and weaknesses of the Easyjet Company which represent a basic element in the strategy of numerous traders. Let us start here with a presentation of the various strong points of this group before examining its weaknesses.  

The first great advantage of the Easyjet Group is in fact related to its name. This was actually reached after a great deal of reflection and was chosen to be easy to remember by its clients in all the destination countries whatever their native language. This brand name also offers an important reminder that enables the group to benefit from a strong reputation and maximise the impact of its communications strategy.

Another advantage of the Easyjet group also concerns the fact that this airline company serves a large number of destinations. It thereby enables visitors to travel to most major European destinations and is therefore a first choice flight company. In fact, Easyjet still continues to widen its range by regularly adding new destinations.

Still on the subject of this company’s advantages from a strategic point of view we can also note that this company only uses one particular model of aircraft. This notably enables the company to significantly reduce its training costs as well as those of maintenance and supervision while still keeping to its profit margins.

One particular point that has enabled Easyjet to become one of the major players in the air travel sector has of course been that it was the first low cost airline company to sell its flights uniquely online. This strategy has enabled the company to reduce the number of its intermediaries thereby enabling it to be more independent and also reduce its distribution costs. Even now the Easyjet website is one of the most popular e-commerce websites for people looking for flights.

Finally, let us conclude this examination of the advantages of Easyjet shares by underlining the recruitment strategy of this company which is original and also highly judicious. Easyjet in fact created its own academy for training its onboard personnel. This strategy notably enables it to easily provide its own pilots and cabin attendants with its employees already involved in the company and directly aware of its policies.


The disadvantages and weak points of Easyjet shares as a stock market asset:

As you have no doubt understood, the Easyjet aviation company displays numerous advantages thus displaying great promise for its future growth and therefore a rise in its stock market share price. However these advantages are not the only elements that you should take into account before starting to speculate on this asset. It is important to also examine the weaknesses of this company as its albeit few disadvantages that we will now examine could exert a negative influence on the growth of this asset’s price.  

Firstly, although the group possesses certain advantages over its competitors it also has certain weaknesses. We particularly note the lack of a loyalty programme up to now for its clients as this would enable it to encourage repeat customers over the long term with obvious advantages and thereby reduce the temptation for clients to change to its competitors’ services.

On the other hand, the fact that Easyjet is positioned on the lower price flights sector is also a disadvantage that you should be aware of. The fact that its flight prices are low means that the group has to deal with lower margins threatened by various outside factors such as taxes and supplementary charges imposed by certain governments. 

Finally, the last notable weak point of the Easyjet Company this time concerns its strong dependency on its suppliers. The fact that this company trusts only a limited number of suppliers for its airplanes and other requirements does of course present a major risk notably if its suppliers have to face operational problems.

You will note that the disadvantages of Easyjet are actually less numerous than its many advantages. However their weight may be sufficient to impact the price of its shares and you should therefore be able to anticipate their effects on the historical charts and moderate your decisions.

Frequently Asked Questions

How has the EasyJet share price performed recently? 

It can be advantageous for all interested traders to follow the recent performance of the EasyJet share price to be able to anticipate its future movements. We can observe that over the last five years this asset price has displayed a negative performance with a drop of 47.68%. Over three years it lost 40.03% and over a year 5.88%.Over the last six months this share price lost 39.35% and 21.23% over three months but finally rose by 58.06% in the month of May. 

How to anticipate future movements in the EasyJet share price?

To anticipate the upcoming trends on the EasyJet share price you should use a technical analysis with the chart indicators available through your online trading platform together with a fundamental analysis particularly concentrating on financial events and announcements as well as all other applicable data from this activity sector that could influence the movements of this share price on the stock markets.

Is it possible to trade in the EasyJet share price on a fall?

Indeed yes! Using certain specific contracts such as CFDs, otherwise known as Contracts for the Difference, it is possible to speculate directly on a drop in the share price of the EasyJet Company. To do so you simply need to take a selling position on this asset. You do not need to actually own this asset to take such a position and therefore you do not need to actually buy these shares beforehand.

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Trade EasyJet shares!
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.