The easyJet share price has struggled this year, underperforming against the FTSE 100. While the broader index has risen by 20% over the past 12 months, easyJet shares dropped by 7%. This decline persisted despite a brief rally triggered by Donald Trump’s announcement on April 9 to pause trade tariffs, which initially buoyed airline stocks.
Current Share Price Evaluation
As of mid-October 2025, easyJet’s share price stands at approximately 481 pence. With a price-to-earnings ratio of 7.8, it remains significantly below the FTSE 100 average of around 18, indicating a potential bargain for investors.
Financial Performance
- Pre-tax profits for easyJet rose to £286 million in July for the quarter ending June 30, marking a £50 million increase compared to the previous year.
- Challenges such as French industrial action are expected to erode profits by around £25 million, alongside rising fuel costs impacting overall earnings.
Market Speculation and Challenges
On October 14, reports of a potential bid by the Mediterranean Shipping Company caused a temporary spike in easyJet’s share price, which rose by 11%. However, this excitement was short-lived, and shares declined again shortly thereafter.
Analysts have noted that easyJet holds valuable landing slots in key cities like Gatwick, Milan, Paris, and Lisbon, making it an attractive prospect. However, the current sluggish European economy poses significant challenges.
Analyst Sentiments
On October 15, Morgan Stanley began coverage of the airline sector, rating easyJet as “Underweight” and set a target price of 400 pence. They cited rising competition and increasing operational costs as major concerns.
Despite these challenges, some analysts are optimistic about easyJet’s long-term prospects, anticipating recovery in the sector. They predict a median target price of 624 pence within the next 12 months, indicating a potential increase of 30% from the current levels.
Investment Outlook
Investors considering easyJet’s share price should weigh the low valuation against possible market rebounds. With a trailing yield of 2.5%, investors can receive dividend income while waiting for a recovery.
Ultimately, easyJet’s share price is seen as “stuck on the runway,” awaiting the right signals for a potential lift-off. Those looking for immediate gains may find better opportunities among other FTSE 100 stocks for now.
