easyJet share price: Airline could move headquarters after Brexit vote

on Jun 29, 2016
Updated: Mar 11, 2020

easyJet (LON:EZJ) could move its headquarters from Luton in the aftermath of Britain’s decision to leave the European Union, The Telegraph has reported, quoting the low-cost airline’s boss. The comments come in the wake of the carrier’s profit warning earlier this week.

easyJet’s share price has been subdued in London in today’s session, having lost 0.56 percent to 1,063.00p as of 14:34 BST and underperforming the benchmark FTSE 100 index which currently stands 1.94 percent higher at 6,259.36 points. The airline’s shares have lost about 30 percent of their value over the past year, and are down by nearly 40 percent in the year-to-date.
The Telegraph quoted easyJet’s chief executive Carolyn McCall as telling Channel 4 yesterday that it “remains to be seen” whether the budget carrier would keep its HQ at Luton airport, where it has been based since it was founded in 1995.

“What I have said is that Luton is a massive base for us and we wouldn’t be moving lock, stock and barrel from Luton,” she added. “So at the moment we know that Luton will remain Luton in terms of large numbers of people.”
The comments come after easyJet said last week that its initial focus would be discussions with UK and EU governments and regulators to ensure that Britain remains part of the single EU aviation market. The carrier is reportedly mulling obtaining an air operator’s certificate in an EU country, which would require it to establish a local holding company.
In other easyJet news, Liberum trimmed its rating on the stock from ‘buy’ to ‘hold’ yesterday following the group’s profit warning on Monday.
“easyJet has warned of a disappointing performance in Q3 and challenges for the Q4 outlook,” the broker’s analyst Gerald Khoo commented, as quoted by Citywire, adding that “uncertainty trumps attractive valuation”.
As of 14:58 BST, Wednesday, 29 June, easyJet plc share price is 1,065.00p.