Postematic recovery of the tourism industry exceeded even the most positive expectations. Strong and lasting demand for airline tickets propelled the prices of many airlines by the roof. Easyjet (LSE: EZJ) Actions have increased by 31% in the last three years.

But recently there have been signs of weakness. After the profit warning on Thursday (July 17), the price of Easyjet shares dropped by 11% from the end of 2025.

Clear price forecasts

However, city forecasts suggest that the last price misfortunes of the budget leaflets do not confirm anything more than ephemeral turbulence. Seventeen analysts currently have grades FTSE 100 business. And they are unanimous in the belief that it will raise in the next 12 months:

The sight of the consensus is that easyjet will raise by about 39.6% of the value during this period. If it is correct, today shares worth 10,000 GBP would be 13,960 GBP. Add dividends and the total return would be even higher (Easyjet shares have a vigorous efficiency of 2.9% forward today).

Considering the cheapness of FOTSA supplies, it can have a significant range of reflection on paper. Its forward price (P/E) is only 6.9 times, one of the lowest in the sector.

What’s more, his price ratio to the book (p/b) is only 1.4. It is above the water importance of one, which shows that it trades with a compact bonus to the value of its assets. But it is still lower than the 10-year average of 1.7 times.

Profit warning

Taking all this into account, I am not convinced of Easyjet’s ability to be higher. I also think that the economical valuation of the airlines reflects many challenges, which it faces in the tiny and outside.

My fears have been confirmed by today’s unwanted profit warning. The company said “Last higher fuel costs and the scale of industrial activities according to French air traffic control in July“It would delight full profits of 25 million pounds.

The disruptions of the working force at the airport and air traffic infrastructure pose many years of threats to the airline industry. And Easyjet is particularly susceptible, considering that most of his destinations are in Europe, where such interference is common.

The problem of volatile fuel costs is equally strong and no less significant. About 30% of airline expenditure is associated with fuel.

On the other hand, the demand for Easyjet airline tickets and holidays on the packaging are constantly growing. The group’s turnover increased by 10.9% between April and June, and the profit before taxation increased by 21.2%.

However, it was also found that the last trend of vacationers devoted to booking lasted time. Could it be a sign of the weakening of the traveler’s appetite as life costs survived?

Cleaning immaculate

For these reasons, I do not want to buy Easyjet shares despite the clear perspective of the price of the municipal analysts shares.

After today’s update, Panmure Liberum reduced its 12-month price forecasts to 730 pens per share from 800 pence, one of many reduction of urban analytics. I am afraid that more such cuts can be upcoming and can significantly reduce FTSE 100 shares from today’s levels.