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EasyJet CEO Johan Lundgren on the tarmac of Birmingham Airport. PICTURE: Reuters/Joanna Plucinska/File Photo
EasyJet CEO Johan Lundgren on the tarmac of Birmingham Airport. PICTURE: Reuters/Joanna Plucinska/File Photo

London — Johan Lundgren, the architect of easyJet’s recovery from the pandemic, would step down in early 2025, the budget airline said on Thursday, sending its shares sharply lower as it also reported first-half losses in line with its expectations.

Lundgren, who has slashed debt and built up a profitable packaged holiday business, will be succeeded by CFO Kenton Jarvis who, like Lundgren, joined easyJet from Europe’s largest travel company TUI.

The airline’s shares were down almost 7% early on Thursday, wiping out most of the gains made this year in their biggest drop since October, even as Jarvis told reporters he was committed to the board’s current strategy.

The company reported a headline pretax loss of £350m for the first half of its financial year, versus an expected loss of £340m, according to an LSEG poll. Losses were £392m a year earlier. easyJet had forecast a loss of £340m-£360m.

It said headline costs were up 17% as jet fuel prices rose and it 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.

Those targets include reaching a group pretax profit of £1bn by 2028.

Analysts said Jarvis’ appointment was a sign of continuity. The company did not say why Lundgren, who has been at the helm for seven years, was stepping down.

European airlines reported mixed first-quarter results as costs rose but are counting on an expected record summer of travel to boost revenues as consumers continue to prioritise spending on holidays since the pandemic.

easyJet has said it is well positioned to capitalise on that demand, with its Airbus fleet unencumbered by RTX engine issues that have grounded some rivals’ planes.

Reuters

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