Airline Investors Suffer From Brexit Chaos As Easyjet Share Price Crasheswritten by Bella Palmer
If everyone is sick of the shambolic circus Brexit has become, investors with shares in airlines, especially Easyjet, must be among the most fed up after the budget airline’s share price crashed by almost 10% yesterday.
Yesterday’s update had been scheduled for Friday but was brought forward. It
Economic slowdowns in Germany and France and rising fuel costs are
Pre-tax profits of £560 million had been forecast for Easyjet but analysts now believe that could slide to as low as £400 million and the company announced a 7.4% decline in average revenue per seat over its first half.
Long term, Easyjet investors will be confident the company whose 1995 launch reshaped the European aviation industry will bounce back. The company’s management is not planning to reduce capacity in the belief that demand will return once Brexit uncertainty is finally removed. However, given recent turns of event, that could prove much longer than anticipated. Nonetheless, Easyjet’s business model and brand are well-proven and some investors will likely view the current Brexit-related troubles as an attractive, discounted buying opportunity for the company’s shares.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.