EasyJet has said it expects to make a loss before tax of £275 million in the first half of the financial year.
Revenue is expected to grow 7.3 per cent to £2.34 billion in the six months to March 31.
But costs will be 18.8% higher due to higher fuel prices, enlarged capacity and an increase in cost per seat.
It warned that uncertainty over Brexit is holding back demand in the short term.
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Chief executive Johan Lundgren said: "For the second half we are seeing softness in both the UK and Europe, which we believe comes from macroeconomic uncertainty and many unanswered questions surrounding Brexit which are together driving weaker customer demand."
O2 has increased its paid paternity leave package to 14 weeks for all permanent employees, including workers in its high street shops.
Prospective fathers are only entitled to a minimum of two weeks paid leave under existing law.
The extended paternity policy, which is being introduced on Monday, will cover heterosexual and same-sex couples, as well as adoptive and surrogate partners.
O2's chief HR officer Ann Pickering said: "It's really important to give new parents a chance to spend time with their child."
MPs are set to take back control of the Brexit agenda in a fresh attempt to find an alternative to Theresa May's deal that Parliament can support.
The Commons will stage a second round of "indicative" votes on Monday on a series of rival proposals tabled by backbenchers to see if any can command a majority.
The move comes as Mrs May struggles to contain the rising tensions with her Cabinet as the clock counts down to the latest EU deadline on April 12.
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