EasyJet says Brexit uncertainty is hurting its business

EasyJet has dialed back its expectations for the European summer season, warning that continued uncertainty over Brexit is driving ticket prices lower.

The discount carrier said that while its preparations for the UK-EU divorce were on track, economic uncertainty and confusion over Brexit were reducing demand for flights in the ultra-competitive market. It warned that the weakness would continue in the second half of its financial year to September 30.

“We are seeing softness in both the United Kingdom and Europe, which we believe comes from macroeconomic uncertainty and many unanswered questions surrounding Brexit which are together driving weaker customer demand,” CEO Johan Lundgren said in a statement.

Shares in the company dropped over 8% in London.

EasyJet confirmed that it would post a loss of roughly £275 million ($359 million) for the six months ending March 31. Final results for the period will be released on May 17.

The airline has established a subsidiary in the European Union to prevent its operations from being disrupted by Brexit. It said Monday that it will be “flying as usual” even in the event of a disorderly exit.

Airlines across Europe have been put under pressure by weaker fares, a shortage of pilots, rising fuel costs and continued uncertainty over Britain’s departure from the European Union.

Last week, Icelandic carrier Wow Air halted operations after failing to secure new investment.