EasyJet’s Chief Executive Officer, Johan Lundgren, has announced that he will be stepping down from his role in early 2025 after seven years at the helm. This decision follows the advice of Sir Rod Eddington, who famously quoted Australian cricketing legend Keith Miller when stepping down as chief executive of British Airways in 2005.
During his time as CEO, Mr. Lundgren has navigated the airline through one of the toughest periods in its history – the COVID-19 pandemic. He successfully secured two cash calls, amounting to £419m and £1.2bn respectively, to keep the airline afloat. Mr. Lundgren’s leadership and strategic decisions have also led to a record-breaking summer for easyJet, with a capacity of 100 million seats this financial year.
In terms of financial performance, the airline has seen improvements, with half-year pre-tax losses falling to £350m from £411m in the same period last year. EasyJet’s customer satisfaction levels have also been restored, making it one of the best in the industry.
Under Mr. Lundgren’s leadership, easyJet has also launched easyJet Holidays, which has proved to be a successful business, contributing a quarter of group profits last year. This move was initially met with skepticism, as it seemed counterintuitive for a low-cost airline to offer package holidays. However, it has paid off, and the service is being rolled out to customers in Switzerland, France, and Germany.
Another significant achievement during Mr. Lundgren’s tenure is the investment in new aircraft. EasyJet is seeking to modernize its fleet and replace older jets with new, more efficient ones to decarbonize. This move will benefit his successors, as the airline has an existing order book with Airbus until September 2034 for 306 aircraft.
Despite these successes, Mr. Lundgren’s record is not without blemish. Some industry analysts have compared his handling of the pandemic to that of rival airline Ryanair’s CEO, Michael O’Leary. However, Mr. Lundgren’s departure may come as a surprise to many, as easyJet seems to be in its best shape in years. The airline’s share price fell by 4% following the news, with Mr. Lundgren explaining that his decision to step down is due to his desire to retire after serving the company for over seven years.
Mr. Lundgren’s successor, Kenton Jarvis, who is currently the chief financial officer, will be only the fifth CEO in easyJet’s 29-year history. This is a significant milestone for the airline, as it is the first time it has appointed a new CEO from within the company. Mr. Lundgren’s decision to step down after a long and successful tenure is a testament to his leadership and the stability he has brought to the airline.
