Ryanair shocked and IAG concerned over Brexit

European airlines are struggling to come to terms with UK referendum fallout.

European airlines have been left rocking today following the UK's decision to leave the EU.

Having been one of the most vocal supporters of a 'Remain' vote in recent months, Ryanair has admitted it has "no contingency plan" to deal with Brexit.

Ryanair's chief marketing officer Kenny Jacobs called the result a "shock" and said that he expects European air fares to rise and travel to become more difficult.

He told the Irish Independent that the first effects of the referendum result on the business will be seen in its summer 2017 scheduling.

He said:

"We’re surprised and disappointed.

"In the short-term it doesn’t mean anything. What we’re going to be looking at now is a couple of years where there’s a huge amount to be figured out. Germany will have to take a leadership role.

"We don’t have a contingency plan. We don’t need to have one until we know what they’re going to do with the single market."

Jacobs also said that the company's future capacity plans in the UK are now very much up in the air.

Meanwhile, Aer Lingus owner IAG has asserted that Brexit will not impact its business in the long-term, but has tempered its short-term outlook.

IAG has stated that it will no longer meet its profit targets for 2016.

It said:

"Following the outcome of the referendum, and given current market volatility, while IAG continues to expect a significant increase in operating profit this year it no longer expects to generate an absolute operating profit increase similar to 2015."

Overall, airlines with a high dependence on the UK market have been badly hit on the stock market, with shares in IAG, Ryanair, easyJet and Wizz Air all dropping between 18-22%.