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EasyJet's CEO Lundgren heads for exit, interim results beat forecasts

Published 16/05/2024, 08:43
© Reuters.  EasyJet's CEO Lundgren heads for exit, interim results beat forecasts
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Proactive Investors - Budget airline easyJet (LON:EZJ) reported a smaller first-half loss than expected and announced that chief executive Johan Lundgren will step down early next year.

After seven years in charge, Lundgren will be succeeded as CEO by current finance chief Kenton Jarvis, who joined the low-cost carrier in February 2021.

Jarvis will continue in the role of CFO during the transition period and a search for his successor "will commence shortly", the FTSE 100 company said in a statement.

As for the results statement for its winter period, revenue of £3.27 billion in the six months to end-March was up 22% on the prior year, as passenger numbers rose 11% to 36.7 million, with firm yields, ie revenue per passenger mile.

Airline revenue per seat (RPS) of £69.87 was up 5% despite challenges arising from the conflict in the Middle East, while planes were almost 87% full, marginally lower than the same period last year as capacity was 12% higher.

The headline pre-tax loss £350 million was down by £61 million compared to a year ago and less than the £357 million that City analysts had predicted.

EasyJet Holidays profits continued to grow, more than tripling to £31 million, and expected to deliver at least a 40% profit growth for the full year to £170 million-plus.

For the airline business, Lundgren outlined a positive full-year outlook too, with third-quarter airline RPS expected to be "slightly up" on a year ago, with the Easter peak falling into March.

For the fourth quarter RPS, he said the load factor is "ahead" with yield "slightly up" year on year.

Lundgren said: "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."

Read more on Proactive Investors UK

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