EasyJet and cruise operator Carnival are set to lose their seat on the Ftse-100 index after the Covid-19 crisis knocked the value of their shares.
Hard-hit by travel bans, the airline lost as much as two-thirds of its market value during the peak of the pandemic crisis and despite a vigorous bounce-back, its market capitalisation was only ranked 125th.
Ftse Russell, which will announce its quarterly shuffle of the Ftse-100 index on Wednesday, requires companies to be ranked at least 110th to be part of the blue-chip index.
EasyJet, which plans to cut up to 4,500 jobs and shrink its fleet, had returned to the Ftse-100 only last December after a fall in its shares had triggered an exile from the index.
“EasyJet would need a big rally, but it could come back in September,” at the occasion of the next reshuffle, said Russ Mould, investment director at AJ Bell.
“With airlines, anything is possible”, he added, referring to the extreme market volatility experienced by these companies.
Europe’s Travel and Leisure index lost up to 58% of its value in less than a month in mid-March before rallying more than 60% since. The recovery was not enough for Carnival to retain its Ftse-100 place.
The last reshuffle in March had already exposed the pain in the tourism industry with the exit of European holiday company TUI.
IAG, which owns British Airways, Aer Lingus, Iberia, and Vueling, and InterContinental Hotels Group, or IHG, retain their places on the Ftse-100. Reuters