The easyJet share price is up 49% in a month. What on earth's going on?

easyJet has surged about 49% over the last month, a rally that has drawn attention to the carrier’s earnings trajectory and balance sheet. The half-year results, released in late May, show a headline loss before tax of £552m, up from £394m the prior year, though there were positives: passenger numbers rose 6% to 42 million and the load factor improved to 90%, while net cash stood at £434m. The CEO described easyJet as having one of the strongest investment-grade balance sheets in European aviation, supporting confidence amid fuel-price volatility and demand shifts. The airline’s Holidays arm is highlighted as a growth driver, potentially sustaining the rally if demand remains robust and pricing power holds. Risks remain, including Middle East tensions, higher fuel costs, and weaker consumer spending, which could soften bookings. With a price-to-earnings ratio of 7.61, easyJet trades cheaply versus the FTSE 100, inviting upside if conditions improve and momentum persists.