EasyJet falls most in two years as Brexit seen hurting growth

Bloomberg

EasyJet Plc dropped the most in more than two years after warning the crucial summer season will be weaker than expected as low-cost airlines feel the brunt of the UK’s political crisis over Brexit and waning consumer demand.
Revenue per seat at constant currency fell an estimated 7.4 percent in the first six months of the carrier’s fiscal year, while total costs rose 19 percent, Luton-based EasyJet said in a statement. Shares of the airline dropped as much as 10 percent in London trading, the biggest intraday drop since January 2017.
Even before Brexit, Europe’s low cost airlines were being squeezed by price competition and overcapacity. Wow Air Hf, the Icelandic discount carrier, went out of business last week stranding thousands of customers. Ryanair Holdings Plc also issued a cautious outlook, citing an industrywide slump in ticket prices and over-capacity across Europe this winter.
“Macroeconomic uncertainty and many unanswered questions surrounding Brexit are together driving weaker customer demand,” the company said in a statement on Monday. “Our outlook for
the second half is now more cautious.”
Easyjet traded 7.2 percent lower to 1,037.50 pence in London. Shares in Ryanair and Thomas Cook also fell.