EasyJet boss scoops £3m despite third year of losses

EasyJet’s boss saw his salary nearly quadruple despite the airline’s third consecutive year of losses.

Johan Lundgren received £3 million for the year to the end of September – almost four times the £794,000 he had collected in the previous 12 months.

The bonanza even came as EasyJet posted annual losses of £208m – although this was a huge improvement on the previous two years when losses amounted to £1bn.

The smaller losses and higher wages came as the industry recovered from the Covid-19 pandemic as airlines were grounded.

However, passengers continued to experience major disruptions, particularly over the summer, as airlines and airports struggled to cope with the lifting of lockdown restrictions and the reopening of airspace.

Chief financial officer Kenton Jarvis also saw a sharp increase in his salary to £2.1 million in 2022 from £363,000 the previous year.

Most of the increase for Lundgren came from the recovery of his bonus and equity awards, which together totaled £2.1m and were not paid out in 2021 or 2020 as the onset of the pandemic saw demand for air travel collapse, making airlines like EasyJet bleeding money.

Jarvis, meanwhile, received a bonus of £738,000 alongside share awards of £520,000 and base salary and benefits of £528,000. Lundgren, 56, now sees his base salary rise by 5.4 percent to £780,000.

Moni Mannings, chair of EasyJet’s remuneration committee, said in the company’s annual report that while it acknowledged “broader considerations for restraint” in pay increases, the company’s broader employee base received an average salary increase of more than 6 percent.

Lundgren has guided EasyJet through a hairy two years since the start of the pandemic.

But the pay rise is likely to raise eyebrows among passengers after a year of travel chaos.

Over the summer, EasyJet canceled thousands of flights, some on the day of departure, due to staff shortages caused by the pandemic.

The industry was criticized for being unprepared for the surge in passenger demand as restrictions were eased.

The company’s recovery plans have also been hampered by passenger limits at airports, including London Gatwick, one of its main hubs.

Passengers are facing further misery in the run-up to Christmas, with EasyJet and other airlines forced to cancel flights due to snowfall.

The revelation of Lundgren’s pay rise followed news last week that outspoken Ryanair boss Michael O’Leary was given an extra four years to secure an £86 million bonus after renewing his contract with the airline .

O’Leary, 61, who has been in charge since 1994, will stay until July 2028 – four years into his contract – giving him time to complete goals that unlock the jackpot.