Business

Easyjet and Foxtons warn of Brexit impact

EasyJet plane Image copyright Getty Images

Airline Easyjet and estate agent Foxtons have issued warnings about the impact of the UK leaving the EU on their businesses.

Easyjet said the vote meant "additional economic and consumer uncertainty is likely this summer" and it expected revenues to fall as a result.

Shares in the carrier sank 15% after its statement.

Foxtons said it expected profits would be "significantly lower" in 2016 from a year earlier, and its shares dived 20%.

Extra costs

In addition to the uncertainty caused by the EU referendum vote, Easyjet said trading conditions in May and June had been "extremely challenging".

It said strikes in France, severe weather and issues at Gatwick had hit demand, and meant pre-tax profits in the third quarter had been hit by £28m.

The airline said that the uncertainty caused by the referendum result meant "revenue per seat at constant currency in the second half will now be down by at least a mid-single digit percentage compared to the second half of 2015".

"In addition, recent movements in fuel prices and exchange rates are now expected to add around £25m of additional cost in the year to that guided at the half-year results."

Image copyright Getty Images

In a statement, Foxtons chief executive Nic Budden said: "Whilst we had a strong start to the year, we said in our first quarter update that we expected the first half to be challenging ahead of the EU referendum.

"Since then recent sales volumes have been slow as uncertainty and higher stamp duty has led many buyers and sellers to sit on their hands.

"The result of the referendum has increased uncertainty and is likely to mean that these trends continue for at least the remainder of the year."

The company said an expected upturn in the London property market in the second half of the year was "unlikely to materialise".

Insurance company Aviva also issued a statement as it sought to reassure investors about its financial position.

The company said it had "one of the strongest and most resilient balance sheets in the UK insurance sector with low sensitivity to market stress", and added that Brexit would have no significant operational impact.

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