Brexit uncertainty is hitting demand, says easyJet

The many unanswered questions surrounding Brexit are weakening customer demand, easyJet said in a trading update today.

It said this, combined with general macroeconomic uncertainty, is also hitting ticket yields in the~UK~and across~Europe.

It said given this uncertainty its outlook for the second half of the year is now ‘more cautious’.

It expects a first half headline loss before tax of around~£275 million, with revenue up by around 7.3% to around~£2,340 million~with seat capacity up by 14.5% to around 46.2 million.

But revenue per seat at constant currency is expected to fall by 7.4%, in line with previous guidance of a mid to high single digit decline for the half.

Total headline cost in the first half is expected to increase by around 18.8% due to increased capacity, higher fuel unit costs and a modest increase in cost per seat excluding fuel.

The airline said whatever the outcome of Brexit it will be flying as usual.~

Chief executive Johan Lundgren said: “We are operationally well prepared for Brexit.~ Now that the EU Parliament has passed its air connectivity legislation and together with the~UK’s confirmation that it will reciprocate, means that whatever happens, we’ll be flying as usual.~ I am pleased that we have also made progress on our European ownership position which is now above 49%.

“For the second half we are seeing softness in both the~UK~and~Europe, which we believe comes from macroeconomic uncertainty and many unanswered questions surrounding Brexit which are together driving weaker customer demand. We are rolling out further initiatives to support our trading and are making significant progress in our Operational Resilience Programme, which is designed to make the easyJet flying experience better for our customers over the summer.”

source: travel Mole