easyJet share price: Airline mulls over buying parts of Flybe

Low-cost carrier one of parties looking at struggling airline

easyJet share price: Airline mulls over buying parts of Flybe

easyJet (LON:EZJ) is one of the parties interested in buying struggling UK-based regional airline Flybe, the Financial Times has revealed. The news comes after it emerged in September that the low-cost carrier was still in talks over Alitalia’s short-haul operations, amid the ongoing industry turbulence.

easyJet’s share price has fallen deep into the red in London this morning, having given up 4.79 percent to 1,190.18p as of 09:46 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and standing 0.12 percent higher at 7,042.50 points. The group’s shares have given up about 3.8 percent of their value over the past year, as compared with about a 4.2-percent dip in the Footsie.

easyJet interested in Flybe

The Financial Times reported yesterday that easyJet and infrastructure company Stobart Group were both looking at buying Flybe, which put itself up for sale after another disappointing set of results. While Stobart is considering buying all or part of the group, the FTSE 100 carrier is looking at purchasing a part of the company.

“We’ve always said that we will play a role in consolidation where it makes sense,” easyJet pointed out, as quoted by the newspaper, adding that it evaluated “all opportunities as they arise”.

Analysts on FTSE 100 group

Liberum reaffirmed easyJet as a ‘hold’ this month, without specifying a price target on the shares, while Credit Suisse, which sees the low-cost carrier as a ‘buy,’ set a price target of 1,683p on the shares. According to MarketBeat, the low-cost carrier currently has a consensus ‘hold’ rating and an average price target of 1,635.69p.

easyJet is scheduled to update investors on its full-year performance on November 20.

As of 10:00 GMT, Thursday, 15 November, easyJet plc share price is 1,179.10p.

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