15/07/2016

Brexit Part II: Weaker sterling impacts airline order books

Following Brexit, the GBP is down 14% against the US$, reaching a 31-year exchange rate low of 1.2798. Currency devaluation will impact traffic, but a weaker pound also means airlines may have to pay more for aircraft purchases. Our analysis suggests that among the airlines operating out of the UK, Jet2 appears to be one of those more vulnerable to a weaker pound. Sustained currency weakness may lead it to defer some of its planned deliveries.


Transaction Economics
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