EasyJet warns that Brexit and strikes will affect second-half profits for 2016

Shares in easyJet plunged by more than 7% early on Monday (27 June 2016) after the budget airline warned that its sales in the second half of the year are expected to suffer from Britain's decision to leave the European Union.

The Leave campaign secured 52% of the votes in last week's historic referendum, and easyJet has warned the ensuing uncertainty amid consumers and markets would see revenue fall by at least 5% year-on-year in the second half of 2016.

"Following the outcome of the EU referendum, we also anticipate that additional economic and consumer uncertainty is likely this summer, and as a consequence it is expected that revenue per seat at constant currency in the second half [of 2016] will now be down by at least a mid-single digit percentage compared with the second half of 2015," the company said.

The carrier added that pre-tax profits for the third quarter are expected to be £28m (€34m, $37.5m) lower than in the corresponding period last year, as a number of strikes by air traffic controllers in France and Italy have forced various airlines to cancel flights.

EasyJet said it had cancelled 1,068 flights in the third quarter, including 700 in June, due to strikes in France, congestion issues at London Gatwick airport and severe weather.

As a result of switching passengers to other flights, the airline said that third-quarter revenue per seat at constant currency would fall by around 8.6% compared with the near-7% decrease given as guidance at its half-year results.