Budget airline EasyJet said today that its chief executive Johan Lundgren will step down in early 2025, as it reported a first-half loss largely in line with company expectations ahead of a busy summer season.
Lundgren, who has helped to lead the airline out of its pandemic debt and has grown the holiday business, will be succeeded by the airline's chief financial officer Kenton Jarvis, who like Lundgren, joined easyJet from Europe's largest travel company, TUI.
EasyJet shares were down 5% in early trading.
The company reported a headline pretax loss of £350m, compared with an expected loss of £340m, according to an LSEG analyst poll. Losses were £392m a year earlier.
It was within the range of an earlier guidance of a loss between £340-360m.
EasyJet said its headline costs were up 17% as jet fuel prices went up and as the group continued investing in its holiday business, which logged a 40% rise in passengers year-on-year.
"We are now absolutely focused on another record summer which is expected to deliver strong FY24 earnings growth and are on track to achieve our medium term targets," Lundgren said in a statement.
Those targets include reaching a company-wide before tax profit of £1 billion by 2028.
Analysts pointed to Jarvis' appointment as a sign of continuity in leadership. The company did not say why Lungren, who has been in the top job for seven years, was stepping down.
European airlines reported mixed first quarter results as costs rose but are counting on revenue to grow in what is set to be a record summer for travel demand on the continent.
EasyJet has said it is well-positioned to capitalise on that demand, with its Airbus fleet unencumbered by RTX engine issues that have grounded parts of competitor Wizz Air's fleet as well as other carriers in Europe.
EasyJet's shares have climbed around 8% since the beginning of the year, compared with an approximate 12% rise in London's FTSE 100, which the company is set to rejoin.
