EasyJet has warned that Brexit uncertainty is now knocking demand for summer holidays too after it hit Easter breaks.
Britain’s travel sector has already been affected this year, as Easter bookings slumped when holidaymakers held off due to worries over Brexit ,and now there are fears that a hangover will hit summer breaks too.
The slide in overseas holiday and flight bookings comes despite the airline’s assurances that whatever happens with Brexit it will be ‘flying as usual’.
Luton-based easyJet also confirmed investors’ fears that it would report heavy losses for the first half of its financial year – owing to spiralling costs – leading its shares to take a tumble in trading earlier this week.
The disappointment triggered an 8 per cent decline in easyJet’s shares to £10.30 on Monday and sent shockwaves through the broader airline sector as it stoked fears about the year ahead.
EasyJet said it expects to report losses of £275million when it issues its half-year in May.
While sales have increased by more than 7 per cent to £2.34billion, thanks to increased capacity, its costs have rocketed by nearly 19 per cent.
The airline has been stung by higher fuel prices and currency fluctuations, which have cost it around £37million and £8million respectively.