Home Business NewsBusinessAviation News Brexit plays a part in Easyjet’s ‘cautious’ second half outlook

Brexit plays a part in Easyjet’s ‘cautious’ second half outlook

1st Apr 19 6:47 am

Easyjet has announced on Monday their outlook for the second half of the year is looking “more cautious,” due to macroeconomic uncertainty along with Brexit woes hitting demand.

The budget airline gave a trading update for the six months to 31 March, they are expecting losses of £275m before tax, in line with previous announcements given.

The company’s revenue is expected to rise 7.3% to £2.34bn and seating capacity to grow by around 14.5% to 46.2m.

In the first half the total headline cost is expected to increase by around 18.8%, due to higher fuel costs, an increase in price per seat excluding fuel with increased capacity.

Looking forward Easyjet said, “Whilst Easyjet will deliver H1 results in line with expectations, macroeconomic uncertainty and many unanswered questions surrounding Brexit are together driving weaker customer demand in the market, such that we are seeing increasing softness in ticket yields in the UK and across Europe. Given this uncertainty our outlook for H2 is now more cautious.”

Johan Lundgren, chief executive said, “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.”

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