There was a lot of good news for the aviation industry this year. It made little difference easyJet though. The easyJet share price is down 12% so far in 2025, at a time when the broader FTSE100 the index (of which it is a part) increased by 18%.

This does not necessarily reflect an industry-wide trend. Parent B.A International consolidated airline group increased by 29% this year.

That said, easyJet’s share price hasn’t performed as badly as its rival Wizz. The company’s share price has fallen 19% so far this year.

However, given continued sturdy demand for aviation, can easyJet expect a share price recovery?

Solid workmanship

easyJet’s full-year figures were published last week. I had the impression that they were talking to a company in good shape.

Revenues increased by 9%, partly due to particularly sturdy performance in the package tour segment. Revenues increased by more than a quarter.

Pre-tax profit increased by 9% and net cash more than tripled to £0.6 billion. Overall, the airline had a solid year financially.

So why is the easyJet share price falling?

The outlook remains rosy

It can be assumed that investors expect demand for aviation to weaken over time.

However, this was not clear from easyJet’s final results. It expects to enhance its production capacity.

One of the threats is inflation. The airline said cost and operational efficiencies, as well as favorable fuel prices, should support it offset some of the impact of inflation.

Still, I believe some of the feeble share price performance this year can be attributed to investors’ continued concerns about how sturdy demand for civil aviation will be.

Given the economic slowdown in many European markets and households increasingly reducing discretionary spending, there is a risk that easyJet will experience a decline in passenger numbers.

One to consider

Still, such risks seem more than priced in.

Currently, easyJet’s share price to earnings ratio is just eight. This seems budget-friendly to me, especially considering the company’s improving net cash position.

The company has a proven business model and an attractive balance sheet. Its package holiday business is growing at a breakneck pace and I think this could continue in the coming years as it remains a modest player in the market overall.

The company has a well-developed brand, an extensive route network and a huge base of regular customers. It has been keeping a close eye on costs and has managed to move beyond pandemic-era problems to become profitable and generate cash.

Last week it announced a 9% dividend per share enhance. If the company’s gross profit continues to grow, I would expect the dividend to continue to grow.

To me, the share price looks attractive.

Whether a rebound occurs or not may depend on broader factors such as demand for civil aviation. However, I believe that easyJet is a stock worth considering by investors.