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StocksMedium•20 April 2026•

1 min read

UBS Slashes easyJet 2026 Profit Forecast by 53% Amid Rising Cost Pressures

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Key Facts

1UBS slashed its 2026 profit before tax forecast for easyJet by 53%.

2The price target was cut to 635p from 700p.

UBS has issued a bearish outlook on easyJet, slashing its 2026 profit before tax forecast by a substantial 53%. The investment bank noted that the growth in the company's holiday division is no longer sufficient to offset deepening losses within its core airline operations. Consequently, the price target for the stock was lowered to 635p from 700p. The low-cost carrier is currently grappling with rising fuel costs and an unforeseen £30 million legal provision. Analysts highlighted that easyJet's strategy of lowering fares to stimulate demand, rather than cutting capacity, has significantly eroded profit margins. This downgrade signals major structural concerns regarding the airline's long-term profitability amid intense market competition.