Easyjet Share Price Forecast 2024, 2025, 2026, 2027, 2030 and Dividend Prediction
Easyjet is a British low-cost airline that operates in Europe and beyond. It is one of the largest airlines in Europe by passenger numbers and has a strong brand recognition and customer loyalty. In this article, we will look at Easyjet Share Price Forecast 2024, 2025, 2026, 2027, 2030.
In this blog post, we will also analyze Easyjet’s stock performance, dividend forecast, growth opportunities, competitive landscape, strengths and weaknesses, SWOT analysis, financials, risks, and key factors to watch out for.
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Page Contents
Easyjet Share Price Forecast 2024, 2025, 2026, 2027, 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | £4.75 | £7.38 | £6.06 |
| 2025 | £5.94 | £9.22 | £7.58 |
| 2026 | £7.42 | £11.52 | £9.47 |
| 2027 | £9.28 | £14.40 | £11.84 |
| 2028 | £11.60 | £18.01 | £14.80 |
| 2029 | £14.50 | £22.51 | £18.50 |
| 2030 | £18.12 | £28.13 | £23.13 |
| 2031 | £22.65 | £35.17 | £28.91 |
| 2032 | £28.31 | £43.96 | £36.14 |
Easyjet Share Price Chart and History
Easyjet’s shares, listed on the London Stock Exchange under EZJ, were priced at 435.4 GBp as of November 17, 2023. The company, with a market capitalization of £3.3 billion, has seen its stock price fluctuate between 320.5 and 582.7 GBp over the past year.
Notably more volatile than the market average, indicated by a beta of 1.67, Easyjet does not currently pay dividends. However, a new shareholder returns policy is planned to commence following the FY23 results.
The stock’s performance was significantly impacted by the COVID-19 pandemic but has since recovered. This recovery is attributed to resumed operations and increased demand for travel. Financially, Easyjet has focused on improving liquidity, cutting costs, and enhancing customer service.
The company reports a record Q4 headline profit before tax of £650 to £670 million, surpassing market expectations for FY23.
Key financial ratios of Easyjet’s stock as of November 17, 2023:
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) | 0.0 |
| Price-to-Book (P/B) | 1.9 |
| Price-to-Sales (P/S) | 0.6 |
| Return on Equity (ROE) | -9.8% |
| Return on Assets (ROA) | -4.5% |
| Earnings per Share (EPS) | -43.9 GBp |
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Easyjet Share Price Forecast 2024
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2024 | £4.75 | £7.38 | £6.06 |
The EasyJet share price forecast for 2024 ranges from a minimum of £4.75 to a maximum of £7.38, with an average target of £6.06.
Easyjet Share Price Forecast 2025
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2025 | £5.94 | £9.22 | £7.58 |
The EasyJet share price forecast for 2025 is projected to range from a minimum of £5.94 to a maximum of £9.22, with an average target of £7.58.
Easyjet Share Price Forecast 2026
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2026 | £7.42 | £11.52 | £9.47 |
The EasyJet share price forecast for 2026 is anticipated to vary between a minimum of £7.42 and a maximum of £11.52, with an average target set at £9.47.
Easyjet Share Price Forecast 2030
| Year | Minimum Price Target | Maximum Price Target | Average Price Target |
|---|---|---|---|
| 2030 | £18.12 | £28.13 | £23.13 |
The EasyJet share price forecast for 2030 predicts a range from a minimum of £18.12 to a maximum of £28.13, with an average target of £23.13.
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Easyjet Dividend Forecast
Since the start of the COVID-19 pandemic, Easyjet has suspended dividend payments to focus on cash preservation and strengthening its financial position. However, the airline recently announced a new policy for shareholder returns, starting with the financial year 2023 results, with payments expected in early 2024.
Easyjet plans to allocate 10% of its headline profit after tax from FY23 for dividends and aims to increase this to 20% for FY24. Additionally, the company is exploring opportunities to enhance future shareholder returns.
Analyst consensus over the past year, based on ratings from 5 analysts, classifies Easyjet’s stock as a ‘Hold’. This rating includes 1 sell, 1 hold, and 3 buy recommendations.
The average twelve-month price target for Easyjet is 551.25 GBp, with the highest estimate at 690 GBp and the lowest at 400 GBp. Based on these projections, the estimated dividend yield for Easyjet is forecasted to be 1.8% for FY23 and 3.6% for FY24.
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Growth Opportunity for Easyjet
Easyjet has several growth opportunities in the post-pandemic travel market, which include:
- Network Expansion and Frequency Increase: Easyjet boasts a robust European network, covering over 150 destinations in 34 countries. The airline is broadening its reach to North Africa and the Middle East, with plans to boost capacity by 15% in the first quarter of FY24. A key component of this expansion is a proposed deal with Airbus for 157 additional aircraft and 100 purchase rights, facilitating fleet modernization and further growth.
- Development of Easyjet Holidays: In 2020, Easyjet launched its Easyjet Holidays business, targeting the 97% of its leisure customers who seek accommodation elsewhere. This venture has quickly become one of the UK’s fastest-growing major holiday companies. For FY23, Easyjet Holidays is projected to contribute approximately £120 million in profit before tax (PBT), with ambitions to elevate this figure to over £250 million in the medium term.
- Enhancement Through Data and Technology: Easyjet is harnessing data and technology to improve its operational efficiency, marketing strategies, and customer loyalty programs. Innovations include biometric boarding, dynamic pricing, and customized offers. The introduction of the Easyjet Plus loyalty program, offering perks like seat selection and priority boarding, has been a significant step. The program boasts over 1.5 million members and has witnessed a 161% year-on-year increase in app-based bookings.
Competitors of Easyjet Stock
Easyjet faces competition from other low-cost airlines, as well as from traditional full-service airlines and other modes of transport. Some of the main competitors of Easyjet include:
- Wizz Air: This Hungarian low-cost carrier is a key competitor for Easyjet. Wizz Air’s operations span Central and Eastern Europe, Western Europe, the Middle East, and North Africa. With a fleet exceeding 140 Airbus aircraft, Wizz Air connects over 190 destinations in 49 countries. As of November 17, 2023, the airline’s market capitalization stands at £4.4 billion, with its stock price recorded at 5,030 GBp.
- International Consolidated Airlines Group (IAG): IAG, a multinational airline holding company, incorporates prominent airlines like British Airways, Iberia, Aer Lingus, Vueling, and Level. Its network covers continents including Europe, North America, South America, Africa, Asia, and Australia. With a fleet of over 550 aircraft, IAG serves more than 280 destinations across 77 countries. As of November 17, 2023, IAG’s market capitalization is £9.8 billion, and its stock is priced at 182.9 GBp.
- Ryanair: Another significant competitor for Easyjet is Ryanair, an Irish low-cost airline. Ryanair’s extensive network across Europe and North Africa is supported by a fleet of over 470 Boeing aircraft, serving more than 240 destinations in 40 countries. The airline’s market capitalization is valued at £16.9 billion, and its stock price as of November 17, 2023, is 16.7 EUR.
Strengths of Easyjet Stock
Easyjet has several strengths that give it a competitive edge in the low-cost airline industry, such as:
- Brand Recognition and Customer Loyalty: Easyjet enjoys high brand awareness and a positive image, particularly noted in key markets like the UK, France, and Switzerland, where it often ranks first or second in brand preference. The airline’s Net Promoter Score (NPS) is a robust 54, reflecting strong customer loyalty. This is further evidenced by over 70% of bookings being made by repeat customers, showcasing a dependable customer base.
- Cost Efficiency and Operational Excellence: Central to Easyjet’s success is its low-cost business model, which not only allows for competitive pricing but also drives high profit margins. The airline achieves cost efficiencies through strategies like operating a uniform fleet type, maximizing aircraft utilization, using secondary airports, and offering streamlined, no-frills services. Additionally, Easyjet demonstrates high operational performance, with an on-time arrival rate of 86% and a load factor (percentage of available seats filled) of 87% in FY23.
Weaknesses of Easyjet Stock
Easyjet also has some weaknesses that limit its growth potential and expose it to risks, such as:
- Vulnerability to External Factors: Easyjet’s operations are significantly influenced by external elements like fluctuating fuel prices, exchange rate variations, and weather-related disruptions. These factors can directly affect the airline’s profitability and operational efficiency. A notable instance was the £5 million loss incurred due to the closure of UK airspace during a volcanic eruption in 2010.
- Reliance on European Market: A major portion of Easyjet’s revenue and profit comes from its operations in Europe. This heavy reliance makes the airline susceptible to the region’s economic and political fluctuations. The uncertainties surrounding Brexit, for example, impacted consumer confidence and travel demand in the UK and Europe. Additionally, Easyjet had to undertake restructuring to align with EU regulations on airline ownership and control, highlighting the challenges posed by its dependence on the European market.
- Limited Differentiation and Innovation: In a highly competitive sector, where Easyjet contends with other low-cost carriers and full-service airlines, as well as alternative transportation options, the airline faces challenges in differentiating its offerings. Its approach to product and service innovation has been relatively modest, which can impede its ability to sustain market share and customer loyalty. The company’s investment in research and development is also limited, potentially affecting its long-term competitive standing.
SWOT Analysis of Easyjet Stock
SWOT Analysis for Easyjet Stock is as below:
Strengths:
- Strong Brand Recognition and Customer Loyalty: Easyjet enjoys high brand awareness and a loyal customer base, evidenced by a high Net Promoter Score and significant repeat bookings.
- Cost Efficiency and Operational Excellence: The airline operates a low-cost business model, maximizing aircraft utilization and using secondary airports, resulting in attractive fares and high margins.
- Environmental and Social Responsibility: Easyjet’s commitment to sustainability and social initiatives enhances its reputation and customer satisfaction.
Weaknesses:
- Exposure to External Risks: Easyjet is susceptible to external factors such as fuel price volatility, currency fluctuations, and weather disruptions, impacting profitability and operations.
- Dependence on the European Market: A heavy reliance on the European market makes the airline vulnerable to regional economic and political uncertainties, including the aftermath of Brexit.
- Limited Differentiation and Innovation: Facing stiff competition, Easyjet’s limited differentiation in service offerings and modest innovation can challenge its market share and customer loyalty.
Opportunities:
- Expanding Network and Frequency: Easyjet’s plans to increase capacity and expand into new regions like North Africa and the Middle East present significant growth opportunities.
- Growing Holidays Business: The development of Easyjet Holidays targets a broader customer base, aiming to capture additional revenue from leisure travelers.
- Leveraging Data and Technology: Investments in digital capabilities and customer experience enhancements, such as biometric boarding and personalized offers, offer avenues for growth and improved service.
Threats:
- Competition from Other Airlines: Easyjet faces intense competition from both low-cost and full-service airlines, necessitating continuous innovation and strategic positioning.
- Regulatory and Legal Changes: Changes due to Brexit and ongoing COVID-19 implications pose regulatory challenges and potential operational disruptions.
- Consumer Behavior Shifts: Increasing environmental and health concerns among consumers could lead to shifts in travel preferences, impacting demand for airline services.
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Easyjet Company Financials
Easyjet’s financial performance has been impacted by the COVID-19 pandemic, which resulted in a significant decline in its revenues and profits in FY20 and FY21. However, the company has shown a strong recovery in FY23, as it benefited from the reopening of the travel market and the pent-up demand for travel. The company has also improved its liquidity, reduced its costs, and increased its efficiency.
The company has reported a record Q4 headline profit before tax of between £650 and £670 million, and expects to beat market expectations for its FY23 headline PBT of between £440 and £460 million.
The following table summarizes some key financial figures of Easyjet for the past five years:
| Year | Revenue (£m) | PBT (£m) | EPS (GBp) |
|---|---|---|---|
| FY19 | 6,385 | 430 | 86.1 |
| FY20 | 3,002 | -1,273 | -257.3 |
| FY21 | 1,195 | -1,117 | -223.6 |
| FY22 | 2,500 | -300 | -60.0 |
| FY23 | 5,500 | 450 | -43.9 |
Risks in the Future for Easyjet
Easyjet faces several risks in the future that could affect its stock performance and growth prospects, such as:
- Competitive Pressure: Easyjet faces stiff competition from other low-cost and full-service airlines like Wizz Air, Ryanair, and IAG. These competitors could potentially offer lower fares or better services, affecting Easyjet’s market share and customer loyalty. Additionally, alternative transportation modes like trains and buses present challenges.
- Regulatory and Legal Challenges: Changes in regulations in the EU, UK, and US could impact Easyjet’s operations and costs. Challenges like adapting to Brexit and COVID-19 restrictions have already shown significant effects on market access and operational flexibility.
- Consumer Behavior Changes: Economic conditions, environmental concerns, and health risks could shift consumer preferences away from air travel. Economic downturns, growing environmental awareness, and safety concerns related to COVID-19 could lead to reduced demand for Easyjet’s services.
Key Things to Watch Out for Easyjet
Easyjet’s stock performance and growth potential depend on several factors that investors should watch out for, such as:
- Travel Market Recovery: Investors should closely watch the recovery of the travel market, especially in Europe. Factors like vaccination rates, infection trends, travel restrictions, and consumer confidence are crucial, along with the seasonal and cyclical aspects of the travel industry that can affect demand.
- Shareholder Returns Policy: The commencement and execution of Easyjet’s new shareholder returns policy from FY23 are significant. This will impact the company’s cash flow and capital structure, and the sustainability and growth of dividends are key areas to assess.
- Growth Opportunities: Easyjet’s expansion plans, growth in holiday business, and advancements in data and technology are critical growth areas. Investors should monitor these opportunities’ performance and potential, along with related risks such as competition, regulation, and changes in consumer behavior.
Final Thoughts on Easyjet Share Price Forecast 2024, 2025, 2026, 2027, 2030
Easyjet, a leading British low-cost airline, is a major player in Europe’s aviation sector, renowned for its robust brand recognition and customer loyalty. The airline’s operations were significantly disrupted by the COVID-19 pandemic in early 2020, leading to a complete grounding of its fleet. Since then, Easyjet has shown a strong recovery, driven by resumed operations and an upsurge in travel demand post-pandemic. The airline has strategically improved its liquidity, cut costs, and enhanced customer service to navigate these challenges.
Looking ahead, Easyjet is positioned to capitalize on various growth opportunities in the evolving travel landscape. These include expanding its flight network, boosting its holiday business, and leveraging advanced data and technology to improve service offerings. However, the airline faces several challenges, including stiff competition from both low-cost and full-service carriers, regulatory changes stemming from Brexit and ongoing pandemic-related issues, and shifting consumer preferences due to environmental and health concerns.
For investors, Easyjet’s future stock performance and growth prospects hinge on key factors such as the overall recovery of the travel industry, the effectiveness of its shareholder returns policy, and the successful exploitation of growth opportunities. These elements will play a crucial role in determining Easyjet’s position and success in the competitive airline market.
FAQs on Easyjet Share Price Forecast 2024, 2025, 2026, 2027, 2030
What is Easyjet Share Price Forecast 2024?
For 2024, the forecasted share price of EasyJet is expected to range between a low of £4.75 and a high of £7.38, averaging around £6.06.
What is Easyjet Share Price Forecast 2025?
In 2025, EasyJet’s share price is anticipated to vary from a minimum of £5.94 to a maximum of £9.22, with the average price target set at £7.58.
What is Easyjet Share Price Forecast 2026?
For the year 2026, the forecast suggests EasyJet’s share price could range from as low as £7.42 to as high as £11.52, with an expected average around £9.47.
What is Easyjet Share Price Forecast 2030?
In 2030, the forecast for EasyJet’s share price indicates a range between a minimum of £18.12 and a maximum of £28.13, with the average price target being £23.13.
