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

Deutsche Lufthansa AG

14/10/2026 08:23

** 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
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
     

(Reporting by Gianluca Lo Nostro)
((gianluca.lonostro@thomsonreuters.com))