Shares in easyJet dip, company to resume domestic flights

One of the stocks that will be in focus on Monday will be easyJet as the airline will resume its flights after the lockdown period. For the first time since March 30, the British carrier will resume some of its flights. Although the company may have caught some investors’ interest, its shares declined in early Monday trading as concerns for a second pandemic wave grew.

The company will restart mainly its domestic flights, with the first one being at 7 am from Gatwick to Glasgow. While currently, the Foreign Office recommends traveling only if it is really necessary. In addition to that, those who arrive in the UK are required to self-quarantine for 14 days. This rule will definitely affect international flights, which is why easyJet, along with British Airways and Ryanair, took legal actions against the government’s 14-day quarantine measure. This will enable British passengers to fly to countries that are not deemed as risky destinations.

Even though easyJet will resume its flights, it will imply a number of rules that both employees and customers should follow. Both passengers and the cabin crew will have to wear masks while traveling. To further ensure the safety of its customers, the company will also not serve any food during flights.

The British airline also reported that planes will be properly cleaned and disinfected in between flights. Passengers will also be offered hand sanitizers and wipes to maintain good hygiene while traveling with easyJet.

Starting June 15, easyJet will restore mainly its domestic flights and one international service to Nice. There are also plans to resume the flights between Portugal, Switzerland and Spain.

Analyst stock price and recommendation

According to MarketBeat, analysts have an average price target of ₤1,021.30 for easyJet. The airline has a potential upside of 26.9% from its current price of ₤805. These results are based on 13 research reports that were conducted in the past 90 days.

The same media also offers the recommendations of 20 investment analysts who have a consensus rating of “Hold” for easyJet. Out of the 20 polled analysts, 6 ranked the company’s stock as “Buy”, 10 as “Hold” and 4 – as “Sell”.