Easyjet’s new boss Johan Lundgren bets on hotels and a loyalty scheme

EasyJet’s new captain is to pitch the airline against his old firm by selling more holidays while introducing a loyalty scheme for flyers.

Johan Lundgren, formerly at travel company TUI, said the airline would step up investment in its holidays business to persuade more travellers to book hotels through it.

Lundgren has hired former TUI colleague Garry Wilson to build the division. Only 500,000 passengers out of a possible 20 million currently book hotels through the airline.

The new chief executive also wants to increase the airline’s focus on data and will introduce a loyalty programme, which he said would increase profit per seat.

Calling the plans an evolution of his predecessor Dame Carolyn McCall’s strategy, Lundgren said the budget airline would not abandon its roots in low fares.

“The company has evolved but low costs will absolutely be at the core of what we do,” he added.

EasyJet’s plans were unveiled as the airline said it made record winter revenues of over £2 billion in the first six months of its year, to the end of March. Passenger numbers increased by three million to 36.8 million, helped by the collapse of rival airlines and the launch of a new base at Tegel Airport in Berlin.

Total revenue per seat increased by 10.9% to £54.10 and the airline made a small winter profit of £8 million, against a £220 million loss the previous year.

Lundgren also said the airline expected pre-tax profits for the full year to be between £530 million and £580 million — at least 30% higher than the £408 million of 2017.

Looking ahead to the summer, easyJet said its forward bookings for its third quarter were 80% ahead of last year’s and up 57% for the second half.