Green list helps easyJet shares, but ‘delays’ could hinder progress
The easyJet share price enjoyed a brief spike on 24 June after more countries were added to the UK’s “green” list. With further changes possible in the coming weeks, there may be positives on the horizon for easyJet shares.
- easyJet shares rally but fall 3% in today’s early trading.
- Airline adds 50,000 extra seats to new green list destinations.
- Will Boris Johnson’s summer of ‘hassle and delays’ hamper recovery?
- Ready to trade the easyJet share price? Open an account today
Shares in easyJet opened at £9.73 on 24 June before rallying to a daily peak of £9.86 (up 1.3%). The jump in value came as UK Transport Secretary Grant Shapps added a selection of countries to the UK’s green travel list. Alongside various Caribbean islands, the Balearics were reclassified.
That means British travellers won’t have to quarantine on their return from Formentera, Ibiza, Mallorca or Menorca after 30 June. Malta was also put on the green list, offering another European destination from which British holidaymakers won’t need to quarantine.
How has easyJet reacted to travel changes?
easyJet responded to the news by adding 50,000 extra seats to flights bound for green list countries. The Balearic Islands have long been a staple destination for the budget airline and the new rules should provide at least some boost to its summer earnings. Plans are also afoot to allow double-jabbed Brits to return from amber list countries without quarantining. Although Shapps hasn’t given a firm date for when this might happen, he confirmed that options are being looked at for ‘later in the summer’.
The government has maintained that it is taking a ‘cautious’ approach to travel this summer and small changes are happening. That’s helped the easyJet share price make a slight recovery in the last 24 hours, but the data suggests it might not be ready to take-off just yet. Indeed, easyJet shares opened at £9.85 on 25 June and quickly dropped 3% to £9.55. That’s 2% above June’s low point of £9.34, but significantly down on the £10.95 peak in May.
Will it be a positive summer for easyJet shares?
The message from the government on travel is a mixture of positives and negatives. Prime Minister Boris Johnson has said that double-jabbed travellers will have more freedom. However, he warned members of the public to expect ‘hassle and delays’. This could hinder the easyJet share price recovery. What’s more, competitor Jet2 is matching easyJet in adding extra seats for green list countries.
The two low-cost airlines are fighting for customers in a limited market at the moment. easyJet shares are in a better place than they were at the start of 2021 but the current conditions make a summer of normality unlikely. This could be a problem. The current value of shares in easyJet is up in recent months but there may be turbulence ahead if travel is too much ‘hassle’ for tourists.
Will easing restrictions help easyJet shares recover?
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