The easyJet share price is taking off. Is now the time to buy?

first_imgThe easyJet share price is taking off. Is now the time to buy? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. The airline industry has been one of the worst-performing sectors over the last year. The pandemic grounded most flights, bringing the majority of airline stocks to their knees. But the UK government has made an announcement that might put planes back in the skies. And so the easyJet (LSE:EZJ) share price has soared by nearly 30% since the start of 2021.What was this announcement? And should I be adding easyJet shares to my growth portfolio? Let’s take a look.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Why is the easyJet share price on the rise?Last month, Boris Johnson announced a four-stage plan to ease the lockdown restrictions in the UK. Under the outlined roadmap to normality, international holiday travel from the UK is expected to return as of May 17 – just in time for the summer holiday season. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. See all posts by Zaven Boyrazian Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Zaven Boyrazian does not own shares in easyJet. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Since the announcement was made, easyJet reported that flights, as well as package holiday bookings, have skyrocketed by 337% and 630%, respectively. Needless to say, it looks like there is quite a lot of pent-up demand to go on holiday after being confined for a year.This is undoubtedly fantastic news for the airline stock. But even though the easyJet share price has gone up, it’s still 30% lower than its pre-pandemic levels.  This suggests there is plenty more room for recovery growth. But, as always, there are some risks to consider.The pandemic caused some damage2020 was a devastating year for easyJet and its share price. Since the company’s fleet was grounded, it has had virtually no source of revenue flowing into the business. But operating costs didn’t disappear. After all, while fuel expenses could be avoided, there are still airport fees, staff salaries, and maintenance costs to worry about.As a result, the business has reported its first loss in 25 years and has had to raise an additional €1.2bn of capital through seven-year bonds to remain afloat. Naturally, this has impacted its financial health and will likely extend its Covid-recovery time.Another risk to consider is the easing of lockdown restrictions themselves. Suppose Covid-19 infection rates begin to rise as easing occurs. In that case, travel restrictions will likely remain in place for a while longer. Depending on the delay, the firm may need to raise even more capital, with the easyJet share price declining as a consequence.The bottom lineYet despite the increase in leverage, easyJet still looks healthy as a business to me, especially as half of its fleet is still eligible for aircraft lease-back agreements.These contracts allow easyJet to sell one of its planes to a third-party that immediately leases it back to easyJet. This enables the stock to raise large lump sums of cash quickly without affecting its leverage or suffering any disruptions to business operations.Therefore even though there are risks, the potentially massive boost in air travel on the horizon makes easyJet a stock I would consider adding to my growth portfolio. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares Zaven Boyrazian | Wednesday, 3rd March, 2021 | More on: EZJ Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997”last_img read more

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