The EasyJet share price is on a two-day losing streak in today’s trading session. The drop comes after the recent three-day bull run that had seen the prices touch the $383 resistance level.
In my July 4 EasyJet share price analysis, I indicated that the prices would continue to fall due to the myriad of challenges the company was facing. This included the resignation of the company’s COO after failing to address the problem of flight cancellations.
In the past few weeks, EasyJet has been faced with the cancellation of flights, and data taken late last month showed the company stood to cancel 11,000 flights. Although part of the reason for the cancellation was beyond EasyJet’s control, the company’s share price was still affected.
Today, reports of flight cancellations were still as rampant as a few weeks ago. Multiple news sources from the UK indicate that the company has continued to struggle to meet its customers’ needs. In one of the reports, EasyJet’s passengers were left aghast after a flustered customer service worker stormed off amid flight cancellation chaos.
Another factor causing the drop in EasyJet’s share price is the rising cost of living, fueled by inflation. Most families in the UK and across Europe have been forced to cut their travel as rising inflation cuts their household finances. As a result, investors have also pulled back their investments, resulting in the market’s current bearish trend.
EasyJet Share Price
My EasyJet share price prediction expects the company to continue struggling in the next few trading sessions. Part of the reason is because of the current economic conditions that I do not expect to change suddenly. I also do not expect the current flight cancellations to be resolved immediately.
Therefore, reports of flight cancellations will continue dominating the news, and investors’ confidence will continue to drop, resulting in share prices. However, solving the issue of flight cancellation will most likely invalidate my bearish analysis.