EasyJet shares drop 7% as airline takes sterling hit

British airline easyJet warned that annual profit had fallen by more than a quarter and hinted trading would remain tough as fares continue to decline and a weak pound weighs, sending its shares down 7%.

The profit decline is the first since 2009 and in part reflects the budget airline’s exposure to the security-hit destinations of Egypt and Turkey and the French cities of Paris and Nice.

That combined with the devaluation of the pound since Britain voted to leave the EU in June mean that easyJet has fared worse this year than its bigger low-cost rival, Ryanair.