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EasyJet share price sinks 6% as airline announces CEO will step down

EasyJet plane (file photo)
EasyJet plane (file photo) Copyright Armando Franca/Copyright 2023 The AP. All rights reserved
Copyright Armando Franca/Copyright 2023 The AP. All rights reserved
By Angela Barnes
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Shares in budget airline EasyJet fell 6% on Thursday morning after it announced that its CEO will be stepping down.

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The company said Johan Lundgren will depart EasyJet in early 2025 after seven years as its chief executive - and will be replaced by the airline's chief financial officer, Kenton Jarvis, who has been at the group since 2021.

The news sent EasyJet's share price lower as investors responded to the company update, reversing most of the gains it had made this year.

EasyJet also reported its latest financial results and posted a reduction in first-half losses with the headline pre-tax loss for the six months to 31 March narrowing to £350m from £411m a year previously.

The company also highlighted that its 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.

"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 in," Lundgren said in a statement.

"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."

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