EasyJet’s biggest worry had been just how quickly air fares would recover; now the concern is how much cash the budget airline will have to hand back to compensate its stranded passengers. It is all a further illustration of just how the chaos at airports has disrupted the recovery for carriers struggling to return to profitability.
Airline stocks are cheap and easyJet is the most lowly priced of all. The carrier has an enterprise value of only 3.89 times forecast adjusted earnings before tax and other charges, below those of Ryanair, Wizz Air and even International Consolidated Airlines Group, the long-haul specialist behind British Airways and Iberia. EasyJet has underperformed both Wizz and Ryanair since the pandemic grounded flights in 2020, delivering a negative return
