EasyJet will announce within weeks the location of a new European base as Britain's airline industry grapples with the potential consequences of a 'hard Brexit'.

Sky News understands that the low-cost carrier's board has pencilled in an April decision on the location of a new air operator's certificate (AOC), which will allow it to continue flying between EU member states.

The decision will effectively entail the establishment of a new legal headquarters for easyJet, although the company has no plans to relocate the 1000 staff who work at its operational head office at Luton Airport.

EasyJet has spent the last nine months evaluating the merits of securing an AOC in each of the remaining 27 EU member states, and sources said on Sunday that countries including Austria, Malta and Portugal had been under serious recent consideration.