EasyJet issues ‘cautious’ outlook with demand softened by Brexit

The UK’s faltering attempt to exit the EU is hurting demand for air travel, just as the busy summer season gets under way. EasyJet dropped the most in more than two years after warning the crucial holiday months will be weaker than expected as low-cost airlines feel the brunt of the UK’s political crisis over Brexit and waning consumer demand. “We had hoped for a little more clarity and certainty around Brexit at this point,” CEO Johan Lundgren said. That uncertainty “has been accelerated in the last four to six weeks and that clearly has had an impact on customer demand.” The dour outlook adds another example of real-world fallout from the political infighting that has marked the run-up to Brexit, now delayed until at least April 12. From carmakers idling workers to Airbus stockpiling parts, the impact of Brexit is rippling through the economy. While Lundgren declined to give an outlook for annual earnings, Bernstein analyst Daniel Roeska said the carrier’s earlier indication that pretax profit would be in line with consensus of GBP580m is now out of reach. “Investors will likely question whether other European short-haul operators are experiencing similar dynamics,” Roeska and colleagues said in a note.<br/>