EasyJet and Jet2 Shares Downgraded: Analyst Sees Challenging European Transport Sector in 2026

Analysts at JPMorgan downgraded both EasyJet (LON: EZJ) and Jet2 (LON: JET2) shares in a recent note to clients, warning that Europe’s transport sector is set for another difficult year in 2026.

The bank downgraded EasyJet to Underweight from Neutral, trimming its price target to 400p from 500p. 

Jet2 was lowered to Neutral from Overweight, with its target reduced to 1,450p from 1,850p. 

Both moves are part of JPMorgan’s wider 2026 outlook, which maintains a cautious stance across freight, shipping and airlines.

JPMorgan told investors that it expects next year to look much like 2025, characterised by soft freight demand, surplus capacity and weakening pricing. 

The bank noted that persistent demand-supply mismatches continue to weigh on container shipping and forwarding markets, with no near-term relief in sight. 

Although these trends are largely outside the control of passenger airlines, they contribute to a backdrop of broader transport-sector fragility.

For carriers specifically, JPMorgan warned of mounting risks in short-haul flying as aircraft deliveries accelerate. 

With many European airlines increasing fleet sizes simultaneously, the firm flagged the potential for oversupply, which could pressure yields and profitability during the crucial summer season.

In EasyJet’s case, the downgrade reflects concerns that incremental capacity growth across the region may dilute pricing power just as cost inflation remains stubborn. 

Jet2, while previously viewed more favourably due to its package-holiday model and strong balance sheet, is now seen as facing similar exposure to an overcrowded short-haul market.

JPMorgan said it continues to monitor booking trends and fuel dynamics, but for now sees limited catalysts to turn sentiment in the near term.