It was a volatile time for the stock market, with the conflict in the Middle East causing energy prices to skyrocket and disrupting companies trading in the region. Airlines are one of the hardest hit sectors. I believe that some stocks in this sector could be considered value stocks right now. Here’s one I’m checking out today.

Fuel price hit

I’m talking about easyJet (LSE:EZJ). The share price has fallen 34% over the past year, with most of the change taking place so far in 2026. The main factor has been a piercing enhance in fuel prices due to higher oil prices. In fact, last month’s half-yearly update showed £25m of additional fuel costs caused by the conflict in the Middle East, contributing to much larger than expected losses. At the same time, wages and other operating costs remain elevated, which also negatively affects profit margins.

Considering that fuel has such a significant share in the company’s operations, this undoubtedly constitutes a significant risk in the future. However, I think that it will not take long for the rate to return to the levels from the beginning of the year.

The rebound case

Firstly, demand is still very much alive. Summer bookings are sturdy and the airline continues to benefit from resilient leisure travel trends across Europe. More importantly, easyJet Holidays is performing very well, with customer numbers up 22% in the first half of the year compared to the same period last year. It becomes the main profit engine and offers higher margins than the airline’s core business. This means that even if fuel prices remain high, the company’s stock could continue to rise, providing more diversified revenue streams.

However, the main reason I think stocks could return to January levels is the resolution in the Middle East. The conflict has reached a deadlock due to the ceasefire and the lack (in my opinion) of willingness to escalate on all sides. I cannot afford for the global supply chain route through the Strait of Hormuz not to operate at full capacity for much longer, as this will harm all parties.

If confirmed, fuel prices should fall as oil levels fall, helping easyJet reduce costs almost overnight. Given that this is the biggest negative impact on the share price this year, I think the share price could return to the levels seen in early January at 522p, before the conflict began. From the current price of 366p, this would be an enhance of 43%. Taking into account an investment worth PLN 2,000 pounds, this could be worth £2,860.

Weigh it

Of course, my subjective view of the resolution of the war may be wrong, which is the biggest risk to the easyJet share price rising back to levels seen before the conflict. However, even if the stock doesn’t rise 43%, I think it’s inexpensive. The price-to-earnings ratio is 5.17, which is well below the fair value I apply of 10. Therefore, given its long-term investment prospects, I believe this is a stock for investors to consider.