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Warning of 'summer uncertainty' as easyJet shares tumble

Published 27/06/2016

EasyJet has said it will be damaged by Brexit
EasyJet has said it will be damaged by Brexit

EasyJet shares fell 19% after the firm said it will take a £28 million hit following two months of turbulence and warned that Brexit would have a negative impact on the airline.

Share fell from 1313p to 1061p as it flagged strikes in France in May and June and severe weather and congestion issues at Gatwick leading to more than a thousand cancellations, with the EgyptAir tragedy also denting demand.

The budget airline said: "The operating environment for all European airlines in May and June has been extremely challenging.

"These incidents, together with the EgyptAir tragedy, resulted in some drop off in consumer demand leading to lower yield and have impacted third quarter profit before tax by approximately £28 million and have had a negative impact on third quarter revenue per seat."

On Brexit, easyJet said that it anticipates economic and consumer uncertainty this summer and, as a result, revenue in the second half will be down by "at least a mid-single digit percentage".

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