- easyJet stock has struggled for rhythm since breaking below 400p, and a 6% drop in the last 5 session points to a strengthening selloff
- The Iran war has increased operation costs for the airline and threatens its margins despite the company hedging 70% of the oil price
- Despite pressure on the easyJet share price, the company's balance sheet is strong and could help it weather the oil price spike
easyJet’s shares have been struggling ever since they fell below 400p back in early March 2026. The stock has exhibited choppy trading, with brief gains often erased shortly afterward. Recently, it started going down again from May 7th, losing about 6% in just five days amid broader market dynamics and company-specific concerns.
Why easyJet Stock is Struggling
The main influence behind the stock’s performance pressures throughout April and May appears to be easyJet’s trading update from mid-April. In that update, the company projected a headline pre-tax loss of £540-560 million for the first half of fiscal year 2026, a figure that exceeded some market forecasts.
EasyJet also warned that the conflict in Iran and rising fuel costs were making travelers hesitate to book flights. They even mentioned they had to pay an extra £25 million just for fuel in March. That’s a pretty big blow for an airline that mostly flies on routes where they don’t make much profit.
Even though the airline has locked in prices for 70% of its summer fuel needs at $706 per metric tonne, the other 30% isn’t covered. That part is exposed to the current market price, which is around $1,500. Just a $100 change in that price can mean a £40 million difference in their costs in the second half of 2026.
The Balance Sheet Is Not the Problem
The good news is that the company itself is not in crisis. CEO Kenton Jarvis has highlighted that easyJet maintains an investment-grade balance sheet along with £4.7 billion in liquidity, a position that suggests it can capably manage current geopolitical uncertainties.
Furthermore, the fundamental demand for European leisure travel remains robust. What the market appears to be reflecting is a period of more immediate earnings pressure, rather than any existential threat to the business.
This mix of immediate challenges and the company’s long-term strength helps explain why the stock price keeps bouncing around without a clear direction. Buyers seem to step in when it drops to the low 350s, but then sellers show up whenever it gets close to 400p. It seems like neither side is fully committed right now.
The Minefield that is the Path to 400p
Can the stock reclaim the 400p mark? Technically, it has a steep hill to climb. The stock is currently trading below its 50-day and 200-day moving averages, which usually suggests that the path of least resistance is downward.
The most significant immediate factor to watch is the release of the first-half results, anticipated on May 21. For the six months concluding March 31, easyJet is projected to announce a headline pre-tax loss ranging from £540 million to £560 million.
This projection is already roughly 7% below what analysts had generally forecast. If the actual print is at the low end, or if management sounds less cautious on summer bookings than feared, investors could price in a positive surprise quickly.
It is because surging jet fuel costs, a shortened booking curve, and recurring Middle East uncertainty keep snuffing out each brief recovery rally.
No, demand remains strong. easyJet reported a 90% load factor and high customer satisfaction, indicating that planes are full despite the stock’s performance.
In the near term, the probability appears to be moderate, and achieving this would likely necessitate strong earnings performance and more stable fuel prices to effectively overcome the current technical resistance levels.
