In a recent announcement, Easyjet revealed that CEO Johan Lundgren will be stepping down at the beginning of the year. This marks the end of his successful seven-year tenure with the company. As part of the leadership reshuffle, CFO Kenton Jarvis will be promoted to the top post.
The news of CEO Lundgren’s departure coincided with Easyjet’s report of reduced net losses in the first half of the year, covering the six months leading up to the end of March. Lundgren expressed the company’s focus on achieving another record-breaking summer, with expectations of robust full-year earnings growth.
However, the boardroom shakeup had an immediate impact on EasyJet’s shares, which slumped by 7.2% to 491.40 pence. Investors are now contemplating the airline’s future under new leadership. Despite Easyjet’s CEO Lundgren stepping down, Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, acknowledged CEO Lundgren’s positive results, attributing them to cost savings and strong demand and pricing dynamics.
Jarvis had been serving as Easyjet’s CFO since February 2021. He played a pivotal role in navigating the group through the challenges posed by the pandemic. Prior to joining Easyjet, he held the position of CEO of the airline division at travel group TUI. The airline reported a reduced pre-tax loss of £350 million for the half-year ending March 31, a significant improvement compared to the previous year’s loss of £411 million. Easyjet anticipates a strong surge in profits for the full year ahead.
Despite the positive outlook, EasyJet and CEO Lundgren noted that fuel costs had increased by 18% during the half-year period. The airline also highlighted the ongoing high price of jet fuel due to global demand and supply instability caused by geopolitical events.
Nevertheless, EasyJet is confident about its booking numbers. Around 77% of its third-quarter schedule has already been sold.
