EasyJet has returned to the FTSE 100 after a six-month absence, but its comeback could prove temporary after the airline agreed to a £5.7bn takeover that is expected to remove it from the London market next year.
North Sea oil and gas producer Ithaca Energy has also been promoted to the UK’s benchmark index, while housebuilder Persimmon and gambling group Entain have been relegated to the FTSE 250.
The latest quarterly changes were confirmed after London markets closed on Wednesday.
EasyJet’s promotion comes only six months after the airline was demoted to the FTSE 250 following a fall in its share price as the company reported widening losses.
The stock has since staged a strong recovery after easyJet became the target of a bidding contest between private equity groups Apollo and Castlelake.
Castlelake withdrew from the process last month after Apollo made a higher offer of 715p a share, valuing easyJet’s fully diluted equity at about £5.7bn.
EasyJet shares have risen about 30 per cent since the beginning of the year.
The proposed acquisition remains subject to shareholder, regulatory and court approval and is expected to complete in the first quarter of 2027. Once completed, easyJet would leave the London Stock Exchange and become privately owned.
Richard Hunter, head of markets at Interactive Investor, described the airline’s promotion as a “last hurrah”.
“The company, which has flitted in and out of the premier index during its history, will at least be ending on a high,” he said.
Ithaca Energy, meanwhile, has secured a place among the UK’s largest listed companies following a sharp rise in its share price.
“Less well known is Ithaca Energy, a British oil and gas company which operates in the North Sea,” Hunter said.
“A subsidiary of Israeli Delek Group, the company has seen its shares rise by 64% so far this year since its growth pipeline includes a 20% interest in the Rosebank field, which is subject to regulatory approval for first oil in the first half of 2027.
“Improved guidance and a generous 9.7% dividend yield add to the investment case.”
The reshuffle leaves Entain, owner of Ladbrokes and Coral, among the companies falling into the FTSE 250.
Entain’s shares have lost about 30 per cent since the start of the year, despite the company reporting first-half financial results ahead of market expectations.
The group has nevertheless faced pressure from the UK’s changing gambling tax regime and said it expects to be hit by new taxes worth about £250mn.
Persimmon has also been relegated after its shares fell about 16 per cent this year.
The housebuilder has warned of difficult conditions in the residential property market, with higher borrowing costs weighing on demand.
Mortgage rates rose sharply in the spring following an escalation in conflict in the Middle East, adding to the pressure on prospective buyers and the broader UK housing market.
The latest FTSE reshuffle highlights the contrasting fortunes of companies exposed to consumer spending, housing and energy.
For easyJet, the promotion may be more symbolic than structural. Unless its £5.7bn takeover is derailed, the airline’s return to the FTSE 100 is likely to last only until its expected departure from the public markets in 2027.
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