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

** 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