INTERNATIONAL – British low-cost carrier easyJet warned on Monday that demand for tickets and prices were coming under pressure because of Brexit jitters and a weaker economic outlook, sending shares in European airlines lower.
In a trading update, easyJet confirmed its previous expectations for a 275 million pound ($360 million) loss in the six months to the end of March but added it was concerned by signs of a weakening consumer mood and softer ticket yields across Europe.
Shares in the company sank 8 percent in response and those in Ryanair, British Airways-owner IAG, Air France KLM and Deutsche Lufthansa were among the worst performers on the pan-European STOXX 600 index as investors worried about the peak summer season.
“There is a slowdown and the uncertainty around Brexit is affecting the consumer confidence in the third quarter and also going into the fourth quarter,” Easyjet Chief Executive Officer Johan Lundgren told analysts.
“We also expect the overall environment in Europe to get worse, because that’s what (air traffic network) Eurocontrol has signaled.”