London-listed shares in EasyJet (LON:EZJ) slipped in early trading on Thursday after the budget carrier announced that Chief Executive Johan Lundgren will be st

Easy Jet


EasyJet CEO Succession Plan: What Lies Ahead for the Budget Carrier?


blog post cover photo

Image credit: Maxim Hopman

London-listed shares in EasyJet (LON:EZJ) slipped in early trading on Thursday after the budget carrier announced that Chief Executive Johan Lundgren will be stepping down in 2025.

Lundgren has spent seven years at the firm after coming over to the business from travel group Tui. During his tenure, Lundgren oversaw a time of deep financial stress caused by COVID-related travel restrictions, and has led efforts to recover from the crisis.

In October, Lundgren said the company had ordered over 150 aircraft as part of a push to take advantage of an ongoing surge in travel demand. Chief Financial Officer Kenton Jarvis, who is set to replace Lundgren at the helm of easyJet at the beginning of January next year, said he backed the board's plans to boost performance.

Jarvis will face the task of persuading skeptical investors, with shares in easyJet trading well below pre-pandemic levels. Analysts at RBC Capital Markets, however, argued that "management transition risk will be limited" by his promotion.

The group posted a pre-tax loss of 350 million pounds in its fiscal first half, compared to analysts' expectations for a loss of 340 million pounds, according to a LSEG poll cited by Reuters. But it was narrower than a loss of 392 million pounds in the year-ago period.

A jump in fuel prices and investments in its holidays business pushed up headline costs at EasyJet, although revenues were boosted by an 11% bump in passenger traffic.

The RBC analysts flagged that easyJet's guidance has removed language describing fourth-quarter revenue per seat (RPS) as "well ahead," saying instead that airline load factors and yields will improve.

Stay informed about corporate leadership transitions and their impact on stock performance with the Price Targets API

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep