Airline stocks plunged today (24 June) over travel demand and flying rights, with airlines with a strong focus on the UK market worst hit. IAG, easyJet, Wizz Air and Ryanair all fell by 18-22 percent, and HSBC downgraded all European carriers to “reduce”.
Ahead of the vote, airline bosses had warned that a so-called Brexit could lead to a slide in demand for leisure and business travel, though the current fall in the pound could make leisure travel to the UK more attractive.
The UK government is expected to look to rejoin the single aviation market, but there is no certainty this will be achieved which could affect 30% of easyJet’s and Ryanair’s operation. Demand from Polish and Hungarian workers flying to and from the UK could affect airlines, if workers begin to require visas to stay in the UK.
Lufthansa’s exposure is “manageable” because Britain accounts for only 5 percent of group revenue.