easyJet has said that its losses have improved by 61% year-on-year, as its chief executive officer (CEO), Johan Lundgren, announced that he will step down from the role in early 2025.

The firm saw its loss before tax reach £350m in the six months to 31 March, while its profitable customer growth improved by 42% compared to H1 2023.

Total revenue at the airline jumped by 22% in H1 2024 to £3.27bn, as a result of an increased flown capacity, pricing strength and ancillary products, including easyJet holidays, continuing to deliver incremental revenue.

However, the group’s costs increased by 17% in the same period to £3.62bn, with increased fuel prices adding to this figure.

In its outlook for the rest of the year, easyJet said that it has 59 million seats on sale for the second half of the year, which is an 8% increase year-on-year, and it expects to sell round 100 million seats across the year.

Furthermore, easyJet holidays are expected to deliver over £170m in profit before tax, which is a over a 40% year-on-year growth. This comes as the airline successfully launched its Birmingham and Alicante bases, with its tenth UK base expected to open in Southend in summer 2025.

Lundgren said: "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.

"Our two newest bases, Alicante and Birmingham, are achieving passenger numbers well above the network average and we have announced a tenth UK base at London Southend from next March, continuing the growth of our leisure network in the UK where easyJet holidays plays an increasingly important role.

"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."

The half year results came as Lundgren announced that he will step down from the role of chief executive officer in early 2025, and subsequently will leave the company.

The airline has said that Lundgren will be replaced by Kenton Jarvis, who currently serves as chief financial officer, having joined the company in 2021.

Lundgren stated: "I congratulate Kenton on being nominated my successor, it is fully deserved, and I will work closely with him and the whole executive team to achieve this year's goals and hand over responsibilities smoothly at the end of the year. There are important things still to accomplish over the balance of the year, but when the time comes I will leave easyJet with a great sense of loyalty and of pride at the progress made and the potential the Company has for the future."

Investment director at AJ Bell, Russ Mould, added: "The airline’s shares have taken another lurch downwards on the latest results and news that chief executive Johan Lundgren is stepping down next year. He’s being replaced by finance boss Kenton Jarvis, which suggests a smooth passing of the baton and no change to corporate strategy. The negative share price reaction implies that the market doesn’t approve of the appointment and that investors wanted an outsider to come in and shake things up.

"One of the key goals for airlines is to make sure planes are as full as possible each flight. easyJet expects its planes to be fuller this summer and says it is on track to hit a medium-term target of more than £1bn pre-tax profit. Normally such news would be reassuring, but it’s just not enough to please the market."

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