EasyJet (EZJ) AI Stock Analysis

• Market Cap: £2.74B
• Dividend Yield: 2.37%
• Average Volume (3M): 4.19M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.06
• Revenue Growth: 8.56%
• EPS Growth: 10.47%
• Country: UK
• Employees: 17,797
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): N/A
• Shares Outstanding: 758,010,000
• 10 Day Avg. Volume: 4,493,322
• 30 Day Avg. Volume: 4,191,156
• PEG Ratio: 0.71
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 4.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £568.84
• Price Target Upside: 56.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 0.64
• Revenue Forecast (FY): £11.03B

• Rating: 78 Outperform
• Price Target: 414.00 p ▲(14.11% Upside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

EasyJet's stock is rated positively due to strong technical indicators and an attractive valuation. Financial performance is solid, with improvements in profitability and a stable balance sheet, though cash flow challenges remain. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Low-cost model and ancillary revenue

EasyJet's low-cost business model with growing ancillary revenue (bags, seats, bundles) provides durable margin supplementation and revenue diversity. Ancillaries and dynamic pricing increase per-passenger yields and reduce reliance on base fares, supporting steady cash generation across cycles.

Market leadership in European low-cost travel

A broad European network and scale across 150+ destinations gives EasyJet structural advantages in route density, brand recognition and slot access. Scale supports unit cost advantages, higher utilization of A320 fleet and repeat customer flows, underpinning resilient long-term demand.

Improved profitability and strong ROE

Sustained margin improvement and a 14.12% ROE indicate effective capital deployment and operational efficiency. Strong ROE supports reinvestment or deleveraging, signalling management can generate solid returns on equity even in a capital-intensive industry.

Negative Factors

Negative free cash flow growth

Negative free cash flow growth, despite strong operating cash flow, constrains capacity to fund fleet investment, dividends or debt reduction from internal sources. Over months this limits financial flexibility and increases reliance on external financing for capital needs.

Capital-intensive industry exposure

Airline operations require continuous high capital expenditure for aircraft and maintenance. This structural intensity means EasyJet must retain liquidity and access to financing; any sustained downturn or higher funding costs can pressure cash reserves and strategic options.

Exposure to fuel and macroeconomic shocks

EasyJet's margins and demand remain structurally vulnerable to fuel price swings and macro downturns. Even with improved cost control, persistent commodity or economic shocks can erode unit economics and reduce passenger volumes across multiple quarters.

EasyJet Business Overview & Revenue Model

Company Description

easyJet plc operates as an airline carrier primarily in Europe. It also leases aircrafts, as well as operates tours; and provides financing services. As of September 31, 2021, the company operated 927 routes with approximately 308 aircrafts in 34 countries; and 153 airports. It sells seats through its own website www.easyjet.com and its easyJet Worldwide' platform, its mobile application, global distribution systems, corporate online booking tools, content aggregators, and tour operator. easyJet plc was founded in 1995 and is headquartered in Luton, the United Kingdom.

How the Company Makes Money

EasyJet generates revenue primarily through ticket sales, which constitute the largest portion of its earnings. The company employs a low-cost model, offering competitive fares while charging for additional services such as checked baggage, seat selection, and in-flight refreshments. This ancillary revenue stream has become increasingly significant, contributing to the overall profitability of the airline. EasyJet also benefits from partnerships with hotels, car rental companies, and travel insurance providers, allowing it to offer bundled services that enhance customer convenience. Furthermore, the company implements dynamic pricing strategies to optimize revenue based on demand fluctuations, and its frequent flyer program encourages customer loyalty, driving repeat business.

EasyJet Financial Statement Overview

Summary

EasyJet has shown strong profitability improvements with better cost management and steady revenue growth. The balance sheet is stable with a manageable debt-to-equity ratio, but cash flow performance is mixed, with strong operating cash flow but negative free cash flow growth.

Income Statement

EasyJet has shown a consistent improvement in its income statement metrics over the past few years. The gross profit margin and net profit margin have improved significantly, indicating better cost management and profitability. Revenue growth has been steady, with a 5.55% increase in the latest year. EBIT and EBITDA margins have also improved, reflecting operational efficiency. However, the airline industry is highly competitive, and external factors such as fuel prices and economic conditions can impact future performance.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 0.84, which has improved from previous years. The return on equity is strong at 14.12%, indicating effective use of equity to generate profits. The equity ratio is healthy, suggesting a solid capital structure. However, the industry is capital-intensive, and maintaining a strong balance sheet is crucial to weather economic downturns.

Cash Flow

Cash flow metrics indicate a mixed performance. While operating cash flow has been strong, free cash flow growth has been negative, which could be a concern for future investments and debt repayments. The operating cash flow to net income ratio is robust, suggesting good cash generation relative to profits. However, the free cash flow to net income ratio is lower, indicating potential challenges in converting profits into free cash flow.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	10.11B	9.31B	8.17B	5.77B	1.46B
Gross Profit	1.70B	1.56B	1.38B	801.00M	-663.00M
EBITDA	1.56B	1.50B	1.28B	499.00M	-439.00M
Net Income	494.00M	452.00M	324.00M	-169.00M	-858.00M
Balance Sheet
Total Assets	11.51B	11.04B	9.84B	10.45B	9.77B
Cash, Cash Equivalents and Short-Term Investments	3.53B	3.46B	2.92B	3.64B	3.55B
Total Debt	2.93B	3.28B	2.88B	4.31B	4.45B
Total Liabilities	8.01B	8.06B	7.05B	7.92B	7.13B
Stockholders Equity	3.50B	2.97B	2.79B	2.53B	2.64B
Cash Flow
Free Cash Flow	804.00M	536.00M	797.00M	246.00M	-1.18B
Operating Cash Flow	1.72B	1.47B	1.55B	776.00M	-1.03B
Investing Cash Flow	-872.00M	-2.95B	-552.00M	-569.00M	719.00M
Financing Cash Flow	-705.00M	35.00M	-1.42B	-532.00M	1.64B

EasyJet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 362.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EZJ, the sentiment is Negative. The current price of 362.8 is below the 20-day moving average (MA) of 440.12, below the 50-day MA of 460.84, and below the 200-day MA of 477.81, indicating a bearish trend. The MACD of -23.61 indicates Positive momentum. The RSI at 19.05 is Positive, neither overbought nor oversold. The STOCH value of 4.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EZJ.

EasyJet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EZJ	78 Outperform	£2.74B	7.05	15.74%	2.37%	8.56%	10.47%
IAG	71 Outperform	£16.04B	6.79	73.24%	2.07%	6.42%	17.62%
FGP	64 Neutral	£932.55M	5.69	19.57%	3.66%	3.45%	43.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WIZZ	61 Neutral	£924.43M	1.06	41.72%	―	8.26%	-20.45%
MCG	50 Neutral	£126.22M	-0.48	160.47%	―	-4.74%	-610.71%

EasyJet Corporate Events

EasyJet Executives Add Shares Under HMRC-Approved Incentive Plan

EasyJet plc, the U.K.-listed low-cost airline focused on short-haul European routes, operates a point-to-point model targeting price-conscious leisure and business travellers. The group also generates revenue from ancillary services and employs equity-based incentive schemes to align management and employee interests with shareholder value.

The company has disclosed that four persons discharging managerial responsibilities acquired 37 partnership shares each at £4.06 per share under its HMRC-approved Share Incentive Plan, which allows U.K. employees to buy shares via monthly salary deductions. The transaction, notified under Market Abuse Regulation requirements, underlines ongoing executive participation in the all-employee share plan and reinforces EasyJet’s emphasis on equity ownership and governance transparency for stakeholders.

The latest share purchases highlight continuity in incentive structures rather than a change in strategic direction or capital structure. For investors, the update provides routine visibility into management’s equity exposure, signalling alignment with ordinary shareholders while maintaining compliance with regulatory disclosure standards.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £445.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Confirms Auditor Change from PwC to Deloitte

EasyJet has confirmed a planned change of auditor, with PricewaterhouseCoopers resigning as the company’s auditor effective 27 February 2026, following completion of work related to the annual renewal of its Euro Medium Term Note programme. PwC has stated there are no matters connected with its departure that need to be brought to the attention of shareholders or creditors, indicating an orderly and non-contentious transition.

Following a competitive statutory audit tender completed in 2024, Deloitte has been selected to fill the casual vacancy and will now become easyJet’s auditor, with a formal shareholder vote on the appointment scheduled for the company’s 2027 annual general meeting. The move underscores easyJet’s adherence to corporate governance and audit rotation practices, giving investors clarity over the continuity of its financial oversight and reporting processes.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Updates Euro Medium Term Note Programme with New FCA-Approved Prospectus

EasyJet has published an Offering Circular dated 16 February 2026 for the update of its Euro Medium Term Note Programme, which covers notes issued by easyJet plc and easyJet FinCo B.V., with guarantees provided by easyJet Airline Company Limited and the respective group entities. The FCA-approved prospectus, now available via the U.K. regulator’s national storage mechanism, underscores the airline’s continued use of the capital markets for flexible debt financing, while explicitly excluding any offer or sale of the securities to investors in the United States in line with securities law restrictions.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Secures Strong Shareholder Backing at 2026 AGM

EasyJet reported that all resolutions at its 12 February 2026 Annual General Meeting were approved by shareholders via poll, including both ordinary and special resolutions. The strong level of support, covering items such as the annual report, directors’ remuneration and the final dividend for the 2024–25 financial year, signals continued shareholder backing for the airline’s governance, capital allocation and strategic direction.

The voting outcomes, with high percentages in favour on key resolutions, suggest alignment between the board and investors at a time when the airline sector remains sensitive to costs, demand cycles and competitive pressures. The approval of the final dividend underlines management’s confidence in EasyJet’s financial position and cash generation, and provides income visibility for investors while reinforcing the company’s standing among European listed carriers.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £6.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Sticks to 2026 Outlook as Demand and Holidays Unit Offset Wider Q1 Loss

EasyJet reported a wider headline loss before tax of £93 million for the first quarter of its 2026 financial year, despite robust demand that lifted passenger numbers by 7% and improved load factors to 90%, supported by capacity growth and a strong performance from easyJet holidays, which delivered £50 million of profit and 20% customer growth. Operational metrics improved notably, with better on-time performance and higher customer satisfaction, while record January booking volumes and strong forward sales for summer 2026 underpin unchanged full-year guidance of around 7% ASK growth, modest unit cost inflation and continued revenue maturation from recent capacity investments in Italy and new bases, as the airline targets sustainable profit growth and reinforces its sustainability leadership in the sector.

The most recent analyst rating on (GB:EZJ) stock is a Sell with a £4.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Executives Acquire Shares Through Employee Incentive Plan

EasyJet has disclosed that Equiniti Share Plan Trustees, acting as trustee of the company’s HMRC-approved Share Incentive Plan, purchased ordinary shares on 12 January 2026 on behalf of several senior managers, including Robert Birge, Kenton Jarvis, David Morgan and Garry Wilson. Under the plan, UK employees can buy easyJet shares through monthly salary deductions of up to £150, and the latest transaction saw each of the named persons discharging managerial responsibilities acquire 30 partnership shares at a price of £4.96, underscoring ongoing management participation in the company’s all-employee share ownership scheme and aligning executives’ interests with those of shareholders.

The most recent analyst rating on (GB:EZJ) stock is a Buy with a £7.00 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.

EasyJet Sets February AGM and Tightens Voting Rules to Meet EU Ownership Requirements

EasyJet has published its Notice of Annual General Meeting (AGM) and proxy form for shareholders, with the materials available via the UK’s National Storage Mechanism and the company’s website, alongside its 2025 Annual Report and Accounts. The AGM will be held on 12 February 2026 at London Luton Airport, with shareholders able to attend and vote both in person and electronically, and the board strongly encouraging investors to submit proxy votes in advance. The airline also reiterates that, to comply with European ownership and control requirements, it continues to suspend voting rights on certain shares held by UK and other non-EU nationals so that a majority of voting rights remain with EU persons, currently standing at 35.35% ownership by EU persons, with affected shareholders to be formally notified and their votes potentially scaled back if they exceed their eligible holdings. These arrangements underscore the ongoing post-Brexit constraints on EasyJet’s shareholder base and voting structure, with practical implications for investor participation and corporate governance at the AGM.

The most recent analyst rating on (GB:EZJ) stock is a Sell with a £9.30 price target. To see the full list of analyst forecasts on EasyJet stock, see the GB:EZJ Stock Forecast page.