Business General News

EasyJet predicts losses during the European summer season due to the Brexit debate

EasyJet

Date: 1st April 2019

EasyJet said in a statement on Monday that the continuing debates on Brexit have caused ticket prices to fall significantly. There has been a visible decline in the people book tickets from and to the United Kingdom, the company said.

The company initially was on track with its preparations for the Brexit deal. It later confirmed, after a review, its predicted loss of $275 million pounds by the end of March. Besides that, it expects a decline in the average prices of tickets.

The budget airline hopes that the distress due to the Brexit debate is resolved quickly, which should result in a better upcoming half of the financial year.

Following the statements put out on Monday, the EasyJet shares fell 8 percent.

CEO Johan Lundgren said that the company expected the issue to be resolved by now. Instead, it still continues causing a fall in consumer demand.

EasyJet is not the only airlines affected by the Brexit debate. Airlines all across Europe are facing lower fares, increasing fuel cost and, most importantly, the dilemma of Brexit. For instance, Iceland’s Wow Air abandoned its operations last week after it couldn’t attract investors.

It has been about 3 years since the vote to leave the European Union took place. However, businesses still fight for the answer to whether Britain will leave the Union, and whether it would do it in a way that secures the interests of travel and trade companies.

The government of the United Kingdom claims that a rash departure from the bloc would cause a recession in the economy.

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