Brexit Effects On Air Industry Possibly Reflected By EasyJet

This week, budget airline EasyJet’s third quarter report may serve as a profit warning to other airlines and industries in the United Kingdom post-Brexit.

EasyJet had warned about profit decline after the referendum. It had also shown signs it is possibly moving its headquarters from the United Kingdom to Europe.

Wyn Ellis, analyst at Numis, said: “Roughly four weeks on it will be interesting to see what impact Brexit has actually had on bookings at a vital time of the year and whether there is any further change to guidance.”

Numis has downgraded its full year profit forecast from £716 million to £612 million. A consensus of City analysts puts the number lower still at £592 million.

Shares in easyJet have also been hammered since June 24, falling 25%.

Graham Spooner, investment research analyst at The Share Centre, said: “It has been a torrid few weeks for budget airline easyJet so the market will be looking for some reassuring comments to revive the stock. The company was keen for the UK to remain in the EU so the stock fell sharply after the EU referendum result was announced.

“The latest passenger stats in June were encouraging but the market will be keen to hear if expectations for subdued consumer activity this summer has changed.”

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