EasyJet blames Brexit for weak outlook, shares fall 7 percent

257

(Reuters) – British low-cost carrier easyJet (LON:EZJ) warned on Monday that demand and pricing were struggling with Brexit jitters and also a weaker economic outlook, sending shares in European airlines lower.

EasyJet stated it was set to accumulate a 275 million pounds ($359 million) loss to the first 1 / 2 its financial year, in line with earlier guidance, while expecting revenue to your few months ended March to progress 7.Three percent to around 2.34 billion pounds.

However, revenue per seat at constant currency is predicted to obtain declined by about 7.4 % and the company claimed it was seeing weakness in ticket yields across Europe, compared with guidance last November.

"For your partner, there has been softness within great britain and Europe, which we predict stems from macroeconomic uncertainty and quite a few unanswered questions surrounding Brexit," Easyjet Chief Executive Officer Johan Lundgren said.

Shares in the company fell 7 percent responding, causing them to be the main loser on London's blue chip index and dragging other European airlines lower. IAG (LON:ICAG), one who owns British Airways, slipped 1.8 percent and Ryanair fell around 5 %.

"The outlook may be the challenge, with management having less confidence over the partner – the summertime," Liberum analyst Gerald Khoo said.

"Brexit uncertainty would be the real picture, but management sees macro uncertainty in the evening UK too."

European airlines are battling over-capacity and high fuel costs. Iceland's WOW air was the hottest budget airline casualty last Thursday, halting operations and cancelling all future flights after efforts to lift more funds failed.

Airline chiefs said last month that while carriers are able to withstand the impact of england leaving the european countries, even without a deal, having less political progress is frustrating and has dampened consumer demand.

Britain and also the EU have asserted flights will continue, even during case that you have a no-deal Brexit and Easyjet claimed it was positive that it becomes flying as always.

EasyJet, that is the largest operator at Britain's second-biggest airport Gatwick, said costs were set to elevate 18.8 percent, driven by fuel costs as well as its purchase of capacity.