Transport stocks slid on Monday as fears for the UK economy intensified after the UK voted to leave the EU.
EasyJet was one of the biggest losers on the FTSE 100 shortly after midday with shares down more than 23 per cent to 1,005p.
The budget airline joined IAG, the owner of British Airways and Aer Lingus in warning that a drop in travel demand and a slide in the value of the pound could hurt earnings for the rest of the summer.
EasyJet said the decision is likely to cause “economic and consumer uncertainty”.
The company is expecting that 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.
Ryanair shares also fell by nearly 9 per cent on Monday, following the EasyJet warning.
Meanwhile shares in Eurotunnel, which manages and operates the channel tunnel between Britain and France, dropped by more than 12 per cent.
“A reduction in the value of the sterling would reduce the amount of the group’s debt in that currency, would increase costs for maritime competitors and would support British exports, which would compensate for any potential negative effects,” a pre-market statement from the company said on Friday.
EasyJet also said disruption in May and June, together with the Egyptair tragedy, had resulted in more than a thousand cancellations and a drop off in consumer demand, hitting third-quarter profit before tax by about £28 million.
While a rise in fuel prices would a add £25 million to the airline’s costs this year.
Separately, trading in Barclays and RBS shares was suspended on Monday following heavy losses on the London Stock Exchange.
Shares in Foxtons have crashed 24 per cent after the estate agend issued a Brexit profit warning.
