Tuesday, 28 June 2016

Brexit: Flying into the unknown

Full article on economist.com

Despite predicting that a Brexit vote would not “have a material impact on our business”, International Airlines Group, the parent company of British Airways, has seen its stock price plummet by one-third since Friday. Shares in easyJet, the London-based low-cost carrier that relies heavily on open skies across Europe, have crashed just as dramatically. Even airlines at the heart of the European project are suffering: Lufthansa, Germany’s flag-carrier, is worth 17% less than it was before the referendum. Traders seem convinced that Britain’s divorce from Europe is bad news for the entire industry, whether due to the gloomy economic outlook, currency volatility, resurgent travel restrictions or the prospect of a full-blown break-up of the European Union...