Reeves Budget is a ‘tax on working people’ and will make flights more expensive, incoming EasyJet boss warns

EasyJet’s outgoing boss has welcomed growing demand for international travel as the budget airline’s profits surpass pre-coronavirus levels.

Johan Lundgren, who will step down in January after seven years as CEO, said “the future for the company is bright.”

But his successor, Kenton Jarvis, branded Chancellor Rachel Reeves’ decision to increase air travel tax in the budget as a “tax on working people” that will make flights more expensive.

Easyjet’s profits rose 34 percent in the year to the end of September, from £455 million to £610 million, reaching the second highest level in the airline’s 29-year history.

The company said it is on track to hit its £1 billion profit target in the coming years as it enjoyed its strongest second half on record amid soaring demand for summer holidays.

Lundgren, 58, said: ‘This strong performance reflects the effectiveness and execution of our strategy, as well as the continued popularity of our flights and holidays.’

He added: ‘It has been a privilege to lead easyJet over the past seven years.’

Chief financial officer Jarvis, 56, who will take over in the new year, warned that Easyjet could cut flights from the UK and increase prices for customers due to an increased tax on airlines.

“At the end of the day, it’s a burden on working people,” he said. “(Labour) tried to portray it as if it wasn’t, but that’s just all.”