EasyJet has returned to the FTSE 100 index, though analysts warn the airline’s time at the top of the market could be extremely brief.
The budget carrier’s readmission follows a six-month absence after it was relegated to the lower-ranking FTSE 250 earlier this year.
North Sea oil and gas producer Ithaca Energy (ITH.L) has also earned promotion to the UK’s top stock index in the latest quarterly reshuffle.
Housebuilder Persimmon (PSN.L) and gambling group Entain have both been dropped from the FTSE 100 as part of the same reshuffle, confirmed after markets closed on Wednesday.
EasyJet’s share price had previously fallen sharply after the airline reported widening losses, triggering its initial demotion to the FTSE 250.
Its fortunes reversed after the airline became the subject of a bidding battle between investment firms Apollo and Castlelake, sending its shares climbing around 30% since the start of the year.
Castlelake walked away from talks last month after Apollo put forward a higher offer of 715p per share, valuing easyJet’s fully diluted share capital at approximately £5.7 billion.
The takeover requires approval from shareholders, regulators, and the court, with completion expected in the first quarter of 2027, at which point easyJet would be removed from the London Stock Exchange entirely.
Richard Hunter, head of markets for Interactive Investor, described easyJet’s FTSE 100 return as a “last hurrah” for the airline’s public market history.
“The company, which has flitted in and out of the premier index during its history, will at least be ending on a high,” Hunter said.
Ithaca Energy’s promotion is driven by a strong share price rise of 64% so far this year, fuelled by its stake in the Rosebank oil field.
Hunter noted that Ithaca holds a 20% interest in the Rosebank field, which is subject to regulatory approval for first oil in the first half of 2027, adding to investor confidence.
“Improved guidance and a generous 9.7% dividend yield add to the investment case,” Hunter added, describing Ithaca as a subsidiary of Israeli Delek Group.
Entain, owner of the Ladbrokes and Coral betting brands, has slipped to the FTSE 250 despite beating expectations for its first-half financial performance.
Its share price has weakened by around 30% since the start of the year, partly due to fears over new UK gambling taxes expected to cost the group around £250 million.
Persimmon faces relegation after its share price sank approximately 16% this year amid difficult housing market conditions, with mortgage rates spiking in the spring following escalating conflict in the Middle East.