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EasyJet Plc dropped the most in more than two years after warning the crucial summer season will be weaker than expected as low-cost airlines feel the brunt of the U.K.’s political crisis over Brexit and waning consumer demand.

Revenue per seat at constant currency fell an estimated 7.4 percent in the first six months of the carrier’s fiscal year, while total costs rose 19 percent, Luton-based EasyJet said in a statement on Monday. Shares of the airline dropped as much as 10 percent in London trading, the biggest intraday drop since January 2017.

Even before Brexit, Europe’s low cost airlines were being squeezed by price competition and overcapacity. Wow Air Hf, the Icelandic discount carrier, went out of business last week stranding thousands of customers. Ryanair Holdings Plc also issued a cautious outlook, citing an industrywide slump in ticket prices and over-capacity across Europe this winter.

“Macroeconomic uncertainty and many unanswered questions surrounding Brexit are together driving weaker customer demand,” the company said in a statement Monday. “Our outlook for the second half is now more cautious.”

Easyjet traded 7.2 percent lower to 1,037.50 pence as of 8:34 a.m. in London. Shares in Ryanair and Thomas Cook also fell.

©2019 Bloomberg L.P.

This article was written by Lucca de Paoli from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to

Photo Credit: EasyJet aircraft. The carrier says uncertainty is subduing demand. Krisztian Bocsi / Bloomberg