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EasyJet
(LSE:EZJ)
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Rating:75Outperform
Price Target:
755.00 p
▲(11.92% Upside)
Action:Reiterated
Date:08/22/26
The score is driven primarily by improving profitability and margins alongside a stable balance sheet, with technicals reinforcing the view via a strong upward trend and positive momentum. Valuation is supportive with a reasonable P/E and a modest dividend yield, while mixed free cash flow dynamics temper the overall rating.
Positive Factors
Improving profitability and steady revenue growth
Improving margins alongside steady revenue growth indicates better cost control and operating efficiency. If maintained, this combination can strengthen earnings resilience and support profitability across the next several months despite the airline sector’s competitive structure.
Negative Factors
Negative free cash flow growth
Negative free cash flow growth can constrain investment, fleet renewal and debt repayment even when operating cash flow is strong. Persistent weak conversion of earnings into discretionary cash would reduce financial flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and steady revenue growth
Improving margins alongside steady revenue growth indicates better cost control and operating efficiency. If maintained, this combination can strengthen earnings resilience and support profitability across the next several months despite the airline sector’s competitive structure.
Read all positive factors
EasyJet (EZJ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.06B
Dividend Yield1.98%
Average Volume (3M)6.08M
Price to Earnings (P/E)11.9
Beta (1Y)0.98
Revenue Growth9.93%
EPS Growth1.93%
CountryUK
Employees19,224
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding758,010,000
10 Day Avg. Volume3,329,607
30 Day Avg. Volume6,077,919
Financial Highlights & Ratios
PEG Ratio0.70
Price to Book (P/B)1.00
Price to Sales (P/S)0.34
P/FCF Ratio4.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£640.00Price Target Upside-5.13% Downside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.12
Revenue Forecast (FY)£10.67B
EasyJet Business Overview & Revenue Model
Company Description
easyJet plc primarily operates as a major airline throughout Europe, providing passenger air transport services. Beyond its core flight operations, the company also generates revenue through aircraft leasing, managing various tour packages, and of...
How the Company Makes Money
easyJet makes money mainly by selling airline seats and related travel products, using a low-cost carrier model designed to keep operating costs low and stimulate demand through competitive base fares.
1) Passenger ticket revenue (core revenue st...
EasyJet Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 01, 2026
Earnings Call Sentiment Positive
The call presents a cautiously optimistic tone: management reported clear operational improvements (higher utilization, load factor at 90%, strong easyJet Holidays performance, improved on-time and customer satisfaction) and a robust balance sheet with substantial hedges and liquidity that underpin medium-term ambitions (GBP 1bn+ PBT). At the same time, near-term headwinds are material — fuel-price volatility (GBP 25m hit in March), higher CASK ex-fuel (+8% in H1), legal provisions (GBP 32m), airport fee inflation and weaker forward bookings (searches and August bookings significantly behind), particularly for Q4. Management has clear mitigation plans (active hedging, capital discipline, upgauging with quantified savings, network optimization, digital investments), and the positives (financial strength, quantified upgauging benefits, Holidays growth) modestly outweigh the risks, though execution on mitigating actions and demand recovery will determine outcomes.Positive Updates
Passenger and Capacity Metrics
H1 passengers +6% while seat capacity rose +4%; load factor improved by 2 percentage points to 90%, indicating stronger demand and better capacity utilization.
Negative Updates
Fuel Volatility and Direct Cost Impact
Volatile jet fuel pricing in March caused an additional GBP 25m cost in H1; management warned that every $100/tonne move on the unhedged portion equates to ~GBP 35m of P&L impact, leaving exposure on unhedged volumes.
Read all updates
Q2-2026 Updates
Positive
Negative
Passenger and Capacity Metrics
H1 passengers +6% while seat capacity rose +4%; load factor improved by 2 percentage points to 90%, indicating stronger demand and better capacity utilization.
Read all positive updates
Company Guidance
The management reiterated that H1 was broadly in line with the April trading statement despite a GBP25m March fuel hit, and guided customers to “book with confidence” with no further summer schedule cuts (summer capacity was trimmed 0.3% after reallocating ~400k seats) and no planned fuel surcharges; they kept the medium‑term target of >GBP1bn PBT and a strict GBP2.5m per‑aircraft hurdle for new base growth. Key financial and balance‑sheet metrics supporting the guidance include GBP4.7bn liquidity ( >GBP1bn above policy), net cash GBP434m, 72% jet fuel hedged at roughly $726/mt (over half of next winter and ~30% of the following summer hedged) and the sensitivity that every $100/mt on the unhedged portion equals ~GBP35m. Fleet and cost guidance: deliveries of 17 (this year), 30 (next) and 43 (year after), accelerated A319 retirements (all out by 2029) and quantified upgauging savings of GBP110m in 2027 + GBP140m in 2028 (GBP250m by 2028) with an expected EUR0.25bn of P&L efficiencies in full‑year ’27/’28; CASK ex‑fuel is expected to evolve by a low single‑digit amount. Operational guidance and KPIs included passengers +6%, seats +4%, a 2pp lift to 90% load factor, aircraft utilization +20% vs 2023, easyJet Holidays passengers +22% and H1 Holidays PBT GBP61m (+39% profitability), on‑time performance +1pp and customer satisfaction to 84% (airline) / 85% (Holidays).EasyJet Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.53B | 10.11B | 9.31B | 8.17B | 5.77B | 1.46B |
| Gross Profit | 987.00M | 1.70B | 1.56B | 1.38B | 801.00M | -663.00M |
| EBITDA | 1.65B | 1.56B | 1.50B | 1.28B | 499.00M | -439.00M |
| Net Income | 414.00M | 494.00M | 452.00M | 324.00M | -169.00M | -858.00M |
Balance Sheet | ||||||
| Total Assets | 12.74B | 11.51B | 11.04B | 9.84B | 10.45B | 9.77B |
| Cash, Cash Equivalents and Short-Term Investments | 3.45B | 3.53B | 3.46B | 2.92B | 3.64B | 3.55B |
| Total Debt | 3.01B | 2.93B | 3.28B | 2.88B | 4.31B | 4.45B |
| Total Liabilities | 9.08B | 8.01B | 8.06B | 7.05B | 7.92B | 7.13B |
| Stockholders Equity | 3.66B | 3.50B | 2.97B | 2.79B | 2.53B | 2.64B |
Cash Flow | ||||||
| Free Cash Flow | 524.00M | 804.00M | 536.00M | 797.00M | 246.00M | -1.18B |
| Operating Cash Flow | 1.48B | 1.72B | 1.47B | 1.55B | 776.00M | -1.03B |
| Investing Cash Flow | -543.00M | -872.00M | -2.95B | -552.00M | -569.00M | 719.00M |
| Financing Cash Flow | -646.00M | -705.00M | 35.00M | -1.42B | -532.00M | 1.64B |
EasyJet Technical Analysis
Positive
674.60
Price Trends
652.38
Positive
542.44
Positive
493.05
Positive
Market Momentum
6.63
Positive
55.34
Neutral
13.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EZJ, the sentiment is Positive. The current price of 674.6 is above the 20-day moving average (MA) of 671.36, above the 50-day MA of 652.38, and above the 200-day MA of 493.05, indicating a neutral trend. The MACD of 6.63 indicates Positive momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EZJ.
EasyJet Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £5.06B | 11.91 | 11.57% | 1.98% | 9.93% | 1.93% | |
75 Outperform | £894.54M | 7.72 | 17.75% | 4.25% | -6.21% | 0.75% | |
71 Outperform | £18.02B | 4.67 | 67.46% | 1.83% | 3.70% | 7.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | £1.06B | -394.82 | -0.31% | ― | 10.71% | -101.29% | |
42 Neutral | £153.20M | -0.49 | 160.47% | 0.08% | -19.76% | 64.13% |
* Industrials Sector Average
GB:EZJ
EasyJet
667.20
210.48
46.09%
GB:FGP
Firstgroup
169.30
-41.37
-19.64%
GB:IAG
International Consolidated Airlines
419.70
43.71
11.62%
GB:MCG
Mobico Group
25.38
-2.72
-9.68%
GB:WIZZ
Wizz Air Holdings
1,016.00
-251.00
-19.81%
EasyJet Corporate Events
Regulatory Filings and Compliance
EasyJet Executives Increase Holdings Through Employee Share Incentive Plan
Neutral
Aug 11, 2026
EasyJet has disclosed that several senior executives have acquired small numbers of ordinary shares under the company’s HMRC-approved Share Incentive Plan, in which UK employees buy partnership shares via monthly salary deductions of up to &...
M&A Transactions
easyJet Aligns Takeover Deadlines as Apollo and Castlelake Weigh Bids
Positive
Aug 3, 2026
easyJet said it has agreed in principle key financial terms for a potential £7.15-per-share cash offer from Apollo-managed funds, after previously indicating it would no longer recommend a rival £6.90-per-share proposal from Castlelake. ...
Executive/Board ChangesRegulatory Filings and Compliance
EasyJet Grants Share Options to Senior Executives Under Employee Savings Plan
Neutral
Jul 23, 2026
EasyJet has disclosed that senior executives Opal Perry, Chief Data and Technology Officer, and Elly Tomlins have been granted share options under the airline’s all-employee Save As You Earn scheme. The options, covering 2,275 and 3,185 ordi...
Business Operations and StrategyFinancial Disclosures
EasyJet profits hit by fuel costs and conflict as holidays arm and efficiency drive underpin outlook
Negative
Jul 23, 2026
EasyJet reported a sharp drop in third-quarter headline profit before tax to £85 million from £286 million a year earlier, as elevated fuel prices and weaker demand following the Middle East conflict offset strong late booking trends. Pa...
Business Operations and StrategyRegulatory Filings and Compliance
EasyJet Executives Buy Shares Under Employee Incentive Plan
Positive
Jul 14, 2026
EasyJet has disclosed that several senior managers acquired ordinary shares under its UK Share Incentive Plan, an HMRC-approved scheme that allows employees to buy company stock through monthly salary deductions. On 10 July 2026, PDMRs including R...
Business Operations and StrategyM&A Transactions
EasyJet Board Backs Higher-Value Apollo Takeover Approach Over Castlelake Bid
Positive
Jul 10, 2026
EasyJet has agreed in principle to key financial terms of a possible all-cash takeover by Apollo-managed funds at £7.15 per share, valuing the airline at about £5.7 billion and offering a substantial premium to recent trading levels. The...
Business Operations and StrategyM&A Transactions
easyJet Backs Terms of Castlelake’s £6.90-a-Share Possible Takeover
Positive
Jul 6, 2026
easyJet has agreed in principle on key financial terms of a recommended cash offer from U.S. investment firm Castlelake, L.P. to acquire the shares it does not already own at £6.90 per share, including a partial unlisted share alternative. Th...
Business Operations and StrategyM&A Transactions
EasyJet Rejects Castlelake’s Sweetened Bid but Extends Takeover Deadline
Neutral
Jun 25, 2026
EasyJet’s board has unanimously rejected a fourth indicative takeover proposal from U.S. investment firm Castlelake, which offered £6.50 per share in cash with an option for some holders to take unlisted non-voting shares. The directors...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
EasyJet Board Rejects Castlelake’s ‘Opportunistic’ Takeover Approach
Positive
Jun 22, 2026
EasyJet has rejected a third unsolicited takeover proposal from investment firm Castlelake, which offered £6.25 per share in cash with an option for unlisted, non-transferrable, non-voting shares in a Castlelake vehicle. The board deemed the ...
Business Operations and StrategyExecutive/Board Changes
EasyJet Expands Management and Staff Equity Participation Through Share Awards
Positive
Jun 12, 2026
EasyJet has granted a restricted share award of 27,071 shares to PDMR Garry Wilson under its Restricted Share Plan, structured as a nil-cost option that is scheduled to vest in December 2028 subject to performance underpins. The move underscores t...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
EasyJet Flags Challenges to Any Castlelake Takeover as Offer Period Begins
Neutral
Jun 1, 2026
EasyJet has responded to an announcement by investment firm Castlelake, which is in the early stages of considering a possible offer for the airline, stressing that it has received no approach or proposal to date. The company has now entered an of...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
EasyJet Updates EMTN Programme With FCA-Approved Supplementary Prospectus
Positive
May 28, 2026
EasyJet has published a supplementary prospectus to its Euro Medium Term Note Programme, following approval by the U.K. Financial Conduct Authority. The new supplementary offering circular, dated 28 May 2026, updates the existing February 2026 doc...
DividendsRegulatory Filings and Compliance
EasyJet Discloses Delayed Notification of CEO Dividend Reinvestment
Negative
May 26, 2026
EasyJet disclosed that Chief Executive Kenton Jarvis reinvested dividends into the company’s ordinary shares through transactions executed in March 2026, which were only notified to the airline by its registrar Equiniti on 21 May. The compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.