EasyJet Share Price: Is the Company a Good Buy?

Summary:

In today’s trading session, EasyJet's share price opened the markets trading at its lowest price in the past 10 years

In today’s trading session, EasyJet’s share price opened the markets trading at its lowest price in the past 10 years. The opening price also had a gap down of more than 4 per cent. Although the prices have started to recover from the early session slide, the current price is still 1.8 per cent below the opening price.

Throughout the year, EasyJet has struggled with operational difficulties as a result of staff shortages and weak consumer sentiment. This is despite the easing of the covid-19 restrictions, which has enabled the company to achieve an 87 per cent pre-pandemic capacity, according to its last quarter financial report.

Is EasyJet a Good Investment?

The current EasyJet share price is struggling in the market. Today, the share price hit its lowest point in the past 10 years. EasyJet’s share price also opened the markets with a huge gap to the downside and is yet to recover despite the session being relatively bullish.

However, despite the EasyJet share price looking aggressively bearish, steps taken by the company, such as the fuel hedging programme, are saving millions for the company. There have also been efforts to address the flight cancellation that has plagued EasyJet throughout the year and resulted in negative consumer sentiment toward the company. According to reports, the company is also optimistic about returning to at least 90 per cent capacity of its pre-pandemic level.

Therefore, going into the next few months, there is a high likelihood that we might start to see EasyJet’s share price start to recover again. The budget airline business model is also a proven winner in the long term. Therefore, I expect the company to stop bleeding in the markets in the coming sessions.

There is a high likelihood that we might see EasyJet trading above the 400p price level by early next month. Therefore, my EasyJet share price analysis is bullish for the long term and considers it a good investment.