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

The outgoing EasyJet boss hailed growing demand for international travel as the low-cost airline’s profits surpassed pre-Covid levels.

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

But his successor, Kenton Jarvis, branded Chancellor Rachel Reeves’ decision to increase taxes on air passengers in the Budget as a “working person’s tax” that will make flying more expensive.

Easyjet’s profits soared 34 per cent from £455m to £610m in the year to the end of September, hitting the second highest level in the airline’s 29-year history.

The company said it was on track to hit its £1bn profit target over the next few years, as it hailed its strongest second half amid excellent 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 for the last seven years.”

Chief financial officer Jarvis, 56, who takes up the role in the new year, warned that Easyjet could cut flights from the UK and increase prices for customers due to a tax rise on airlines.

“At the end of the day, it is a tax that falls on the worker,” he said. “(The Labor Party) tried to gloss it over as if it wasn’t, but that’s all it is.”