EasyJet Share Price
As reported a month ago, the EasyJet share price climbed back to 1050p per share following a devastating period for the industry during the pandemic. As economies around the world opened up, the prospects of the travel industry following suit gave cause for hope for investors in airlines with depleted share prices. However, while much of the vaccine roll-out has been a success, and economies are beginning to grow again, a question mark remains over the near-term prospects of the airline industry, a a third wave engulfs Europe. Over the past 30 days the company’s share price has fallen down to 942.2p per share from just under 1050p.
Europe
The key reason for EasyJet’s recent struggles is the current Covid-19 situation in Europe. After a slow start to their vaccine roll-outs, which was troubled by supply shortages, there have been third waves in France, Germany and Italy. As a result, in countries that are key destinations for EasyJet, lockdown restrictions have been reinforced.
However, in an effort to install confidence into the British public, Grant Shapps, the UK Transport Secretary, recently said Brits can start thinking about booking foreign holidays again this summer. Shapps added that the cost of the Covid tests required would need to be significantly reduced.
Declaring the conclusions of the Global Travel Taskforce set up by the government to examine how leisure travel could be reopened safely after lockdown, Mr Shapps said foreign holidays would resume on 17 May at the earliest.
He told the BBC: “This is the first time I’m able to come on and say I’m not advising against booking foreign holidays.”
“But for the first time I think there is light at the end of the tunnel and we’ll be able to restart international travel, including cruises by the way, in a safe and secure way, knowing about the vaccinations, everything we know about the disease this year, and of course that abundance of caution – having the tests in place.”
Shapps said the government will make a list which will be under constant review and that he was hopeful European countries would be upgraded as their vaccination rates improve.
Despite the uncertainty in Europe, spending in the travel industry fell by a smaller amount when compared to January and February. This suggests a growing confidence, in addition to demand, for holidays at some point this year. However, it could be a big ask for EasyJet’s share price to recover to its pre-pandemic level before the end of 2021.
