EasyJet and Ryanair shares fall amid fears for the economy following Brexit

EasyJet said the decision to leave the EU is likely to cause 'economic and consumer uncertainty'

EasyJet intensified concerns for airlines with a warning that it is likely to take a post referendum hit
EasyJet intensified concerns for airlines with a warning that it is likely to take a post referendum hit

Transport stocks slid on Monday as fears for the UK economy intensified after the UK voted to leave the EU.

EasyJet was one of the biggest losers on the FTSE 100 shortly after midday with shares closing down 22.32 per cent to 1,020p.

The budget airline joined IAG, the owner of British Airways and Aer Lingus, in warning that a drop in travel demand and a slide in the value of the pound could hurt earnings for the rest of the summer.

EasyJet said the decision is likely to cause “economic and consumer uncertainty”.

The company is expecting that revenue per seat at constant currency in the second half will now be down by “at least a mid-single digit percentage” compared to the second half of 2015.

Ryanair shares also fell by 13.9 per cent on Monday, following the EasyJet warning.

Meanwhile shares in Eurotunnel, which manages and operates the channel tunnel between Britain and France, dropped by 17 per cent.

“A reduction in the value of the sterling would reduce the amount of the group’s debt in that currency, would increase costs for maritime competitors and would support British exports, which would compensate for any potential negative effects,” a pre-market statement from the company said on Friday.

EasyJet also said disruption in May and June, together with the Egyptair tragedy, had resulted in more than a thousand cancellations and a drop off in consumer demand, hitting third-quarter profit before tax by about £28m.

While a rise in fuel prices would a add £25m to the airline’s costs this year.

Separately, trading in Barclays and RBS shares was suspended on Monday following heavy losses on the London Stock Exchange.

Shares in Foxtons have crashed 23 per cent after the estate agent issued a post-Brexit vote profit warning.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in