EasyJet hit by Brexit fallout

EasyJet said it was facing the most difficult summer holiday season for years as it laid bare the impact from the Brexit-hit pound and warned over consumer confidence after turmoil inTurkey and recent terrorist attacks.

The low-cost carrier said it has been forced to slash fares, which are down by more than 5% year on year, to boost demand, while costs have surged after the pound has fallen around 10% since the UK’s decision to leave the EU.

Boss Carolyn McCall said the group was facing the toughest period in her tenure, following two months of turbulence and the EU vote.

She said the pound’s plunge after the Brexit vote had seen a £40million currency swing against the group, while holidaymaker confidence has also been impacted by sterling’s

“The group is facing the toughest time in my tenure”

weakness as well as last week’s massacre in Nice and the attempted coup in popular sun-seeker destination Turkey.

The group said revenues dropped 2.6% to £1.2billion in its third quarter, after air traffic control strikes, runway closures at Gatwick and severe weather.

Shares dropped 6% after the update.

EasyJet has seen its stock tumble after warning last month that it would take a £28million hit following twomonths of turbulence and cautioning that Brexit would have a negative impact on the airline.

The group is also making plans potentially to move its legal headquarters out of the into the EU if the government cannot negotiate to retain the status quo in the aviation market, which allows operators to fly across the continent in a deregulated environment.