EasyJet shares lurch lower after second post-Brexit profit warning

Added 6th October 2016

EasyJet was the worst performing FTSE 100 stock Thursday morning after its second successive profits warning.

EasyJet shares lurch lower after second post-Brexit profit warning

Since the EU referendum, easyJet has been one of the worst performing stocks in the FTSE 100 index, falling by close to 29%.

Shares in the British airline continued their descent this morning and were down by 6.9% to 934p at the time of writing.

Although, easyJet said it had achieved strong pre-tax profits “despite major external shock events and disruption,” it announced that the full year’s profits would be between £490m and £495m, lower than analysts’ expectations.

Just days after the Brexit vote, EasyJet similarly braced shareholders for lower third-quarter figures based off predictions that the already challenging operational environment would be compounded by additional uncertainty from the referendum.      

Hargreaves Lansdown equity analyst George Salmon said, “EasyJet is facing challenging times on a number of fronts.”

“The group say that weaker sterling is making going abroad less affordable for the average Brit, while the rising threat of terrorism is putting customers off too," he stated.

"These are industry-wide factors, however, the competition is heating up too. Other airlines are looking covetously at easyJet’s market share, with pressure coming from both the budget players Wizz and Ryanair, and ‘premium economy’ offerings like Vueling.”

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