Easyjet is set to become one of the UK’s prestigious ‘blue chip’ companies by joining the FTSE 100 index of leading firms.
According to estimates, the no-frills airline is likely to join the FTSE 100 for the first time when the FTSE Group carries out its quarterly reshuffle of companies on Wednesday (March 6).
Easyjet has been boosted by a surging share price which has now risen above £10 per share – a rise of 132 per cent from a price £4.22 in March 2012. The carrier is currently worth around £4 billion based on the value of all of its shares.
The company will be only the second airline in the FTSE 100 – joining British Airways’ owner IAG which is worth around £4.4 billion and has seen its shares rise by 43 per cent over the last year to £2.38.
Easyjet’s main no-frills rival Ryanair has seen its shares rise by 48 per cent to €5.75 (£5) over the last year but the Irish carrier is worth €8.4 billion (£7.25 billion).
The companies included in the FTSE 100 index are mainly determined by the companies’ market capitalisation, which is the value of all of the firm’s shares.
Easyjet has benefited from record financial results under chief executive Carolyn McCall who has targeted business travel to drive higher margins and profits.
The airline’s success comes despite ongoing disputes with founder and largest shareholder Sir Stelios Haji-Ioannou who last month voted against the pay packages for the company’s directors and also the re-election of outgoing chairman Sir Michael Rake.