Icelandair buys 8.4 per cent in easyJet

The Icelandic carrier Icelandair has reportedly confirmed that it has taken an 8.4 per cent stake in the no-frills airline easyJet, with several newspapers and media outlets reporting “frenzied” speculation. According to The Guardian, Icelandair states that the purchase represents a “long-term trade investment”, but that it may buy more shares in the short term. The purchase certainly had a sharp effect on the stock markets; easyjet’s share price rose 21p to 152p on Friday and has maintained that price in early trading today. A statement by Icelandair says: “The Icelandair group is financially strong and the company is seeking ways of improving the return on its cash. We have therefore kept our eyes open for opportunities in airline-related securities. “We have a positive opinion of easyJet’s business model and we think the company has a bright future.” Report by Tim Gillett, News From Abroad Ltd