‘Brexit’ bookings strong but fares lower, says Ryanair

Britain’s decision to leave the EU will weaken airfares and is causing Ryanair Holdings PLC, Europe’s largest carrier by passengers, to consider shifting growth away from the UK, the airline’s CE said Monday. “We are taking another 50 aircraft next year. Would we place any of those in the UK? It is highly unlikely,” Michael O’Leary said. “We will pivot all of our growth into the European Union.” Shares in airlines have been among the hardest hit by the UK vote last week amid concern a plummeting British currency and slowdown in economic growth will impact demand. BA parent IAG issued a profit warning Friday in part linked to the outcome of the referendum, and British budget carrier easyJet Monday said earnings would be hit. Shares in easyJet are down about 24% in afternoon London trading. O’Leary said “there clearly is going to be a hit to UK GDP and to European GDP. There is three to four months of considerable uncertainty. The pound has fallen through the floor. It has all the feel and hallmark of another 9/11.” Ryanair’s response will be to discount seats, he said, to fill planes.<br/>