MANCHESTER UK, 30 MAY 2019: Easyjet Airbus A320 flight U21912 from Palma de Mallorca lands on runway 23R at Manchaester Airport.
EasyJet’s share price has started the week in a strong bearish move, currently losing 5 per cent of its value. The move, however, is not surprisingly looking at last week’s trend, where the company traded aggressively bearish, and at one point, the prices were down by 10 per cent. Last month’s data also showed EasyJet’s share price suffered a 29 per cent loss in the markets, continuing a long-term trend that has seen it lose 41 per cent year-to-date.
In my previous EasyJet analysis, I highlighted how the cancellation of 11,000 flights was affecting the company. I also addressed the impact and effect the reports of cancellations were having on investors. Today, the problem has persisted, and the result has been devastating in the markets. Last week, we saw EasyJet’s share price drop by 10 per cent before recovering to close the week at almost five per cent.
Today, the aggressive bearish move has seen the company’s share price drop by over 5 per cent. The failure to address flight cancellations has also seen EasyJet make a major decision that involves the resignation of its COO, Peter Bellew. Bellew joined the company from Ryanair during the coronavirus pandemic.
During his time, he steered the company through one of its most difficult periods during the pandemic, when flights were grounded to control the spread of the disease. However, since the pandemic restrictions were lifted, the COO has struggled to address EasyJet’s main concern for months, the flight cancellation issue. The issue has seen the company lose revenue and also see share prices drop.
Based on the recent decision to fire their COO, there is a high likelihood that the new management will be able to address the current main problem, which is flight cancellation. This will likely result in a share price recovery, where EasyJet will trade above 400p again,
However, in the meantime, I expect the prices to continue dropping. In the next few trading sessions, I expect to see EasyJet’s share price trading below the 320p price level.
This post was last modified on %s = human-readable time difference 18:37