EasyJet chief to step down next year

(Sharecast News) - EasyJet chief executive Johan Lundgren is to step down after more than seven years in the role, the budget carrier said on Thursday.

The FTSE 100 firm said Lundgren, who has held the position since December 2017, would retire in early 2025. He will be replaced by current chief financial officer Kenton Jarvis.

Stephen Hester, chair, said he was "sad" Lundgren was retiring.

He continued: "He has done an excellent job as our chief executive, steering the company through the immense challenges of the Covid period and setting up a clear strategy and strong execution plan."

Hester added that the appointment of Jarvis - who joined the carrier in 2021 - would allow for an "orderly and seamless" transition.

"We are focused on executing the medium-term plan and related financial targets set out earlier this year and Kenton is the ideal person to lead our executive team to that end."

The announcement came as easyJet posted a reduction in first-half losses. Traditionally its weaker half, as it does not include summer holidays, the headline pre-tax loss for the six months to 31 March narrowed to £350m from £411m a year previously.

The company flew 36.7m people during the period, 11% up year-on-year, while airline revenues per seat rose 5% to £69.87.

Total revenues rose 22% to £3.3bn, driven by "increased flown capacity, pricing strength and ancillary products," easyJet noted.

Looking to the full year, easyJet said it was well-positioned to deliver "strong" earnings growth on the back of positive summer demand and improved profits in easyJet holidays.

Bookings were currently in line with expectations, it said, with around 77% of the programme sold for the third quarter and 39% for the fourth.

Lundgren said: "EasyJet's targeted growth and focus on productivity has delivered a reduction in winter losses, boosted by our trusted brand and network that we continue to invest int.

"We are now absolutely focused on another record summer, which is expected to deliver strong full-year earnings growth and are on track to achieve our medium-term targets."