We Increase EasyJet's FVE as We Update Our Model and Anticipate a Strong Summer Period

EasyJet is the second-largest low-cost European airline behind Ryanair. The airline focuses on serving the leisure traveler and cost-conscious business traveler. In 2019, it served 96 million passengers, with annualized growth of 8% from 65 million passengers in 2014. It operates a network route structure and holds number-one or number-two positions at multiple high-traffic primary airports. We believe the cost-restructuring program underway could rationalize its cost base and drive EBIT growth of 9% per year over our five-year forecast period, from 2019 precoronavirus levels.