EasyJet has returned to the FTSE 100 index, though analysts are already describing the promotion as a brief farewell before the budget airline departs public markets entirely.
The airline agreed to be acquired by private equity firm Apollo in a deal valuing easyJet’s fully diluted share capital at approximately £5.7 billion, or 715p per share.
The latest quarterly index reshuffle was confirmed after stock markets closed on Wednesday, with the changes set to take effect in the coming days.
EasyJet’s return to the FTSE 100 comes just six months after the carrier was demoted to the FTSE 250, having seen its share price slide following a period of widening losses.
The airline’s fortunes shifted dramatically after it became the subject of a bidding battle between investment firms Apollo and Castlelake, driving its share price sharply higher.
Castlelake walked away from talks last month after Apollo put forward the superior offer, and easyJet shares have since jumped by around 30% since the start of the year.
The takeover will require approval from shareholders, regulators, and the court, with the deal expected to complete in the first quarter of 2027, at which point easyJet would be removed from the London Stock Exchange.
Richard Hunter, head of markets for Interactive Investor, described easyJet’s return to the premier index as a “last hurrah”, adding that “the company, which has flitted in and out of the premier index during its history, will at least be ending on a high.”
North Sea oil and gas producer Ithaca Energy has also earned promotion to the FTSE 100, with its shares rising 64% so far this year.
Hunter noted that Ithaca, a subsidiary of Israeli Delek Group, holds a 20% interest in the Rosebank field, which is subject to regulatory approval for first oil in the first half of 2027.
He added that “improved guidance and a generous 9.7% dividend yield add to the investment case” for the lesser-known British oil and gas company.
Housebuilder Persimmon (PSN) and gambling group Entain have both been relegated to the FTSE 250 following periods of share price weakness throughout the year.
Entain, which owns the Ladbrokes and Coral betting brands, has seen its share price fall by around 30% this year despite beating expectations for its first-half financial performance.
The group warned it faces a significant financial blow from new UK gambling taxes, estimated to cost the business around £250 million.
Persimmon’s share price has fallen approximately 16% this year, with the housebuilder reporting challenging conditions in the housing market after mortgage rates spiked in the spring following escalating conflict in the Middle East.