easyJet FTSE 100 place doubts as fall in share price continues

EASYJET is “in the firing line” for demotion from the FTSE 100 as investors fear the budget airline carrier could be squeezed by Budget tax hikes and weak consumer confidence.

- MAISIE GRICE

The budget airline carrier's share price fell 1.61% in early trading yesterday to 472.6 pence, tumbling 14.6% this year to date.

Richard Hunter, head of markets at Interactive Investor, added that this sharp share price fall could place the Budget airline “in the firing for demotion from the FTSE 100”.

Mark Crouch, market analyst at Etoro, said: “easyJet’s share price has behaved as if someone left the air brakes on. Three years of earnings growth and falling energy prices should have created a powerful tailwind, one that may not blow forever. Investors may simply be tired of waiting for valuation upside that never seems to leave the runway.”