EasyJet has flown into the UK’s top stock market index while a top mining firm has drilled further down into the rankings after its boss was ousted, in the latest FTSE reshuffle.
The low-cost airline secured a place in the FTSE 100 index of top UK-listed companies after seeing its shares jump by 30% over the past six months.
It will join on March 18 following the quarterly review of the FTSE indices, according to analytics group FTSE Russell.
EasyJet’s stronger share price performance has come alongside an ongoing post-Covid-19 travel resurgence.
Travel firms such as Tui and Jet2 and have stressed that consumers are willing to prioritise spending on travel and experiences, despite feeling a cost-of-living squeeze.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The ‘revenge travel’ trend is still proving strong, with people still determined to see more of the world again after being cooped up at home during the Covid crisis.
“Consumers still appear to be ring-fencing chunks of disposable income to spend on airfares, seat upgrades and treats on board, with the desire to travel higher up wish-lists than home purchases like furniture and TVs.”
Other promotions following the reshuffle include Kier Group joining the FTSE 250, having turned around its performance after being appointed to work on the building of HS2 railways.
Logistics firm Wincanton has also been promoted to the FTSE 250, despite announcing this week it had been approached by a second potential bidder who could make an offer for the business.
Ms Streeter said it could be a “potentially short-lived stint” in the index, adding: “Whatever the outcome, it looks like Wincanton will be the latest London-listed company to leave the public market for private ownership, with suitors attracted by low valuations.”
Meanwhile, Endeavor Mining has been relegated from the top index after a rocky start to the year for the gold miner.
Its chief executive Sebastien de Montessus was sacked last month for “serious misconduct” relating to the sale of a company asset.
The former boss admitted to a “lapse of judgment” but denied misconduct. But the move knocked confidence in the group and its share price has fallen by a tenth in the past month.