EasyJet (EZJ) is set to return to the FTSE 100 index following a period outside the UK’s premier stock market benchmark.
The airline’s return marks a significant moment for the budget carrier, which has worked to rebuild its financial standing in recent years.
Index changes of this kind are determined by regular quarterly reviews conducted by FTSE Russell, which assesses companies based on their market capitalisation.
A promotion to the FTSE 100 typically triggers automatic buying from tracker funds and exchange-traded funds that mirror the index’s composition.
This increased demand from passive investment vehicles can provide a meaningful boost to a company’s share price around the time of inclusion.
EasyJet’s return to the top flight comes as several current constituents face the prospect of demotion to the FTSE 250.
Gambling group Entain faces the drop, as does luxury carmaker Aston Martin Lagonda, both of which have faced considerable share price pressure over recent months.
Housebuilder Persimmon is also among those at risk of relegation from the index in the latest reshuffle.
For Aston Martin in particular, a demotion would represent another difficult chapter for a business that has long struggled to achieve consistent profitability.
Entain has similarly faced headwinds, navigating regulatory pressures across multiple markets while attempting to stabilise its operational performance.
Persimmon, like much of the housebuilding sector, has contended with the impact of elevated mortgage rates dampening demand for new homes across the UK.
Index inclusion carries real commercial consequences, as companies outside the FTSE 100 often see reduced institutional interest and lower trading liquidity.
For EasyJet, a return to the index provides a vote of confidence from the market at a time when the aviation sector continues its post-pandemic recovery.