easyJet Shares: What a £1,000 Investment in 2020 is Worth Today
In 2020, the world stopped flying. The COVID-19 pandemic hit the airline industry hard. Flights were grounded. Borders closed. Airlines, including easyJet, lost billions. Back then, easyJet shares dropped fast. Some investors saw it as a disaster. Others saw a chance. What if we had invested £1,000 in easyJet during that crash?
Today, travel is back. Planes are full. People are flying again. But has easyJet recovered fully? And what happened to that £1,000 investment?
Let’s look at how easyJet performs after 2020. We’ll see how much a simple investment back then would be worth today. We’ll explore the highs, the lows, and the key lessons for anyone who wants to invest smarter in the future.
EasyJet in 2020: A Turbulent Time
The start of 2020 was brutal for airlines. COVID-19 hit hard. Countries locked down. Flights were grounded. easyJet’s revenue collapsed by nearly 53%. It posted a record £1.08 billion loss for the year ending September 2020.
The company raised over £2.4 billion through rights issues, new shares, and a £600 million UK government loan. Its share price plunged from above 600 pence in early 2020 to just under 100 pence at its lowest, a dramatic crash.
EasyJet’s Recovery Journey
We began to see signs of recovery by 2022. Borders reopened, passengers returned, and travel demand surged. easyJet shifted strategies. They leaned into package holidays and secured premium airport slots, moves that helped distinguish them from low-cost rivals.
easyJet returned to profit by mid-2024. They earned £452 million after tax, up 40% from the previous year, and reported £610 million pre-tax profit. They also adopted AI at Luton to reduce delays and manage flight networks efficiently.
Share Price Performance: Then vs. Now
At its lowest in October 2022, easyJet shares were around 400 pence, nearly 80% down from 2019 highs. As of mid‑July 2025, the stock trades around 520 pence, having recently ranged between 514 pence and 540 pence.
Analysts expect prices to reach 682.5 pence over the next year, implying a potential 30% upside. If we had invested £1,000 at the Covid low in late 2020 (assuming a purchase price of 100 pence per share), we’d have 1,000 shares. Today at 520 pence, that stake is worth £5,200, a 420% return before dividends. Even buying mid-2022 at 400 pence would yield a 130% gain now.
EasyJet also reinstated dividends: the yield sits around 2.3%, with payments going from 4.5 pence in 2023 to 12.1 pence in 2024.
Factors Influencing Stock Value
Multiple forces shaped easyJet’s recovery:
Macro Trends: Travel demand rebounded strongly in 2023-25. Fuel prices, however, remain volatile, adding pressure.
Strategic Moves: The growth of easyJet Holidays and key airport slot upgrades boosted profitability. The business now aims for a profit per seat of £7‑10 by 2028.
Financial Health: The company paid down pandemic debt. By 2023, they reversed that and held net cash of £41 million. However, return on invested capital averaged 2.2% and ROE around 12% between 2020-24. Still, recent ROA rose to 3.6%.
ESG and Technology: easyJet became the first airline to offset carbon emissions on all flights from 2019. They also use AI at Luton to reduce delays.
easyJet Shares: Investor Lessons and Insights
- Buy the dip, but research. The 2020 crash offered deep value, but only if we believed in recovery. easyJet’s rebound showcases disciplined strategy and market timing.
- Patience pays. Recovery took years. Early investors had to wait through losses. If we stayed invested, the rewards were significant.
- Diversify. Airline stocks are volatile. Investing across sectors reduces risk.
- Look for strategic edges. easyJet’s holiday packages and airport positioning gave them a perk over peers. We should value strategy, not just bounce-back stories.
Wrap Up
A £1,000 investment at easyJet’s pandemic bottom would now stand at about £5,200, plus dividends. That illustrates how resilient companies can bounce back with a smart strategy and patient investing.
But easyJet shares are still below pre‑Covid highs. That gap tells us recovery isn’t always full. It teaches humility. We know travel demand is strong, but costs and competition remain uncertain.
For investors, this journey reinforces framing: invest with strategy, patience, and diversification. Volatile markets are full of risk and opportunity.
Frequently Asked Questions (FAQs)
Multiply the number of shares you own by the current share price. For example, 100 shares at £5 each means your shares are worth £500.
It depends on your goals and risk level. You can choose stocks, funds, or savings. Always research and consider speaking with a financial advisor first.
Analysts expect the easyJet share price to rise over the next year. Some think it could reach around 680 pence, but prices can always change.
It depends on the company. For cheap stocks, 100 shares may not be much. For expensive ones, it could be a big amount. It’s about value, not just numbers.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.