EasyJet passenger aircraft on the tarmac at London Southend Airport, Southend-on-Sea, UK, Friday, May 3, 2024.
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shares EasyJet Budget airline shares fell more than 7% on Thursday release The loss in the first half of the year was slightly larger than expected, and it announced that the CEO would be leaving.
Reuters quoted a London Stock Exchange Group (LSEG) poll showing pre-tax losses of 350 million pounds ($443 million) in the six months to March, higher than analysts’ expectations of 340 million pounds.
The figure narrowed from an overall pre-tax loss of £411m reported a year ago as the airline continues to emerge from the Covid-19-era travel slump.
The company also announced that Chief Executive Johan Lundgren will resign in January 2025 after seven years at the helm. He will be replaced by current Treasurer Kenton Jarvis.
As of 10:53 a.m. London time, EasyJet shares narrowed their losses slightly, falling 5.9%.
Lundgren told CNBC that the company believes there will be “positive momentum” during the summer travel season and that consumers will continue to spend money on travel, especially to classic European destinations such as Spain, Portugal and Turkey.
“People are really prioritizing vacations and travel, so we’re not seeing any difference in demand patterns since the pandemic resurgence,” he said.
The chief executive added that he did not expect easyJet’s flight schedule to be affected this travel season, despite wider industry concerns about supply constraints.
“I think we are probably one of the few airlines here, at least in Europe, that is able to get all the delivery that we expect from Airbus,” he said. “It will certainly be lower than some airlines expected, but we won’t be affected.”
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