Jet fuel crunch puts 2027 earnings at risk for European airlines, JPM says

By Reuters News

** JPMorgan says the latest surge in jet fuel prices could lead to weaker earnings for European airlines next year, with low-cost carriers more exposed to higher energy costs

** "We expect further capacity cuts if fuel remains high, especially from the mid-lower end of the market in short-haul," JPM says

** The brokerage says further spikes in fuel prices could lead to larger operating losses in 2027, particularly for budget airlines

** However, long-haul carriers, such as British Airways owner IAG ICAG.L, are best placed to withstand further energy price increases, it adds

** Flag carriers are less sensitive to fuel hikes due to stronger hedging to lock in prices and steady passenger demand for premium services, JPM says

https://www.reuters.com/graphics/AUTOMATED-20261013/JET-FUEL-365D/bypraekdbve/chart.png

COMPANY

RATING

OLD RATING

PT

OLD PT

Air France-KLM

Overweight

Overweight

€14.50

€16

easyJet

Neutral

Neutral

715 pence

715 pence

IAG

Overweight

Overweight

€5.75

€5.75

Lufthansa

Neutral

Neutral

€7

€7.50

Ryanair

Overweight

Overweight

€29

€32

Wizz Air

Neutral

Neutral

1,050 pence

1,200 pence

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