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Brexit turbulence hits airlines as BA owner warns

International Consolidated Airlines Group "no longer expects to generate an absolute operating profit increase similar to 2015.” Other airlines follow the descent.

British Airways planes
Shares in BA nosedived more than 20%.

For the next 24 hours budget airline Ryanair (LON:RYA) is offering a million one way tickets to destinations across the continent for £9.99, in what could either be a final fairwell to our freedom to travel, or a subtle way of telling EU migrants to go home. Either way it is a clever marketing ploy, however it has not detracted from the general nosedive seen by airlines operating out of the UK today.

Ryanair Holdings Plc's shares are trading 12% down at around 12p, lifting itself slightly out of the drop off it saw first thing when shares fell to 11p. Such turbulence was expected by commentators, as Ryanair, alongside other airline groups, saw weaker than expected trading leading up to the referendum.The airline is yet to release a comment regarding Brexit.

Meanwhile, owner of British Airways, International Consolidated Airlines Group (LON:IAG) has said the vote to leave the EU is going to hit operating profits, seeing shares nosedive more than 20%.

“Following the outcome of the referendum, and given current market volatility, while IAG continues to expect a significant increase in operating profit this year, it no longer expects to generate an absolute operating profit increase similar to 2015," said the group in a statement earlier today. Shares were down 23% to 406p.

Elsewhere, easyJet (LON:EZJ) reassured investors, saying it was confident the leave vote "will not have a material impact on its strategy or its ability to deliver long term sustainable earnings growth and returns to shareholders."

That didn't stop some investors from hitting the ejector button with shares plunging 20% at market open this morning, they're now cruising at around 265p, 17% down.

-UPDATE SHARE PRICE, DETAIL-

Quick facts: Ryanair Holdings plc

Price: 8.52 EUR

LSE:RYA
Market: LSE
Market Cap: €9.28 billion
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