Air Transportation

Easyjet’s share price fall is overdone

Fares are dropping across the board, and so are shares in airline stocks. The simple answer is that there is too much capacity. But that doesn t mean that airlines like Easyjet will stop growing. Its share price drop looks overdone. Investors are worried about overcapacity driving down fares. Easyjet's shares have fallen nearly 10%. This seems unfair. Overcapacity is more of a problem for network carriers. Easyjet actually looks wellplaced to grow through any turbulence.