Airlines are set to face uncertainty after UK Brexit

Subject

The impact of Brexit on airlines.

Significance

Irish-based low-cost carrier (LCC) Ryanair has repeatedly warned over the past months that Brexit could halt the majority of flights out of the United Kingdom. These comments echo wider concerns about the disruptive effect of Brexit and the United Kingdom's ability to negotiate new air transport agreements.

Impacts

• Larger European airlines such as Air France-KLM and Lufthansa would welcome restrictions on UK-based LCC operations.
• UK airport expansion may be frustrated; in particular, expansion plans at London Heathrow could come under threat.
• The UK air transport market faces a period of slower growth with lower revenues and profitability.