If I’d invested £1,000 in easyJet shares 5 years ago, how much would I have now?

easyJet shares have faced a torrid time over the past five years, mainly due to the pandemic. So, what would a £1,000 investment five years ago total now?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

easyJet (LSE: EZJ) is a favourite among many consumers as a low-budget airline that’s based in Europe. In the past, its popularity has seen the easyJet share price soar, reaching highs of over 1,900p in 2015. It has also sported a very healthy dividend yield. However, everything turned around a couple of years ago, with the emergence of Covid-19. This saw demand for airlines grind to a halt, forcing easyJet to raise extra cash through both debt and equity to say afloat. With this in mind, what would a £1,000 investment in easyJet five years ago be worth now?

The figures

Five years ago, the easyJet share price was around 1,044p. With £1,000, I would have been able to buy around 96 shares. Since this date, the share price has declined by nearly 40%. Therefore, my investment would only be worth £606 today, a fairly poor return, and far worse than the FTSE 100 return of nearly 5% in the same period.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Nonetheless, although dividends are no longer being paid due to the pandemic, easyJet used to offer large shareholder returns. Between 2017 and 2020, the firm paid dividends worth 197.2p per share. With 96 shares, this would equate to shareholder returns of £189.30. Therefore, a £1,000 return five years ago would total around £795 today, a loss of £205.

The future for easyJet shares

Due to the effects of the pandemic, the past five years have clearly been very negative for the airline, despite the fact that it has outperformed some others in the industry. Such a severe drop in the share price therefore seems justified. In fact, the company’s FY21 earnings were a loss before tax of over £1.1bn. But things are starting to look slightly more positive.

In fact, bookings for the second half of this financial year are ahead of pre-pandemic levels. And in the fourth quarter of this year, the firm expects that demand will return to near pre-pandemic levels. A full recovery is expected by 2023. If these forecasts are correct, I feel that this could result in significant long-term upside potential for the easyJet share price. But there is a big ‘if’, especially as the pandemic continues to cause such high levels of uncertainty.

Despite this uncertainty, easyJet looks financially strong, having £4.4bn of liquidity.  Hopefully, this will allow it to capture more opportunities. In fact, it has already obtained additional slots in Lisbon, Porto, and Gatwick. This is ahead the expected surge in demand later this year. After a couple of years of disruption, I’m also confident that demand for holidays will be strong later this year, and low-budget airlines will be a prime beneficiary.

As such, although issues such as inflation, high oil prices and coronavirus will certainly not make it easy, I feel that easyJet may finally be able to launch its recovery in 2022. The next five years seem more promising than the past five. This tempts me to buy easyJet shares.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Stuart Blair has no position in any of the shares mentioned. 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.

More on Investing Articles

Saucepan on a gas hob
Investing Articles

The Centrica share price is up 65%. Here’s why I sold

The Centrica share price has soared nearly two-thirds in a year. So why has our writer dumped his shareholding?

Read more »

Modern suburban family houses with car on driveway
Investing Articles

As the Howden Joinery share price falls, I’d buy and hold

The Howden Joinery share price has been falling. But Christopher Ruane likes its business model and is weighing adding it…

Read more »

Hand holding pound notes
Investing Articles

The tumbling Persimmon share price means an 11.3% yield! Should I buy?

A falling Persimmon share price has pushed the dividend yield into double-digits. Our writer considers his next move.

Read more »

Innovation and new ideas lightbulb concept 2022
Investing Articles

As stock markets crash, I’d buy these 4 FTSE 100 fallers!

After US stock markets tumbled on Wednesday, the FTSE 100 duly followed suit on Thursday. But falling share prices revealed…

Read more »

Compass pointing towards 'best price'
Investing Articles

A 7.6% dividend yield! Is the Aviva share price a bargain not to be missed?

The Aviva share price has recovered well since the 2020 stock market crash. As one of the top FTSE 100…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Stock market crash: I’m hunting giants for future gains!

In this latest stock market crash, selling pressure is slamming share prices. But some great company stocks are being crushed,…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

With a P/E of just 8, this social media newcomer is a cheap stock pick!

This social media firm looks like a cheap stock pick for my portfolio. For a growing tech firm, it certainly…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

Warren Buffett has been selling dividend stocks. Should I be doing the same?

As Warren Buffett sells out of Abbvie, Bristol-Myers Squibb, and Verizon, our writer wonders whether he ought to be looking…

Read more »