easyJet Downgraded to “Sell” as Deutsche Bank Flags Ongoing Short‑Haul Challenges

easyJet PLC (LSE: EZJ) has been downgraded by Deutsche Bank from “hold” to “sell,” with the bank warning that the UK‑based airline faces another difficult year in the competitive short‑haul airline market. According to Deutsche Bank, intra‑European seat capacity increased by just over 4 % last summer, and although capacity growth is expected to slow slightly in 2026, it will still limit easyJet’s ability to raise fares. Demand growth has returned to typical levels linked to broader economic performance, meaning airlines are relying on lower prices to attract passengers. This has resulted in flat nominal fare growth for short‑haul flights. Deutsche Bank forecasts UK GDP growth slowing to 1.1 % in 2026 from 1.4 %, which could further dampen discretionary travel demand. In this environment, Deutsche Bank believes carriers with lower cost bases, like Ryanair, are better positioned to cope with fare pressure, leaving easyJet more exposed despite disciplined capacity management and solid operational performance. At the time of reporting, easyJet shares were trading around 480.36 p. #easyJet #aviation #shorthaul #DeutscheBank #SlimScan #GrowthStocks #CANSLIM