Analysis of EasyJet share price for trading

The stock market assets of airline companies are often quite profitable, 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 Forex 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.  

75% 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.

Our advice for trading in Easyjet

Analysis of EasyJet share price for trading

Let us now examine in which way you can implement an effective strategy on the Easyjet share price by completing a high performance and comprehensive fundamental analysis of this asset. Here in fact are the elements that you should prioritise to follow in the events notifications and publications:

  • 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.
  • 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. 
  • The rental services of the Easyjet airline fleet during the less volatile periods of its activity are also major indicators.
  • Any change in the government policies or airline regulations could also have a major impact on this group’s activities.
  • 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.
  • 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:

  • Transavia.
  • The British company, Flybe.
  • The German airline, Air Berlin.
  • The Norwegian airline company, Norwegian.
  • Volotea.
  • The Latvian company, Air Baltic.
  • The Italian Eurowings company of the Lufthansa Group.
  • The Icelandic company, Wow Air.
  • The Spanish company, Vueling.
  • Finally, the British company, RyanAir.

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.

  • In 2012, EasyJet announced the implementation of a partnership with the American group, American Express, and its business travel branch. The company thereby became one of the major allies of the group for business travel reservations.
  • In 2013 EuroDisney of the Walt Disney Group signed a partnership agreement with EasyJet. This resulted in Disney clients being able to directly reserve a flight from this airline to Roissy-Charles-de-Gaulle and Orly from any one of over 50 cities in Europe in exchange for which EasyJet offered theme park entry tickets for sale through its website.
  • In 2017 EasyJet signed a partnership agreement with Monacair to assist passengers destined for Monaco to take advantage of air connections from Nice to the principality.

 

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.

Historically the price of EasyJet shares has experienced a clear rising trend since 2005 punctuated by a few slight slowdowns but no technical corrections, which allows us to envisage an excellent perspective for the continuation of this rising trend for the coming years.

 

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.

  • In2017 the total stock market capital of the Easyjet Company amounted to GBP £517,562.15 million.
  • The number of shares issued by the Easyjet Company and currently in circulation on the stock markets is around 397,208,000.
  • The Easyjet share price is currently quoted on the Main Market of the SETS London Stock Exchange in the United Kingdom.
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  • The EasyJet Company share price is featured in the composition of the English national stock market Index, the FTSE 100, it is therefore one of the 100 British companies with the highest stock market capital.

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 EasyJet Company operates no less than 700 short and medium range air routes and services over 127 airports in Europe, Morocco, Egypt, Turkey and Israel.
  • Each year EasyJet transports over 60 million passengers on its network with around 20% business clients.
  • The average net profit of the EasyJet Company over recent years is around 398 million pounds with an average turnover of 4.25 billion pounds.

 

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.

 

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75% 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.