EasyJet has also been hit by higher oil costs in recent months, and by currency moves, saying:
It is expected that easyJet’s unit fuel bill for the six months to 31 March 2019 will be around £37 million adverse, while headline foreign exchange will have an adverse impact of around £8 million
EasyJet: Unanswered Brexit questions are hurting us
Budget airline EasyJet has fired a warning that the Brexit crisis is hurting its business, and spooking potential customers from buying flights.
EasyJet told shareholders this morning that it is now more cautious about its prospects for the next six months, due to “increasing softness” in prices.
It singled out the many ‘unanswered questions’ about Britain’s departure from the European Union as a key factor.
It’s a timely warning, as MPs prepare to hold another round of indicative votes on Brexit, amid swirling speculation that Britain could face another general election.
Johan Lundgren, easyJet chief executive, warns the City:
“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.
EasyJet expects to have made a £275m loss for the last six months, so could do without Brexit confusion clouding the crucial Easter and summer holiday season.
More encouragingly, easyJet says it’s “well-prepared” for Brexit, whatever the outcome.
Now that the EU Parliament has passed its air connectivity legislation and together with the UK’s confirmation that it will reciprocate, means that whatever happens, we’ll be flying as usual. I am pleased that we have also made progress on our European ownership position which is now above 49%.
Introduction: Global manufacturing in focus
Good morning, and welcome to our rolling coverage of the financial markets, the world economy, the eurozone and business.
Happy April! A new month means a new flurry of economic data, showing how the world’s factories sector fared in March.
These Purchasing Managers Index reports (PMIs), from IHS Markit, are expected to show that eurozone manufacturing contracted in March, while the UK slowed (but kept growing).
David Madden of CMC Markets points out that Germany is struggling.
Italian, France, German and UK manufacturing PMI reports will be in focus this morning, and traders will be paying close attention to the German report seeing as the flash reading was 44.7 – its lowest since July 2012.
Weak readings could fuel concerns over Europe’s economy; conversely, traders will be hoping to see signs of green shoots.
Overnight, China’s factory PMI has beaten expectations, with manufacturing bosses more upbeat about growth and output.
European stock markets are expected to open higher.
- 8am BST: Eurozone manufacturing PMI report for March
- 9.30am BST: UK manufacturing PMI report for March
- 10am BST: Eurozone inflation for March
- 3pm BST: US manufacturing PMI report for March