easyJet plc Annual Report and Accounts 2024

ANNUAL REPORT AND ACCOUNTS 2024

Contents

FinancialseasyJet plc

Annual Report and Accounts 2024

GovernanceStrategic report

CONTENTS

GO PAPERLESS

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digitally rather than in print.

Our purpose framework

governance

Chair’s statement

Governance highlights

Board activities in the year

Understanding the

business and culture

Ensuring effective

governance

Engaging with

stakeholders

100

Committee reports

104

Directors’ Remuneration

Report

120

Other disclosures

143

Statement of Directors’

responsibilities

147

Financials

Independent auditors’

report to the members of

easyJet plc

148

Consolidated financial

statements

154

Notes to the financial

statements

159

Company financial

statements

199

Notes to the Company

financial statements

201

Five-year summary

204

Additional

information

Glossary – Alternative

performance measures 205

Glossary – Other 207

Shareholder information

208

Read more on page 208

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Contents

AT A GLANCE

Bases

Destinations

MAKING LOW-COST TRAVEL EASY

OUR PURPOSE

We are a low-cost, European, point-to-point airline. We use

our cost advantage, operational efficiency and leading positions

in primary airports to deliver low fares for our customers –

making great value travel accessible for everyone. We aim

to provide simple, convenient travel and holidays at a

competitive price with outstanding customer service.

1) As served over the financial year ending 30 September 2024.

2) Number one low-cost carrier in the core markets of the UK, France and Switzerland, where a carrier has

>10% of market share.

3) Number of airports served at 30 September 2024.

Network for Winter/Summer 2025

WHAT WE DO

KEY FACTS

35 1 OR 2

Countries

Core market positions

1,099

Routes

160

347

Airports

Number of aircraft

Total Owned Leased

A319 82 18 64

A320 180 103 77

A320neo 69 62 7

A321neo 16 5 11

TOTAL 347 188 159

Aircraft in the fleet at 30 September 2024

Potential bases

for FY25

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Contents

2024: A YEAR

OF PROGRESS

AND DELIVERY

CHAIR’S STATEMENT

In 2024, we extended the Company’s post-

pandemic record of consistent, effective execution

and have a strong strategic framework with lots of

potential to keep that going. Customers continued

to choose easyJet due to its low fares, network of

popular destinations and friendly service. We

outperformed most competitors financially and

made persuasive progress towards demanding

medium-term targets, while delivering already

attractive returns on capital.

easyJet’s targeted growth and focus on productivity

during the first half of the year resulted in a

reduction in winter losses, a key lever of the

medium-term targets. Good demand for travel

continued into the summer where we delivered

another record performance which, combined with

the winter improvement, resulted in 34% growth in

headline profit before tax for the year.

The wider external environment remained

challenging to the industry, with ongoing conflicts

in the Middle East and Ukraine, inflationary cost

pressures, air traffic control underperformance

across Europe, and continued OEM (original

equipment manufacturer) production and supply

chain challenges. easyJet has been able to

successfully navigate these challenges from

a financial and operational perspective, thanks

to the resilience actions we took and embedded

into our operations to safeguard the customer

experience. These measures have delivered

improved levels of operational performance and

increased levels of customer satisfaction, although

still not at the levels to which we aspire.

I remain convinced that easyJet is well positioned

to prosper over the medium and long term. We aim

to provide a high level of service to our customers,

coupling our trusted brand with the flourishing

easyJet holidays proposition. We are closely focused

on creating shareholder value which should be

achieved by determined progress towards our

target of over £1 billion of profit before tax.

Turning to the specifics of 2024 for easyJet:

STRATEGY

Our strategy remains unchanged and is working

well. We aspire to become Europe’s most loved

airline, winning for our customers, our shareholders

and our people. As a champion of low-cost

customer-friendly travel in Europe with an

unrivalled network and positioning, we see this as a

demanding but appropriate and achievable goal.

It’s pillars – building Europe’s best network,

transforming revenue, delivering ease and reliability

and driving our low-cost model – are at the heart

of what we are doing.

PERFORMANCE

In 2024, we made good progress towards the

medium-term targets; return on capital employed

(ROCE) for the full year was 16%, Group headline

profit before tax (PBT) per seat was £6.08, a £1.17

increase towards the target of £7–10, and easyJet

holidays’ PBT was £190 million, a significant step

towards its medium-term target of over

£250 million PBT.

We aim to achieve capacity growth of around 5%

compound annual growth rate (CAGR) from 2023

to 2028, and the capacity growth seen in the

current year was above this at 8%. We clearly

understand that in a capital-intensive industry,

with some inherent volatility, being able to achieve

attractive returns on capital lies at the heart of

shareholder delivery, so we will remain carefully

focused on how to deploy the additional capacity.

Financial strength is an important attribute in this

industry and a focus for easyJet, given its nature

and asset intensity. As at 30 September 2024,

easyJet had a net cash position of £181 million, a

£140 million improvement on the prior year. This

strength, reflected in the investment grade credit

ratings we hold, positions easyJet to be able to fund

the capex programme ahead, as aircraft deliveries

increase, but also provides a resilient base to deal

with the challenges and opportunities that the

current macroeconomic environment may present.

easyJet performed very well in financial

year 2024, whilst also making good

progress towards our medium-term

financial targets. Pleasingly, in so doing

we directionally outperformed most

European competitors.

Sir Stephen Hester Chair

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CHAIR’S STATEMENT (CONTINUED)

DIVIDEND

Given the performance in the financial year

alongside easyJet’s strong liquidity position,

the Board intends to pay an increased dividend of

12.1 pence per share, up 169% and equivalent to 20%

of FY24’s headline profit after tax. The  Board is

committed to maintaining regular returns to

shareholders through this ordinary dividend.

Additional returns of any excess capital will continue

to be assessed, taking into account market

conditions, capex requirements and progress

towards the Group’s medium-term targets.

STAKEHOLDERS

There has been a constant dialogue with our

stakeholder groups throughout the year and, on

behalf of the Board, I would like to take this

opportunity to thank them for their engagement.

At the front of our minds remain our shareholders

and customers. We take very seriously the task of

serving customers well to maintain and grow their

numbers and their loyalty.

It is pleasing to see the high proportion of

returning customers and the increase in customer

satisfaction levels to above historical levels. Air

travel is still too often the source of frustration as

the challenges of complex supply and logistic

chains, public policy, infrastructure shortcomings

and macro issues like weather volatility create

disruption and inconsistent experiences. Airlines

alone cannot solve these problems, but we can

help play our part to address them and can

improve our own resilience and customer ease

within that context. At easyJet we are constantly

working towards and determined to do just that.

PUBLIC POLICY

The air travel industry plays a fundamental role in

the modern economy. We are an essential building

block of connectivity and thereby economic

progress and we are also at the heart of fulfilment

of family and leisure aspirations. It is therefore

disappointing that all too often governments,

regulators and public policy setters inhibit the

good that air travel can do rather than enable it.

Desperately needed airspace modernisation has

been stalled for too long and infrastructure creaks

without progress. Border arrangements all too

often cause unnecessary inconvenience for

customers and taxation is uneven in its application,

with these ever-increasing costs inevitably passed

onto the travelling public. These problems will

become more and more pressing and so easyJet

will do everything possible to encourage crucial

progress. In that context we welcome the UK

Government’s new review of airspace usage, and

hope radical but swift action, rather than talk, is

the result, benefiting the economy and the

environment mightily.

YOUR BOARD

I am pleased to report that your Board is

functioning well and strongly focused on

supporting management through strategy

development and operational delivery. We

announced in May that Johan Lundgren would step

down as Chief Executive Officer (CEO) and leave

easyJet early in 2025 and be succeeded by the

current Chief Financial Officer (CFO), Kenton Jarvis.

Johan joined easyJet in 2017 and has steered the

Company through exceptional challenges, including

the pandemic period, during his time as CEO. We

will be sad to see him go. He has many things to his

credit and not least the development of easyJet

holidays, which has been a powerful driver of

shareholder value. From a personal perspective,

Johan has been a pleasure to work with and truly a

driving force in setting up easyJet to have the bright

prospects we see ahead. The whole Board extends

its sincere thanks and gratitude to Johan and wishes

him well in the future.

I am also delighted to congratulate Kenton on his

appointment, a reflection of his strong contribution

and development since joining easyJet in 2021 as

CFO. We look forward to supporting Kenton in his

new role and to his leading the Company to

execute on its strategy and deliver against the

medium-term targets.

OUR PEOPLE

I continue to be hugely grateful to our employees,

management and my Board colleagues for their

continued dedication and commitment to

delivering easyJet’s purpose to all stakeholders.

Johan Lundgren has led a talented team during

this year and it is our people who have put

easyJet on track towards our destination of

being Europe’s most loved airline.

SUSTAINABILITY

The airline industry as a whole also has a

particular responsibility to respond effectively to

the climate-based challenges facing the world. It

is therefore important that easyJet continues to

play a positive role as a leader in mapping out the

transition towards our ultimate ambition of zero

carbon emission flying. This is set out through our

net zero roadmap which was launched in

September 2022. It is very pleasing that through

our actions to drive operational efficiencies we are

on track to meet our SBTi-validated ‘interim’

carbon target of 35% intensity reduction by 2035.

THE FUTURE

The Board and I will continue to work collectively with

the management team and everyone at easyJet to

execute against our strategy going forward and

create shareholder value by progressing towards

the delivery of our medium-term targets.

Sir Stephen Hester

Chair

34%

increase in the Group’s headline profit

before tax compared to the prior

financial year

We take very seriously the task of serving

customers well to maintain and grow

their numbers and loyalty. It is pleasing

to see the high proportion of returning

customers.

610

455

2024

2023

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Annual Report and Accounts 2024

Contents

2024

602

2023

432

9.3

8.2

2024

2023

181

2024

2023

14.7

13.8

2024

2023

100.4

92.6

2024

2023

597

476

2024

2023

2024

2023

66.6

67.2

2024

2023

89.3

2024

2023

610

455

2024

2023

HIGHLIGHTS

FINANCIAL HIGHLIGHTS

Profit before tax

£602m

Revenue

£9.3bn

Headline profit before tax

£610m

Net cash

£181m

Headline EBIT

£597m

Headline EBITDA margin

14.7%

NON-FINANCIAL HIGHLIGHTS

Load factor

89.3%

Seats flown

100.4m

OTP (On-time performance)

69%

emissions per passenger kilometre

66.6g

The Board intends to pay an

increased dividend of 20% of

FY24’s headline profit after tax.

Sir Stephen Hester

Chair

CONSISTENT

STRATEGIC

EXECUTION

ALTERNATIVE PERFORMANCE MEASURES

We use various alternative performance measures

(APMs) which we believe provide useful additional

information for understanding the financial

performance and financial health of the Group.

See the glossary on pages 205 and 206 which

provides a comprehensive list of the APMs that

we use, an explanation of how they are calculated,

why we use them and a reconciliation to the

closest equivalent IFRS measure where relevant.

Read more on pages 27 to 35

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HANDING

OVER THE

CONTROLS

Q&A WITH JOHAN LUNDGREN AND KENTON JARVIS

What are your reflections on the last seven years

as easyJet’s CEO?

Johan: Well first of all I would like to say what an

absolute privilege it has been to have led easyJet all

this time. I have always said this is the best job in the

world and even on a tough day (and let’s face it with

a global pandemic, there have been some during

my tenure) it is still a privilege to be in this position.

What have the biggest changes been during

your time at easyJet and what do you think your

legacy at easyJet will be?

Johan: In terms of changes, the Company has

been transformed in so many ways, for example,

due to the shape of the network and our

improved revenue capability, we were able to

come out of the pandemic years stronger. The

establishment and fast growth of the holidays

business is one of the biggest changes which

continues to go from strength to strength.

The legacy I want to leave behind is of course a

strong easyJet. I believe we have strong foundations

for continued success into the future and I look

forward to following the Company in the years to

come to see it reach the goals we have set.

This Company has a unique culture and proudly

continues to do what it was originally set up to

– which is to make travel accessible to all.

What are you most proud of in your time

at easyJet?

Johan: I am proud that so much has been

achieved over this time and of all of the people at

easyJet who have made this possible. It is difficult

to choose one thing, so to mention a few, of

course everything the team did to navigate the

airline through the pandemic to emerge in a

stronger position, to sustainably step change the

earnings power of our business.

Then, with the leadership of Garry and the team,

the growing success of easyJet holidays, a

deliberately different holidays company.

Finally, something close to my heart, it has been a

huge collective effort which has helped us make

progress on sustainability, carving out a leading

position guided by our ambitious net zero

roadmap.

The legacy I want to leave behind

is a strong easyJet.

Johan Lundgren

Earlier this year we announced that

CEO Johan Lundgren will step

down and leave easyJet in early

2025. Kenton Jarvis, currently CFO,

will succeed Johan. We talked to

Johan about his thoughts at the

end of his tenure, and to Kenton

about his plans for the future of

easyJet.

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Q&A WITH JOHAN LUNDGREN AND KENTON JARVIS (CONTINUED)

What are your plans now? Will you be taking an

easyJet holiday come January?

Johan: Absolutely! I will continue to be a regular

easyJet customer – as I was before I joined

easyJet.

If there was one piece of advice you can give

Kenton as he takes over, what would it be?

Johan: Well having worked with Kenton for many

years, I know he has what it takes to lead the

Company and so am very confident he will know

how to navigate the challenges. My one piece of

advice would be to remember that the industry

will always be buffeted by external forces. Focus

on those things you can control and always

ensure you are thinking about the customer

first and foremost.

How are you feeling about taking over in

January? Are you looking forward to it?

Kenton: I am delighted to have been appointed and

am looking forward to getting started! I have huge

belief in easyJet as a company and will be very

proud to take on this role. It will be a real privilege to

lead such a fantastic company alongside my

colleagues on the management board.

Since being appointed earlier this year, what

have you been doing in preparation for

taking over?

Kenton: Alongside appointing a new CFO to take

over my current role, my priority has been to get

out into the business and across the network to

speak to our people. What is clear to me is that

our people are a key differentiator and our

amazing crew are one very important reason

our customers continue to choose us.

How do you see easyJet’s strategy developing

and what will your key priorities be?

Kenton: I have led the strategy function at easyJet

since joining the Board in February 2021 where,

alongside Johan and the wider management team,

we co-created the current strategy. I fully believe

this is the right strategy and will be focused on

continuing to execute against this plan. In terms of

my priorities, I remain committed to achieving our

medium-term targets. I am pleased with the good

progress already made over the past financial year

but remain of the view that there is much more to

be achieved at easyJet. Another key priority of

mine is to make low-cost travel easy for our

customers and people with a focus on delivering

consistent operational performance. And so I want

to do everything I can to ensure we serve the

100 million customers each and every day,

providing them with the low fares and friendly

service they have come to expect from easyJet.

Are there things you feel you will do differently

as CEO?

Kenton: While Johan and I are different people,

we hold many similar values with a commitment

to high performance and leading by example. Of

course there will be differences, but we have also

worked closely together for a number of years

and have designed the current strategy together

so there will also be continuity which is important.

And I am fortunate that we have great experience

in the Airline Management Board.

There has been a huge focus in the last few

years on sustainability, will this continue?

Kenton: Absolutely! It is crucial that we maintain

our focus both on reducing our impact each and

every day in our operations, while also ensuring we

lead and challenge the industry on future solutions

like zero emissions technology and carbon capture.

I’m really pleased with the progress we have seen

to date, tracking slightly ahead of our net zero

roadmap, and so I will continue to ensure there is

good progress and momentum.

With easyJet’s 30th birthday coming late next

year, how do you see the brand in 2025?

Kenton: The fantastic thing about easyJet is that

it has stayed true to why it was founded in the

first place – to democratise travel and open up

Europe with low fares. That’s as true today as it

was in 1995 and something that I know all of our

people feel very proud to be able to do every day.

Our people are a key

differentiator.

Kenton Jarvis

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MAKING

LOW-COST

TRAVEL EASY

CEO REVIEW

easyJet achieved a record profit performance

during summer 2024 and positive full-year 2024

growth of 34% in headline profit before tax, thanks

to the successful execution of our strategic plans.

This result was supported by good consumer

demand for easyJet’s trusted brand and network,

alongside our targeted growth at primary airports,

transformation of our revenue capability, in part

driven by the significant growth in easyJet holidays,

and a constant focus on delivering our low-cost

model. This resulted in a pre-tax headline profit of

£610 million for the 2024 financial year, an

improvement of £155 million on the previous year.

Our two newest bases, Alicante and Birmingham,

provide further choice for our valued customers

with both bases performing above our initial

expectations this summer. During the year we

announced our 10th UK base opening at London

Southend which will be operational from next

March, continuing the growth of our leisure

network in the UK where easyJet holidays plays

an increasingly important role.

The great service provided by our crew and the

resilience we built into our operations have

enabled us to deliver an improved operational

performance, despite the continued worsening of

the European air traffic control environment. This

helped to drive an increase in customer

satisfaction. We have a clear strategy and

purpose to make low-cost travel easy, winning for

our customers, our shareholders and our people.

It has been a pleasure to lead the amazing

easyJet team as CEO for the past seven years.

I am proud to have achieved another record

summer performance and to be leaving this

fantastic Company in a positive and strong

position to continue to prosper into the future.

I hand over to Kenton, the new CEO, a company

that has a clear strategy and is on its way to

achieving its medium-term targets. I wish the

Company and all our people the best going

forward.

FINANCIAL PERFORMANCE

Total revenue increased by 14%, reaching £9,309

million compared to £8,171 million in 2023, primarily

due to an increase of 8% in capacity to 100.4

million seats from 92.6 million in 2023, coupled with

positive ticket pricing and an increase in ancillary

revenue including easyJet holidays.

Passenger revenue increased by 9% to £5,715

million, up from £5,221 million in 2023, as we

operated with higher capacity compared to the

prior financial year. The passenger revenue per

seat (RPS) also slightly increased by 1% since the

prior year to £56.90 compared to £56.37 in 2023.

The growth is as a result of easyJet’s optimised

network at primary airports driving increased

yields especially during the first half of FY24.

Group ancillary revenue increased by 22% to

£3,594 million, as capacity increased and as

easyJet holidays continues its rapid growth, with

customers up 36% year on year. Airline ancillary

RPS also increased by 4% to £24.45 as easyJet’s

embedded ancillary products continue to see

enhanced revenue generation.

Group headline costs, excluding fuel, rose by

14% to £6,476 million, up from £5,683 million in

2023. This increase is attributed to the 8%

increase in capacity and the continued expansion

of easyJet holidays.

Headline Airline cost per seat (CPS), excluding fuel,

saw a marginal increase of 1% to £55.03 from

£54.30 in 2023. Disruption costs were improved

during the year, offset by inflationary pressures.

Fuel CPS increased by 1% with rising fuel prices

seen in the first half year partially offset by lower

fuel prices in the second half.

Headline profit before tax of £610 million was

a 34% improvement year on year. This equates

to a Group headline profit before tax of £6.08

per seat, which is a strong first step towards

our medium-term target of £7 to £10 Group PBT

per seat.

We have a clear strategy and purpose

to make low-cost travel easy, winning

for our customers, our shareholders

and our people.

Johan Lundgren Chief Executive Officer

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CEO REVIEW (CONTINUED)

OUTLOOK

The outlook for 2025 is positive, we continue to

see good customer demand into this winter and

remain focused on delivering further progress

towards our medium-term targets. We are aiming

to further reduce our winter losses, with an

increased sector length as we grow capacity into

winter sun destinations and improve productivity

and utilisation further.

Despite the ongoing supply chain issues, we

continue to expect that easyJet will take delivery

of nine new A320neo family aircraft in the 2025

financial year, as planned. This, alongside

continued fleet efficiency improvement, will

provide the capacity for an expected capacity

growth of c.3%.

We anticipate that easyJet holidays will continue

to grow and progress towards its medium-term

target of over £250 million profit before tax.

Overall, we remain on track to create shareholder

value through earnings growth as we continue to

progress towards our ambition to deliver over

£1  billion Group profit before tax.

SUSTAINABILITY

Our net zero roadmap is key to helping us address

our environmental impact and we are on track to

meet our SBTi-validated ‘interim’ carbon target of

35% intensity reduction by 2035. We are the best

ESG rated European airline from Sustainalytics

(score of 21.4) and MSCI (AA rating). We hold a

best in class rating from CDP (A-) and we also

retained our position in FTSE4Good for a second

year running – another sign we are moving in the

right direction. We were also pleased this year to

receive our recertification of the IATA environment

management standard which has been extended

until 2026.

We remain focused on the three-pronged

approach to our net zero roadmap; reduce, replace

and remove. We have reduced our emissions

intensity by 0.9% year on year, nearly a quarter of

our fleet is comprised of the highly efficient NEO

aircraft and we have completed the Descent Profile

Optimisation (DPO) retrofit which will save 88,600

tonnes of CO

each year. Looking forward to

reducing emissions further, we have operated IRIS

satellite-based datalink technology, a tool to

progress modernising air traffic management, and

announced our new partnership with JetZero,

supporting the development of its ultra-efficient

blended-wing solution.

Our leadership position within the Hydrogen in

Aviation alliance allows us to progress with

hydrogen research to develop jet fuel replacement

technologies. Finally, in terms of removal and Direct

Air Carbon Capture and Storage (DACCS), we were

the first airline to sign up to Airbus’s carbon

removal initiative with 1PointFive.

OUR PEOPLE

easyJet continues to have a market-leading

reputation as an employer of choice. This is

evidenced by both easyJet and easyJet holidays

being named ‘best place to work’ by Glassdoor

and The Sunday Times respectively.

Our people are a key source of differentiation,

and engaging our colleagues in our strategy and

purpose of making low-cost travel easy helps to

deliver excellent customer experience and loyalty.

This year we have put in place a new recognition

platform where we celebrate each other’s

achievements, which is supported by our annual

Spirit Awards and our transparent approach to

communication to build trust and connectivity

across the network. We also continue to evolve our

wellbeing offer with new healthcare benefits and are

proud to be the first airline to be officially recognised

as menopause friendly. Our commitment to sharing

our success with our colleagues has meant we have

invested £8 million into our performance shares

which were awarded to all our people.

As we journey towards our destination to be

Europe’s most loved airline, we are focused on

creating Europe’s most loved place to work, where

diversity can thrive, learning is encouraged and

you can do your best work while growing your

career.

Johan Lundgren

Chief Executive Officer

MEDIUM-TERM TARGETS

easyJet has ambitious and credible medium-

term targets, that in addition to the delivery

of our strategy, will be integral to achieving

easyJet’s ambition to deliver more than

£1  billion profit before tax.

Disciplined capacity growth of c.5%

CAGR between 2023 and 2028

Group profit before tax per

seat of £7 to £10

Growing easyJet holidays to deliver

over £250 million of profit before tax

High teen ROCE

Read more on pages 56 to 60

MADE POSSIBLE BY OUR PEOPLE LIVING OUR VALUES

Always with

safety at our

heart

Always

challenging

cost

Making a

positive

difference

Always

warm and

welcoming

Living

the Orange

Spirit

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CUSTOMER PROPOSITION

WINNING

FOR OUR

CUSTOMERS

To be Europe’s most loved

airline, we win for customers

by offering an unbeatable

network and delivering value

through a best-in-class

customer experience at

competitive prices.

people are key. Our new Airport

Customer Experience Specialists,

alongside enhanced training for

frontline staff, contribute to

improving the customer

experience. Connected

technology is enabling easier

customer journeys, with more

targeted communications and

the industry-leading easyJet app,

allowing us to help our customers

during times of disruption.

Customers have responded

positively, with 75% of seats in

FY24 booked by returning

passengers. In our core markets

– the UK, France and Switzerland

– we lead for perceptions on

providing value for money and

for making travel easy

1) The percentage of customers completely, very or quite satisfied with their

experience in the easyJet internal On The Day survey by KPMG.

2) Value and ease perceptions are from our brand tracker with Delineate,

compared to other low-cost carriers.

Continual improvement in

customer experience has

driven our overall customer

satisfaction score up by 3ppt to

76%

for the year. Our focus on

great service, alongside advances

in technology, continues to

improve travel experiences. Our

Read more on pages 27 to 35

Group PBT per seat

£7–10

Holidays PBT contribution

>£250m

MEDIUM-TERM TARGETS

ROCE

high-

teen%

Capacity growth CAGR

c.5%

GROUP PBT PER SEAT

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OUR STRATEGY IN ACTION

CASE STUDY

We’re going

places

We launched 158 new

routes in 2024, with

growth into existing key

leisure markets such as

Greece and Spain.

We also opened new bases in

2024 in Birmingham and

Alicante with three aircraft

located at each base. In a slot

constrained environment, we

have added one additional

aircraft to our Naples base,

further strengthening our

competitive position in this

important market.

BUILDING

EUROPE’S

BEST

NETWORK

Lead and build scale in our

core markets

Maintain and build leadership

positions in slot-constrained

airports

Accelerate investment in

destination bases

Additional expansion when

opportunities arise

OVERVIEW

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

EDI

GLA

>29 aircraft

20-29 aircraft

10-19 aircraft

5-9 aircraft

<5 aircraft

BFS

MAN

LPL

BHX

BRS

LGW

LT N

AMS

BER

CDG

ORY

BSL

NTE

LYS

GVA

VCE

BOD

OPO

LIS

FAO

AGP

ALC

PMI

BCN

TLS

NCE

MXP

NAP

EDI

GLA

>29 A/C

20-29 A/C

10-19 A/C

5-9 A/C

<5-9 A/C

Bases opening in FY25

BFS

MAN

LPL

BHX

BRS

LGW

SEN

LT N

AMS

BER

CDG

ORY BSL

NTE

LYS

GVA

VCE

BOD

OPO

LIS

FAO

AGP

ALC

PMI

BCN

TLS

NCE

MXP

LIN

FCO

NAP

30 bases

160 airports

OUR STRATEGY IN ACTION (CONTINUED)

BUILDING EUROPE’S BEST NETWORK (CONTINUED)

Our network of number one and two positions

at primary European airports is unique and

gives easyJet an advantage that another airline

would find hard to match.

RELEVANT RISK THEMES

> Safety, security and

operations

> Asset performance

> Macroeconomic and

geopolitical

Read more on pages 70 to 74

Our two newest bases,

Alicante and Birmingham,

provide further choice for

our valued customers.

UNRIVALLED NETWORK USING

SOUGHT-AFTER AIRPORTS

Our network strategy gives us

a competitive advantage. We

are building our strength at

Europe’s most popular airports

with large catchment areas,

increasing opportunities at the

Aircraft numbers at easyJet bases as at 30 September 2024

most slot-constrained airports

where our returns are highest.

More flights and a wider range

of destinations in these airports

provide customers with the

best choice and value when

compared with our competitors.

The map below shows the

airports where we have bases and

how many aircraft are located at

each.

LEAD AND BUILD SCALE IN OUR

CORE MARKETS

We have many opportunities

to grow in our core markets.

Larger aircraft will provide 6%

This order is a significant step in

assuring the trajectory of the

business and ensuring that

easyJet has capacity available

to implement its strategy

between 2029 and the

mid-2030s.

PROGRESS IN FY24

> UK regional base expansion

with more aircraft added into

Manchester, Bristol and

Liverpool and a new base

created at Birmingham (three

aircraft). The UK regions are a

particular strength for

easyJet holidays; for example,

since the launch of the new

Birmingham base, 17% of all

departing airline seats to

international destinations

have been easyJet holidays

customers.

> New base created at

Alicante, with three aircraft

located there.

> Added three aircraft into

Switzerland, providing

customers with additional

choice for skiing and other

winter sports.

> Summer 2023 investments

into our network in Porto and

Lisbon continue to deliver

profit improvements as these

routes mature.

> Beach capacity increased by

around 7.7% with a large

proportion of this occurring

over the winter season to

provide winter sun

destinations, particularly in

the Canary Islands and Egypt.

> We also increased capacity to

city destinations by 9.6% as

city breaks and business

travel continue to recover.

FY25 INITIATIVES

> Targeted winter growth to

help reduce winter losses

further. This will see a c.45%

increase into North Africa

including Tunisia and Egypt

and the launch of Cape

Verde, a new network point

for H1 2025.

> Recommended short-haul

remedy taker for available

slots at Milan Linate and

Rome Fiumicino where, if

successful, we plan to have

eight aircraft at these new

bases for Summer 2025.

> 10th UK base announced at

Southend to open Summer

2025, further building on

easyJet’s leisure network and

easyJet holidays’ continued

growth.

> Unfortunately we have had to

make difficult proposals

around the future of our bases

in Toulouse and Venice as a

consequence of commercial

underperformance over a

sustained period. In September

2024, we therefore entered

consultation processes for

plans to close the Toulouse

base by the end of the Winter

2024 season in March 2025,

and for Venice by the

beginning of the Summer

2025 season. In both cases the

plans are to reassign the five

aircraft to other bases in

France and Italy and strive to

find all staff alternative

employment at other bases.

easyJet’s momentum remains

strong across France and Italy

and our focus will be to

strengthen our other bases to

enable us to open up new

destinations to our customers

in France and Italy.

> We expect capacity growth

of c.5% per annum on

average (CAGR) between

2023 and 2028. In FY24, we

achieved capacity growth of

8% and we expect the

growth in FY25 to be c.3%.

growth in capacity by 2028, as

they enable us to increase our

overall share of passengers in

core slot-constrained airports

without obtaining additional

slots. We will also expand our

existing markets. The regional

market in the UK continues to

perform extremely well and we

have added additional aircraft

in Manchester, Bristol and

Liverpool as well as opening the

new base in Birmingham.

AIRCRAFT ORDER

In December 2023, shareholder

approval was obtained to

purchase an additional 157

A320neo family aircraft (56

A320neo and 101 A321neo) to be

delivered between FY29–34, as

well as purchase rights for a

further 100 A320neo family

aircraft. This takes our total

order book with Airbus to 299

A320neo family aircraft.

Securing these scarce order

book positions will enable the

ongoing renewal of the fleet to

continue by completing the fleet

replacement programme of

A319 aircraft and replacing

approximately half of the older

A320ceo aircraft. A younger,

more technologically advanced

fleet will deliver substantial fuel

and carbon efficiencies, helping

to deliver our net zero pathway

and drive improved profitability.

The new aircraft also have more

seats than the aircraft they are

replacing and, as noted, this

upgauging helps to increase

capacity without the need to

acquire additional slots, which

can further improve overall

profitability per seat.

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OUR STRATEGY IN ACTION (CONTINUED)

Big splash

easyJet holidays has made a big

splash this year, increasing its

customer numbers by 36% to

2.6 million and being named UK

and Ireland Travel Company of

the year at the 2024 Travel

Industry awards.

The business generated total revenue

of £1.5 billion, which represented

incremental revenue for the Group of

£1.1 billion, the first time it has exceeded

£1 billion, and it now makes up 12% of

Group revenue. easyJet holidays’ profit

before tax grew by 56% compared to

the prior financial year, to £190 million,

even more impressive given that this is

only its third fully operational year under

the current business model.

Maximise the revenue

potential of our market

Transform our ancillary

revenue capability

Diversify our sources of

revenue, continuing to

focus on easyJet holidays

OVERVIEW

CASE STUDY

TRANSFORMING

REVENUE

YEAR-ON-YEAR GROWTH IN

HOLIDAY CUSTOMER NUMBERS

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OUR STRATEGY IN ACTION (CONTINUED)

TRANSFORMING REVENUE (CONTINUED)

In addition, we have enhanced

our in-flight retail service

recently to be able to offer

products tailored to local

markets and we continue to

invest in technology to enhance

customer convenience. An

ongoing focus on easyJet

holidays will further diversify our

sources of revenue.

Continuing to develop and build on our recent

revenue performance is a key element of our

strategy. We are transforming our ability to

develop new ancillary revenue products for our

customers based on their specific needs. Our

customers only have to pay for ancillary products

that they want, rather than having products that

they don’t want included in the price of the ticket.

PROGRESS IN 2024

> We are giving customers more

choice and they are responding

well to further unbundling, such

as enabling them to book an

upfront seat without having to

book a large cabin bag. Airline

ancillary revenue in the current

financial year was £2.5 billion,

an increase of 13% compared to

the prior year, and 30% of the

airline’s revenue now comes

from the sale of ancillary

products.

> easyJet’s in-flight retail brand

and proposition is delivering

growth across all KPIs and is

allowing us to tailor our

product offering to our

customers. This has been a

real success and spend per

seat has increased by 12.2%

to £2.38 and profit per seat

by 13% to £0.68. We are

planning to deliver over £1

profit before tax per seat over

the medium term.

> In addition to the development

of ancillary revenue, we are

also benefiting from the

significant growth of easyJet

holidays. This year it has

performed strongly once

again, contributing incremental

revenue of £1.1 billion to the

Group and generating £190

million profit from 2.6 million

passengers (including agent

commission passengers) whilst

increasing its UK market share

from 5% to 7%. This growth is

being delivered through strong

customer satisfaction of 84%,

with over 82% of customers

likely to rebook. Growth also

continued to be supported by

key trade distribution partners.

Furthermore, following the

launch into Switzerland in

2023, during the current

financial year the business

launched into the French and

German markets.

FY25 INITIATIVES

> We are planning further

growth of easyJet holidays

with an aim to deliver a c.25%

increase year on year in

customers, which will support

progress towards its medium-

term objective of achieving

profit before tax of over £250

million. The next phase of our

growth plan includes

increasing our UK market share

to 10% by introducing new

destinations and products, and

growing the leisure and city

break sector. We will look to

convert as many of our airline

passengers as possible into

easyJet holidays customers, as

one key advantage of our

holidays business is that it has

no constraints on growth. Key

initiatives in FY25 include plans

to optimise pricing, enhance its

city break proposition, and

increase the product offering

through room options and

further ancillary products.

> We will focus on the continued

development of our in-flight

retail offering to make it even

more attractive to our

customers, as evidenced by

the introduction of Costa

Coffee in September 2024.

These initiatives will help drive

towards delivery of our

medium-term target of

£1 profit before tax per seat.

> In 2024 we assessed the

introduction of closed-loop

wi-fi and, having solved some

technical complexities, we now

look forward to introducing this

across our network in time for

the Summer 2025 season. This

will facilitate an enhanced

in-flight retail experience by

enabling customers to browse

the product offering with latest

prices on their phone and to

order to their seat.

> Similarly, we will also assess

the development of pre-order

capability for in-flight retail for

food, drink and duty free.

RELEVANT RISK THEMES

> Technology

> Macroeconomic

and geopolitical

Read more on pages 70 to 74

Spend per seat on in-

flight retail has increased

by 12.2% to £2.38 and

profit per seat by 13% to

£0.68. We are planning

to deliver over £1 profit

before tax per seat over

the medium term.

In-flight retail profit per seat

£0.68

Shop it like it’s hot

Cabin bags and our leisure bundles, among

other ancillary products, have continued to

deliver incremental revenue throughout the year,

as well as provide customers with the products

they want.

Alongside this, easyJet’s in-flight retail proposition has seen

profit per seat increase by 13% compared to FY23. These

initiatives have contributed to the airline’s ancillary revenue per

seat being 4% higher than last year. In September 2024 Costa

Coffee was launched across easyJet’s network, bringing a new

in-flight drinks range from the Nation’s Favourite Coffee Shop

onboard all the airline’s flights. We expect this to further

drive spend per seat in FY25.

1) Allegra Strategies, 2023

CASE STUDY

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DELIVERING EASE

AND RELIABILITY

OUR STRATEGY IN ACTION (CONTINUED)

Provide an easy and reliable customer experience

Protect and build on easyJet’s strong brand

Grow and deepen relationships with our customers

Establish sustainability leadership

OVERVIEW

CASE STUDY

faster and

better AI-

equipped

operations

Colleagues based at the

new integrated control

centre near Luton Airport,

Bedfordshire, have access

to Jetstream, a generative

AI tool.

This helps them solve operational

issues for pilots and crew on the

ground more quickly, for example,

by more accurately predicting

standby crew requirements and

recommending the best crew

options for each operation.

FLIGHTS MANAGED PER WEEK BY NEW OPERATIONS CONTROL CENTRE

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We aim to deliver a seamless

and digitally enabled customer

journey at every stage and we

are working continuously to

enhance the customer

experience, particularly at

the airport.

Sustainability continues to be

a priority for easyJet and our

customers, and our net zero

roadmap demonstrates our

commitment to leading in

this area.

easyJet has a loyal customer

base, with 75% of seats booked

by returning customers, as our

crew provide a warm onboard

experience. The latest brand

tracker confirmed our number

one position in our core markets

when it comes to value, which

is all the more important at

a time when consumers’

disposable income continues

to be squeezed.

In preparation for the Summer

2024 season, we recruited 1,230

crew, onboarding them ahead

of season to ensure we were

fully prepared.

Unfortunately, despite easyJet

being fully prepared for this

summer, we saw operational

challenges outside of our control,

in particular with air traffic control

(ATC), which was the single

biggest source of delays this year

Giving customers an enjoyable, hassle-free

experience and reliable service that makes them

want to fly with us again will always be one of

the key cornerstones of our strategy. Ease and

reliability is at the centre of our purpose to

make low-cost travel easy.

across the network. Congested

airspace from the continued

invasion of Ukraine, French ATC

strikes and weather-related

disruption all drove operational

challenges in 2024.

We continued to take proactive

action throughout the summer

to manage in this challenging

operating environment including

making some changes to our

schedule to minimise the

knock-on effects from delays

to aircraft in the morning.

PROGRESS IN FY24

> Significant investment in

spares made during the year,

continuing a trend started in

2023. Global supply-chain

issues with spares means that

it is no longer viable to run a

just-in-time spares process

due to delivery delays, and so

we have made this investment

to minimise the period of time

when aircraft are grounded

whilst awaiting new parts.

> SkySYM software used to

better plan the schedule to

minimise disruption effects.

> We have been recognised

with European airline

sector-leading scores by the

ESG ratings agencies CDP,

Sustainalytics, FTSE4Good

and MSCI.

> Continued to support

Rolls-Royce’s research into

hydrogen engine development.

> Announced a new

partnership with US-based

start-up JetZero to develop a

blended-wing body aircraft

that is expected to provide

up to 50% lower fuel burn

and greenhouse gas

emissions (GHG) versus

traditional tube-and-wing

designs and which has the

potential to be powered

by hydrogen.

FY25 INITIATIVES

> Towards the end of 2024 we

updated our customer app. It

has been rebuilt with modern

technology that will allow us

to develop new features and

make the experience faster

and more efficient. We plan to

introduce new service-related

features in FY25 and will

continue to refine and evolve

the app with new features.

> Continue investment in

spares and spare aircraft to

minimise the impact on the

flying schedule and therefore

customers when aircraft are

grounded whilst awaiting

repairs or new parts.

RELEVANT RISK THEMES

> Safety, security and

operations

> Asset performance

> Our people

> Environmental

sustainability

> Technology

Read more on pages 70 to 74

Our customer app has

been rebuilt with modern

technology that will allow

us to develop new

features.

Airline customer

satisfaction score

76%

OUR STRATEGY IN ACTION (CONTINUED)

DELIVERING EASE AND RELIABILITY (CONTINUED)

INDUSTRY-LEADING CUSTOMER PERCEPTION – NUMBER ONE LOW-COST

CARRIER

UK France Switzerland

Delivering on value #1 #1 #1

Brand awareness #1LCC #1LCC #1LCC

Delivering on network #1LCC #1LCC #1LCC

Delivering on reliability #1LCC #1LCC #1LCC

Making travel easy #1LCC #1LCC #1LCC

1) Number one low-cost carrier (LCC) in the core markets of the UK, France and

Switzerland, where a carrier has >10% market share.

Source: Delineate Brand Tracker (August 2024)

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DRIVING OUR

LOW-COST

MODEL

OVERVIEW

Drive our business with

sustainable efficiency

Invest in our fleet

Optimise our capital

efficiency

Deliver strong

productivity

DRIVING OUR

LOW-COST

MODEL

CASE STUDY

maintenance

in Malta

In May 2024, we

acquired the SR Technics

maintenance facility

in Malta.

We will use the facility, which has

a workforce of more than 400,

to undertake heavy maintenance

on our growing fleet of more

than 340 aircraft. The six-bay

aircraft maintenance facility has

undertaken heavy maintenance

for the easyJet fleet of aircraft for

several years. In recent years, we

have brought much of our

aircraft maintenance operations

in-house and so taking on the

facility is very much aligned with

this strategy and will help to drive

our low-cost model.

PROPORTION OF HEAVY MAINTENANCE EXPECTED TO BE CONDUCTED BY MALTA IN THE FUTURE

OUR STRATEGY IN ACTION (CONTINUED)

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Upgauging the fleet will help

us to keep costs per seat down,

as the fixed costs involved with

flying an aircraft are spread

over a greater number of seats.

In addition, the newer aircraft

are more fuel efficient. Our

average gauge is expected to

increase from 181 at September

2024 to above 190 in FY28.

This will give us a cost-saving

per seat of greater than £3,

which is a benefit that no other

European airline has on this

scale over the next four years.

The capacity we added in

the FY24 winter season helped

to drive aircraft utilisation

improvements of 4% for the year

as a whole. The productivity and

utilisation benefits this increased

capacity facilitated was the main

driver behind our cost per seat,

excluding fuel, being up by only

a small amount across FY24

as a whole.

Disciplined implementation of our low-cost model

underpins all elements of the easyJet strategy:

> A highly efficient point-to-point network delivering

simplicity in operations and scale within airports.

> Providing disaggregated products and relevant

bundles of products, allowing customers to pay for

what they value.

> Ensuring we have a fleet with exceptional fuel

efficiency and low maintenance costs.

And most importantly, it means always challenging

cost, ensuring that where easyJet spends it delivers

tangible value to our customers. Alongside a focus on

productivity and investing in processes and tools which

deliver truly sustainable long-term cost efficiency.

PROGRESS IN FY24

> Fleet renewal continues with

the delivery of 16 A320neo

family aircraft in FY24,

comprising 15 A320neos

and one A321neo.

> Average gauge of all aircraft

in the fleet 181 (FY23: 179) and

average age of fleet 10.2

years (FY23: 9.9 years).

> Insourcing heavy maintenance

in Malta with the acquisition

of the SR Technics Malta

maintenance facility. The entity

has been renamed easyJet

Engineering Malta Ltd and it is

expected that c.25% of

easyJet’s heavy maintenance

will be carried out in Malta in

future years.

> Increasing automation of

self-service management:

increasing digitalisation of

customer flows and reducing

the need for contact centre

support. 68% of customer

queries are now served via

live chat, an increase of

46 ppts year on year.

> Maintaining our cost discipline

is a core focus for the

business and this has enabled

our non-fuel unit costs for the

airline to be broadly flat year

on year.

FY25 INITIATIVES

> Our overall ambition for the

forthcoming financial year is

to ensure that our cost per

available seat kilometre

(CASK), excluding fuel, is flat,

year on year. We aim to

achieve this through our

continued focus on making

cost savings through

efficiencies and procurement

savings that do not jeopardise

the quality of our service

offering, combined with

larger initiatives such as those

described below.

> Delivery of nine NEO aircraft

scheduled for FY25,

comprising six A320s and

three A321s. NEO aircraft

typically deliver at least a 15%

boost in fuel efficiency and

therefore help to keep our

overall fuel costs down, as

well as producing significantly

lower carbon emissions and

being quieter.

> Continued upgauging of the

fleet: efficiency benefits will

be unlocked as A319s leave

the fleet, being replaced by

A320neo family aircraft. This

will enable us to unlock

efficiency benefits, increasing

the average gauge from 181

to the low 190s by FY28 and

the low 200s by FY34. The

increased mix of NEO aircraft

will see additional fuel and

airport incentive benefits as

easyJet’s order book of 299

A320neo family aircraft enter

the fleet.

> Continue to explore the use

of AI technology to improve

efficiency and reduce costs

across the business.

Support for customers

68%

Queries now served via live chat

RELEVANT RISK THEMES

> Asset performance

> Environmental

sustainability

Read more on pages 70 to 74

Upgauging the fleet will

help us to keep costs per

seat down, as the fixed

costs involved with flying

an aircraft are spread

over a greater number

of seats. In addition, the

newer aircraft are more

fuel efficient.

£3

Cost-saving per seat expected

from rise in average gauge to

above 190

OUR STRATEGY IN ACTION (CONTINUED)

DRIVING OUR LOW-COST MODEL (CONTINUED)

CEO designate Kenton Jarvis with the Duke of Edinburgh during the royal visit to the Malta facility

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Contents

Scale

and gr

owth

Product

price and

distribution

Environmental

and social

Cost

efficiency

Capital

efficiency

Customer

Network

and schedule

Making

low-cost

travel easy

OUR BUSINESS MODEL

CREATING

VALUE

THROUGH

LOW-COST

OPERATIONS

We deliver our purpose by leveraging the

low-cost airline business model with network

and service differentiation

STANDARD LOW-COST MODEL EASYJET DIFFERENTIATION

NETWORK AND

SCHEDULE

> Point-to-point routes

> Frequency of schedule

> Leadership positions in primary and slot-constrained airports in many

of Europe’s largest catchments with high customer demand.

> These positions have proven to be among the highest yielding in the

market and enable us to tap into both business and leisure demand.

> Our network is unrivalled and difficult to replicate.

SCALE AND GROWTH

> Scale drives high brand awareness

and facilitates volume pricing deals

(e.g. airports, fleet)

> Spreads fixed overheads over larger

volume of seats

> We have strengthened and will continue to strengthen our positions

as the competitive landscape evolves, bidding for additional slots

where it makes economic sense.

> We have an opportunity for further growth by investing in new, larger

aircraft with greater seat numbers (known as upgauging).

PRODUCT PRICE

AND DISTRIBUTION

> Low fares predicated on basic

airport and cabin product

> Unbundled fares with additional

charges for bags, seats and catering

> Industry-leading revenue management capability, including dynamic

pricing of ancillaries.

> Continued evolution of the Group’s product portfolio to build on

spend per customer and deliver enhanced sustainable returns.

> Limited indirect distribution to capture additional value.

ENVIRONMENTAL

AND SOCIAL

> Compliance with relevant laws

and regulations

> Leading the way with our detailed net zero roadmap.

> An industry-leading A- score from the Climate Disclosure Project (CDP)

and the leading airline in Europe on Sustainalytics.

> Our net zero partnerships (e.g. Rolls-Royce, SkyPower, JetZero, Airbus,

DACCS) and advocacy for zero carbon emissions technology set us apart.

> Driving more sustainable tourism, with nearly 40% of easyJet holidays

top 100 hotels Global Sustainable Tourism Council (GSTC) recognised.

> Over £17 million raised for UNICEF.

CUSTOMER

> Standardised products to

meet the needs of individuals

> Leading customer app which improves the overall experience from

booking to check-in to reaching the aircraft, often without the need

for human interaction.

> Warm welcome and personal service from our motivated people who

live the Orange Spirit.

> Disruption management self-service tool makes it easier for customers

to be better supported, informed and able to make changes when

disruption does occur.

CAPITAL EFFICIENCY

> Single fleet type with standard

specification

> High density, single-class cabin

> Short turnarounds and high aircraft

utilisation

> Young fleet

> Opportunity to increase the average gauge of our aircraft through

our fleet renewal programme, bringing in larger aircraft.

> This presents us with a considerable opportunity for organic growth

by increasing our overall seat capacity.

> 299 A320neo family aircraft on order to fully replace the A319s in

the fleet today, alongside approximately half of the A320ceo aircraft

currently in the fleet.

COST EFFICIENCY

> High productivity and strong

cost culture

> Long-term strategic partnerships with key airports and ground-

handling operators.

> Focus on seasonal bases which increases cost flexibility, with 24

aircraft now operating for eight months of the year from these bases.

New seasonal base opened in Alicante in 2024.

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MARKET REVIEW

2018 2019 2020 2021 2022 2023 2024

250

750

1,000

1,250

1,500 $ per metric tonne

500

KEY

MARKET

DRIVER

IMPACT

ON OUR

INDUSTRY

HOW WE ARE

RESPONDING

Demand

The airline industry overall is a cyclical one,

with demand for flights driven primarily by

economic growth. Demand is also seasonal,

particularly in leisure travel. However, the

business model of low-cost carriers such as

easyJet tends to be more resilient to recession,

as there will be some customers who seek

greater value during periods of low economic

growth, attracted by our lower prices and our

network of primary airports.

Demand in the first half of the year grew

strongly as the momentum from Summer

2023 continued, despite the temporary

reduction in demand triggered by the conflict

in the Middle East which began in early

October 2023. Overall, easyJet’s passenger

numbers in H1 grew by 11% compared to the

equivalent six-month period in the previous

year. While there was some disruption in the

summer caused by weather events and air

traffic control (ATC) restrictions, passenger

numbers continued to increase in the second

half (7% higher in H2 versus the previous

financial year).

Overall, easyJet flew 89.7 million passengers (2023:

82.8 million) in this financial year, an increase of 8%

on the previous year.

After this period of rapid catch-up after the

pandemic, the rate of growth in passenger numbers

is now forecast to slow as most countries return to

their long-term growth trajectory. Geopolitical

tensions remain a risk for the airline sector.

However, most institutions are now forecasting key

easyJet markets to grow marginally faster in 2025

versus 2024. Furthermore, results from multiple

surveys suggest consumers remain willing to protect

their spend on holidays and travel above most other

items of discretionary expenditure. There are also

increasing signs that business travel is recovering.

We believe easyJet will also be protected by the

increasing emphasis put on value, which is another

key finding from consumer research.

> Most European airlines have seen

customer numbers increase this year,

although the size of the increase has

varied in strength according to specific

product and/or route offerings.

> The continued increases in the cost of living

and the associated squeeze on household and

business incomes across European economies

are likely to increase the emphasis on value in

the short term, to the natural advantage of

low-cost carriers such as easyJet.

> We have moved a significant percentage

of our fleet to destination bases, which

allows us to reallocate capacity from one

source market to another rapidly in

response to demand fluctuations.

> We focus on constrained airports, where

demand is more resilient to these

macroeconomic pressures.

> The combination of low fares, primary airports

and our city network is an attractive offering

for business travellers when cost focus is

paramount.

> Our strategic focus on ‘Building Europe’s

best network’ and ‘Transforming revenue’

addresses these market dynamics, including

how we manage the associated risks. Read

more on pages 14 to 17.

fuel

Fuel is one of the biggest costs airlines face

and one of the most volatile.

Fuel represented 26% of easyJet’s headline

cost base in the current financial year.

The spot price of jet fuel has fluctuated

between $672 and $1,010 per metric

tonne over our financial year, with the

price falling sharply in our fourth quarter.

At 30 September 2024 the price was $703

per metric tonne, c.33% lower than 12

months earlier.

JET FUEL PRICE

> Many European airlines hedge their fuel

costs, reducing their exposure to

short-term volatility in the price of jet fuel.

> Aerospace companies are developing new

technologies and fuels which could, in the

future, help to decarbonise aviation.

Currently the industry use of alternative

fuels is minimal, however this is expected

to increase in the years ahead.

> easyJet has continued its fuel hedging

programme throughout the year and is

80% hedged for H1 FY25.

> easyJet is involved in a number of

initiatives to achieve our ambition to be a

leader in decarbonising aviation. The main

ones are hydrogen aircraft partnerships

and the use of Sustainable Aviation Fuel

(SAF). Full details can be found in the

Sustainability section on pages 36 to 55.

> Further details on how we manage this risk

can be found under the Macroeconomic

conditions risk on page 71.

The key factors and trends which influence easyJet and all operators within the European airline industry.

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easyJet plc

Annual Report and Accounts 2024

Contents

MARKET REVIEW (CONTINUED)

KEY

MARKET

DRIVER

IMPACT

ON OUR

INDUSTRY

HOW WE ARE

RESPONDING

Environmental

and social

Sustainability, in particular the carbon emissions from flights

and the contribution to climate change, is a significant issue

for the aviation industry.

In research conducted by OnePoll in August 2024 involving

2,000 British holidaymakers, 71% believed zero-carbon

emission technologies such as hydrogen-powered aircraft will

be the best option to decarbonise aviation. Highlighting just

how important this issue is to the public, over half (53%) said

they want the UK Government to prioritise the acceleration

of zero-carbon emission flying and offer more support for

industry to make the transition. Nearly two-thirds (64%) of

respondents also said they are more likely to fly with an

airline actively reducing its impact in the future.

> Individual airlines, airports and industry groups have set

net zero targets for 2050.

> Aerospace companies are developing new technologies

and fuels which could in the future help to decarbonise

aviation.

> Governments across Europe are considering the policy

measures that will be needed to meet their own net zero

targets.

> For 2024 we are ahead of our SBTi-aligned net zero

roadmap targets (see page 40).

> We recently announced a new partnership with JetZero,

a manufacturer based in the US that is building a blended-

wing body aircraft capable of delivering a 50% reduction

in fuel burn thanks to its aerodynamic design. In the future

this could also provide a suitable platform for hydrogen-

powered engine technology.

> Our Flight Efficiencies team has used AI to create an

algorithm which pinpoints where the greatest inefficiencies

are across our network and their causes, showing that we

could make at least a 10.62% reduction in CO

emissions

just by modernising our airspace.

> Our full Sustainability Strategy with further detail can be

found in the Sustainability section on pages 36 to 55.

On-Time Performance,

airspace management and

supply chain pressures

European airspace remains a challenging and congested

environment. While Eurocontrol continues to redesign the

airspace infrastructure with the aim of creating a more

efficient and sustainable network, nevertheless UK and EU

airspace consists of a complex network of flight paths that

have seen little development over the last 70 years. In 2024,

congested airspace from the continued conflict in Ukraine,

weather-related disruption and various ATC restrictions all

drove operational challenges, particularly over the second half

of the year, resulting in a higher than desired level of delays

and cancellations.

> Air traffic control delays cause a number of issues, from

additional flying time and airport congestion to inefficient

flight planning.

> Antiquated flight paths cause additional fuel burn,

as mentioned earlier.

> We continue to encourage Gatwick to build more

resilience into its operations, particularly staffing levels in

the control tower.

> We are advocating for change and modernisation of

airspace, alongside other airlines, by lobbying national

decision makers and maintaining a collaborative relationship

with Eurocontrol (see page 43 for further details).

> Our strategic focus ‘Delivering ease and reliability’

addresses these market dynamics, including how we

manage the associated risks (read more on pages 18

and 19).

Foreign

exchange

easyJet is exposed to foreign exchange rate movements,

mainly resulting from euro and Swiss franc revenues and US

dollar and euro costs, translated into our functional currency

of sterling. Sterling strengthened during the year against the

euro, Swiss franc and US dollar, with a notable acceleration of

the strengthening in our fourth quarter. When sterling

strengthens this has a favourable impact on US dollar and

euro denominated costs (mainly fuel, leases, maintenance and

hotel costs) and an adverse impact on foreign currency

revenues when translated into sterling.

> Many European airlines hedge their foreign currency

requirements, particularly for the US dollar, which

reduces their exposure to short-term currency

fluctuations.

> easyJet has continued its US dollar hedging programme

throughout the year and is already 75% hedged on US

dollars for H1 FY25.

> Our strategic focus ‘Driving our low-cost model’

addresses this market dynamic (read more on pages

20 and 21).

> Further details on how we manage this risk can be found

under the Macroeconomic conditions risk on page 71.

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

KEY PERFORMANCE INDICATORS

headline profit/(loss)

before tax per seat (£)

2024

(40.29)

(2.19)

4.91

6.08

(15.16)

2023

2022

2021

2020

WHY IT IS IMPORTANT

Incremental improvements in profitability ensure

that we have a platform for long-term growth

while generating value for all stakeholders.

WHAT WE MEASURE

Headline profit/(loss) before tax divided by the

number of seats flown. Prior to this year, our per

seat metrics were calculated for the airline only.

However, given the growth of easyJet holidays we

will now focus on headline profit/(loss) before tax

per seat for the Group as a whole, as that metric

will correctly reflect the performance of the airline

and the holidays business combined. We will

therefore use the Group metric as our KPI going

forward, particularly as it is one of our new

medium-term targets (see page 13 for details).

HOW WE PERFORMED

Headline profit before tax per seat for the Group

improved by £1.17 (24%) and now stands at

£6.08 (2023: £4.91). The airline’s headline profit

before tax per seat improved 16% to £4.18 (2023:

£3.59), with the improvement in revenue per

seat (RPS) in the year of 1.9%, being greater than

the headline cost per seat (CPS) increases. Fuel

CPS was only a 1% increase on the previous year

and CPS excluding fuel also saw only a 1%

increase. Strong cost management and

increased flying delivered economies of scale,

offsetting the continued inflationary costs in the

sector. Holidays contributed £1.90 (2023: £1.32)

to the Group’s headline profit before tax per

seat, an increase of 44%, reflecting increased

passenger numbers.

2024

39.87

(2.65)

3.59

4.18

(14.68)

2023

2022

2021

2020

headline ebitda margin (%)

2024

(38.1)

9.8

13.8

14.7

(9.1)

2023

2022

2021

2020

WHY IT IS IMPORTANT

EBITDA is a good proxy for cash generation.

EBITDA margin is a metric the business uses to

make its operating decisions and is one measure

of the underlying performance of the business.

WHAT WE MEASURE

Headline EBITDA divided by total revenue.

Note that previously we used to report on EBITDAR margin,

however in 2024 and 2023, aircraft rentals (R) has been zero

and is forecast to remain so. We have therefore restated

2020–2022.

HOW WE PERFORMED

Headline EBITDA margin % increased from 13.8%

last year to 14.7% this year. This was a reflection

of the improved performance of the Group as

volumes and prices increased, combined with

strong cost management and the continued

growth of easyJet holidays.

headline EARNINGS/(LOSS)

per share (p)

2024

(166.9)

(19.6)

45.4

61.3

(149.7)

2023

2022

2021

2020

WHY IT IS IMPORTANT

Delivering sustainable shareholder value is a

fundamental part of our mindset as we manage

our business.

WHAT WE MEASURE

Headline profit/(loss) after tax divided by the

weighted average number of shares in issue during

the year (adjusted for shares held in employee

benefit trusts).

HOW WE PERFORMED

Headline earnings per share was 61.3 pence

(2023: 45.4 pence) as a result of the improved

performance of the Group this year. Total

earnings per share was 60.4 pence (2023: 43.1

pence).

61.3p

14.7%

Group

£6.08

AIRLINE

£4.18

Group

Airline

easyJet has seven key performance indicators which we

use to measure our overall progress.

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

KEY PERFORMANCE INDICATORS (CONTINUED)

headline return/(Loss)

on capital employed (%)

2024

(25.2)

0.1

12.6

16.1

(19.2)

2023

2022

2021

2020

WHY IT IS IMPORTANT

As a low-cost business, we focus on efficiency to

provide outstanding customer service at the best

value, while also driving operational efficiencies

which will maximise our return on investment.

WHAT WE MEASURE

Headline profit/(loss) before interest, foreign

exchange gain/(loss) and tax, applying tax at the

prevailing UK corporation tax rate at the end of the

financial year, and dividing by the average capital

employed. Capital employed we define as

shareholders’ equity, excluding the hedging and

cost of hedging reserves, plus net debt.

HOW WE PERFORMED

Headline ROCE improved to 16.1% (2023: 12.6%)

driven by the 25% higher headline profit before

interest, foreign exchange gain/(loss) and tax of

£597 million this year (2023: £476 million). Total

ROCE for the year was 15.9% (2023: 12.0%). The

total ROCE was adverse to the headline ROCE

due to non-headline items generating an

£8 million charge before tax in the income

statement.

customer satisfaction (%)

2024

2023

2022

2021

2020

WHY IT IS IMPORTANT

Customers have increasing choice and their

expectations are rising. Ensuring we meet their

evolving needs will position us as the brand of

choice when flying within Europe.

WHAT WE MEASURE

Our customer satisfaction index is based on the

results of a customer satisfaction survey for the

airline, measuring how satisfied the customer was

with their most recent flight.

HOW WE PERFORMED

Overall customer satisfaction with the airline

improved by 3 percentage points to 76%.

Customer satisfaction is closely related to the level

of disruption experienced, notably on-the-day

cancellations and delays. We reduced the level of

cancelled flights across the year (our completion

rate improved from 98% to 99%) and saw our

on-time performance improve as noted below.

on-time performance (%)

2024

2023

2022

2021

2020

WHY IT IS IMPORTANT

Reliable operational performance is a key factor in

our customers’ perceptions of their experience with

us. Managing on-time performance (OTP) and

minimising disruption will positively impact on the

likelihood of our customers choosing to fly with us

on a repeat basis.

WHAT WE MEASURE

Percentage of flights which arrive within 15 minutes

of the scheduled arrival time.

HOW WE PERFORMED

Our OTP improved in the year to 69% (2023:

66%) despite the challenging external

environment, most notably congested European

airspace leading to frequent air traffic control

(ATC) restrictions. We have made, and will

continue to make, investment in targeted

resilience measures to reduce the impact of

disruption on our customers, and it is of note that

our ‘controllable’ disruption events have reduced

by c.40% compared to last year.

emissions per

passenger kilometre (g)

2024

81.08

70.36

67.23

66.64

70.77

2023

2022

2021

2020

WHY IT IS IMPORTANT

An important part of our strategy is to make a

meaningful difference and help to tackle climate

change. In the short term our focus is on being

as efficient as we can and driving carbon

efficiencies.

WHAT WE MEASURE

How much carbon dioxide is produced for each

passenger, for each kilometre they fly with us.

HOW WE PERFORMED

In 2024, our carbon emissions per passenger

kilometre reduced further to a new record low of

66.64g CO

/RPK (2023: 67.23g). This reflects our

ongoing investment in more fuel-efficient NEO

aircraft, combined with a relentless focus on

improving operational fuel efficiency through

measures such as introducing Descent Profile

Optimisation software.

66.6g

69%

76%

16.1%

Group

Airline

airline

Additional metrics of interest, both operational and financial, can be found on page 35.

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

OUR

FINANCIAL

RESULTS

FINANCIAL REVIEW

Kenton Jarvis Chief Financial Officer

Total headline profit before tax of £610 million for

the year ended 30 September 2024 was an

improvement of £155 million (34%) on the year

ended 30 September 2023 equivalent profit of

£455 million. Total revenue of £9,309 million was

£1,138 million (14%) ahead of the prior year and

Holidays’ profit before tax contribution of £190

million was £68 million ahead. The year was

characterised by increased capacity and

passenger numbers with cost discipline and

operational efficiencies offsetting industry-wide

inflationary pressures. easyJet holidays played a

key role in the profit growth with a 36% year-on-

year increase in customer numbers and continued

strong margins.

An expansion in fleet size saw the introduction of

new routes and base openings in the year which,

together with ongoing strategic network

optimisation, enabled easyJet to offer capacity of

100.4 million seats (2023: 92.6 million), an increase

of 8% over the prior year. With a load factor of

89% (2023: 89%) this translated into 89.7 million

passengers carried (2023: 82.8 million). Improved

airline revenue per seat (RPS) performance of

£81.35 (2023: £79.84) was 1.9% higher than the

prior year in a competitive market, and included

contribution from the ongoing success of our

airline ancillary options and in-flight retail offer.

easyJet holidays had 2.6 million customers in the

year (including agent commission customers,

2023: 1.9 million), and surpassed £1 billion

incremental revenue contribution, delivering £1,137

million revenue (2023: £776 million) and £190

million headline profit before tax (2023: £122

million).

A strong performance for the year

characterised by capacity growth,

cost discipline and the continued

success of easyJet holidays, delivering

reduced winter losses and culminating

in another record summer profit.

The prior year’s cost challenges for the airline

continued with industry-wide inflationary

pressures again a feature. Whilst we continued to

implement resilience measures to minimise the

risk and impact of delays and cancellations,

disruption and the associated costs continued to

run at too high a level, with the main causes being

air traffic control (ATC) restrictions, external

industrial action and weather events.

Nevertheless, with management’s focus on cost

and fleet efficiency, easyJet’s airline headline cost

per seat (CPS) excluding fuel of £55.03 was only

1.3% higher than the prior year (2023: £54.30).

The first half of the financial year demonstrated a

successful first step on our journey to structurally

reducing winter losses, with headline loss before

tax of £350 million for the six months ended

31 March 2024 being a reduction of £61 million on

the loss of £411 million for the comparative period

ended 31 March 2023. This reflected network

growth in response to customer demand, fleet

utilisation benefits and the continued expansion

of easyJet holidays, in addition to some trading

benefit due to part of the Easter holidays falling in

the first half of the financial year. This was

alongside the impact of the outbreak of conflict in

the Middle East which resulted in the cancellation

of a number of flying routes and the associated

costs incurred and revenue forgone. Passenger

growth of 11% to 36.7 million passengers (H1 2023:

33.1 million) and RPS growth of 5% led to first-half

revenue of £3,268 million (H1 2023: £2,689 million),

an increase of 22%. Fuel prices remained volatile

throughout H1 with the outbreak of the conflict in

the Middle East and, although partially mitigated

through easyJet’s hedging policy, fuel costs on a

CPS basis increased by 6% to £21.60 (H1 2023:

£20.43). However, the focus on cost management

and efficiency delivered by increased asset

utilisation and productivity resulted in easyJet’s

H1 2024 airline headline CPS excluding fuel of

£57.28 being flat to the comparative period (H1

2023: £57.15).

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Contents

FINANCIAL REVIEW (CONTINUED)

The second half of the financial year delivered a record profit before tax of £960 million (H2 2023: £866

million). Second half trading saw continued capacity growth, a year-on-year 0.7% RPS improvement in a

competitive pricing market, and Holidays’ increased revenue contribution. This, combined with falling

fuel prices, efficiencies from scale and our management cost focus, helped easyJet deliver a record

summer result. The delivery was against a backdrop of continued high levels of disruption, with ongoing

external industrial action and persistent ATC challenges across congested European airspace in addition

to the impact of weather events. Targeted resilience measures and learnings from previous periods of

disruption, such as providing for breaks in scheduling at airports subject to frequent ATC disruption and

crew timing on first wave flights, improved on-time performance and our response to these challenges.

Our ‘controllable’ disruption events have reduced by c.40% compared to FY23, reflecting the resilience

actions undertaken, including an investment in spare parts and standby aircraft, an increased rigour in

the timing of aircraft maintenance scheduling, and a focus on ground staff and crew availability. Looking

ahead, easyJet will continue to invest in resilience measures to fulfil our purpose of making low-cost

travel easy in a challenging external environment.

The airline industry as a whole continued to face significant inflationary cost pressures in the year,

although easyJet largely mitigated the impact through a focus on cost management alongside

increased capacity and aircraft utilisation contributing to improved productivity. The delivery of 16 new

NEO aircraft continued our upgauging journey, and data insight and AI deployment, as well as key

procurement initiatives and the benefit of our net cash balance, contributed to our overall management

of costs. As a result, airline headline CPS excluding fuel for the year of £55.03 was an increase of only

1.3% on the prior year (2023: £54.30).

Taken together, the strong revenues and cost focus delivered a headline EBITDA achievement for the

year of £1,367 million, a 21% improvement on the prior year (2023: £1,130 million), and a statutory profit

before tax of £602 million, a prior year improvement of £170 million (2023: £432 million).

During the year, with a robust balance sheet and positive cash position, easyJet repaid a €500 million

Eurobond which matured in October 2023, and in March 2024 raised a new €850 million Eurobond with

a coupon of 3.75% maturing in 2031. At 30 September 2024, easyJet had a net cash position of £181

million (2023: £41 million). As a result of our strong balance sheet position and EBIT performance the

year-end headline ROCE of 16.1% (2023: 12.6%) is a positive step towards our target of delivering

sustainable high teen returns on capital employed.

Where amounts are presented at constant currency these values are an alternative performance

measure (APM) and are not determined in accordance with International Financial Reporting Standards

(IFRS), but provide relevant and comparative reporting for readers of these financial statements.

Definitions of APMs and reconciliations to IFRS measures are set out in the glossary on pages 205

and 206.

PERFORMANCE SUMMARY

£ million (reported) 2024 2023

Total revenue 9,309 8,171

Headline costs excluding fuel, balance sheet FX and ownership costs

(5,719) (5,008)

Fuel (2,223) (2,033)

Headline EBITDA 1,367 1,130

Depreciation and amortisation (770) (654)

Headline EBIT 597 476

Net finance income/(charges) 9 (48)

Foreign exchange gain 4 27

Total headline profit before tax 610 455

Being:

Airline headline profit before tax 420 333

Holidays headline profit before tax 190 122

Total headline profit before tax per seat £6.08 £4.91

£ per seat – Airline only

2024 2023

Airline revenue 81.35 79.84

Headline costs excluding fuel, balance sheet FX and ownership costs

(47.32) (46.93)

Fuel (22.14) (21.95)

Headline EBITDA 11.89 10.96

Depreciation and amortisation (7.58) (7.02)

Headline EBIT 4.31 3.94

Net finance charges (0.15) (0.63)

Foreign exchange gain 0.02 0.28

Airline headline profit before tax 4.18 3.59

1) Ownership costs are defined as depreciation and amortisation plus net finance income/(charges).

2) These per seat metrics are for the airline business only, and correlate to the airline revenue and costs, and the seats

flown by the airline. Both airline and easyJet holidays profit is included in the total headline PBT per seat metric, and

easyJet holidays’ key metrics are included in the key statistics section.

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Contents

FINANCIAL REVIEW (CONTINUED)

The total number of passengers carried in the financial year increased by 8% to 89.7 million (2023: 82.8

million), supported by an 8% increase in seats flown to 100.4 million seats (2023: 92.6 million seats) with a

load factor of 89.3% comparable to the previous year (2023: 89.3%). This reflects the increased capacity

from an expanded network offer and a focus on winter flying, and includes the success of new bases

opened in the year. As in the prior year, capacity was impacted by disruption events although resilience

measures and learnings from previous disruption mitigated some of the impact from external factors with

pro-active investment in parts, maintenance scheduling, standby aircraft and staffing reducing the

occurrence of controllable disruption events. A number of cancellations were made in response to the

conflict in the Middle East, and lines of flying removed. Capacity was redeployed and although the removal

of key routes in this region continued into the second half of the year, this did not detract from overall

capacity growth.

Total revenue increased by 14% to £9,309 million (2023: £8,171 million) and airline RPS increased by 1.9%

to £81.35 (2023: £79.84), 2.1% at constant currency. As noted above, the airline performance was

complemented by strong easyJet holidays performance with net revenue (i.e. excluding flight revenue

which is reported under airline revenue) of £1,137 million (2023: £776 million).

Total headline costs excluding fuel increased by 14% to £6,476 million (2023: £5,683 million), driven by the

volume of flying, the growth of holidays and general industry cost pressures. Costs were also impacted by

the disruption seen throughout the year with £187 million of EU261 compensation and welfare costs

incurred for airline passengers, although this was lower than the previous year (2023: £211 million). On a

CPS basis total airline headline costs excluding fuel increased by only 1% to £55.03 (2023: £54.30), with

CPS benefiting from fixed operating costs being spread across greater flying capacity. In addition,

management continued to focus on operational cost reduction with a number of projects delivered in the

year including the purchase of an established heavy base maintenance facility in Malta to secure future

capacity and provide price control. This was alongside further data and AI deployment supporting back

office cost projects and increased automation of customer support queries, procurement initiatives across

key suppliers, and network planning bringing efficiency and productivity gains.

Total fuel costs increased by 9% to £2,223 million for the year (2023: £2,033 million), which on an airline CPS

basis represented just a 1% increase to £22.14 (2023: £21.95), 1% at constant currency. The high price of jet

fuel from the previous year continued into H1 2024 with the outbreak of the conflict in the Middle East, but

steadied as the year progressed, with price reductions experienced in the second half of the financial year.

Exchange rate movements stabilised in the year, with the impact of the translation of foreign currency

denominated revenue and costs on the consolidated income statement notably reduced. Currency

movements in the year resulted in a net credit impact of £18 million (2023: £115 million debit) across

costs and revenue, with an income statement credit of £4 million (2023: £27 million) from the translation

of foreign currency denominated monetary assets and liabilities on the statement of financial position.

On a constant currency basis, the increase in headline profit before tax compared to the prior year was

£160 million, compared to the £155 million increase per the reported figures.

easyJet’s cash position benefited from continued high interest rates in the year and the reprofiling of

debt, resulting in a net £9 million finance credit (2023: £48 million net charge).

easyJet holidays contributed £190 million of headline profit before tax (2023: £122 million), an increase of

56%, reflecting the 36% increase in total holiday customers and the strength of the low fixed-cost

business model.

Total headline profit before tax per seat was £6.08 (2023: £4.91). The airline’s headline profit before tax

per seat improved 16% to £4.18 (2023: £3.59), with the improvement in RPS in the year being greater

than the headline CPS increases. Fuel CPS was only a 1% increase on the previous year and CPS

excluding fuel also saw only a 1% increase, with strong cost management and increased flying and the

benefits of upgauging delivering economies of scale to mitigate continued inflationary cost increases in

the sector. easyJet holidays contributed £1.90 (2023: £1.32) to the total headline profit before tax per

seat, reflecting increased customer numbers.

A non-headline charge of £8 million (2023: £23 million) was recognised in the year, largely as a result of

network restructuring activity in France and Italy offset by a release of costs previously provided for

severance cases in Germany which were settled in the year. Additionally, there was £1 million profit (£nil

million loss) from the sale and leaseback of eleven aircraft (2023: eight aircraft).

Corporate tax has been recognised at an effective rate of 24.9% (2023: 25.1%), resulting in an overall tax

charge of £150 million (2023: £108 million). This is a tax charge of £151 million on headline items offset by

a £1 million tax credit on the non-headline losses.

PROFIT PER SHARE

2024

Pence per

2023

Pence per

Change in

pence per

Basic headline profit per share 61.3 45.4 15.9

Basic total profit per share 60.3 43.1 17.2

Basic headline profit per share increased by 15.9 pence and basic total profit per share increased by

17.2 pence over the prior financial year as a consequence of the greater profit generated in the current

financial year.

RETURN ON CAPITAL EMPLOYED (ROCE)

Reported £ million 2024 2023

Headline profit before interest, foreign exchange gain and tax 597 476

UK corporation tax rate 25% 25%

Normalised headline operating profit after tax (NOPAT) 448 357

Average shareholders’ equity (excluding the hedging and cost of hedging reserves) 2,897 2,517

Average net (cash)/debt (111) 315

Average capital employed 2,786 2,832

Headline return on capital employed 16.1% 12.6%

Total return on capital employed 15.9% 12.0%

ROCE is calculated by taking headline profit before interest, foreign exchange gain and tax, applying tax

at the prevailing UK corporation tax rate at the end of the financial year, and dividing by average capital

employed. Capital employed is defined as shareholders’ equity excluding hedging and cost of hedging

reserves less net (cash)/debt.

Headline ROCE for the year of 16.1% is an improvement on the prior year (2023: 12.6%). This reflects the

higher headline profit for the year combined with the increase in the net cash position. Total ROCE of

15.9% (2023: 12.0%) is reduced by the non-headline charge in the year, and is greater than the prior year

which had a higher non-headline charge.

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FINANCIAL REVIEW (CONTINUED)

Net capital expenditure in the year of £929 million (2023: £754 million) reflects the continued investment

in fleet renewal and growth in the overall size of the fleet, alongside pre-delivery payments against our

future order book. The expenditure is across sixteen new aircraft (2023: ten), maintenance additions,

pre-delivery payments and capital expenditure on long life parts, engines and aircraft spares.

Additionally, spend on easyJet’s digital infrastructure and customer facing platforms continues with

significant intangible asset investment.

In the year easyJet plc acquired SR Technics Malta Limited, with a net cash outflow of £22 million.

The sale and leaseback of eleven (2023: eight) aircraft in the year resulted in a net cash inflow of £114

million (2023: £76 million). Lease additions, including the sale and leaseback aircraft and a number of

additional property leases for head office and maintenance facilities, as well as significant lease

extension undertakings, are the key drivers for the increase in the lease liability of £497 million (which

excludes exchange rate impact and lease rental payments).

The net £109 million movement (2023: £59 million) in ‘Other’ includes movement in net interest, as

interest received in this financial year offsets interest paid due to beneficial interest rates on cash,

foreign exchange impacts and the increase of costs for share-based employee benefit schemes.

EXCHANGE RATES

The proportion of revenue and headline costs denominated in currencies other than sterling is outlined

below alongside the exchange rates in the year:

Revenue Headline costs

2024 2023 2024 2023

Sterling 55% 55% 34% 32%

Euro 35% 35% 36% 35%

US dollar 1%

1% 25% 27%

Other (principally Swiss franc) 9% 9% 5% 6%

Average headline exchange rates

2024 2023

Euro – revenue €1.16 €1.15

Euro – costs €1.17 €1.15

US dollar $1.24 $1.24

Swiss franc CHF 1.10 CHF 1.14

Closing exchange rates 2024 2023

Euro €1.20 €1.15

US dollar $1.34 $1.22

Swiss franc CHF 1.13 CHF 1.12

1) Our customers have the option of paying for flights in US dollars.

2) Exchange rates quoted are post-hedging applied to revenue and headline costs.

SUMMARY NET CASH RECONCILIATION

The below table presents cash flows on a net cash basis. This presentation is different to the

presentation of the statement of cash flows in the consolidated financial statements as it includes

non-cash movements on debt facilities.

2024

£ million

2023

£ million

Change

£ million

Operating profit 589 453 136

Net tax paid (8) (12) 4

Net working capital movement excluding unearned revenue (174) (19) (155)

Unearned revenue movement 240 458 (218)

Depreciation and amortisation 770 673 97

Net capital expenditure (929) (754) (175)

Acquisition of subsidiary, net of cash acquired (22) – (22)

Net proceeds from sale and leaseback of aircraft 114 76 38

Increase in lease liability (497) (208) (289)

Purchase of own shares for employee share schemes (18) (15) (3)

Ordinary dividends paid (34) – (34)

Other (including the effect of exchange rate movements) 109 59 50

Net increase in net cash 140 711 (571)

Net cash/(debt) at the beginning of the year 41 (670) 711

Net cash at the end of the year 181 41 140

Net cash as at 30 September 2024 was £181 million (30 September 2023: £41 million) and comprised

cash, cash equivalents and other investments of £3,461 million (30 September 2023: £2,925 million),

borrowings of £2,106 million (30 September 2023: £1,895 million) and lease liabilities of £1,174 million

(30 September 2023: £989 million).

Net working capital outflow, excluding unearned revenue, of £174 million in the year (2023: £19 million)

predominantly reflects a decrease in trade payables with more efficient year-end processing, in addition

to an increase in trade and other receivables. There was a higher value of receivables due over the year

end period including miscellaneous sales ledger items, interest receivable, airport incentive income and

supplier credit notes.

The unearned revenue movement of £240 million (2023: £458 million) reflects capacity on sale at the

year end, including package holidays which traditionally have a longer booking period. The comparative

year saw a greater movement as customer booking behaviour normalised and easyJet delivered a

significant increase in capacity and improved yields post-pandemic.

The increase in depreciation and amortisation to £770 million (2023: £673 million) includes additional

depreciation from the growth of the fleet and the increase in leased aircraft maintenance costs,

recognised through depreciation, with the rise in flying volumes and changes in the profile of leased

aircraft assets through the year. Intangible asset amortisation has also increased with additional

investment in technology assets.

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FINANCIAL REVIEW (CONTINUED)

flown to 100.4 million seats (2023: 92.6 million seats). 158 new routes and growth in key leisure markets in

the year.

Airline ancillary revenue of £2,457 million was 13% ahead of the previous financial year (2023: £2,174

million) as a result of both higher passenger numbers and improved yields. Cabin bags and leisure

bundles, amongst other ancillary products, continued to deliver incremental revenue through the year,

benefiting from positive yields achieved by price optimisation. Our inflight retail offer continues to grow

in popularity as menu choices and product selections evolve, resulting in an improved profit per seat of

13% to £0.68 (2023: £0.60), delivering additional revenue of £12 million.

Before adjusting for flight revenue, easyJet holidays customers generated revenue of £1,521 million, a

45% growth on 2023 pre-adjusted revenue of £1,047 million. Net of flight revenue, Holidays’ incremental

revenue of £1,137 million was an increase of £361 million, (2023: £776 million) reflecting the growth in

customer volumes and the success in expanding our share of the UK package holiday market.

Similar to the prior year, within revenue there was a £47 million credit (2023: £47 million) arising from the

release of aged contract liabilities within other payables, with £31 million recognised in passenger

revenue and £16 million in ancillary revenue.

HEADLINE COSTS EXCLUDING FUEL

2024 2023

Total

£ million

Airline

£ per seat

Total

£ million

Airline

£ per seat

Operating costs and income

Airports and ground handling 1,989 19.80 1,800 19.44

Crew 1,074 10.69 941 10.16

Navigation 463 4.61 422 4.56

Maintenance 390 3.88 341 3.69

Holidays direct operating costs 840 n/a 582 n/a

Selling and marketing 257 1.94 232 2.04

Other costs 758 6.92 695 7.0 9

Other income (52) (0.52) (5) (0.05)

5,719 47.32 5,008 46.93

Ownership costs

Depreciation 727 7.23 625 6.75

Amortisation 43 0.35 29 0.27

Net interest and other financing income and charges (9) 0.15 48 0.63

761 7.73 702 7.6 5

Foreign exchange gain (4) (0.02) (27) (0.28)

757 7.71 675 7. 37

Headline costs excluding fuel 6,476 55.03 5,683 54.30

Headline CPS excluding fuel for the airline increased by 1% to £55.03 (2023: £54.30), and by 1% at

constant currency.

HEADLINE EXCHANGE RATE IMPACT

Favourable/(adverse)

Euro

£ million

Swiss franc

£ million

US dollar

£ million

Other

£ million

Total

£ million

Tota l revenue (29) 13 (1) (2) (19)

Fuel 1 – – – 1

Headline costs excluding fuel 41 (1) (1) (3) 36

Headline total before tax

13 12 (2) (5) 18

1) Excludes the impact of balance sheet translation.

easyJet’s Foreign Currency Risk Management policy aims to reduce the impact of fluctuations in

exchange rates on future cash flows. Refer to note 26 in the financial statements for more details.

As a European carrier, easyJet recognises a significant element of revenue, 35%, across its network in

euros. Therefore the strengthening of sterling against the euro on average over the year, when compared

to the prior year, has reduced the value of the revenue translated into sterling. The opposite effect was

true of Swiss franc-denominated revenue where, on average across the year, sterling weakened against

the Swiss franc which benefited revenue. The euro exchange rate impact in revenue has been offset by

the converse impact on costs, with the stronger average sterling rate to euro compared to the prior year

reducing costs translated from euros. With exchange rates being relatively stable in the year, on a net

position the movement in average exchange rates between the current and prior years has resulted in a

favourable foreign currency impact of £18 million across the consolidated income statement.

For the statement of financial position, in-year movements in closing exchange rates and a focus on

natural hedging through foreign currency cash balances, resulted in a net exchange rate impact of only

a £4 million gain in the year (2023: £27 million).

FINANCIAL PERFORMANCE

REVENUE

£ million 2024 2023

Passenger revenue 5,715 5,221

Ancillary revenue 2,457 2,174

Holidays incremental revenue

1,137 776

Total revenue 9,309 8,171

1) easyJet holidays numbers are after the elimination of intercompany airline transactions.

Total revenue increased by 14% to £9,309 million (2023: £8,171 million).

Revenue performance in the year was a combined result of increased customer volumes, a focus on

optimising winter yields and summer pricing in a competitive market alongside a continued growth in

the ancillary choices we offer customers. Total airline RPS of £81.35 was 1.9% ahead of prior year (2023:

£79.84), 2.1% at constant currency, with passenger RPS 0.9% ahead and ancillary RPS 4.2% favourable,

1.0% and 4.7% respectively at constant currency. The total number of passengers carried increased by

8% to 89.7 million (2023: 82.8 million), supported by additional capacity with an 8% increase in seats

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FINANCIAL REVIEW (CONTINUED)

Headline ownership costs

Depreciation costs increased by 16% to £727 million (2023: £625 million), a 7% increase to £7.23 (2023:

£6.75) on a CPS basis, and 7% at constant currency. There has been significant fleet activity in the year

with 16 new aircraft delivered alongside a change in the profile of leased aircraft. In addition, the

maintenance provision for leased aircraft has significantly increased reflecting higher flying volumes, the

increased cost of maintenance events and extended obligations for a number of leased aircraft in order

to manage the impact of new aircraft delivery delays.

The increase in amortisation costs of 48% to £43 million (2023: £29 million) reflects easyJet’s investment

in technology with continued enhancement to customer facing platforms in addition to commercial

infrastructure and the evolution of data insight and digital security technology. On an airline CPS basis,

the £0.35 measure is a 30% increase on the prior year (2023: £0.27), 30% at constant currency.

Net interest and other financing income and charges were a net £9 million credit (2023: £48 million net

charge) reflecting the benefit from high interest rates on cash deposits in the year, and the interest

payments forgone following the repayment of the UKEF drawn facility in the previous year.

Foreign exchange gains of £4 million in the year (2023: £27 million) were marginal, being the benefit of the

retranslation of foreign currency denominated monetary assets and liabilities arising from currency movements

in the year, notably tempered by an increased focus on hedging the statement of financial position.

FUEL

2024 2023

Total

£ million

Airline

£ per seat

Total

£ million

Airline

£ per seat

Fuel 2,223 22.14 2,033 21.95

Fuel costs for the year increased by 9% to £2,223 million (2023: £2,033 million), a 1% increase on a CPS

basis to £22.14 (2023: £21.95), 1% at constant currency. Fuel prices at the start of the financial year were

high reflecting the outbreak of the conflict in the Middle East in October 2023, but settled through the

second half as markets acclimatised to the geopolitical events. Whilst overall jet fuel prices reduced in

the year, the absolute cost reflects the increased flying volume. On a per seat basis, alongside the

reduced fuel prices, the prior year comparatives were supported by a full year benefit of the Descent

Profile Optimisation software retrofitted on our aircraft in FY23, the introduction of further fuel-saving

Idle Factor Optimisation software, and the increase of the more fuel-efficient NEO aircraft in the fleet.

These benefits were partially offset by a reduction in the allocation of no-cost Emissions Trading

Scheme (ETS) allowances as jurisdictions wind down the ‘free’ aspects of the scheme with easyJet

therefore increasing the proportion of purchased allowances utilised in the year.

easyJet uses jet fuel derivatives to hedge against increases in jet fuel prices in order to mitigate cash and

income statement volatility. To manage the risk exposure, jet fuel derivative contracts are used in line

with the Board-approved policy to hedge up to 18 months of forecast exposures. During the financial

year, the average market price payable for jet fuel reduced by 4% to $864 per tonne from $897 per

tonne in FY23. The overall post-hedge fuel price in the year was $842 per tonne (2023: $867), the 3%

reduction compared to FY23 being due to the fuel cost at the time the hedges were entered into.

Approximately 81% of jet fuel was hedged in FY24.

Included within the total headline costs excluding fuel of £6,476 million is £947 million (2023: £654

million) related to the holidays business, the cost increase being primarily due to the growth of the

business.

Headline operating costs and income

Airports and ground handling operating costs increased by 11% to £1,989 million (2023: £1,800 million),

an increase of 2% to £19.80 (2023: £19.44) on an airline CPS basis, 3% at constant currency. With a

network of largely slot-constrained and regulated primary airports easyJet is subject to regulatory price

increases with labour costs in the general market also contributing to CPS increases.

Crew costs increased by 14% to £1,074 million (2023: £941 million), an increase of 5% to £10.69 (2023:

£10.16) on an airline CPS basis, 6% at constant currency, largely representing an industry-wide pressure

on above inflation pay deals. This has been offset in part by productivity gains in the year and the

benefit of allocating the fixed element of crew costs over greater capacity.

Navigation costs increased by 10% to £463 million (2023: £422 million) as a result of both Eurocontrol

rate increases and a change in route mix with new routes introduced in the year. This was a rise of 1% to

£4.61 (2023: £4.56) on an airline CPS basis, 3% at constant currency.

Maintenance costs increased by 14% to £390 million (2023: £341 million), an airline CPS increase of 5% to

£3.88 (2023: £3.69), 5% at constant currency. This CPS increase reflects general cost pressure in this

area including the costs of external maintenance and support functions, component costs and internal

labour costs.

Selling and marketing costs increased by 11% to £257 million (2023: £232 million). Whilst marketing costs

saw an increase to support the growth of the holidays segment, airline marketing costs were

comparable to the prior year and, combined with a benefit from commission arrangements, resulted in a

lower airline CPS of £1.94 (2023: £2.04), a 5% reduction on the previous year, 4% at constant currency.

Total other costs increased by 9% to £758 million (2023: £695 million), which for the airline was a

reduction of 2% to £6.92 (2023: £7.09) on a CPS basis, and 2% reduction at constant currency. Other

costs include the impact of the disruption experienced in the year, with net £187 million disruption

compensation and welfare costs incurred (2023: £211 million). Whilst disruption continued to be a theme

in the year, the number of events were reduced over the previous year. In part this was offset by higher

welfare costs, where easyJet has an obligation to support customers impacted by disruption, including

those events outside of the airline’s control such as ATC performance, external strike action and weather

events. The other cost line also includes employee costs and benefits with central headcount costs

increasing and wider employee share scheme offerings and other benefits also contributing. Increases in

easyJet holidays’ fixed costs reflects growth in the segment. Additionally, IT costs increased year on year

with easyJet’s continued investment in technology including infrastructure, data management and

customer-facing system enhancements.

Other income of £52 million was an increase of £47 million from the prior year (2023: £5 million). Other

income includes a variety of non-revenue receipts including supplier and airport compensation and sale

of surplus aircraft components.

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Contents

FINANCIAL REVIEW (CONTINUED)

SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2024

£ million

2023

£ million

Change

£ million

Goodwill and other non-current intangible assets 793 641 152

Property, plant and equipment (excluding right of use assets) 4,285 3,936 349

Right of use assets 1,190 928 262

Derivative financial instruments (290) 153 (443)

Equity investment 51 31 20

Other assets (excluding cash and other investments) 1,224 1,159 65

Unearned revenue (1,741) (1,501) (240)

Trade and other payables (1,656) (1,764) 108

Other liabilities (excluding debt) (1,064) (837) (227)

Capital employed 2,792 2,746 46

Cash, cash equivalents and other investments

1, 2

3,461 2,925 536

Debt (excluding lease liabilities) (2,106) (1,895) (211)

Lease liabilities (1,174) (989) (185)

Net cash 181 41 140

Net assets 2,973 2,787 186

1) Excludes restricted cash.

2) Other investments include term deposits, tri-party repos and managed investments.

PROFIT AFTER TAX

£ million (reported) 2024 2023

Headline profit before tax 610 455

Headline tax charge (151) (114)

Headline profit after tax 459 341

Non-headline items before tax (8) (23)

Non-headline tax credit 1 6

Total profit after tax 452 324

NON-HEADLINE ITEMS

A non-headline charge of £8 million (2023: £23 million) was recognised in the year. This consists of a net

£9 million restructuring charge and a £1 million profit on the sale and leaseback of eleven aircraft in the

year (2023: £nil million loss on eight aircraft). The restructuring charge consists of a £12 million cost,

being an estimate of the potential costs of network restructuring exercises in Italy and France, offset by

a £3 million release from the provision for the previously announced Germany restructuring programmes

following a number of settlements finalised in the year.

CORPORATE TAX

Corporate tax has been recognised at an effective rate of 24.9% (2023: 25.1%), resulting in an overall tax

charge of £150 million (2023: £108 million). This splits into a tax charge of £151 million on the headline

profit and a tax credit of £1 million on the non-headline items.

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FINANCIAL REVIEW (CONTINUED)

Since 30 September 2023 net assets have increased by £186 million.

The net book value of goodwill and other non-current intangible assets of £793 million (2023: £641

million) has increased in the year by £152 million. This includes an increase in goodwill of £22 million with

the purchase of SR Technics Malta Limited; continued investment in software development and

applications in the year of net £60 million, focusing on digital safety and security, optimising commercial

platforms and customer applications; and non-current ETS assets of £70 million. The ETS assets are

advance purchases of allowances to meet future liabilities thereby providing a level of certainty on the

cost of future flying obligations.

Property, plant and equipment (excluding right of use assets) net book value has increased by £349

million to £4,285 million (2023: £3,936 million). The impact of the sale and leaseback of eleven aircraft

and the depreciation charge for the year has been offset by the sixteen new owned aircraft brought into

the fleet in the year, advanced payments on the order book and increased capitalised parts and

maintenance.

At 30 September 2024, right of use assets amounted to £1,190 million (2023: £928 million) with lease

liabilities of £1,174 million (2023: £989 million). This reflects the aircraft sale and leaseback transactions in

the year as well as a number of new leases and lease extensions and the increase in the leased aircraft

maintenance provision.

There has been a £443 million decrease in the net asset value of derivative financial instruments, moving

to a net liability position in the year of £290 million (2023: £153 million net asset). The movement is due

to a decrease in currency assets, including cross-currency swaps, as a result of the stronger pound

against the US dollar and euro in comparison to the rates at 30 September 2023, and a decrease in the

price of jet fuel leading to jet fuel hedges being in a liability position compared to 30 September 2023.

Other assets (excluding cash and other investments) of £1,224 million are £65 million higher than the

prior year (2023: £1,159 million). The receivables asset as at 30 September 2024 has increased with

trading growth and other non-current assets increased following additional mid-life leased aircraft

entering the fleet. These increases were partially offset by a reduction in the ETS current asset as prior

year assets were surrendered in the year as part of the annual scheme settlement process and replaced

by current year assets purchased at a lower cost.

Unearned revenue increased by £240 million to £1,741 million (2023: £1,501 million), reflecting increased

capacity on sale and the growth of easyJet holidays.

Trade and other payables reduced to £1,656 million (2023: £1,764 million) reflecting year-end payments

and a reduction in aged customer contract liabilities whilst other liabilities of £1,165 million have increased

by £328 million (2023: £837 million) with a significant increase in the provision for the maintenance

obligation on leased aircraft with the increase in flying over the year, the changing profile of leased

aircraft, and increased cost of maintenance activities.

Debt has increased by a net £211 million to £2,106 million (2023: £1,895 million) with the issue of the new

€850 million Eurobond offsetting the repayment of a €500 million Eurobond. Nevertheless, easyJet has

improved its net cash position over the year, with net cash increasing from £41 million at the start of the

year to £181 million at 30 September 2024. The main drivers are outlined in the earlier section on

page 30.

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Contents

FINANCIAL REVIEW (CONTINUED)

FINANCIAL MEASURES

2024 2023

Favourable/

(adverse)

Return on capital employed 15.9% 12.0% 3.9ppts

Headline return on capital employed 16.1% 12.6% 3.5ppts

Profit before tax per seat (£) 6.00 4.67 28%

Headline profit before tax per seat (£) 6.08 4.91 24%

Airline profit before tax per seat (£) 4.10 3.35 22%

Airline headline profit before tax per seat (£) 4.18 3.59 16%

Airline headline profit before tax per ASK (pence) 0.34 0.29 17%

easyJet holidays profit before tax (£ millions) 190 122 56%

Revenue

Airline revenue per seat (£) 81.35 79.84 1.9%

Airline revenue per seat at constant currency (£) 81.53 79.84 2.1%

Airline revenue per ASK (pence) 6.65 6.52 2.0%

Airline revenue per ASK at constant currency (pence) 6.66 6.52 2.1%

Airline revenue per passenger (£) 91.11 89.36 2.0%

Airline revenue per passenger at constant currency (£) 91.32 89.36 2.2%

Costs

Per seat measures

Airline headline cost per seat (£) 7 7.17 76.25 (1.2)%

Airline headline cost per seat excluding fuel (£) 55.03 54.30 (1.3)%

Airline headline cost per seat exc fuel at constant currency (£) 55.36 54.58 (1.4)%

Per ASK measures

Airline headline cost per ASK (pence) 6.31 6.23 (1.3)%

Airline headline cost per ASK excluding fuel (pence) 4.50 4.44 (1.4)%

Airline headline cost per ASK exc fuel at constant currency (pence) 4.52 4.46 (1.3)%

Refer to the Glossary on pages 205 to 207 for further detail.

KEY STATISTICS

OPERATING MEASURES

2024 2023

Increase/

(decrease)

Seats flown (millions) 100.4 92.6 8%

Passengers (millions) 89.7 82.8 8%

Load factor 89.3% 89.3% –

Available seat kilometres (ASK) (millions) 122,885 113,334 8%

Revenue passenger kilometres (RPK) (millions) 111,615 102,984 8%

Average sector length (kilometres) 1,223 1,224 0%

Sectors (thousands) 559 519 8%

Block hours (thousands) 1,182 1,094 8%

easyJet holidays customers (thousands)

2,575 1,893 36%

Number of aircraft owned/leased at end of year 347 336 3%

Average number of aircraft owned/leased during year 342 328 4%

Average number of aircraft operated per day during year 291 276 5%

Number of routes operated over the year 1,099 1,018 8%

Number of airports served at end of year 160 155 3%

1) easyJet holidays’ customer numbers excluding agency commission customers are 2.3 million (2023: 1.6 million).

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SUSTAINABILITY

OUR APPROACH TO

SUSTAINABILITY

We will need multiple

solutions to decarbonise

aviation.

Johan Lundgren Chief Executive Officer

As I enter my last few

weeks in the business, I am

delighted to be able to report

that easyJet’s commitment

to sustainability is stronger

than ever.

A quarter of our fleet is now

comprised of modern NEO

aircraft, which are between 13%

and 20% more efficient than

the aircraft they replace.

But it is not just the planes we

are flying. One crucial way for

us to reduce emissions is how

we fly them and this year we

became the first airline partner

of Viasat’s IRIS programme, a

revolutionary satellite-based air

traffic management system

that is helping optimise our

flying. This technology will help

deliver critical improvements to

the way we manage airspace

and is expected to eliminate 6.5

million tonnes of CO

from

European skies by 2040.

AIRSPACE MODERNISATION

This evolution can only happen

in tandem with airspace

modernisation. This is a crucial

industry-wide step in

decarbonising the sector which

could lead to a 10% reduction in

easyJet’s total annual emissions

and 18 million tonnes CO

reduction across European

aviation. This is why in

September, to accelerate its

delivery, we released new

analysis to show where the

greatest airspace inefficiencies

are across our network. The

aim is to take this data to

policymakers, regulators and air

traffic controllers across Europe

so that together we can deliver

improvements that will help

reduce European aviation’s fuel

consumption and therefore CO

emissions, while also reducing

flight times for our customers.

SUSTAINABLE AVIATION FUEL

Sustainable Aviation Fuel (SAF)

is another vital component of

our roadmap, with eSAF a

particularly promising option

given its potential to deliver an

up to 99% carbon life-cycle

reduction versus conventional

jet fuel. This year we have joined

Project SkyPower – a CEO-led

initiative aiming to make eSAF a

commercial reality by 2030.

NEW AIRCRAFT TECHNOLOGY

It’s clear we will need multiple

solutions to decarbonise aviation

and, like SAF, hydrogen is

another exciting alternative fuel

to help us on this mission. We

have continued work to

accelerate this transition through

important industry bodies such

as Hydrogen in Aviation (HIA)

and the Alliance for Zero

Emission Aviation (AZEA). The

latter, backed by around 170

organisations across the aviation

sector, has provided industry-

wide collaboration and progress.

We have also explored possible

new airframe technology,

signing a partnership with

JetZero, a company pioneering

a blended-wing body aircraft

design which has the potential

to reduce fuel burn and CO

emissions by 50% using current

generation fuels. It also creates a

suitable platform for hydrogen-

powered engine technology and

for hydrogen-powered flight.

EXTERNAL RECOGNITION

ESG ratings 2024 awards

CDP uses an F-A scoring scale

score

A-

February 2024

MSCI uses a CCC-AAA

scoring scale

score

August 2024

score

21.4

Sustainalytics uses a 100-0

scoring scale – the lower the

score the better

Our Sustainalytics score

places us at the top of

European airlines, and

the fourth worldwide.

October 2024

Awarded for pioneering hydrogen

refuelling trial, developing UK

industry standards.

Aviation Innovation Award

Aviation Industry Awards

Included in

UK & Ireland Travel Company

of the Year 2024

TTG, in The Travel Industry

Awards 2024

Sep

2024

Awarded for championing

sustainability, significantly

cutting waste with reusable

items.

Best for Service Equipment:

Crew

Onboard Hospitality Awards

Jun

2024

Aviation Company of the Year

Aviation Industry Awards

Our ESG strategy helped us

secure the UK & Ireland Travel

Company award.

Awarded for industry

contributions, notably in

sustainability, last year.

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Contents

SUSTAINABILITY (CONTINUED)

GROUNDBREAKING PARTNERSHIPS

We have taken a number of

important practical steps too.

In July, our partnership with

Rolls-Royce broke ground on a

new test facility at NASA’s

Stennis Space Centre in

Mississippi, with testing on a

next-generation hydrogen-

powered engine due to start in

2025. We have also joined

forces with London Gatwick, our

largest base, and Air Products

to add Gatwick to the Airbus

Global Hydrogen Hub network

and start laying the groundwork

to create the necessary

infrastructure for a hydrogen

transition. Complementing this,

we ran the first hydrogen

refuelling trial at a major UK

airport, Bristol – an essential

next step to creating the first

regulation for hydrogen’s use in

an airside environment.

WIDE-RANGING ACTIVITY

As well as supporting the

development of current and

future technologies, we are also

making improvements in other

areas. This year we contributed

to collaborative work with the

Department for the Environment,

Farming and Rural Affairs, the

Animal and Plant Health Agency

and the Department for

Transport, to develop new

industry guidelines to improve

how we dispose of aircraft cabin

waste. Our pilots and cabin crew

are doing their bit, switching to

reusable cutlery and cups for all

in-flight meals, helping prevent

10 million single-use items from

being wasted each year.

We have also renewed and

relaunched our partnership

with UNICEF, through which

our customers and crew have

generated over £17 million since

its inception.

I’m immensely proud that

easyJet received an A- score

from the Climate Disclosure

Project (CDP) in the last year,

one of the few airlines to achieve

this. There is of course more to

do, but this shows we are on the

right path and we will continue

to lead by example in this vital

area. We are also delighted with

our Sustainalytics score which,

at 21.4 in October 2024, makes

easyJet the leading airline for

sustainability in Europe, and the

fourth-placed airline worldwide.

United Nations Sustainable Development Goals relevant to each part of our strategy

sustainability strategy

Pioneering positive change for our planet, communities and people

Getting one step closer to net zero every day

Reducing our

impact today

We work tirelessly to minimise

environmental impact across

our operations.

> Focused on reducing the

carbon intensity of our flying.

> Tackling waste and plastic

reduction within easyJet and

our supply chain.

> Continuously addressing our

noise impact.

> Enhancing our environmental

performance through our ISO

14001-aligned environmental

management system.

Pioneering

future travel

Supporting the development

of zero carbon emission

technology to shape the

future of flying.

> Committed to net zero

carbon emissions by 2050.

> Driving change to deliver our

net zero transition roadmap.

> Collaboration and

partnerships to achieve zero

carbon emission flying.

> Advocating for effective

carbon regulation and

support for new technology.

Driving positive

change

Positively impacting our people,

customers and communities to

maximise the social and

economic benefits of travel

and tourism.

> Creating Europe’s most loved

place to work.

> Driving more sustainable

tourism through easyJet

holidays.

> Supporting charitable causes

that are important to our

customers and employees.

Find out how we are reducing our

impact today on pages 41 to 47.

Find out how we are pioneering

future travel on pages 48 to 50.

Find out how we are driving

positive change in society on

pages 51 to 55, and how we are

creating Europe’s most loved

place to work on pages 56 to 60.

A-

CDP score

21.4

Sustainalytics score

Johan speaking at the two-year anniversary of our net zero pathway

Underpinned by strong governance and monitoring at Board level to drive delivery of this strategy

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

SUSTAINABILITY (CONTINUED)

sustainability and esg governance

SUSTAINABILITY AND ESG GOVERNANCE

Under our ESG Governance framework, the Board

sets the ESG strategy and has ultimate oversight,

with regular reporting on sustainability directly

from the Director of Sustainability. The ESG

Steering Committee tracks implementation of this

strategy by each of the relevant business

functions.

At management level, the ESG Steering

Committee comprises the CFO, Group Markets

Director and Group General Counsel, supported

by the Director of Sustainability, Director of Group

Reporting & Financial Control and Deputy General

Counsel. They are responsible for tracking the

implementation of the strategy regarding ESG

performance, monitoring the delivery of the net

zero pathway and ESG strategy, and ensuring

readiness for CSRD (and other reporting

obligations). The ESG Steering Committee

receives regular direct reports on these areas

from the Environmental, Social and Governance

Working Groups. Each Working Group coordinates

the relevant initiatives in their area and is chaired

and sponsored by a member of the AMB.

At an operational level, the Sustainability team

plays a role in embedding ESG/Sustainability into

the business, with critical support from key

business functions including procurement,

finance, legal and the people team. Additionally,

easyJet has assigned risk owners to each of the

material risks identified, including ESG. Risk

owners are responsible for ensuring there are

adequate controls around that risk.

MATERIALITY

In 2023 we carried out our double materiality

assessment. This provided a deeper understanding

of the sustainability and business issues that

matter most to both internal and external

stakeholders. Based on those insights and the

analysis of upcoming reporting requirements (such

as CSRD and ISSB), we have reviewed how we

oversee environmental, social and governance

matters to ensure robust and focused compliance

with our Sustainability Strategy and regulatory

requirements.

PREPARING FOR FUTURE REPORTING REQUIREMENTS

We are familiarising ourselves with International

Sustainability Standards Board (ISSB) reporting

standards for when the UK adopts them, and with

the CSRD (EU Corporate Sustainability Reporting

Directive) in preparation for easyJet’s reporting

under this legislation in future years.

Strong governance and monitoring at Board level drive delivery

of our Sustainability Strategy

PLC BOARD

Approves Sustainability Strategy and reviews implementation, guided

by its committees below:

Nominations Committee

Diversity organisational targets,

employee engagement and culture, workforce

engagement, sustainability and ESG expertise

of the Board

Safety & Operational

Readiness Committee

Review and monitoring of the implementation

of easyJet’s Safety Plan

Audit Committee

Accuracy and reliability of non-financial

reporting, ethics and compliance-related impact,

climate risk, supply chain integrity and

sustainable procurement

Remuneration

Committee

ESG-linked remuneration and

gender pay gap

Finance Committee

Emissions Trading Schemes

ESG STEERING COMMITTEE

Steers direction of Sustainability Strategy, including net zero roadmap and ESG disclosure

Environment

Working Group

Social

Working Group

Governance

Working Group

SUSTAINABILITY TEAM

Supported by specialist sustainability and ESG working groups

AIRLINE MANAGEMENT BOARD

Regular updates and approval

There are AMB sponsors for (key) material ESG topics

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Contents

SUSTAINABILITY (CONTINUED)

HIGHLIGHTS OF

THE YEAR

Fleet renewal

16 NEO aircraft joined

the fleet, with a further

299 on order.

Read more on page 55

During FY24, we have continued with

our collaborative efforts, bringing

together a wide range of partners

across the aviation ecosystem to

address our environmental impact

in the short term, while setting the

foundation for long-term technology-

led climate action.

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DRIVERS OF

2035 INTENSITY

REDUCTION

DRIVERS OF

2050 INTENSITY

REDUCTION

SUSTAINABILITY (CONTINUED)

OUR ROADMAP

TO NET ZERO

We have a goal to achieve net zero by reducing carbon

intensity by 78% by 2050. This roadmap outlines the

trajectory of easyJet’s well-to-wake GHG emissions

intensity to 2050 and our interim 2035 target.

Reduce

OUR ENERGY USE

How we plan to achieve net zero by 2050

Fleet renewal with NEO

Minimise fuel burn and emissions

through current technology

Airspace modernisation

Aiming for 10% emission reduction by

2035 through Single European Sky and

modernisation of UK airspace

Operational efficiencies

Fuel saving through initiatives including

single engine taxi and engine washing

Replace

FOSSIL FUELS WITH LOW-CARBON

AND ZERO CARBON EMISSIONS SOURCES

Sustainable Aviation Fuel

Use at scale in line with

EU and UK mandates

Zero carbon emission aircraft

Committed to being an early adopter

in transitioning the fleet

Remove

RESIDUAL EMISSIONS

TO REACH NET ZERO

Carbon removal

Residual emissions will be removed

to reach net zero by 2050

We will address residual

emissions through carbon

removals

78%*

By 2050

we aim to be net zero,

reducing our carbon

emissions intensity

Our validated science-

based target, a 35%

carbon emissions intensity

improvement by 2035, is

benchmarked against a

2019 baseline. Since 2000,

we have already reduced

our carbon emissions per

passenger per kilometre,

by one third.

35%*

By 2035

We are committed to

reducing our GHG

emissions intensity

200

2024

400

800

1,000

600

2022 20302025 20402035 2045 2050

2023

2024

* versus 2019.

1) easyJet plc commits to reduce well-to-wake GHG emissions related to jet fuel from owned and leased operations by 35% per Revenue Tonne Kilometre (RTK) by FY35 from a FY19 base year.

The target boundary includes biogenic emissions and removals from bioenergy feedstocks. Based on SBTi Aviation Sectoral Decarbonization Approach for a well below 2°C scenario.

5.6%

improvement

versus 2019

Our emissions intensity in grams CO

e per Revenue Tonne Kilometre

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Contents

SUSTAINABILITY (CONTINUED)

REDUCING OUR

IMPACT TODAY

We are dedicated to minimising the

environmental impact of our

operations. Our main priority is to

lower the carbon intensity of our

flights, and we are also working on

reducing noise pollution, managing

waste, decreasing the use of plastic

and improving overall environmental

performance.

We publish a range of ESG fact sheets

on our website to be read alongside the

2024 Annual Report and Accounts. The

fact sheets provide further data and

information on: human capital; safety,

quality and governance; digital safety;

and environmental management. Go to:

corporate.easyJet.com/sustainability

Reducing our impact

in the air

OVERVIEW

easyJet already boasts a significantly strong

emissions intensity performance compared to the

global narrowbody average. This achievement is

the result of a relentless pursuit of efficiency

throughout the airline’s history.

In FY24, we recorded our lowest ever intensity of

66.64g CO

/RPK (Scope 1 aviation emissions).

We have continued to make significant progress

towards our greenhouse gas (GHG) emissions

intensity target, achieving a 0.9% improvement

compared to FY23.

This represents a 5.6% improvement versus FY19,

as we continue to make progress towards our

interim target of a 35% reduction by FY35. It was

driven primarily by fleet renewal, with 16 more

efficient NEO aircraft joining the fleet, and strong

emphasis on operational efficiencies including

Descent Profile Optimisation and painting our

aircraft with lightweight paint.

In 2022, we set an ambitious target to reduce

GHG emissions intensity by 35% by 2035 (against

an FY19 baseline) as a key step towards our goal

of net zero by 2050. This target, validated by

the Science Based Targets initiative (SBTi), is a

pioneering effort among low-cost carriers

worldwide.

EFFICIENT FLEET

Our main tool for reducing energy consumption is

to operate the most efficient fleet possible, using

the most fuel-efficient aircraft available.

We already possess one of Europe’s largest fleets

of A320neo family aircraft and have an additional

299 on order scheduled for delivery between now

and FY34, with a total list price of $36 billion.

The NEOs offer at least a 13% improvement in fuel

efficiency and a 50% reduction in noise footprint.

Moving from the smaller A319 to the larger

A320neo and A321neo aircraft allows us to

increase seat capacity, significantly reducing the

emissions impact per passenger. This fleet

expansion will enable easyJet to grow capacity

in a fuel- and emissions-efficient way.

In addition to new fleet acquisitions, we have also

enhanced the efficiency of our existing fleet.

Since 2013, our A320ceo aircraft have been

equipped with ‘Sharklet’ wingtips, which reduce

drag and fuel burn by up to 3% per hour flown.

Further efficiency gains have been achieved

through the Spaceflex configuration on 93% of

our A320 fleet, which frees up space for six

additional seats per plane. The seats themselves

have been converted to a slimline, lightweight

Recaro design, standard on all NEO deliveries,

further reducing the weight and fuel burn of the

aircraft. For a full fleet profile, see page 2.

WHAT WE ARE DOING TO REDUCE ENERGY USE

We will optimise our energy use by renewing

our fleet with the most efficient aircraft

available, saving fuel through operational

efficiencies and through the modernisation

of UK and European airspace when achieved.

IMPROVING EFFICIENCY WITH THE NEW NEO FLEET

30%

less CO

per seat

on A321neo vs A319

24%

less CO

per seat

on A320neo vs A319

156 seats on the A319

Based on FY24 actual fuel burn per seat per block hour by aircraft type.

186 seats on the A320neo

235 seats on the A321neo

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SUSTAINABILITY (CONTINUED)

OPERATIONAL IMPROVEMENTS AND EFFICIENCIES

We continue to operate our aircraft as efficiently

as possible and are always looking for further

efficiency improvements to reduce fuel burn and

therefore carbon emissions. While we continue to

be progressive and invest in new technologies to

improve efficiencies, safety continues to be our

priority. All new measures are therefore closely

scrutinised and taken only when safe and

practical to do so, and within the parameters

of the operational environment.

The operational and airspace modernisation

initiatives mentioned below also aim to reduce

NOx and other non-CO

emissions.

Our initiatives include:

> The use of lighter paint – now being used on all

aircraft going through our paint shop, lighter

paint has saved 57 tonnes of fuel, equivalent to

178 tonnes of carbon dioxide during FY24. 32

aircraft have already been painted.

> Idle Factor Optimisation trial – a large-scale trial

is taking place on 89% of our fleet to make sure

that idle thrust settings (the lowest power

setting on the engine) are continuously

optimised and tailored to each individual

aircraft throughout that aircraft’s life. In

combination with Descent Profile Optimisation

(DPO) and Continuous Descent Approach

(CDA) software, this helps to further reduce

carbon emissions and fuel costs.

> Participation in the EU CICONIA and HERON

projects to reduce emissions in the air and on

the ground – read more in the case studies on

page 43.

> Taxibot trials – when aircraft taxi at airports,

they use a considerable amount of fuel, emit

and generate noise. Taxibot is a semi-

autonomous system controlled by the pilot,

that enables airplane taxiing without engines

running. Trials have shown a possible 85%

reduction in the jet fuel used during taxiing, the

same in CO

and noxious gases, and a 60%

reduction in noise, using this technology.

NOISE

We continue to work to reduce the noise impact

of our aircraft and flights, helped by the

acquisition of newer, quieter Airbus A320neo and

A321neo aircraft, powered by CFM LEAP-1A

engines. These aircraft comply with ICAO Chapter

14 regulations, the latest and most stringent noise

standards. Currently, 48% of our fleet meets

Chapter 14 certification, while the remaining 52%

are certified under Chapter 4 standards.

We investigate any track and curfew violations so

that we can improve procedure design and flight

planning to reduce the impact of noise. The

improvements we have made to aircraft software,

such as Descent Profile Optimisation and

Continuous Descent Approach, minimise noise

pollution and reduce the impact on communities

living close to the airports we serve.

Our participation in the HERON project, which

aims to reduce CO

emissions from air transport

and introduce more efficient aircraft operations in

the air and on the ground, has the additional

benefit of reducing noise.

At London Gatwick, we have been actively

supporting the Noise Management Board (NMB)

Delivery Group, particularly with its Reduced Night

Noise trial. This complex and innovative trial is a

first in the UK. We contributed to the design of

the trial and in the development of its procedures.

As the trial went live, we provided simulator

validations for Civil Aviation Authority approval,

supported specific profiles to enable data

validation and provided flight data to help identify

outliers. We continue to work on this complex trial

and are keen to see it evolve through 2025 and

ultimately deploy successfully to reduce the

impact of night noise on the local community.

Descent Profile

Optimisation

Reduced auxiliary

power unit usage

Continuous Descent

Approach

Reduced acceleration

altitude

Departure En route Arrival

Reduced auxiliary

power unit usage

Refined taxi

fuel calculations

Reduced

flap landings

Single

engine taxi

Idle factor

optimisation

Delayed

engine start

Single

engine taxi

OUR CARBON REDUCTION INITIATIVES

Cost index

optimisation

Speed

adherence

Optimised cruise and

descent winds

Aircraft performance

monitoring

Lighter paint

Advanced weather

information

SkyBreathe fuel

management tool

Engine

washing

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SUSTAINABILITY (CONTINUED)

AIRSPACE MODERNISATION

Airspace modernisation has the potential for

significant carbon reductions in the short and

medium term and will be critical to addressing

non-CO

global warming effects. It must be

addressed at a national and pan-European level and

is crucial for a more environmentally optimised and

efficient air traffic management system.

We are preparing for optimised European airspace by

becoming the first airline evaluation partner for IRIS,

an innovative air traffic management programme.

This project is led by Viasat, a global leader in satellite

communications, along with the European Space

Agency and Airbus. IRIS enables new air traffic

management features, such as trajectory-based

operations, allowing controllers to manage a flight as

a single, continuous path rather than a series of

separate segments. This system helps aircraft avoid

holding patterns, find the shortest available routes,

and determine optimal altitudes.

The programme also benefits from the additional

communications capacity provided by

SwiftBroadband-Safety (SB-S), a satellite-

communications system which supports a range of

advanced onboard digital applications, including

AI-powered flight profile optimisers and real-time

weather applications. easyJet has received 11

Airbus NEO aircraft equipped with IRIS, as of FY24.

IRIS will also enable a trial of ‘electronic flight bags’

(pilot iPads) connected to the internet which will

give pilots quicker access to data and

communications to drive in-flight optimisation.

We are engaging with UK and EU national

governments to push for airspace reform, using new

airspace inefficiencies data based on easyJet’s

operations. This data has given us a more granular

picture of where inefficiencies arise in our network,

enabling a strategy of targeted advocacy at specific

airports that generate inefficiency rather than relying

on top-down reform at EU level which has so far

proven hard to achieve.

NON-CO

WARMING

We are investigating the non-CO

effects of our

flights which also contribute to global warming,

mainly through contrail cirrus clouds. There is

uncertainty about the exact impact and the effect

of individual flights – we need more data to create

a clearer picture, reduce uncertainties and improve

the accuracy of predictive models.

Theoretically, contrail (condensation trails) cirrus

could be reduced in the short term by rerouting

aircraft around high-risk regions. However, the

predictive models are still very inaccurate and

rerouting measures would require significant

coordination between airlines, air traffic control and

weather forecasters to work effectively. In addition,

it is critical that actions to address contrails do not

materially increase GHG emissions.

We are taking steps to address the contrail warming

issue. This includes participating in operational trials

with Eurocontrol, EASA, Airbus, and Breakthrough

Energy through the CICONIA project. In this project,

we are simulating the incorporation of contrail

avoidance in our flight planning. Air traffic control

engagement and airspace modernisation will be

crucial to making this possible.

Many of the actions we are taking to reduce GHG

emissions will also reduce the impact of other

non-CO

effects, such as NOx, as they will reduce

engine emissions and energy use.

All our work with technology partners addresses

and non-CO

warming effects from the

design stage. This includes efforts to measure

and reduce NOx in the Rolls-Royce engine

demonstrator. Our partner Airbus is also running

the Blue Condor project to measure contrail

formation from hydrogen combustion versus SAF.

CASE STUDY

HERON project

easyJet is trialling the use of advanced

technologies on aircraft and on the ground to

build towards the end goal of Trajectory Based

Operations (TBO) – where each flight is managed

as a single optimised trajectory, as opposed to a

series of discrete sections as it passes through

different airspace blocks. We will also be testing

the Taxibot, a semi-autonomous aircraft tow

tractor that enables aircraft to taxi without the

engine, at Amsterdam Schipol Airport.

The EU’s HERON project is a three-year research

programme led by Airbus to reduce emissions in

the air and on the ground through modernised

airspace and operational efficiencies that enable

flights to be highly optimised for fuel and emissions.

CASE STUDY

CICONIA project

We are taking part in the CICONIA project,

one of the EU’s Single European Sky ATM

Research (SESAR 3) Joint Undertaking

initiatives, which focuses on finding ways to

reduce aviation’s climate impact. CICONIA

brings together stakeholders to develop

measures that are environmentally effective,

economically balanced and operationally safe,

specifically targeting aviation’s non-CO

impacts. This work is part of our efforts to

reduce uncertainties and find methods to

lessen the warming effects of contrails

(condensation trails).

Through CICONIA, we are testing operational

methods to mitigate the impact of contrails in

a simulated environment. This helps us

understand how much an operator can do to

reduce contrails, and the trade-offs between

environmental benefits, costs and the

operational effects that come with these

efforts. The insights gained from CICONIA will

enhance our knowledge of contrail mitigation.

Additionally, we are focusing on non-CO

research

and mitigation trials, targeting contrails. We are

defining the operational concepts and are

scheduled to conduct live flight trials with Google,

utilising technology from Breakthrough Energy.

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Contents

SUSTAINABILITY (CONTINUED)

EMISSIONS AND ENERGY PERFORMANCE

GREENHOUSE GAS AND ENERGY PERFORMANCE

FY24 FY23

Global

emissions

UK-only

emissions

Global emissions

(excluding UK)

Global

emissions

UK-only

emissions

Global emissions

(excluding UK)

Scope 1 – tonnes of CO

e 8,114,121 4,359,896 3,754,225 7,517,983 4,091,428 3,426,555

Scope 2 – tonnes of CO

e 284 22 262 300 5 295

Total Scope 1 and 2 – tonnes of CO

e 8,114,405 4,359,918 3,754,487 7,518,283 4,091,433 3,426,850

Scope 3 – tonnes of CO

2,564,787 2,303,152

Total carbon footprint – Scope 1, 2 and 3 tonnes of CO

e 10,679,192 9,821,435

Scope 1 energy use (kWh) 31,129,602,567 16,731,487,813 14,398,114,754 28,860,298,273 15,709,765,366 13,150,532,907

Scope 2 energy use (kWh) 3,864,672 2,674,802 1,189,870 6,084,730 4,065,111 2,019,619

Total energy use (kWh) Scope 1 and 2 31,133,467,239 16,734,162,615 14,399,304,624 28,866,383,003 15,713,830,477 13,152,552,526

Voluntary Emission Reductions (VERs) retired, tonnes of CO

e 167,827 2,808,879

1) Scope 1 emissions and energy have been revised following a review of the underlying data related to non-aviation scope 1 emissions and the UK/Global split. UK-only emissions cover

emissions from flights operating under our UK Air Operating Certificate.

2) Scope 3 figures exclude the following GHG protocol categories as they are not applicable to easyJet: (9) Downstream transportation and distribution (13) Downstream leased assets

(14) Franchises. Categories (10) Processing of sold products and (11) Use of sold products are not deemed to be material for easyJet and are also excluded.

3) The UK/Global emissions data split for FY23 has been revised following a review of the underlying data.

4) Our Maltese subsidiary, acquired in FY24, is not represented in the GHG emissions data above. These emissions will be incorporated into our accounting from FY25 onwards.

SCOPE 1 GHG EMISSIONS/REVENUE PASSENGER KILOMETRE DUE TO AVIATION FUEL

FY24 FY23

easyJet plc

gCO

/RPK

easyJet plc

gCO

e/RPK

easyJet plc

gCO

/RPK

easyJet plc

gCO

e/RPK

Carbon emissions/revenue passenger kilometre 66.64 67. 25 67.23 6 7. 8 4

Scope 1 CO

/RPK due to aviation fuel

emissions due to combustion of aviation turbine fuel per revenue passenger per kilometre travelled on revenue flights.

Scope 1 CO

e/RPK due to aviation fuel

GHG emissions CO

, N

O and CH

due to combustion of aviation turbine fuel per revenue passenger per kilometre travelled on revenue flights.

WELL-TO-WAKE GHG EMISSIONS/REVENUE TONNE KILOMETRE DUE TO AVIATION FUEL (ALIGNED WITH THE SBTI TARGET)

FY24

easyJet plc

gCO

e/RTK

FY23

easyJet plc

gCO

e/RTK

Well-to-wake GHG emissions/Revenue Tonne Kilometre (aligned with the SBTi target) 880 887

Well-to-wake CO

e/RTK

GHG emissions including CO

, N

O and CH

due to Scope 1 (combustion) and Scope 3 Category 3 (extraction, processing and distribution) of aviation turbine

fuel per tonne of revenue payload per kilometre travelled on revenue flights – as required by the SBTi.

FY23 figure has been revised following a review of the underlying data.

OUR CARBON PERFORMANCE IN 2024

TOTAL AND INTENSITY

Our total GHG emissions from the fuel used in our

flights were 8,111,566 metric tonnes CO

e in FY24

compared to 7,516,806 metric tonnes CO

e in

FY23. The FY24 figure is 8% higher than FY23

reflecting the growth in flying. Total GHG

emissions from flying in FY24 were lower than in

FY19 while Available Seat Kilometres (ASKs) have

now exceeded pre-pandemic levels.

In FY24 we recorded our lowest ever carbon

intensity of 66.64g CO

/RPK as 16 more Airbus

NEO aircraft joined our fleet, taking our fleet

composition to 24% NEO, and made significant

progress in implementing operational efficiency

initiatives.

We have also reduced our well-to-wake GHG

emissions per Revenue Tonne Kilometre by 5.6%

versus FY19, and we are on track to achieve our

SBTi-validated interim target of 35% reduction in

emissions intensity by 2035.

THIRD-PARTY VERIFICATION

Our total emissions and intensity metrics have

been verified by Normec Verifavia, a UKAS and

COFRAC accredited verification provider for the

aviation sector. Scope 1, Scope 2 and Scope 3

Category 3 calculations have been carried out

in-house by easyJet and have been independently

verified. Scope 1 and Scope 3 category 3 have

been verified with reasonable assurance and

Scope 2 has been verified with limited assurance.

All other Scope 3 calculations have been carried

out by EcoAct, a global climate change and

sustainability consultancy.

For more details on easyJet’s emissions, including

the breakdown of Scope 3 by categories, NOx

and nvPM emissions during landing and take-off

(LTO), read our ESG environment fact sheet. For

Normec Verifavia’s detailed assurance statement,

visit corporate.easyJet.com/sustainability.

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SUSTAINABILITY (CONTINUED)

CARBON EMISSIONS METHODOLOGY

The measurement and reporting of our GHG

emissions are aligned to the EU, UK and Swiss

Emissions Trading Schemes (ETS), the GHG

Protocol, and the recommendations of the Task

Force on Climate-related Financial Disclosures

(TCFD), (pages 62 to 66). Our GHG emissions

metrics also meet the UK Government’s

Streamlined Energy and Carbon Reporting

requirements, 2019. easyJet measures and reports

GHG emissions footprint in tonnes CO

and CO

(carbon dioxide equivalent, i.e. CO

, N

O and CH

easyJet uses the operational control approach, in

which we include emissions from activities where

we control the operation.

Scope 1, Scope 2 and Scope 3 Category 3 (extraction,

processing and distribution of aviation turbine fuel)

emissions are calculated in-house by easyJet’s

Sustainability, Finance and Flight Operations teams.

They are third-party verified, and equate to 92% of

our total GHG emissions footprint.

This year we have worked with EcoAct, a global

climate change and sustainability consultancy,

on our carbon mapping work. EcoAct has carried

out GHG mapping on all applicable Scope 3

emissions, excluding Category 3 (equating to

7% of our total GHG emissions footprint).

Our carbon intensity calculation method aligns to

industry norms, i.e. ETS requirements. We adopt

Great Circle Distance (GCD) with a fixed correction

factor for each sector to account for indirect flight

paths, as endorsed by ETS and ICAO. This approach

enhances the accuracy of distances flown. Each

flight records completed data, fuel, passengers and

GCD, with regular internal checks for data quality.

UK Government GHG Conversion Factors from July

2024 were applied for reporting. 79% of our flying

emissions were under the ETS in FY24.

For further details on our carbon emissions

methodology, see the ESG environment fact

sheet at corporate.easyJet.com/sustainability

INTERNAL CARBON PRICING

We have established an internal carbon price,

based on ETS costs, to monitor and evaluate our

compliance obligations. By using this internal

carbon price, we can track obligation costs both

now and in the future.

This internal carbon price is integrated into

easyJet’s master financial models, which drive our

five-year financial plan, 10-year funding model and

budget. These models forecast the financial

performance of the business and the decisions

that drive it, thereby influencing both near- and

long-term commercial decisions, such as the routes

easyJet operates and the frequency of services.

Additionally, the internal carbon price significantly

impacts our fleet plan, determining the number

and type of aircraft in the easyJet fleet, and

influences fleet-related capital expenditures.

66.6

gCO

/RPK (Scope 1 aviation fuel)

880

gCO

e/RTK well-to-wake (Scope 1 and Scope 3

aviation fuel)

5.6%

reduction in well-to-wake GHG emissions intensity

(gCO

e/RTK) vs FY19

Reducing Our Impact

on the Ground

OVERVIEW

In addition to minimising our environmental

impact in the air, we are also reducing our impact

on the ground, through switching to electric

vehicles, cutting waste, reducing single-use

plastics and increasing recycling. These activities

are managed through our IATA-certified

Environmental Management System (EMS),

which systematically prioritises and addresses

environmental impacts across all aspects of our

operations.

ENVIRONMENTAL MANAGEMENT SYSTEM

Our EMS continues to provide assurance for

managing environmental risks. It ensures we are

compliant with environmental legislation and helps

us identify opportunities for improving

environmental performance across the business.

This year our EMS has been audited and

successfully recertified to the IATA IEnvA

management system standard until August 2026.

The scope of the IEnvA certificate includes flight

operations, corporate buildings and maintenance

repair and overhaul, although we apply the same

high standards to all activities undertaken by

ourselves and we ask the same of our suppliers.

We are integrating environmental management

into core business processes. Our objective is to

implement a truly effective integrated

management system with environment and

sustainability embedded in everything that we do.

WASTE MANAGEMENT

We comply with waste regulations in all countries

where we operate. We consider the waste hierarchy

in all of our operations and are always looking for

opportunities to minimise our environmental

impacts from waste that we generate.

Our Environment Policy

can be found at

corporate.easyJet.com/

sustainability

Waste type

Metric tonnes

FY24

Metric tonnes

FY23

Total waste generated 436.47 354.01

Total general waste 316.67 245.73

Total hazardous waste 119.80 108.28

Total reused, recycled,

and recovered 433.30 288.34

The total amount of waste produced reflects the

increase in our operations. For example, we have

insourced some line maintenance and engineering

activities which produce a significant amount of

waste not previously accounted for. We have

worked with our waste contractors to divert as

much waste as possible from landfill. In the UK we

are achieving 100% waste diverted from landfill,

and 99.27% across the network.

HAZARDOUS WASTE

We classify our waste in accordance with the

European Waste Catalogue to comply with the

Waste Framework Directive, to ensure it is

handled appropriately. This year we have

insourced line maintenance and engineering

activities at our Birmingham, Manchester and

Belfast bases. This has meant that the quantity of

waste, particularly hazardous waste, that we

directly produced has increased, but it has given

us much better control of the activities,

environmental impacts and oversight of the waste

management process previously being

undertaken by our supply chain.

We are committed to implementing the waste

hierarchy, even more so when it applies to

hazardous wastes. A good example of how we

have avoided producing hazardous waste is by

shifting from single-use disposable rags to

reusable washable cloths. We have implemented

a trial at our Luton engineering base where 5,500

reusable cloths have been used which has

prevented an estimated 440kg of soiled cloths

becoming hazardous waste. We intend to roll out

the initiative to all of our bases in FY25.

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SUSTAINABILITY (CONTINUED)

ONBOARD WASTE

Airlines and passengers are eager to reuse and

recycle. This year we won the Onboard Services

award in the Service, Equipment, Crew category,

for our innovative introduction of reusable coffee

cups and cutlery for our crew – read more in the

case study on this page.

Typically, our ground-handling and cleaning

contractors process onboard waste. Waste is taken

to disposal facilities at airports, where materials are

stored for collection by waste contractors.

Under the International Catering Waste (ICW)

legislation, UK-EU waste interpretation labels all

onboard food waste as ICW, leading to

unnecessary incineration or landfill. In 2024, we

continued supporting trade associations’ (Airlines

UK and IATA) campaigns for smarter regulation of

ICW in international travel and signed IATA’s Cat 1

joint statement.

We have worked with UK airports, airlines, UK

Government and the Animal and Plant Health

Agency to develop guidance outlining acceptable

practices for segregating onboard recyclables

from ICW. Publication of the guidance, scheduled

for late 2024, will result in less waste being

labelled as ICW and more recovery of material.

We regularly talk with our cabin crew about the

importance of sorting waste and the consequences

of waste cross-contamination. We included a module

on waste segregation and recycling in our cabin crew

new entrants training. We introduced new Cabin

Standards Assurance checks, which are undertaken

by Base Managers and Crew Performance Managers,

to make sure recycling is implemented properly and

meets legal requirements.

We continue to discuss issues of waste with our

partners at the airports where we operate to

improve waste sorting and increase recycling rates.

In FY24, we increased the number of our airport

bases where we can recycle, from 48% to 65% and

we will work to further improve this in 2025.

We monitor the packaging materials we use for

items sold onboard and the use of consumables like

napkins, sauce packets, stirrers and plastic cups. We

are working with our suppliers to use less packaging

and cut down on perishable waste.

Metric FY24 FY23

Waste per passenger (kg/pax)

0.08 0.09

Total onboard waste (thousand

tonnes)

7.04 7.27

1) Average waste generated per passenger was

calculated based on the total cabin waste generated

from aircraft operations at Luton Airport and the

number of arriving passengers.

2) Total onboard cabin waste generated was calculated

using average waste per passenger and the total

number of easyJet passengers carried.

WASTE PREVENTION

We are trialling reusable sealable bags for loading

extra dry stores with clear plastic tops and

bottoms which allow for security searches and

added protection for the contents. This switch will

reduce waste from single-use plastics and ensure

better care for items like cups, leading to fewer

being discarded due to mishandling.

We are replacing the heavy paper technical and

cabin logs previously used by cabin crew,

engineers, ground crew and flight crew with a new

e-techlog system. This system will be rolled out

across our fleet during 2025. Digitising the

technical and cabin logbooks will save over

300,000 sheets of paper records from being

printed and stored each year. The e-techlog will be

installed on aircraft and cabin manager iPads,

allowing crew and engineers to report and share

maintenance issues in real time. This will give

engineers more lead time to order new parts,

reducing ground delays and operational downtime.

SUSTAINABLE PREMISES

In FY24 easyJet had direct operational control

over 10 sites – eight in the UK and one each in

Germany and France.

CASE STUDY

Reusable cups

and cutlery

In an industry first, easyJet’s entire

in-flight team switched from using

disposable cups and cutlery to fully

reusable alternatives for all their in-flight

drinks and meals.

This move will prevent 10 million single-use items

from being wasted every year and save the

Company about half a million pounds annually.

The 10 million single-use items removed each

year equates to 4.3 million pieces of wooden

cutlery and 5.7 million plastic cups and lids. This

amounts to 71 tonnes of waste, enough to fill

about six double-decker buses.

This pioneering effort is expected to inspire

similar actions across the sector and has been

recognised at the Onboard Hospitality Awards

2024, where we won in the Service, Equipment,

Crew category.

Our crew save plastic with every cup of tea

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SUSTAINABILITY (CONTINUED)

Over the year we have switched parts of head

office from LPG to electric heating, completed

installation of LED lighting airside, throughout the

stores, office and stairwells and installed new fans

to reduce heating demand by an average of 35%.

The majority of our UK sites operate on 100%

renewable energy and do not drive any carbon

emissions under the market-based approach.

At our Luton office, we replaced staff shuttle buses

with Enviro200’s lightweight, highly fuel-efficient and

cost-effective buses fitted with start-stop

technology and accredited as low emission

transport. New buses are run on hydrotreated

vegetable oil (HVO), a second-generation synthetic,

renewable, diesel alternative that eliminates up to

90% of net CO

and is one of the cleanest fuels on

the market. It significantly reduces nitrogen oxide

(NOx) particulate matter and carbon monoxide

emissions. The carbon footprint of HVO is only 35g

e per kWh compared to 250g CO

e per kWh for

standard diesel and 207g CO

e per kWh for electric.

We installed 23 electric vehicle (EV) charging points

across our Luton campus to support employees

who took advantage of the Green Car scheme

implemented last year. We also installed charging

points airside at four further airports to support the

rollout of the EV fleet in engineering (five in Luton,

10 in Berlin, two in Liverpool, five in Bristol).

AIRPORTS

We are continuing our airports environmental

programme at a number of European airports, to

see how airlines and airport operators can work in a

more carbon-efficient and sustainable way. The

collaborations explore the use of Sustainable Aviation

Fuels, improvements to recycling and waste

management, more sustainable ground service

equipment, flight operations improvements,

employee carbon-saving initiatives, including travel to

work, and research partnerships on the infrastructure

associated with the transition to hydrogen.

Since the introduction of a dedicated container

for recycling at EuroAirport Basel Mulhouse

Freiburg, for instance, we have diverted 12 tonnes

of material that would otherwise have been

incinerated.

We took part in London Luton Airport’s study to

measure the socioeconomic value the airport and

its stakeholders create for Luton and the

surrounding region. We are also working with SEA

Milan Airports on the SAVES project (Sustainable

Aviation Vectors for Energy tranSition) to prepare

Milan Malpensa Airport for the supply of

sustainable aviation fuel and hydrogen. Sponsored

by the Italian aviation authority ENAC and the

Italian agency ENEA, the project will develop the

policies, guidelines and regulations to support

aviation’s transition to net zero emissions using

new energy sources.

ELECTRIC VEHICLES

Our fleet renewal programme for engineering and

maintenance vehicles at some of our bases in the

UK and Europe is set to save up to 54 tonnes of

e a year. After a successful trial last year, using

EVs at Berlin and Bristol Airports, we have now

rolled out the zero emission fleet of vehicles (35 in

total) to Luton and Liverpool. We are planning to

continue this rollout across our other engineering

bases in FY25, and at year end we anticipate 80%

of our bases will be using fully electric

maintenance vans.

We are also looking to electrify ancillary supporting

equipment such as forklifts, cranes and tugs. In

FY24, our Gatwick hangar received a new electric

forklift to replace the older diesel unit and a new

electric crane which will enable us to be self-

sufficient when it comes to lifting operations, so

we will no longer be reliant on the diesel vehicles of

third parties.

CASE STUDY

Menzies – Turning to

an electric future

Menzies Aviation and easyJet are working

together to reduce emissions at Nice Airport,

the second largest airport in France.

Traditionally, groundhandling operations rely on

diesel-powered equipment. By the end of 2024

all the ground-support equipment (GSE)

Menzies uses to handle easyJet’s operations at

Nice Airport will be electric, including baggage

tugs, passenger steps, belt loaders, pushbacks

and ground power units. It is estimated that this

will reduce the emissions associated with each

aircraft turnaround by 80%. With more than 50

electric turnarounds performed each day for

easyJet at Nice Airport, the use of electric

equipment also contributes to a quieter and

cleaner working environment, enhancing the

overall airport experience for staff and

passengers alike.

Menzies’ operations at Nice Airport demonstrate

the viability of an electric-first approach with

infrastructure support from the airport and

aligns with their commitment to ensure 25% of

its global GSE fleet is electric by 2025.

Swapping to electric maintenance vehicles will save up to

54 tonnes of CO

per year

Reducing emissions at Nice Airport with Menzies

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SUSTAINABILITY (CONTINUED)

PIONEERING

FUTURE TRAVEL

We aim to lead the way in

decarbonising aviation in Europe, with

the goal of achieving zero carbon

emission flying by replacing fossil fuels

with alternative energy sources. We

continue to be committed to our

ambition to reach net zero, supporting

the development of new technologies

to achieve this goal, and strongly

advocating for effective carbon

regulation.

We publish a range of ESG fact sheets

on our website to be read alongside the

2024 Annual Report and Accounts. The

fact sheets provide further data and

information on: human capital; safety,

quality and governance; digital safety,

and environmental management. Go to:

corporate.easyJet.com/sustainability

OVERVIEW

Working with partners is key to our goal of leading

the way in decarbonising aviation. Over the past

year, we have made significant strides in technology

through our partnerships, from successful hydrogen

engine tests with Rolls-Royce to working with Airbus

to explore the operational requirements for

hydrogen aircraft and infrastructure. Through

collaborations like Hydrogen in Aviation (HIA), the

Alliance for Zero Emission Aviation (AZEA) and

Hydrogen South West (HSW), we are working to

create frameworks for hydrogen policy, regulation,

safety, and the infrastructure needed to expand

hydrogen use in aviation.

Equally, we are investing in Sustainable Aviation Fuel

(SAF) and carbon removal technology to tackle the

emissions we can’t reduce directly. We are gearing

up to meet the EU and UK SAF mandates and are

exploring a product to encourage our corporate

customers to contribute to voluntary SAF uplift and

make material progress on their own net zero

targets. We are one of three airlines on the CEO

steering committee for Project SkyPower, which

aims to accelerate Power to Liquid (PtL) production

in Europe.

HYDROGEN PROGRESS

As a zero carbon emissions energy source, we

believe hydrogen could be one suitable alternative

for the future of short-haul air travel. Hydrogen

not only has no operational carbon emissions, it

also has the potential to reduce non-CO

effects.

However, hydrogen technology for aviation needs

to be developed and scaled up if we are to meet

our net zero targets. That is why we are working

with the UK’s leading aviation companies to

develop the technology necessary to meet the

growing demand for more sustainable travel. In

these partnerships we play an advisory role,

providing the commercial and operational

perspectives to drive the technology forward.

Our partnerships with Rolls-Royce, Airbus, GKN

and Cranfield Aerospace Solutions continue to

demonstrate great progress in the development

of both the aircraft and the propulsion systems.

We are working with Rolls-Royce to pioneer the

development of hydrogen combustion engine

technology, upgrading existing engine designs

and integrating new technologies needed to run

them on 100% hydrogen.

A purpose-built ground test facility is under

construction at NASA’s site in Stennis, Mississippi,

US to conduct the next phase of testing on a

purpose-built hydrogen engine in 2025.

We are also collaborating with Rolls-Royce on two

major research programmes. The first, HEAVEN,

funded by EU Clean Aviation, is evolving our

understanding of hydrogen gas turbine engine

design. The second, LH2GT, involves collaboration

with Rolls-Royce, University College London UCL,

and Heathrow Airport on an economic analysis of

hydrogen narrowbody aircraft in the European

airline industry.

We have been working closely with Airbus since

2019 on the ZEROe programme which aims to

deliver a hydrogen-powered commercial airliner

for entry into service in 2035. This comprehensive

partnership spans the development of the design

and operational requirements of the aircraft and

the wider aviation hydrogen ecosystem.

This year we have also become the first European

airline to partner with US-based start-up JetZero

to develop an ultra-efficient blended-wing body

aircraft. The aircraft is expected to provide up to

50% lower fuel burn and GHG emissions versus

traditional tube-and-wing designs and has the

potential to be powered by SAF and hydrogen.

DEVELOPING THE INFRASTRUCTURE

Progress is also being made on hydrogen ground

infrastructure. We have taken a pioneering step

towards the establishment of a regulatory

framework for the use of hydrogen in airports by

leading Project Acorn – the UK’s first airside

hydrogen refuelling trial (see case study page 49).

Alongside Gatwick Airport Limited and Air

Products, we have joined Airbus’s global hydrogen

hub network, to explore how a hydrogen supply at

key UK airports could also power other forms of

transport, such as ground support equipment

(GSE), buses and other heavy vehicles.

This effort complements the hydrogen hub study

that easyJet and Airbus have already conducted

at Bristol Airport and is part of Airbus’s global

network of hydrogen hub studies.

For information on our collaboration with SEA

Milan Airports to build hydrogen and SAF

infrastructure, see page 47.

We are also on the board of Hydrogen South

West, a consortium accelerating the

establishment of a cross-industry hydrogen

ecosystem in the South West of England.

WHAT WE ARE DOING TO REPLACE FOSSIL FUELS

We will replace fossil fuels with non-fossil

alternatives such as Sustainable Aviation

Fuels and aim to be early adopters of zero

carbon emission aircraft.

Potential design for hydrogen-powered aircraft

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SUSTAINABILITY (CONTINUED)

CASE STUDY

Project Acorn

PROJECT LIGHTHOUSE

easyJet led Project Acorn, the UK’s first airside

hydrogen refuelling and operational trial, which

successfully demonstrated that hydrogen can

be safely used for refuelling ground support

equipment in a live airport environment.

Experts from across the aviation industry,

including the UK Civil Aviation Authority (CAA),

collaborated on this project to establish the

necessary safety protocols and operational

procedures for storing and refuelling hydrogen

airside. The project culminated in a live airside

trial of a hydrogen-powered baggage tractor

airside at Bristol Airport in March 2024. A

report of our findings has been published to

provide support and guidance towards future

hydrogen developments at airports.

This trial has been crucial for understanding

safety cases and risk mitigations, which will

help underpin future safety regulations.

SAF is important for our business customers to

meet their own net zero commitments. This is

why we are exploring a mechanism that will

enable them to easily purchase SAF through

easyJet, which in turn will help them meet their

own net zero science-based targets related to

business travel.

To prove the concept, we have set up the SAF

Lighthouse Project with one of our major

corporate customers and sustainability partner,

Airbus. During the project, a quantity of SAF,

equivalent to operating the easyJet Toulouse-

Bristol route on a 30% SAF blend for three

months, will be delivered to Toulouse Airport.

This voluntary uplift, which is surplus to

mandates, will be used to generate SAF

certificates with which Airbus will reduce its

corporate travel emissions footprint.

By demonstrating how collaborative efforts

can drive down the cost of SAF and stimulate

its use, easyJet and Airbus hope to pave the

way for a broader adoption of this initiative

across the aviation industry in order to address

the carbon footprint from corporate air travel,

while driving down the ‘green premium’ of SAF.

SUSTAINABLE AVIATION FUEL

Sustainable Aviation Fuel (SAF) will play a critical

role in decarbonising easyJet’s fleet. SAF

significantly reduces emissions across the life

cycle of the fuel compared to fossil kerosene.

If narrowbody operators like easyJet move towards

hydrogen, this will free up SAF for parts of the

sector that cannot use hydrogen, such as long-haul

flights. This way, the whole industry can work

together to decarbonise. Fuel suppliers with whom

we have contracted to supply fuel to easyJet in

2025 are expected to fully meet their EU and UK

SAF mandate obligations. We are also actively

negotiating agreements with SAF suppliers to

manage security of supply over the short term.

A significant proportion of easyJet and the

industry’s SAF needs will have to be met by

Power-to-Liquid (PtL), which uses renewable

electricity as the key energy source to produce

synthetic liquid fuel. This type of SAF needs to be

scaled up from zero, and, in addition to our new

memorandum of agreement in this area with

World Fuel Services, we have joined Project

SkyPower to accelerate the scaling up of PtL

supply in Europe. The objective of this EU

programme of work is to bring key stakeholders in

the value chain together to take 25 large-scale

PtL projects in the EU to final investment decision

by the end of 2025. easyJet’s incoming CEO is

one of three airline CEOs on the steering

committee, all members of which are CEOs from

companies across the PtL value chain.

WHAT WE ARE DOING TO REMOVE CARBON

We aim to remove residual emissions using

carbon dioxide removals such as emerging

Direct Air Carbon Capture and Storage

technology (DACCS).

CARBON REMOVALS – DIRECT AIR CARBON CAPTURE

AND STORAGE

Direct Air Carbon Capture and Storage is an

essential element of our net zero roadmap,

necessary for addressing the residual carbon our

aircraft will emit through to 2050 and beyond. It is

a high-potential technology which has been

identified by the Intergovernmental Panel on

Climate Change (IPCC) as essential to a net zero

world. This involves capturing carbon directly from

the atmosphere and storing it securely and

durably in underground geological formations.

Carbon capture will be critical for production of PtL

SAF. Last year, we signed an agreement with

Airbus to supply us with carbon removal credits

from the 1PointFive DACCS plant in Texas from

FY26 to FY29. The DACCS facility will be the

largest carbon removal plant in the world with the

capacity to remove up to 500,000 metric tonnes

of CO

every year when fully operational. Over the

past year, significant progress has been made on

building the facility.

Hydrogen-powered baggage tractor

Progress is being made on building the DACCS facility

Credit: Image courtesy of DACCS

Find out more about how we are

leading the first hydrogen refuelling

trial at a major UK airport

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SUSTAINABILITY (CONTINUED)

NET ZERO PARTNERSHIPS

Delivering net zero requires a

collaborative effort across the

aviation industry and beyond.

Our net zero roadmap is

supported by a comprehensive

range of partnerships spanning

the aviation and energy value

chains. Through these we are

engaging in tangible actions

to reduce our energy use and

emissions today, and pioneering

future travel with new

technologies and fuels, as we

guide easyJet towards net zero

carbon emissions by 2050.

Reduce

Fleet renewal with NEO

Airspace modernisation

Operational efficiencies

Replace

Sustainable Aviation Fuel

Zero carbon emission aircraft

Remove

Carbon removal

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SUSTAINABILITY (CONTINUED)

DRIVING

POSITIVE

CHANGE IN

SOCIETY

We aim to have a positive impact

on our people, customers and

communities, maximising the social

and economic benefits of travel and

tourism. We focus on making

sustainable tourism more accessible,

support charitable causes important

to our customers and employees

and creating Europe’s most loved

place to work

We publish a range of ESG fact sheets

on our website to be read alongside the

2024 Annual Report and Accounts.

The fact sheets provide further data and

information on: human capital; safety,

quality and governance; digital safety,

and environmental management. Go to:

corporate.easyJet.com/sustainability

OVERVIEW

This year the number of easyJet holidays’

Certified Sustainable hotels achieving a Global

Sustainable Tourism Council (GSTC) recognised

certification, rose by more than 20%. We also

became a founding partner of the International

Centre for Responsible Tourism Global, a new

education organisation, in our efforts to improve

the social, environmental and economic impacts

of tourism.

Across the Group, we deepened our engagement

with our customers, our people and our

stakeholders – especially policymakers – to drive

sustainable change.

SUSTAINABLE TOURISM

Tourism is an important and growing driver of

social and economic benefit and a key income

source for the destinations in which we operate.

At easyJet, we have a responsibility to enhance

the positive impacts of tourism, while working to

reduce its negative impacts, such as the

emissions associated with air travel. easyJet

holidays seeks to actively integrate sustainable

tourism into its core strategy, with a focus on

three pillars:

> Creating better holiday choices – making more

sustainable travel affordable and accessible to

everyone.

> Keeping holidays special – maximising the

benefits and minimising the negative impacts

of sustainable tourism.

> Transforming travel for everyone – embedding

sustainability into business decisions and

behaviours and driving meaningful change in

the industry.

CERTIFIED SUSTAINABLE HOTELS

Throughout FY24, we have focused on building

our easyJet holidays Certified Sustainable range,

hotels that hold a certification recognised by the

GSTC. The GSTC standard focuses on all aspects

of sustainability, giving easyJet holidays

customers’ the peace of mind that by choosing a

hotel from this range, they have selected a hotel

that has met this holistic global standard.

This year, the number of certified hotels easyJet

holidays offers has increased by over 20%. We have

placed particular emphasis on certifying our

biggest-selling properties. 40% of our top 100 hotels

now hold a GSTC-recognised certification and this

meant that in FY24, almost a third of our customers

stayed in a certified property. In FY24 we introduced

an easyJet holidays Board-level KPI to track the total

number of certifications in our portfolio.

Our long term ambition is for all hotels offered by

easyJet holidays to hold a GSTC-recognised

certification, and we’re rolling out online training

to all hotel partners. We have designed and

produced this with the GSTC and this will be free

of charge to all hotel partners.

This year, we began working with BeCause, a

sustainability data management specialist that is

helping data sharing across the industry.

C.40%

of our top 100 hotels are certified

to GSTC-recognised standards

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SUSTAINABILITY (CONTINUED)

INTERNATIONAL CENTRE FOR RESPONSIBLE TOURISM

– GLOBAL (ICRT GLOBAL)

easyJet holidays is a founding partner of the

International Centre for Responsible Tourism

Global (ICRT Global), a new not-for-profit

organisation which launched in October 2024.

The Centre’s aim is to provide effective education

in responsible tourism, and make it available to all.

ICRT Global is on a mission to amplify the 2002

Cape Town Declaration on Responsible Tourism

and the 2022 Responsible Tourism Charter by

providing online training courses, bespoke training

for organisations, and manuals and guidance to

help universities to create Responsible Tourism

courses. It will run events and lead the Global

Responsible Tourism Awards with real-world

experience from winners which it will then feed

back into its training programmes.

ICRT Global will act as a hub for independent

regional centres around the world and as an open

source of knowledge for anyone looking for ways

to make tourism better.

TTG FAIRER TRAVEL FESTIVAL

As part of our mission to ‘Create Better Holiday

Choices’ easyJet holidays were the headline

partner of the inaugural TTG Fairer Travel Festival.

This week-long event brings together hotels and

tour operators to help travel agents inform their

customers about the challenges and opportunities

of holidaying in a more sustainable way. Through

training sessions, Q&A sessions and panel

discussions, attendees received detailed

information on the most progressive work in the

industry, and guidance on how they can best

communicate better holiday choices to their

customers.

UN TOURISM PARTNERSHIP

We are continuing our partnership with UN

Tourism to develop, test and bring into operation

the first tourism-specific ESG framework. Many in

the tourism industry are making significant

progress, but it is difficult to compare progress

due to the lack of a unified reporting

methodology. In its first year this project

developed a core framework and completed

testing with easyJet holidays hotel partners across

our most popular destinations. Phase two has

seen the framework refined based on initial

feedback, and testing will now extend to other

areas of tourism including easyJet holidays’

central operations and our partners in resort, such

as destination management companies.

ANIMAL WELFARE POLICY

In March 2024, easyJet holidays introduced an

industry-leading animal welfare policy, committing

not to promote or offer any attractions that may

harm animals within our tours and activities

programme, including avoiding captivity

attractions such as zoos and marine parks, animal

performances, animal rides and sporting events

involving animals. The policy builds upon ABTA’s

animal welfare guidelines and was created in

consultation with animal rights organisations and

experts, including World Animal Protection.

ARTIFICIAL INTELLIGENCE FOOD WASTE TRIAL

easyJet holidays has trialled Winnow’s AI food

waste technology for 12 months in the Bahia

Principe Sunlight Costa Adeje resort. This AI

technology learns to ‘see’ the leftover food being

wasted, using a connected terminal with a motion

camera and storing data in the cloud. Teams then

receive reports that pinpoint waste, allowing them

to make operational improvements.

Results from the 12-month trial showed savings of

over €100,000 of food, with buffet waste

reduced by 68% per cover. Across the 12-month

window, food wastage was reduced by 32 tonnes,

with associated savings of 139 tonnes of carbon

emissions.

Following this, easyJet holidays has committed to

sharing these results with hotel partners. This year,

we plan to release a recorded interview featuring

the results, to encourage uptake across our

network and support rapid implementation of this

innovative technology. As well as relocation of the

equipment to spread the benefits across our

network, we will also begin consultation with our

largest hotel partners to maximise the influence of

this project.

At easyJet, we have a responsibility

to enhance the positive impacts of

tourism, while working to reduce its

negative impacts, such as the emissions

associated with air travel.

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

SUSTAINABILITY (CONTINUED)

ENGAGING OUR STAKEHOLDERS IN

SUSTAINABILITY

Building close relationships with our people, customers,

suppliers and industry peers on sustainability issues is

crucial for creating a more sustainable future.

ENGAGING WITH OUR PEOPLE

Our people (easyJet colleagues) care about

sustainability, and play an important role in

shaping our strategy, raising awareness of key

issues and driving behaviour change across our

business. Activities include:

> The Take-off Talks, launched this year, gave

colleagues information on sustainability and our

net zero and hydrogen activities.

> We developed net zero training modules to

engage pilots, engineers, cabin crew and head

office colleagues on the operational efficiencies

in their areas which lead to improvements in our

overall emissions reduction.

> We also have an active sustainability workplace

forum on our intranet with over 700 members,

where colleagues share ideas and exchange

views on sustainable aviation issues and

easyJet’s strategy.

> We have produced pollution prevention training

with engineering teams which will be rolled out

later this year. Using our environment

management system, we have identified

opportunities to strengthen our preparedness

for environmental emergencies and reduce the

risk of pollution. Colleagues from Business

Resilience, Engineering & Maintenance and

Properties are developing effective controls to

minimise our impacts on the environment. A

desk-based scenario exercise will be undertaken

to test our preparedness and capabilities to deal

with an environmental emergency.

ENGAGING WITH OUR CUSTOMERS

We update our airline and holiday customers

frequently on sustainability and have a dedicated

section on our website for our sustainability

activities: easyJet.com/sustainability.

We were pleased to be one of just three airlines

that are members of Google’s Travel Impact

Model (TIM) Advisory Committee, facilitated by

the International Council on Clean Transportation

(ICCT). TIM is a public and freely accessible tool

that conveys per passenger CO

emissions for

upcoming flights, on Google and other

metasearch platforms. It provides customers with

transparent and credible carbon information.

ENGAGING WITH THE GENERATIONS

Our early careers initiatives, and our new

Returnships campaign, are real examples of our

commitment to making a positive difference and

making easyJet a warm and welcoming place to

start a career.

PROJECT RUNWAY

The Project Runway graduate programme recruits

candidates across the three key areas of

engineering, finance and management.

The engineering and management Runway

programmes last two years and the finance

Runway will be for three years.

BIG BANG STEM

We got involved in this year’s Big Bang Fair, which

took place in Birmingham and offered thousands

of young people the chance to discover exciting

hands-on STEM activities, careers panels and

workshops.

NEW ENGINEERING APPRENTICESHIPS

To coincide with National Apprenticeship Week,

we launched our call-out campaign for

engineering apprentices to train at easyJet to

become CAT A licensed aircraft engineers. The

campaign capitalised on nurturing young talent

for the future, particularly important with many of

our current engineers nearing retirement age.

RETURNSHIPS CAMPAIGN

We targeted over-45s in a new cabin crew

recruitment campaign, as research showed 78% of

British parents aged 45 and over want to take on a

new challenge once their children leave home.

Since 2018, the airline has seen a 27% increase in

cabin crew members over the age of 45.

The recruitment campaign aimed to show that a

career as cabin crew is open to anyone with the

right skills, regardless of age.

CASE STUDY

net zero journey:

two years on

We held a special event at Cranfield University

to mark the second anniversary of our Net Zero

Roadmap and showcase the progress we are

making in key areas including fleet renewal,

operational efficiencies, airspace modernisation,

SAF, zero carbon emission technology and

carbon removal. We also showed the important

work taking place in relation to hydrogen-

powered aircraft technology and airspace

reform. This included unveiling new data

showing easyJet could cut its operational C0

emissions by 10% through airspace

modernisation alone.

It was also an opportunity for our partners to

physically demonstrate the ground-breaking

research and development work they are doing

on airspace management and zero carbon

emission technology and to emphasise the

importance of cross-industry collaboration.

Watch our net zero

event here

10%

The amount we can reduce carbon emissions

by airspace modernisation alone.

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

SUSTAINABILITY (CONTINUED)

KIDS CODE CAMP

We partnered with Code Camp to run two trial,

subsidised, coding camps for 7 to 12 year olds at

our Luton campus during the school holidays.

Young people were given the opportunity to

either design and code their own game or build a

rollercoaster by learning and applying coding,

basic engineering concepts and command-based

programming. Thirty children took part.

CONTRIBUTING TO SWITZERLAND’S BILDUNGSWOCHE

As part of an initiative to promote vocational

training across Switzerland and help children learn

more about the professions and training courses

available, we invited children aged 12 to 13 to our

Basel base to give them a look into the career

opportunities on offer.

ENGAGING WITH INDUSTRY PEERS

We work with industry peers across the UK and

Europe to tackle carbon emissions and drive the

technological innovation needed for zero carbon

aviation. During FY24 our CEO Johan Lundgren

was a member of the Jet Zero Council and also

Chair of the Hydrogen in Aviation Alliance, and we

support similar groups across Europe. Our

Sustainability, Policy and Operations colleagues

participate in various industry groups and forums

to shape public policy on sustainability. These

include the Aerospace Technology Institute,

Airspace Change Organisation Group, Airlines for

Europe, Airlines UK, the Alliance for Zero Emission

Aviation (AZEA), the Aviation Council, Destination

2050, EU-funded aviation projects CICONIA,

HEAVEN, HERON and LH2GT, the European

Commission Expert Group on Climate Change

Policy (CCEG), Global Sustainable Tourism Council

(GSTC), the Hydrogen in Aviation alliance (HIA)

and Sustainable Aviation.

ENGAGING WITH SUPPLIERS

We rely on around 3,000 suppliers to deliver

products and services, from customer-facing

activities such as bookings to back-office support.

In February 2023, we formed an internal working

group on third-party risk management and supply

chain integrity, and engaged Deloitte to identify

any possible improvements in our existing controls

for identified ESG risks related to third parties.

Additionally, the results of our double materiality

assessment informed our supply chain due diligence.

Based on those insights, we have partnered with

EcoVadis, a market-leading provider of ESG

ratings. EcoVadis assesses suppliers using a

comprehensive methodology covering

environmental impact, labour and human rights,

ethics, and sustainable procurement.

Its work gives us and our suppliers a baseline for

improvements and helps us identify and mitigate

sustainability risks in our supply chain.

COMBATING MODERN SLAVERY

We are committed to combating modern slavery

through our policies, due diligence process, risk

assessments, key performance indicators and

training.

As highlighted in our FY23 Modern Slavery

Statement, we reviewed our Modern Slavery and

Human Rights Policy; reviewed the Supplier Code

of Conduct; updated easyJet holidays’ Hotel

Manual to include access to our whistleblowing

hotline; designed new modern slavery training for

office staff; conducted audits in our contact

centres in India, Morocco and South Africa; and

trained our staff and crew to identify the signs of

modern slavery. In FY23, our crew identified 16

potential human trafficking incidents. In each

case, they collected evidence and informed the

relevant authorities in order for the enforcement

authorities to take the required actions. The

activities were led by a well-established cross-

functional Modern Slavery Working Group, which

prevents and identifies modern slavery risks.

Our Modern Slavery Statement is available at

corporate.easyJet.com/sustainability

ENGAGING WITH POLICYMAKERS

Our public policy positions promote effective

climate regulation and decarbonisation

technologies for aviation. We work with

policymakers across the UK and Europe on climate

action, advocating for policies that are effective,

efficient and fair to help the sector decarbonise

and scale up alternative technologies.

CASE STUDY

UNICEF

PARTNERSHIP

This year we relaunched our partnership with

UNICEF, creating our Every Child Can Fly

campaign to support every child’s right to

education. Our partnership, first launched in

2012, has now raised more than £17 million for

UNICEF and its life-saving programmes.

Under the relaunched partnership the focus is

supporting UNICEF’s education programmes,

with all the funds raised going to UNICEF to

support its work in this area. UNICEF’s target

is to provide access to learning opportunities

for 114 million children and digital education

for 148.6 million children around the world by

the end of 2025.

To mark 12 years supporting UNICEF and the

beginning of our new partnership, we hosted

several roadshows for our crew across the

easyJet network.

Image courtesy of UNICEF

CASE STUDY

Make-a-Wish

international

We further support our communities by

partnering with Make-A-Wish International,

the world’s leading wish-granting organisation,

providing them with flights to fulfil the wishes

of children who are suffering with critical

illness across Europe.

Every 25 seconds, a family hears the

devastating news that their child is diagnosed

with a critical condition, turning their lives

upside down. Make-A-Wish aims to revive

childhoods stolen by illness and bring hope to

children and their loved ones. Over the next

year, our new partnership will turn dreams

into unforgettable experiences by bringing

the joy of travel to children and their families,

providing them with flights for their adventure

to create cherished memories and leave a

lasting impact on their lives.

Image courtesy of Make-a-Wish foundation

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Annual Report and Accounts 2024

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SUSTAINABILITY (CONTINUED)

As part of our public policy work, we engage with

stakeholders in key cities across the network. In

2024, we ran net zero masterclasses across

Europe to communicate our net zero roadmap

and milestones, as well as our progress since its

launch. Guests included stakeholders and political

decision makers, with events held in Italy, Spain

and Germany.

CLIMATE ADVOCACY

We engage with policymakers on climate action.

We have taken a leading role in designing aspects

of European and UK climate policy on aviation.

Our engagements help to protect easyJet from

market distortions and avert overly burdensome

restrictions by focusing on and promoting the

science-based actions that are necessary for

decarbonisation.

We believe in the importance of including all of

aviation in climate action non-discriminately. In

previous years we have twice been ranked as the

best airline in Europe for our role in climate

advocacy in aviation by the advocacy-focused

NGO Influence Map. This year, easyJet was ranked

as a B- for climate advocacy, the highest rating for

any airline in the world. We were also named in

InfluenceMap’s 2024 Corporate Climate Policy

Engagement Leaders report as meeting the criteria

to be a global leader in climate policy engagement.

InfluenceMap provides independent data-driven

assessments of how the world’s largest companies

are influencing climate regulations.

Over the last year, we have increased our focus on

hydrogen without omitting wider aspects of

climate policy in aviation.

HYDROGEN ADVOCACY

In September 2023, we founded Hydrogen in

Aviation (HIA) in the UK, an alliance with Rolls-

Royce, Airbus, Ørsted, GKN, Bristol Airport and

ZeroAvia, aiming to decarbonise short-haul

aviation with hydrogen-powered aircraft. In March,

we released our first report, ‘Launching Hydrogen-

Powered Aviation’, developed with input from the

Department for Energy Security and Net Zero

(DESNZ), the Department for Business and Trade

(DBT) and the Department for Transport (DfT), as

well as many industry groups and trade bodies,

which outlines steps for technological

development, regulation, infrastructure and

hydrogen supply. We believe these are the

necessary steps for government and industry to

advance hydrogen-powered aviation. HIA

continues to work closely with the government,

industry and the regulator to implement the key

recommendations from the report.

In the EU, we co-chair the Alliance for Zero

Emission Aviation (AZEA) with Airbus. Launched

by the European Commission, AZEA supports the

introduction of commercial hydrogen and electric

aircraft and includes around 170 members. In June

2024, AZEA released its vision paper ‘Flying on

electricity and hydrogen in Europe’, proposing

36% to 68% of intra-EU flights be powered by

hydrogen and electricity by 2050. The report

details joint industry and policymaker actions

needed for this transition, and easyJet is

committed to supporting these efforts.

SUSTAINABLE AVIATION FUEL MANDATES

We welcomed the UK’s announcement of a SAF

mandate, applying equally to short and long-haul

flights departing from UK airports, as we’ve

consistently advocated in all regions. We have

also pushed for deferring the cap on

hydroprocessed esters and fatty acids, as the

original cap didn’t align with the ambitious SAF

targets for 2030. We believe the UK Government

should offer similar support for SAF pricing to the

EU’s ETS SAF allowances. In the past three years,

we’ve successfully ensured that mandates in our

key regions (the UK and EU) are comprehensive

and non-discriminatory. This was accomplished by

rallying a coalition of low-cost airlines, NGOs and

other stakeholders to advocate for a fair policy

design. The EU’s upcoming mandate, starting in

2025, marks the first European environmental

legislation to cover long-haul flights. These

mandates have greatly enhanced climate action,

doubling the amount of aviation fuel covered and

ensuring a fair playing field for easyJet.

We are working with the EU on its proposals for a

Book and Claim system for SAF. Our goal is to

ensure that this system doesn’t cause unintended

market distortions or negatively affect short-haul

airlines. It’s crucial that this system does not

unintentionally change the scope of the SAF

mandate or its legal foundation. Additionally, we

continue to advocate for increased support to

accelerate Power-to-Liquid (PtL) SAF, which will be

critical to meet our long-term decarbonisation

goals, and for the inclusion of carbon dioxide

removals in the UK and EU ETS, to support the

development of this market.

NON-CO

POLICY

In the EU, we have pushed back against attempts

to exclude extra-EEA routes from the non-CO

Monitoring, Reporting and Verification (MRV)

system. We believe a full-scope MRV is important

for effective and fair climate policy and to

accurately depict the contributions of short-haul

networks to non-CO

effects. Similarly, in the UK,

we participate in the Jet Zero Council’s non-CO

working group, advocating for a comparable

full-scope MRV system.

REPORTING OF CARBON EMISSIONS

We opposed restricting the EU’s CountEmissionsEU

proposal to intra-EEA flights, as it would create

inconsistent emissions reporting across different

flight routes. We also pushed for including a cargo

apportionment measure of at least 50kg in

CountEmissionsEU. This ensures fair passenger

carbon footprint representation, accounting for

emissions from significant belly cargo, which

otherwise could make passenger emissions appear

up to 35% lower. This measure ensures a level

playing field between cargo and non-cargo flights.

TAXES

In the Netherlands, we have successfully lobbied

for a differentiated flight tax based on emissions

and distance, set to begin in 2027. This fairer tax

system aligns with our advocacy efforts. We will

continue to push for the inclusion of transfer

passengers and for better modulation of tax bands

to accurately reflect per-passenger emissions.

We are founders of the Hydrogen in Aviation alliance

Image courtesy of Airbus

Strategic report

Governance Financials

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Annual Report and Accounts 2024

Contents

PEOPLE

You can really feel the

Orange Spirit – easyJet is

a great place to work and

I am proud to be part of it.

We are focused on what

matters most to our people

and what they need to deliver

exceptional service to our

customers, day in and day out.

We want our people to feel

proud to work at easyJet. To

feel valued and connected to

our purpose, so our Orange

Spirit can thrive.

Our ambition is to be the

destination for the best talent in

the market, where diversity can

thrive, and we encourage a

culture of learning where our

people can grow and flourish. We

provide leaders with the training,

tools and support to bring out

the best in their teams. And we

share in our success by offering

performance shares to everyone.

Making it easy for our people

continues to be a key area of

focus. We are committed to

building a simple, reliable and

digital employee experience –

empowering our people to

manage their lives at easyJet,

wherever and whenever they

need to.

Together with building an

inclusive culture and living

our promise behaviours, we

continue to work hard at

creating an environment where

people can be themselves and

love where they work.

CASE STUDY

CELEBRATING OUR

ORANGE SPIRIT

This year we relaunched our Spirit

recognition programme across the

whole business for the first time

since 2020.

The programme recognises and

celebrates our people who are leading

the way in strengthening our culture,

bringing our promise behaviours to life

and accelerating our journey to reach

our destination of becoming Europe’s

most loved airline.

In January, we held our first Spirit

Awards event since the pandemic. This

brought together over 500 of our

people who have really gone the extra

mile, for an evening of awards,

entertainment, dancing and, most

importantly, lots of fun.

And that’s not all. This year, we also

launched our new Spirit recognition

portal to enable new ways for our

people to recognise, thank and

celebrate each other. Over 10,000 of

our people have registered in the

platform and 6,000 people have

already received recognition, putting

them in the race for a spot at next

year’s Spirit Awards!

It’s an inclusive, welcoming,

a great place to learn from

each other and still have fun

at work.

CREATING EUROPE’S

MOST LOVED PLACE

TO WORK

Our promise behaviours

Having launched our promise behaviours last year,

we are now embedding them into our day-to-day

working and recruitment practices, bringing them

to life in our annual Spirit Awards and making them

the foundation of our recognition programme.

Be safe

> We work together to keep everyone safe

> We speak up, learn from our mistakes and

act when needed

> We respect and care for each other and our

own wellbeing

Be challenging

> We proactively look for ways to be more

efficient

> We think about the impact of our cost-based

decisions on others

> We seek opportunities to drive growth

Be bold

> We’re ambitious, forward-looking and make

decisions with confidence

> We’re curious and challenge the way we do

things to improve and innovate

> We take accountability and have a can-do attitude

Be welcoming

> We are passionate about our customers and

help each other to deliver for them every day

> We’re fair, open and approachable

> We go above and beyond to make things easy

Be Orange

> We love to win and celebrate success

> We listen, learn and break down barriers

> We’re brave, determined and restless to try

new things

Strategic report

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Annual Report and Accounts 2024

Contents

PEOPLE (CONTINUED)

CREATE A WINNING CULTURE

We are committed to creating an

inclusive and welcoming workplace,

where colleagues feel a strong sense of

belonging, care and support. To do this,

we continuously listen to our people and

act on their feedback.

LISTENING TO OUR PEOPLE

Having engaged and connected colleagues is

critical to our success. To understand their wants

and needs, we have multiple internal channels to

capture feedback.

Over the last 12 months, 59% of our people have

responded to one of our engagement surveys

with 37,925 comments in our latest round. Our

average engagement score has risen to 7.3, with

most of our colleague groups happy to share

feedback through our survey.

Each head office function also has a People Action

Group that works with leaders to identify what

matters most to the team and to deliver initiatives,

like social events or development opportunities, to

engage and connect colleagues. In addition, our

AMB enjoy spending time connecting and listening

to our employee groups first hand.

Across our network, our crew ambassadors are

champions of our brand, our customers and our

culture. They play a huge role in engaging our

frontline colleagues, capturing and sharing their

feedback and developing relationships across

the network.

We are passionate about taking action on the

feedback we hear. Our ‘We heard you, we’re on it’

internal campaign was introduced to highlight

how we are putting colleague feedback into

action by making changes and improvements

across the airline. As an example, we have

introduced supplementary health benefits for

all our UK colleagues as a direct response to

feedback received.

WELLBEING

WE AIM TO BE RENOWNED FOR OUR CULTURE OF

CARE AND SUPPORT

Our flagship programme, Energy to Win, is

designed to equip individuals and teams with a

shared language and safe space to bring health

and wellbeing into the everyday conversation.

As part of this, following a thorough review by an

independent panel of specialists, easyJet has become

the first UK airline to be accredited as a Menopause

Friendly Employer. The panel praised us for having a

‘clear commitment to becoming menopause friendly’

and said they’d be ‘using our approach as a

benchmark for other airlines’. We’re excited about the

future and continuing to build on this foundation.

Our peer support programme aims to support pilots’

wellbeing by offering a confidential alternative for

pilots to support each other, enabling healthy coping

strategies, signposting to assistance and providing

reassurance. After a successful trial in Berlin, we now

plan to roll this out across the network.

DIVERSITY, EQUITY AND INCLUSION

Our ambition is to create a diverse, equitable and

inclusive workplace where everyone feels they

belong and have the freedom to be themselves.

DEVELOPING A GENUINELY INCLUSIVE CULTURE

To build a safe and trusted environment, we have

concentrated on training our leaders, setting up

colleague networks and delivering internal

campaigns and events.

Our six new colleague networks enable our

diverse communities to be celebrated and

represented across easyJet:

> Cultural connections

> Disability empowerment

> Family and carers

> Fly with pride

> Gender equality

> Generations.

We also put on a series of events to spotlight topics

such as pride, black history and disability awareness,

to upskill, connect and inspire our people. Around

4,000 people attended across 20 different events.

CASE STUDY

‘We heard you, we’re on it’

We heard from our crew that getting timely

support and communications during periods of

disruption is key to providing great customer

service. Having the right management support

and connection to the business is crucial for the

way they work.

In response to this, we made several positive

changes to our Integrated Control Centre (ICC)

including increasing our crewing officer

headcount, implementing a new phone system

and rolling out a Network Control Charter. All to

help improve our crew’s experience on the day.

Strategic report

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Annual Report and Accounts 2024

Contents

(40%)

(60%)

(36%)

(64%)

8,115

(46%)

9,682

(54%)

(20%)

(80%)

(24%)

(76%)

PEOPLE (CONTINUED)

CREATING A FAIR AND EQUITABLE ENVIRONMENT

We want to ensure that every touchpoint at

easyJet feels fair and impartial, backed by

equitable policies, development opportunities

and ways of working.

To ensure that our frameworks and policies

support our ambition, we continue to review

our policies, including family friendly and hiring

principles. We also have two specific development

programmes dedicated to aspiring women,

aiming to remove ‘boundaries’ and support

women to achieve their aspirations.

BUILDING A TRULY DIVERSE TEAM

We need to experience the world as our

customers do. This means having a truly

representative team that reflects the customers

we serve and the communities we operate in.

To understand who works for us and how their

experiences might differ, we have launched a

‘Care to share’ campaign, encouraging our people

to share more information about themselves.

We will use this insight to continue driving our

ambition to be the most diverse and inclusive

workplace.

We are committed to achieving the target of at

least 40% women on our Airline Management

Board and its direct reports. We have made

positive improvements by increasing this ratio to

36%. We will continue to drive further

improvements as a key priority.

This year we also pledged to have 10% ethnic

minority representation on the Airline Management

Board and among its direct reports by 2027, in line

with the Parker Review. We currently have 4%

representation and over the next three years we

will take action to increase this.

ACCELERATE PROGRAMMES

To support our ambition of bringing greater

gender balance across our leadership team, we

have two development programmes dedicated to

high-performing women. Our AccelerateHER

development opportunity is designed to

encourage, support and promote personal and

professional growth of our high potential women.

1) Figures per Human Capital Management system at

30 September 2024.

2) The Airline Management Board is our ‘Executive

Committee’ for the purposes of the FTSE Women

Leaders Review.

3) Airline Management Board direct reports that are

reported as part of the FTSE Women Leaders Review.

4) Defined in accordance with the Companies Act 2006,

and includes those with responsibility for planning,

directing or controlling the activities of the Company as

well as Directors of our subsidiary undertakings.

GENDER PAY GAP 2023

47.1% 51.6%

MEDIAN GENDER PAY GAP MEAN GENDER PAY GAP

The biggest single factor influencing

our gender pay gap is the gender

representation within our pilot community.

The imbalance in our pilot community is a

well-known industry-wide challenge that we

continue to tackle, working with our partners to

inspire more young people to consider a career in

aviation, including encouraging more women to

become pilots. Our gender pay gap submission

for 2023 and those for previous years are

available at corporate.easyJet.com/

sustainability/gender-pay-reports

CASE STUDY

Embedding inclusion by leading

from the top

As well as being Chief Commercial Officer,

I am also our Diversity and Inclusion Executive

Sponsor, alongside Garry Wilson. Building an

inclusive culture is something we are personally

very passionate about. Through working with

our colleagues on the Airline Management

Board, we are committed to creating a place

where our people can feel valued and

empowered to perform at their best and

to show up as their authentic selves.

This role has allowed me to meet people

from different communities and backgrounds,

listening to their stories and experiences.

Alongside exploring personal perspectives of

our diverse communities within easyJet, one of

my many highlights was hosting a talk as part

of Disability Empowerment Month, focusing on

customers who require assistance. It helped us

to build awareness of invisible disabilities and

what we are doing as an airline to deliver the

best possible experience for all our customers.

Over the next year, I am excited to see how

our new colleague networks bring more people

together and build our inclusive culture where

everyone feels heard, understood and confident

to actively contribute.

Sophie Dekkers

Chief Commercial Officer

We are committed to creating

a place where our people can

feel valued and empowered

to perform at their best and to

show up as their authentic selves.

FEMALE/MALE REPRESENTATION

plc Board

All employees

Senior managers

Airline Management

Board

Airline Management

Board direct reports

Female Male

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PEOPLE (CONTINUED)

Building our capability

to win

We want to be the destination for the

best talent in the market, where diversity

can thrive. We instil a culture of learning

and continue to invest in attracting and

building capability across our business.

ATTRACTING TOP TALENT

We want to make finding the best people easy. In

a competitive labour market, we remain focused

on winning and continue to find new and

proactive ways to attract the best people.

FINDING THE BEST PEOPLE

We are committed to attracting the broadest range

of candidates from a diverse mix of backgrounds.

We hope to reach new audiences through our

partnership with ‘My Duvet Flip’, a podcast that

showcases different career paths and targets

those under 35. The first episode featured Kate

West, one of our training managers in Gatwick,

who dispelled myths around the experience and

qualifications for pilots and encouraged females

to consider this career path. Kate’s interview hit

130,000 views in its first week and resulted in

1,800 click-throughs to our careers website.

EXTERNAL RECOGNITION

In 2024, we were named in Glassdoor’s ‘Best

Places to Work’ in the UK. We were also a winner

in Campaign’s best places to work 2024,

demonstrating our focus on creating the best

workplace for our people.

easyJet holidays has received a number of

accolades over recent years. It was named in The

Sunday Times best places to work in 2023 and

2024 and took the awards for the Best Place to

Work in Travel, Best Tour Operator, and UK &

Ireland Travel Company of the Year at the Travel

Industry Awards in 2024.

On 30 September 2024, easyJet’s Glassdoor

score was 4.2.

BUILDING OUR CAPABILITY

CREW AND PILOTS

We train our frontline people to competently and

confidently manage the most complex situations,

while ensuring a relentless focus on customer

service.

delivered over 27,000 hours of instructor training,

to ensure instructor competencies are continually

developed to maximise training effectiveness.

As well as focusing on safety, we also want to

develop home-grown talent and provide

opportunities for our people to progress within

easyJet. In 2024, we promoted 520 cabin

managers and supported 354 crew to transfer

between our different operating subsidiaries.

ENGINEERING AND PRODUCTION

We pride ourselves on providing the highest level

of engineering technical training across the entire

network to meet the continuously changing

requirements of the operation and sector. We

work closely with our contracted maintenance

providers to ensure an end-to-end approach to

driving these standards across our production. In

addition to building capability in our current

engineers, we have also recruited more than 200

Engineering apprentices across the UK and

Germany.

HEAD OFFICE

Following feedback from our engagement survey,

we have focused on career development and

progression for our head office colleagues. Our

partnership with Squiggly Careers has helped

people consider different opportunities and

development paths. In response to this, 87% of

our head office people now feel satisfied with the

level of development support provided.

Over the last year, we have promoted 100 people

from within our head office functions. We know

that embracing internal talent positions us well to

respond in times of disruption, sharing the

breadth of knowledge and experience across our

business.

BUILDING OUR FUTURE

As a business, we know investing in our early

talent pipeline will be critical to fulfilling our skill

requirements. As part of this, 17 colleagues have

recently completed our Runway Graduate

Schemes in Engineering, Finance and

Management. We continue to develop our

apprenticeship programmes and launched our

new MOC (Maintenance Operations Control)

Apprenticeship this year.

We also recognise when skills are in demand. In

May, we finalised the acquisition of the SR

Technics Malta maintenance facility and

welcomed 400 highly skilled and valued new

colleagues. Having worked closely with them for

over 14 years, this acquisition brings our skills

under one company and allows us to continue to

uphold the high standards we operate in.

PEOPLE RECRUITMENT 2024

1,337 520

774

CABIN CREW PILOTS

MANAGEMENT AND ADMINISTRATION

(INCLUDING ENGINEERING)

CASE STUDY

Pilot Fire Training

The aviation industry has long used gas powered

fire rigs to train pilots to extinguish fire. These

devices are unrealistic for pilots, as they are

designed to replicate cabin interiors.

Listening to feedback from our pilots, we

challenged ourselves to do better and invented

a new training device. The device allows us to

simulate fires – including realistic sound and light

– and trains our pilots to be confident to

manage the situation of flying the plane and

managing the emergency situation

simultaneously.

The enhanced method of training has been

recognised by our regulators in the UK, CAA,

and Austro Control. We have also openly shared

the method with other airlines around the world

to share best practice and improve flight safety

globally.

Our state-of-the-art training facilities in Milan and

London have cutting-edge flight simulators,

devices and equipment – the most modern in the

world. In these facilities, we have delivered 82,938

hours of flight simulator training and over

430,000 hours of cabin crew recurrent training.

Our pilots and crew tell us that the training is now

exceptional, with an NPS of 66 for pilot training

and 62 for cabin crew training. We have also

The Board visits the training centre in Milan

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PEOPLE (CONTINUED)

Making it easy for

our people

BUILDING RELIABILITY AND TRUST

We are ambitious about what we can achieve

together and want to make it easy for our

colleagues to be successful and to focus on

customers. To do this, we are investing in our

people systems and modernising our colleague

experience.

Over the next 12 months, we are embarking on a

programme that will redesign, deliver and embed

simpler people processes. Our colleagues tell us

that we need to get the basics right and, just like

our customers, they expect to complete key tasks

on the go, on a simple and easy platform:

“I’m always busy serving our customers and

making sure they have a great experience – that’s

what drives me. I’m a problem solver.”

“I’m empowered to solve things and make

decisions quickly. I’m so busy helping people I

don’t have much time to understand People

processes or systems. I need something quick and

simple that’s accessible 24/7 from my phone, with

help on demand.”

We want to provide a seamless experience that

builds trust with our people.

We are working closer than ever with our unions

and building industrial relations multiyear

agreements to provide greater stability for crew

to better plan the moments that matter most.

ELEVATING OUR CREW’S EXPERIENCE

Our crew are brand advocates who can show our

customers why they should continue to fly with

us. We are committed to making sure they feel

connected with our purpose, set up for success

and empowered to make a difference every day.

This year, our crew engagement programme set

out to ensure our crew have the best experience

on and off board. We continue to have an open

dialogue with our unions to ensure that the

changes we are making are having a positive

impact on our crew.

FIT FOR THE FUTURE

Today, more than ever, our business needs to be

set up in a way that allows us to react quickly and

successfully to a continually changing market.

This will enable the delivery of our strategy and

allow us to be become Europe’s most loved airline.

We have two growing businesses in easyJet airline

and easyJet holidays. Alongside delivering an

ambitious strategy, we are focused on taking

advantage of advancements in technology and

delivering growth within a low-cost model.

We are clear on the critical skills and capabilities

that we will need in the future, and where we have

potential shortfalls, with active plans in place to

mitigate these gaps and offset any potential risks.

We also specifically ensure that our people remain

skilled and vigilant about digital security through

providing dedicated education, awareness and

training. This is key to our business as the external

threat evolves.

As a vice-chair organisation on the Aviation Skills

Board, we aim to inspire and build sustainable

skills that are accessible for all.

We opened our Luton head office in 2007 but

have now outgrown our original space. This year,

we created a new headquarters for our easyJet

holidays team. This move into a purpose-built

space has allowed for even more collaboration

and the team see it as a place to thrive and do

their best work, together. It feels inspirational

while remaining practical and functional for their

diverse team.

After the success of this move, we are now

investing in improvements in the rest of our head

office, where 2,000 of our people are based. This

helps us get ready for the future and ensures we

are giving people the best physical environment

to do their best work – encouraging collaboration

and shared accountability.

CASE STUDY CASE STUDY

Cabin Crew Training Making it easier

for our crew to be

brilliant

Following feedback from our cabin crew, we

have remodelled their recurrent training model

to deliver it locally in bases throughout Europe

instead of bringing them to a central location.

We have created dedicated training facilities in

each base so cabin crew are trained by people

they know and can learn together as equals. As

a result, the NPS has shot up and the safety

management system demonstrates training

effectiveness has improved.

This process also created job and career

development opportunities for our flight

attendants and cabin managers to become

crew training instructors. This year the number

of crew training instructors grew from 44 to 265.

We love hearing from our customers about

how they experience our Orange Spirit,

whether it is crew going above and beyond to

help our customers or keeping a reassuring

smile during times of disruption – hear what

some of them have to say:

My husband became unwell just

before take-off and the crew were

so kind and helpful – just brilliant.

Airport crowded but check-in speedy,

though we boarded a little late.

Captain and crew couldn’t have been

nicer – pointing out storm clouds to

the children.

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Annual Report and Accounts 2024

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TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES

Our disclosures are consistent with the recommendations and recommended

disclosures of the Task Force on Climate-related Financial Disclosures (TCFD),

taking into consideration the TCFD all-sector guidance and the supplemental

guidance for non-financial groups for the transportation group.

GOVERNANCE

(A) THE BOARD’S OVERSIGHT OF CLIMATE-RELATED

RISKS AND OPPORTUNITIES

Climate-related issues were discussed by the plc

Board through regular sustainability updates as well

as specific Board discussions to approve key

climate-related decisions including the Sustainable

Aviation Fuel (SAF) strategy and fleet plan; for

relevant Board expertise, see page 92; for the

frequency of sustainability updates to the Board,

which include monitoring of progress against target,

see pages 88 to 90. The Audit Committee has

reviewed the climate transition risks during the year

as part of its review of principal risks, as set out in its

report on page 107.

(B) MANAGEMENT’S ROLE IN ASSESSING AND MANAGING

CLIMATE-RELATED RISKS AND OPPORTUNITIES

easyJet has a dedicated Sustainability team, which

is responsible for developing and owning the

environmental strategy and embedding it within the

organisation. Climate-related issues are managed by

the Environment Working Group. This is one of three

working groups – Environment, Social and

Governance – that oversee ESG activity at easyJet.

These working groups are chaired by AMB sponsors.

The Group Markets Director chairs the Environment

Working Group, the Group People Director chairs

the Social Working Group and the CFO and General

Counsel co-chair the Governance Working Group.

These Working Groups report into the ESG Steering

Committee, which comprises the Working Group

chairs supported by the Director of Sustainability,

Director of Reporting & Financial Control and

Deputy General Counsel. The role of the ESG

Steering Committee is to set the strategy regarding

ESG performance, monitor delivery of the net zero

pathway and ESG strategy, and ensure readiness for

CSRD reporting.

The recommendations of the ESG Steering

Committee are reviewed by the Airline

Management Board (AMB), the Executive

Committee of the functional leaders across the

Group. The AMB’s members (which includes the

CFO, who is also on the plc Board) are collectively

responsible for assessing and managing climate-

related risks and opportunities, and use regular

updates on performance versus targets to drive

the performance of the Group against strategic

KPIs. These updates are conveyed to the Board

through regular sustainability updates as outlined

on page 88. The remuneration of the CEO, the

CFO and several AMB members was aligned with

sustainability targets for FY24. This included

embedding the net zero ambition and best

practice environmental management across the

business, delivering against the CO

/RPK targets

and driving improved ESG scores. This is set out in

the Directors’ Remuneration Report on page 120.

Since FY23, management accountabilities related

to the delivery of the net zero roadmap have

been agreed and formalised in a RACI matrix,

which is regularly updated to account for

organisational changes.

STRATEGY

(A) THE CLIMATE-RELATED RISKS AND OPPORTUNITIES

WE HAVE IDENTIFIED OVER THE SHORT, MEDIUM AND

LONG TERM

Risks and opportunities are dynamically reviewed

and developed as part of the corporate risk

management framework, which ensures a unified

and collaborative risk management approach and

best practice across the Group. We define the time

horizons for climate risk as follows:

Short

0–1 year – aligned with budget

Medium

2–5 years – aligned with corporate strategy

and financial plan

Long

6–26 years – aligned with our target

to reach net zero by 2050

The key risks identified by the business using the risk

framework, and subsequently reviewed by the

Board, fall into seven broad themes – one of which

is the climate change transition risk, as outlined in

the risk section on page 74.

Since FY20, easyJet has engaged with Risilience

(formerly known as Cambridge Centre for Risk

Studies), an enterprise risk management specialist, to

assess our exposure to climate-related risks and

opportunities under four global average-temperature-

increase scenarios. Risilience created a digital twin of

the Group’s current portfolio and business activities,

assuming no climate actions are undertaken.

TCFD categorisation was then used to define

transition and physical risk definitions and scope, and

each risk was modelled independently. The analysis

covered physical and transition risks that we could be

exposed to in the short, medium and long term. The

focus of the analysis was on the five-year horizon to

identify which risks we could be exposed to in the

short and medium term, aligned with easyJet’s

budget and corporate strategy timeframes. These

risks were extrapolated and assessed qualitatively to

determine their long-term impact.

The assessment was made using workshops and

interviews with key internal stakeholders regarding

the potential financial risks to our business

operations associated with physical and transition

risks. Risilience then undertook scenario modelling

of each climate risk against easyJet’s current

commercial and physical footprint. This included

the potential financial impacts of transition risks

such as changing climate and carbon-related

taxes, regulatory changes on a country level and

physical risks.

We have assessed the financial impact of climate

change transition risks and physical risks based on

the five year earnings value at risk (5yrEV@Risk).

Risks that have a value greater than 1% of total

assets, which equates to a threshold of £111 million

in FY24, have been deemed to have had a

substantive financial or strategic impact.

This assessment has been reviewed and updated

in FY24 to reflect the evolving landscape.

TRANSITION RISKS

We have identified six transition risk areas which

apply to easyJet and to the airline sector as a whole:

> Compliance costs: Financial impact of

coordinated regulatory action to increase the

costs of emitting GHGs.

> Legal: Legislation and litigation to ensure that

companies take sufficient action on GHG

reduction.

> Technology: Transition to low-carbon emissions

technology and products drives increased total

operating costs, impairment of existing assets

and delivery risk.

> Consumer sentiment: Consumer preferences

shift at scale to lower emissions alternatives

resulting in demand suppression.

> Investor/market sentiment: Investors retreat

from carbon-intensive industries, resulting in

increasing challenges to attract/retain investment

and/or financing opportunities.

> Reputation: Impact of greenwashing claims and

climate activism towards organisations and

industries that are seen as being slow to transition

towards a low-carbon economy adversely

impacting reputation, brand and ultimately

demand.

PLC BOARD

AMB

ESG STEERING COMMITTEE

ENVIRONMENT

WORKING

GROUP

SOCIAL

WORKING

GROUP

GOVERNANCE

WORKING

GROUP

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TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (CONTINUED)

We have identified specific risks within these

transition risk areas. These include:

COMPLIANCE COSTS: CARBON PRICING (SHORT TO MEDIUM TERM)

Future policy measures and regulation, to tackle the

impact of aviation on climate change such as

escalating costs of carbon emissions, introduction

of non-CO

emissions taxes and the phasing out of

Emissions Trading Scheme (ETS) free allowances for

the aviation sector, will add significant costs for

European airlines. We are exposed to three ETS

schemes – UK, EU and Switzerland – which included

79% of our flying carbon emissions in FY24. We

incorporate an internal carbon price into financial

frameworks including the budget, five-year financial

plan and fleet evaluations. In FY24 this carbon price

was driven by UK and ETS costs, which were an

average of £37 and €68 per metric tonne

respectively at the end of FY24. While the impact of

existing carbon pricing mechanisms are modelled in

our financial plans, the cost is subject to market

volatility. Policy change could result in a risk in the

case of escalating costs, or conversely an

opportunity where the actual costs are lower than

expected.

TECHNOLOGY: SUSTAINABLE AVIATION FUEL MANDATES

(MEDIUM TO LONG TERM)

SAF mandates in the UK and EU will require fuel

suppliers to provide kerosene with a specified blend

of SAF at airports in that country or region. Airlines

lifting fuel in these countries will therefore be subject

to higher total fuel cost. In FY22, we signed a SAF

supply agreement with Q8, one of our key fuel

suppliers, creating a contractual obligation on Q8 to

supply volumes of SAF that at least meet minimum

mandate requirements until FY27 in order to secure

certainty of supply.

We also have flexibility in our SAF agreement to

procure up to 10% more than mandated volumes in

order to manage the risk that other levers

contributing to our carbon intensity reduction

targets fall short.

As with carbon pricing mechanisms, the risk and

opportunity lies in SAF volatility.

TECHNOLOGY: NEW TECHNOLOGY TRANSITION (LONG TERM)

Capex and operational costs associated with the

introduction of new technology such as next-

generation aircraft, alternative fuels and carbon

removals, and potential depreciation impacts on

older assets.

PHYSICAL RISKS

The Risilience analysis highlighted the acute and

chronic physical risks that could impact our business.

These relate to extreme weather events as well as

long-term environmental changes. The physical risks

were assessed according to the forecast changes in

environmental conditions in the different geographies

in which we operate and include the following:

> Operational disruption: Due to extreme weather

events in the short, medium and long term.

> Market disruption: Changing demand patterns

due to climate change in the long term.

Due to the nature of our business, we could be

exposed to both on-the-ground impacts (such as

heavy rainfall and flooding affecting airport

infrastructure) and aerial impacts (such as more

severe storms, extreme wind or hailstorms). The

geographic spread of physical risk types varies

depending on the specific location – for instance,

coastal flooding was modelled as being more

pronounced in low-lying areas of North Western

Europe such as the Netherlands, whereas heatwave

risk was higher in inland regions of Spain, Portugal

and France. As an airline operator we have some

flexibility to adapt network and operations to

respond to changing geographic risk.

RISKS SUMMARY

Risilience quantified our climate change risks using a

five-year Enterprise Value at Risk (5yrEV@Risk)

metric for the period FY25–29, which shows how

the risks would impact discounted cash flows over

five years according to different scenarios, aligned

with the timeframe for our budget, corporate

strategy and financial planning process. The

long-term risk levels have been determined based

on the quantified short to medium-term risks and

the long-term impact and likelihood, as outlined in

easyJet’s Corporate Risk Register.

The following table indicates the risk relative to the

present day, based on the Paris Agreement scenario

without easyJet taking any action to manage our

climate change transition. This scenario was

selected as the baseline as it is consistent with the

SBTi aviation sectoral decarbonisation pathway, launched in August 2021, which is aligned to a well-below

2°C temperature scenario.

Risk

Short term

(0–1 year)

Medium term

(2–5 years)

Long term

(6 –26 years)

Compliance costs

Legal

Technology

Consumer sentiment

Investor/market sentiment

Reputation

Physical

Low: <£111 million Medium: £111–£222 million High: >£222 million

Medium and long-term risks have been assessed on 5yrEV@Risk and categorised as low: <£111 million, medium

£111–£222 million, high >£222 million, due to £111 million being defined as 1% of Group assets. Short-term risks are

categorised as low as they are accounted for in our financial plan. FY24 modelling indicated that there is no

change to the relative risks versus what was reported in the FY23 Annual Report and Accounts. This is to be

expected as the climate change transition risks are long-term structural risks and therefore are only likely to

change in a material way in response to significant changes in the internal or external environment. Note, these

valuations are calculated by Risilience and are influenced by general trends such as overall customer

preferences for products and services that are considered more sustainable. In respect of Risilience’s

assessment of consumer sentiment 5yrEV@Risk valuation, it should be noted that customer booking

confidence post-pandemic continues to rise.

OPPORTUNITIES SUMMARY

The key opportunities we have identified are outlined below.

Opportunity

Short term

(0–1 year)

Medium term

(2–5 years)

Long term

(6 –26 years)

Fleet renewal: the use of more efficient Airbus NEO aircraft,

which reduce our fuel burn, carbon emissions and related costs.

We currently have a firm order for 299 NEO aircraft valued at

$36 billion at list price, and a further 100 options, for delivery up

to FY34

Optimising flight operations: initiatives to minimise fuel burn,

carbon emissions and related costs

Supporting development of zero carbon emission flight:

collaborations with industry partners, including Rolls-Royce, Airbus,

GKN and Cranfield Aerospace Solutions, will be a key long-term

driver of industry decarbonisation – –

Shifting consumer preferences: opportunity for us to build brand

preference and loyalty as consumer preferences shift towards

organisations that are committed to tackling climate change

Low: <£111 million Medium: £111–£222 million High: >£222 million

These are the indicative upside opportunities beyond risk mitigation and are based on high level assumptions

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TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (CONTINUED)

(B) THE IMPACT OF CLIMATE-RELATED RISKS AND

OPPORTUNITIES ON OUR BUSINESSES, STRATEGY AND

FINANCIAL PLANNING

Climate-related risks and opportunities are

incorporated into our corporate risk register and are

integrated into our strategic and financial plans.

These have a material influence on major business

decisions including our fleet strategy, centred on

fleet portfolio decisions, and the purchase of

next-generation aircraft, an increased focus on

fuel-saving initiatives to refine our operation,

entering into partnerships with entities at the

vanguard of decarbonisation technologies and

investigations into transitioning from fossil fuels to

electric power and hydrogen for airport ground

operations. Costs associated with carbon, i.e. costs

related to SAF and to ETS, are incorporated into our

five-year financial plan and inform key longer-term

decisions such as fleet planning. Please see page 74

for the climate-related risks as defined in the

corporate risk register. These risks are monitored

through annual updates of the Risilience modelling

to reflect changes in the macroeconomic and

physical environment, as well as changes to

easyJet’s outlook.

TRANSITION PLAN – NET ZERO ROADMAP

In November 2021 we signed up to the Race to

Zero and committed to achieving net zero carbon

emissions by 2050, in line with the UK commitment

in the Climate Change Act 2008 (2050 Target

Amendment) Order 2019.

In FY22 we developed our net zero roadmap,

which provides the strategic framework with which

we plan to achieve net zero GHG emissions by

2050, which materially affects business decisions

over the short, medium and long term. Using our

roadmap we set an interim science-based target of

35% reduction in GHG emissions intensity by FY35

versus FY19 – we were the first low-cost carrier in

Europe to have our target validated by the Science

Based Targets initiative (SBTi).

The roadmap is based on well-to-wake GHG

emissions intensity measured in gCO

e per Revenue

Tonne Kilometre as required by the SBTi aviation

sectoral decarbonisation pathway. This is the Scope

1 and Scope 3 emissions due to aviation fuel, which

accounts for 92% of our total footprint in FY24, per

tonne of revenue payload per kilometre travelled.

Revenue tonnes are calculated by assuming 100kg

per passenger in line with the SBTi. Progress against

our net zero roadmap, as measured by our gCO

RTK targets is the key marker of mitigating

climate-related risks. In addition to the intensity KPI,

we assess the performance of the net zero

roadmap levers, e.g. NEO deliveries.

Since launching the net zero roadmap, we have

won several awards, including the Best Net Zero

Strategy of the Year at the UK Green Business

Awards 2023 and the Aviation Company of the

Year at the Aviation Industry Awards 2024, where

sustainability activity was a factor.

The net zero roadmap is aligned to the SBTi

aviation sectoral decarbonisation pathway, which

is aligned to the Paris Agreement scenario (well

below 2°C). We intend to re-evaluate the net zero

roadmap versus the SBTi 1.5°C aviation pathway

once it has gone through consultation and has

been formalised.

In the short to medium term, our focus will be on

maximising efficiency and using SAF in line with

mandated requirements. These initiatives will

continue into the long term. This will involve the

following:

> Fleet renewal with Airbus NEO aircraft, which

are at least 13% more efficient than the aircraft

they replace. We currently have a firm order for

299 NEO aircraft and a further 100 options to

be delivered by FY34.

> Airspace modernisation, which will lead to more

direct flight routings. We are actively

contributing to these efforts via the IRIS

programme with Viasat, Airbus and the

European Space Agency which is now

underway and expected to continue until the

end of 2025. In addition, we are a contributor to

Project HERON as part of the Single European

Sky programme.

> A suite of operational efficiency initiatives that

minimise fuel burn, including Descent Profile

Optimisation and Continuous Descent

Approach (DPO/CDA), which was installed

across our fleet in FY23 and continues to deliver

benefits. This has been further strengthened in

FY24 by the addition of Idle Factor Optimisation

which helps further reduce fuel burn and

emissions on descent.

> Contractually committed SAF volumes with our

fuel supply partners to ensure security of

supply of the SAF in the short to medium term.

In the long term, zero carbon emission aircraft are

the cornerstone of our pathway. Based on today’s

science, our focus is on hydrogen-powered

aircraft as we believe it shows the most potential

for a short-haul airline like easyJet. Hydrogen has

no carbon emissions, provided it is green

hydrogen produced with renewable electricity,

and has the potential to reduce non-CO

emissions from flying, although more research is

needed to understand these effects. Please refer

to page 40 for more detail on the net zero

roadmap.

We are driving the development of hydrogen

aircraft through numerous investments and

partnerships:

> The easyJet-Rolls-Royce hydrogen engine

demonstrator continues to make progress with

successful component development and

testing including breaking ground at the NASA

test facility in the US which will be the site for

the ultimate engine tests.

> Project Acorn – we led the first airside hydrogen

refuelling ever to take place at a UK airport,

providing data and insight to create the first ever

safety guidance and inform the regulatory

network around hydrogen use at airports. In

September 2024, Project Acorn won the Aviation

Innovation Award for large companies at the

2024 UK Aviation Industry Awards.

> Hydrogen in Aviation alliance (HIA) – published

the ‘Launching hydrogen-powered aviation’

report.

Carbon removal technology will also play a critical

role in our roadmap, both in supporting feedstock

as a component of Power-to-Liquid SAF and as a

mechanism to address residual emissions. In

October 2023, easyJet was the first airline in the

world to sign a contract for Direct Air Carbon

Capture and Storage (DACCS), via the Airbus

Carbon Capture Offer. Construction of the facility

by 1PointFive is continuing in line with schedule,

which aims to deliver permanent removals to

easyJet from 2026.

The net zero roadmap provides the framework

with which to mitigate against five of the six key

transition risks – compliance, legal, consumer

sentiment, investor/markets sentiment and

reputation. The key remaining risk is technology

– delivery of the roadmap is dependent on the

scaling-up of SAF production and the

development of nascent technologies such as

zero carbon emission aircraft, and there is a risk

of a potential increase in costs associated with

transition to these technologies and/or with

potential adjustment to net zero roadmap delivery

levers necessary.

Reduce our energy use by renewing our fleet

with the most efficient aircraft available,

which is currently the Airbus A320neo series;

saving fuel through operational efficiencies

and through the modernisation of UK and

European airspace. (See page 41 for more

details)

Replace fossil fuels with non-fossil

alternatives such as Sustainable Aviation

Fuels and aim to be early adopters of zero

carbon emission aircraft. (see page 48 for

more details)

Remove residual emissions with carbon

removal solutions. (See page 49 for more

details)

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TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (CONTINUED)

Beyond carbon dioxide, non-CO

effects,

predominantly due to contrail cirrus, contribute to

aviation’s impact on global warming. easyJet has

joined the CICONIA project, part of the EU Single

European Sky programme, to explore operational

methods to minimise the formation of warming

contrails and contribute to the development of

mitigation strategies. In addition, we believe

increased funding, data gathering, and research

are necessary to build increased understanding of

non-CO

effects and how to best mitigate any

negative impact they might have. We support the

EU’s proposed monitoring reporting and

verification (MRV) for non-CO

emissions and call

for full scope coverage for long-haul and

short-haul flights.

CONSIDERATION DIFFERENT CLIMATE-RELATED

SCENARIOS, INCLUDING A 2°C OR LOWER SCENARIO

Our net zero pathway is aligned to the SBTi

aviation sectoral decarbonisation pathway, which

is aligned to the Paris Agreement scenario (well

OVERVIEW OF SCENARIO ANALYSIS

Scenario Current policy Stated policy Paris Agreement

Paris Ambition

Temperature alignment 3°C 2.5°C Well below

2°C

1.5°C

Target global emissions reduction -50%

by 2100

-75%

by 2100

Net zero

by 2050

Net zero

by 2050

Representative concentration pathway RCP 7.0 RCP 4.5 RCP 2.6 RCP 2.6

1) We work in partnership with Risilience to evaluate a range of climate change-related risks across a range of scenarios,

outlined further on page 61.

2) The Paris Agreement of well below 2°C was selected as the baseline scenario as it is aligned with the SBTi aviation

sectoral decarbonisation pathway, launched in August 2021. The analysis varied input assumptions across the transition

risks in line with these scenarios. As an example, the Paris Agreement scenario assumes a 56% increase in consumers

adopting sustainable alternative products by 2030, compared to 58% under the Paris Ambition and 42% under ‘stated

policy’. 5yrEV@Risk was assessed under these scenarios as described in the Risks summary on page 62. These scenarios

incorporate socioeconomic projections from the Shared Socioeconomic Pathways (SSPs); Transition risks decrease as

temperature scenarios increase, while physical risks worsen.

below 2°C). The sensitivity of the pathway and the

ability to meet our targets in the absence of

different levers has been assessed to ensure there

is no over-dependence on any single lever.

There is currently no formal aviation sectoral SBTi

pathway aligned to the Paris Ambition (1.5°C),

although SBTi has released an interim pathway

that is yet to go through consultation. easyJet

aims to reach net zero by 2050 by reducing

emissions intensity by 78% and addressing

residual emissions via carbon dioxide removals.

This is a significantly better reduction than the

57% threshold defined for easyJet by the well

below 2°C SBTi pathway. This gives easyJet

headroom and therefore resilience in respect of

our climate change risk and net zero strategy.

RISK MANAGEMENT

OUR PROCESSES FOR IDENTIFYING AND ASSESSING

CLIMATE-RELATED RISKS AND OPPORTUNITIES

We work in partnership with Risilience to evaluate

a range of climate change-related risks across a

range of scenarios as described on page 61. The

quantified risks are then assessed against the

business threshold for what constitutes a risk of

‘major concern’, e.g. substantive financial. This

metric is defined as 1% of total assets, which

equates to a threshold of £111 million at the end

of FY24.

In parallel, we leverage our internal and external

network to understand and critically evaluate

transition risks and opportunities related to

compliance, consumer sentiment, market

sentiment, technology, legal and reputation that

are relevant to the Group. Group Finance, Legal,

Investor Relations and Marketing teams support

the identification and qualitative and quantitative

assessment of specific risks and opportunities,

feeding into Risilience’s analysis, and into strategy

and financial planning for the Group.

Risilience conducted workshops in FY22 focused

on climate-related risks identified to have a

potentially substantial financial impact. The

workshops involved colleagues from across the

business and identified the key functional level

risks within each corporate level risk category.

For full details of the specific risks identified, see

Strategy section (a) on page 61.

The impact and likelihood inputs were then

calibrated in order to reach an aligned and

consistent view of each risk. These risks are

reviewed annually and updated if required.

OUR PROCESSES FOR MANAGING CLIMATE-RELATED

RISKS AND OPPORTUNITIES

Following the outputs of internal stakeholders,

the Risilience study and external networks, risk

workshops were conducted to determine the

appropriate ownership and management of these

risks. In FY23, easyJet carried out a double

materiality assessment, which confirmed climate

change as a principal risk, see page 74 of our Risk

section for further detail. Mitigations and controls

for these risks were developed by the named risk

owners including those outlined on page 74 and

are documented in the Climate Change Transition

Risk Register, overall ownership of which sits with

the CFO. Governance for these risks and

mitigations are regularly reviewed through

easyJet’s ESG Steering Committee.

Ownership of risks are outlined below.

Risk Risk owner

Compliance costs CFO

Legal Group General Counsel

Technology CFO

Consumer sentiment Chief Customer &

Marketing Officer

Investor/market

sentiment

CFO

Reputation Group Markets Director

HOW OUR PROCESSES FOR IDENTIFYING, ASSESSING

AND MANAGING CLIMATE-RELATED RISKS ARE

INCORPORATED INTO THE ORGANISATION’S OVERALL

RISK MANAGEMENT

As described in the risk management section

above, climate change transition risks are

incorporated into the corporate risk framework

and register. For more detail on the overall risk

management of the business, see the Risk

section, pages 67 to 74.

Mitigation options that are identified during the

above process have been incorporated into our

net zero pathway, which is reviewed on an annual

basis and feeds into the corporate strategy and

financial planning process and principal risks and

uncertainties, see pages 70 to 74.

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TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (CONTINUED)

METRICS AND TARGETS

THE METRICS WE USE TO ASSESS THE CLIMATE-

RELATED RISKS AND OPPORTUNITIES IN LINE WITH OUR

STRATEGY AND RISK MANAGEMENT PROCESS

Since FY22 we have assessed financial impact in

the form of 5yrEV@Risk. These figures are then

assessed against a threshold of 1% of total assets,

i.e. a threshold of £111 million in FY24. Risks and

mitigation options identified through these

metrics have been incorporated into our climate

change transition plan and continue to inform our

financial and strategic planning. Furthermore, we

use an internal carbon price that is driven by the

costs of UK and EU ETS allowances in our

financial and strategic planning. 79% of easyJet’s

emissions in FY24 were covered by ETS schemes.

At 30 September 2024 UK and EU ETS credits

cost £37 and €68 per metric tonne CO

respectively.

OUR DISCLOSURE OF SCOPE 1, SCOPE 2 AND SCOPE 3

GHG AND THE RELATED RISKS

We have disclosed our full value chain emissions in

this Annual Report. Our climate impact is primarily

due to the use of fossil aviation fuel, which accounts

for 92% of our overall GHG emissions footprint. Our

emissions footprint has been independently verified

with reasonable assurance by Normec Verifavia, a

UKAS and COFRAC accredited global leader in

environmental validation, verification, and auditing

within the transport sector. Scope 1, 2 and

Scope 3 Category 3 have been verified with

Reasonable Assurance.

See our comprehensive GHG and energy

performance table, including Scope 1, 2 and 3

emissions on page 44, where you can find the

breakdown by geography and the methodology

used. See page 44 for a link to the detailed

independent assurance statement and ESG

fact sheets.

THE TARGETS WE USE TO MANAGE CLIMATE-RELATED

RISKS AND OPPORTUNITIES AND PERFORMANCE

AGAINST TARGETS

As our interim target, we have committed to

reducing well-to-wake GHG emissions intensity

related to jet fuel by 35% per Revenue Tonne

Kilometre (RTK) by FY35 from a FY19 base year

1, 2

which has been approved by the SBTi. This interim

target is on the path to net zero by 2050, by

which point we are aiming for a 78% reduction in

GHG emissions intensity, with the residual

emissions addressed through a portfolio of

carbon removal solutions.

In FY24, we have reported 880 gCO

e/RTK

well-to-wake emissions intensity, a 5.6% reduction

versus the FY19 baseline. This has been driven

mainly by fleet renewal with a further 16 NEO

aircraft joining the fleet, and by continued delivery

of operational efficiency initiatives.

Our net zero roadmap, outlined on page 40,

provides the framework with which we intend to

meet our targets in 2035 and beyond on our

journey to net zero in 2050.

As a component of the net zero roadmap, we

have targets in place for SAF uplift in line with EU

and UK proposed mandates, starting in FY25.

2025 2030

EU 2% 6%

UK 2% 10%

For details of the CEO and CFO sustainability-

related targets, see the Directors’ Remuneration

Report on page 120.

1) The target boundary includes biogenic emissions and

removals from bioenergy feedstocks.

2) Non-CO

effects which may also contribute to aviation

induced warming are not included in this target. easyJet

commits to report publicly on its collaboration with

stakeholders to improve understanding of opportunities

to mitigate the non-CO

impacts of aviation annually

over its target timeframe.

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SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) INDEX

SASB Standards identify the subset of ESG issues most relevant to financial performance and enterprise value for 77 industries. Below we report on the metrics for the Airlines standard.

TABLE 1. SUSTAINABILITY DISCLOSURE TOPICS AND ACCOUNTING METRICS

Topic Accounting metric Category Unit of measure Code Disclosure

Greenhouse

gas emissions

Gross global Scope 1 emissions Quantitative Metric tonnes (t) CO

e TR-AL-110a.1 Disclosed on page 44 of the Annual Report

Discussion of long-term and short-term strategy or plan to manage

Scope 1 emissions, emissions reduction targets, and an analysis of

performance against those targets

n/a T R -A L- 1 1 0 a . 3 Covered in the Annual Report, (primarily pages 36

to 55)

(1) Total fuel consumed Quantitative Gigajoules (GJ) T R -A L- 1 1 0 a . 3 112,050,781

(2) Percentage alternative Percentage (%) 0.033%

(3) Percentage sustainable 0.033%

Labour practices

Percentage of active workforce covered under collective bargaining

agreements

Quantitative Percentage (%) T R -A L- 3 1 0 a . 1 Disclosed in Human Capital ESG fact sheet

(1) Number of work stoppages and Quantitative Number, days TR-AL-310a.2 Not disclosed

(2) Total days idle

Competitive

behaviour

Total amount of monetary losses as a result of legal proceedings

associated with anti-competitive behaviour regulations

Discussion and

analysis

n/a T R -A L- 5 4 0 a .1 The Company has not incurred any monetary

losses as a result of legal proceedings associated

with anti-competitive behaviour regulations

Accident and

safety management

Description of implementation and outcomes of a safety

management system

Discussion and

analysis

n/a T R -A L- 5 4 0 a .1 Disclosed in Safety, Quality & Governance ESG

fact sheet. Also discussed in Annual Report risk

section pages 67 to 74

Number of aviation accidents Quantitative Number TR-AL-540a.2 Zero

Number of governmental enforcement actions

of aviation safety regulations

Quantitative Number T R -A L- 5 4 0 a . 3 Zero

TABLE 2. ACTIVITY METRICS

Activity metric Category Unit of measure Code Disclosure

Available Seat Kilometres (ASK)

Quantitative ASK TR-AL-000.A Disclosed on page 35 of Annual Report

Passenger load factor

Quantitative Rate TR-AL-000.B Disclosed on page 35 of Annual Report

Revenue Passenger Kilometres (RPK)

Quantitative RPK TR-AL-000.C Disclosed on page 35 of Annual Report

Revenue Tonne Kilometres (RTK)

Quantitative RTK TR-AL-000.D Disclosed on page 44 of Annual Report

Number of departures Quantitative Number TR-AL-000.E Disclosed on page 35 of Annual Report

Average age of fleet Quantitative Years TR-AL-000.F 10.2 years

1) Note to TR-AL-310a.2 – Disclosure shall include a description of the reason for each work stoppage, impact on operations and any corrective actions taken.

2) Note to TR-AL-520a.1 – The entity shall briefly describe the nature, context and any corrective actions taken as a result of the monetary losses.

3) Note to TR-AL-000.A – Available Seat Kilometres (ASK) is defined as the maximum potential cumulative kilometres travelled by passengers (i.e. kilometres travelled by occupied and unoccupied seats).

4) Note to TR-AL-000.B – Load factor is a measure of capacity utilisation and is calculated as passenger kilometres travelled, divided by ASK.

5) Note to TR-AL-000.C – Revenue Passenger Kilometres (RPK) is defined as the cumulative total kilometres travelled by revenue passengers. A revenue passenger is a passenger for whose transportation an air carrier receives commercial remuneration.

6) Note to TR-AL-000.D – Revenue Tonne Kilometres (RTK) is defined as one metric tonne of revenue traffic transported one kilometre. RTK is computed by multiplying the aircraft kilometres flown on each flight stage by the number of metric tonnes

of revenue traffic carried on that flight stage (e.g. passengers, baggage, freight and mail).

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RISK MANAGEMENT

OUR CORPORATE RISK FRAMEWORK

The Board approves the

strategy for easyJet, including

strategic initiatives and

objectives, and ensures suitable

oversight and governance

through several management

methods. This includes

monitoring and reporting,

strategic reviews, oversight

committees and deep dives into

specific risk areas. The Board is

ultimately responsible for

determining the nature and

extent of the principal risks it is

willing to take to achieve its

strategic objectives, setting its

risk appetite, and maintaining

the Group’s systems of internal

control and risk management.

The Audit Committee and the

Board are accountable for

reviewing and assessing the risk

management processes. The

Risk & Assurance team, which

reports jointly to the Chair of

the Audit Committee and the

Chief Financial Officer (CFO),

ensures that comprehensive

processes are in place for

identifying and assessing the

Group’s principal and emerging

risks. The Board, with the

assistance of the Audit

Committee, has carried out a

robust assessment of the

principal and emerging risks

facing the Group and how

those risks affect the prospects

of the Group. The Risk &

Assurance team is responsible

for creating, implementing and

delivering the corporate risk

framework and reporting the

principal and emerging risks to

the Board. Each function across

easyJet is responsible for

understanding and managing

its own risks and considering

the impact on all stakeholders.

To ensure that risks are

managed within the framework,

the Risk & Assurance team

maintains a programme of risk

monitoring with each function

and promotes cross-functional

management of risks. The Risk

& Assurance team works with

all functions to ensure that risk

information remains relevant,

control deficiencies or gaps are

identified and improvement

actions are implemented.

During FY24, the Corporate Risk

team has further developed the

corporate risk framework and

supporting documentation.

Our central risk platform was

rolled out across the business

in February 2024 as a central

repository for the principal and

functional risks. Our internal

intranet now contains a risk site,

where all employees can access

information on the risk

framework. The corporate

assurance map identifies key

controls against each principal

risk, and the assurance over

these controls. Over the course

of the year, this stated assurance

has been independently validated

by the Internal Audit team.

Emerging risks are captured from

a variety of sources. They are

identified, assessed, managed

and articulated on our central risk

radar, which is shared at each

Airline Management Board and

Audit Committee meeting

attended.

All principal risks have been

reviewed and discussed with the

risk owners. Some risks have

been amended slightly to reflect

the changing risk landscape.

These include:

> Changing legal and regulatory

landscape: This risk

description has been

RISK THEMES

Nine corporate risks fall into seven risk themes, which have been updated to

ensure alignment to the Group’s strategy as follows:

SAFETY, SECURITY

AND OPERATIONS

easyJet’s number one priority is the safety and security of its

customers, colleagues and contractors, demonstrated by our value

of ‘always with safety at our heart’. The delivery of a safe and secure

operation also supports easyJet’s strategy to ‘deliver ease and

reliability’ to meet the needs and expectations of our customers.

This is critical to ‘building Europe’s best network’.

OUR PEOPLE

Having the right people is a key part of our value to be ‘always warm

and welcoming’ and ‘living the Orange Spirit’. We aim to create an

inclusive, diverse and energised environment that attracts the right

people and inspires everyone to learn and grow.

MACROECONOMIC

AND GEOPOLITICAL

Our values include to ‘always challenge costs’. The airline industry can be

sensitive to macroeconomic and geopolitical conditions which could

affect our financial performance. Risks include supply/demand imbalance,

general economic trends, as well as the impact of changes in fuel cost,

foreign exchange rates and counterparty performance.

TECHNOLOGY

easyJet’s strategy to ‘deliver ease and reliability’ includes developing new

technologies to enhance experiences and operational performance. The

ever-increasing sophistication of serious organised crime groups, terrorists,

nation states and even lone parties means that, despite all the mitigation

detailed, easyJet will inevitably retain an element of vulnerability regarding

the availability, confidentiality and integrity of its data and information.

Digital safety is treated as seriously as physical safety under our value

‘always with safety at our heart’.

LEGISLATIVE/REGULATORY

LANDSCAPE

Our value of ‘making a positive difference’ in a heavily regulated

industry includes keeping well informed and adapting (as required) to

any legislative or regulatory changes across the jurisdictions in which

we operate.

ENVIRONMENTAL

SUSTAINABILITY

Climate change transition can impact our business and operations,

regulation, taxation, and changing expectations for consumers,

colleagues and shareholders. easyJet’s environmental sustainability

commitment is to both reduce our impact today, and to pioneer a

sustainable future for travel.

ASSET

PERFORMANCE

Supporting easyJet’s strategic priorities of ‘transforming our revenue

capability’ and ‘delivering ease and reliability’ we make the best use

of our fleet capabilities and our capacity/slots in the right airports at

the right prices. We work with our supply chain to enhance value and

deliver our priority of ‘driving our low-cost model’.

EFFECTIVE

RISK

MANAGEMENT

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RISK MANAGEMENT (CONTINUED)

amended to better

encompass monitoring the

legal and regulatory

landscapes as well as

responding to legislation and

regulation.

> Talent and critical skills

acquisition: The risk

description has been

amended to additionally

reflect the requirement for

critical skills in certain key

roles.

All functional and principal risks

have been scored on a consistent

basis using the same taxonomy.

The annual review and update of

the risk appetite has been

completed by the AMB and

Board.

CASE STUDY

Safe Travels

Our commitment extends beyond managing risk

to continuously improving safety within our system.

This is facilitated by our ISO 9001 certified Integrated

Management System (IMS) which is crucial in

supporting our destination to be Europe’s most loved

airline – winning for our customers, shareholders and

people. The IMS makes sure that we keep our safety

promise and provide the means for us to:

> work together to keep everyone safe

> speak up, learn from our mistakes and act when

needed

> respect and care for each other and our own

wellbeing.

Via our five-year safety plan, which is aligned to our

framework, we have set out our strategic initiatives

across all areas of the organisation that will help us

continue to achieve our safety objectives. With a strong

safety culture at our core, we have a great foundation

for maintaining our high levels of safety and operational

excellence, ensuring the safety of our customers, our

shareholders and our people.

For us, safety is the things we do to protect our people,

our customers and our shareholders including their

health and safety, wellbeing, the environment, and our

easyJet brand.

With our ambitious growth plans as an airline, it remains

crucial that we maintain focus on safety. We must

understand our systemic, operational and emerging

risks, ultimately managing our principal risk of a

significant safety or security event to as low as

reasonably practicable.

In order to maintain safety and manage risk effectively,

our safety risk framework provides a foundation for

eliminating, mitigating or controlling hazards that are

not limited to aviation operational areas but encompass

diverse aspects of our organisation including IT,

cybersecurity, sustainability and facilities. This helps to

ensure that we continue to understand and manage

risks that could result in unsafe aircraft operation,

undesired human performance, organisational failure,

malicious harm, personal injury, inadequate oversight

and assurance, and failure of critical technology or

misinformation.

At easyJet, safety is at the heart of

everything we do. No matter which part

of the business we work in, safety is

everyone’s responsibility.

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Impact

Likelihood

Impact

Likelihood

RISK MANAGEMENT (CONTINUED)

OUR PRINCIPAL RISKS AT A GLANCE

Risk themes Our strategic priorities

Principal risk

Risk change Risk owner

Changing legal and regulatory

landscape

Group General Counsel

Significant safety or security event Chief Operating Officer

Significant digital security event Group General Counsel

Macroeconomic conditions Chief Financial Officer

Network and primary airport risks

Chief Commercial Officer

Non-delivery of strategic initiatives Chief Data & Information Officer

Significant operational disruption Chief Operating Officer

Talent and critical skills acquisition Group People Director

Climate change transition risks Chief Financial Officer

Read more on pages 70 to 74

This heat map shows the

relative position of our

principal risks at a residual

risk level. We continue to

monitor risks and develop

action plans where

necessary to keep risks in

line with our risk appetite.

Risk appetite predicts that

the risk score will move in

the direction shown.

RISK HEAT MAP

RISK THEMES OUR STRATEGIC PRIORITIES

Asset performance

Legislative/regulatory landscape

Our people

Technology

Environmental sustainability

Macroeconomic and geopolitical

Safety, security and operations

Delivering ease and reliability

Transforming our revenue capability

Driving our low-cost model

Building Europe’s best network

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RISK MANAGEMENT (CONTINUED)

Changing legal and regulatory landscape

MITIGATIONS

> Policies, procedures and mandatory training

programmes:

– In-house and external legal advisers and

regulatory experts to identify and advise on

changes in legislation and the impact on

both easyJet and its supply chain

– Influencing relevant future and existing

policy, including by working with relevant

industry bodies

– Adapting existing processes for new

legislation/regulation.

> Technical accounting team assesses any

impact on easyJet’s Group accounts from

changes in IFRS requirements.

> easyJet holidays’ recruitment policy to include

hire of lawyer/paralegal with expertise in each

new jurisdiction:

– Existing in-house legal and regulatory teams

receive regular updates on cross-

jurisdictional legislation

– Most expansion destinations are within the

EU, and subject to similar legislation

– Panel law firms have multi-jurisdictional

expertise and horizon scanning.

> Dedicated in-house lawyer with expertise in

ESG, greenwashing and CSR matters, with

external professional advisers in support.

> Supply chain working group established with

Procurement and Risk & Assurance in

attendance.

DRIVERS

Increasing requirement for disclosure

Cross-jurisdictional legislation

Corporate Social Responsibility

Directive

POTENTIAL IMPACTS

> Fines/regulatory sanctions

> Reduction in future revenue

> Operational disruption

> Loss of operating licence

> Significant increase in costs

> Share price movement

> Loss of colleague/customer trust

> Sustained adverse media coverage

CHANGE IN RISK

Risk perceived to have declined due to the

investment in internal resources we have

made in this area.

PRIMARY LINK TO STRATEGY

Legislative/regulatory landscape

RISK OWNER

Group General Counsel

Significant safety or security event

MITIGATIONS

> We operate an ISO 9001 Quality Management

Standard Certified Integrated Management

System (IMS), approved by our three national

aviation authorities, which enables us to

effectively manage the inter-related

components of the organisation by combining

all aspects of our processes and standards

into one system.

> We use leading software systems to: report

incidents and identify events; identify hazards

and threats and take appropriate risk

mitigating actions; collect and analyse safety

data; enable learning from easyJet and

industry events/incidents to be captured and

embedded into future risk mitigations.

> We have regular safety meetings and boards

across our operating companies, including

the plc Safety & Operational Readiness

Committee, easyJet Safety Board, AOC Safety

Review Boards and functional Safety Action

Groups to ensure we can monitor safety

performance, review and take actions and

monitor effectiveness of safety management

processes.

> We regularly update an internal Safety

Plan which includes safety, security and

compliance objectives and the strategies

to meet those objectives.

> We promote key safety messages through

regular communication, leadership briefings

and competency and training management.

> Our crisis and emergency processes are

managed, documented and regularly tested

and reported on.

> Hull (all risks) and liabilities insurance (including

spares) is held.

> Security-cleared specialists continually review

geopolitical developments across the easyJet

network and report to the Board on any areas

of concern.

DRIVERS

Safety of aircraft operation

Human performance

Organisation and governance

Malicious harm and security

Personal injury

Oversight and assurance

Failure of critical technology/

misinformation

POTENTIAL IMPACTS

> Injury/loss of life

> Sustained adverse media coverage

> Reduction in future revenue

> Fines/regulatory sanctions

> Operational disruption

> Significant increase in costs

> Share price movement

CHANGE IN RISK

PRIMARY LINK TO STRATEGY

Safety, security and operations

RISK OWNER

Chief Operating Officer

1) Changing legal and regulatory landscape was

renamed from ‘Legislative/regulatory landscape’

to better encompass monitoring the legal and

regulatory landscapes as well as responding to

legislation and regulation.

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RISK MANAGEMENT (CONTINUED)

MITIGATIONS

> A data and cyber risk governance structure

exists to regularly review the data and cyber

risk landscape and determine required action

to take place to manage risk effectively.

– Dedicated Digital Safety team provides a

level of assurance over third parties,

proactively monitors threats and responds

to incidents

– Employee education and awareness

programme including a network of

champions, online training and awareness

campaigns

– External threat intelligence monitoring

– Security Operations Centre

– Vulnerability scanning and penetration

testing

– Assurance over our supply chain. Risk

management embedded into business

change life cycle

– Credit card data is protected through PCI

DSS compliance as a Level 1 Merchant

– Digital safety is discussed quarterly at our

AMB and biannually at our plc Board

Additionally, as part of our governance

processes, the Digital Safety Board meets

regularly to discuss matters related to our

cybersecurity

– Assurance programme to ensure

compliance, data controls and protection.

Regular control reviews and audits

performed of key areas and technology.

DRIVERS

Data loss or compromise

POTENTIAL IMPACTS

> Sustained adverse media coverage

> Reduction in future revenue

> Fines/regulatory sanctions

> Operational disruption

> Significant increase in costs

> Share price movement

CHANGE IN RISK

PRIMARY LINK TO STRATEGY

Safety, security and operations

RISK OWNER

Group General Counsel

MITIGATIONS

> Finance Committee (a committee of the plc

Board) oversees the Treasury Policy and

funding activities.

> The Treasury Policy contains strategies for

managing market price risk, counterparty

credit risk and liquidity risk management. The

plc Board approves the Treasury Policy.

Compliance with the Treasury Policy is

reported on a monthly basis.

> easyJet manages a liquidity buffer to protect

against unforeseen circumstances and this

liquidity buffer is supported by cash and

undrawn facilities.

DRIVERS

Volatility in financial markets

POTENTIAL IMPACTS

> Insufficient cash to meet financial

obligations as they fall due and/or the

inability to fund the business when

needed, leading to insolvency

> Significant increase in costs

> Share price movement

> Adverse impact to credit rating

CHANGE IN RISK

PRIMARY LINK TO STRATEGY

Macroeconomic and geopolitical

RISK OWNER

Chief Financial Officer

Significant digital security event

Macroeconomic conditions

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Annual Report and Accounts 2024

Contents

RISK MANAGEMENT (CONTINUED)

MITIGATIONS

> Where easyJet is affected by industrial action

or other service interruption by a key supplier,

resources are deployed to manage this as

effectively as possible.

> Projecting cancellations for the rest of the

season, so we can analyse risk and take

informed decisions when required.

> Mitigating actions available, e.g. removal of

seats, wet lease and how pipeline for crew

is increased.

> Continuous contact with operations

department to proactively cancel, trying to

minimise the number of slots but also the

impact to future seasons, with minimum

number possible at highly constrained airports.

> Slot-tracker dashboard created to give teams

managing the portfolio better visibility of

complex requirements. Work is continuing on

several future phases to enhance the tool and

ultimately to allow us to share timely updates

with other departments, so they can be aware

of risks due to planned or actual changes due

to cancellations.

> easyJet reviews its capacity allocation across all

key markets through the Network Development

Forum (NDF) process and quarterly AMB

network and airports updates. Focus is on any

potential slot regulation changes and is linked

into both EU and UK processes.

> easyJet has a clear strategy of differentiation

through network design. Mitigating competitor

impact is a key focus of this year’s NDF

process.

RISK APPETITE

> Risk appetite increasing where it is rational to

do so. For example, we would consider giving

up slots for strategic purposes or if the cost of

maintaining those slots becomes prohibitive.

DRIVERS

Loss of valuable slots for future

seasons and future years

Failure to protect core markets

New market entrants

POTENTIAL IMPACTS

> Inefficient use of resources

> Reduction in future revenue

> Negative impact on brand

> Weakened customer proposition

> Loss of market share

CHANGE IN RISK

PRIMARY LINK TO STRATEGY

Asset performance

RISK OWNER

Chief Commercial Officer

MITIGATIONS

> Complex, large-scale programmes have been

initiated and prioritised through the Enterprise

Project Management Office.

> The Enterprise Project Management Office is

in place to oversee delivery of projects and

programmes, ensuring dependencies are

managed across the portfolio.

> A project management framework, which

sets out approval processes, governance

requirements and key ongoing processes and

controls, is followed by all projects and

programmes, and reviews are undertaken

to ensure continuous improvement in this

approach.

> Each strategic initiative has an executive

sponsor, a Leadership 50 owner and its own

steering group. These provide oversight and

challenge to the project, monitor progress

against programme objectives (including

budget, benefit realisation and appropriate

resource) and ensure that decisions are made

at the appropriate level.

> Key strategic initiatives are managed by

dedicated programme management resource

with the right skills and behaviours,

complemented by subject matter specialist

resource where appropriate.

> The executive sponsor provides routine

updates to the AMB and can use this as an

escalation channel for any issue resolution.

> The Board also receives updates on key

strategic initiatives including any risks or issues

to achieving the key milestones that enable

the achievement of the five-year plan.

> Onboarding of a Systems Integrator to help

orchestrate the largest and most complex

programmes.

> Fortnightly updates on projects to the AMB

with ownership residing with the Chief

Customer & Marketing Officer, with a more

agile approach to delivering faster.

POTENTIAL IMPACTS

> Business benefits not realised

> Financial underperformance

> Inefficient use of resources

CHANGE IN RISK

Risk perceived to have declined due to

the investment in internal resources we

have made in this area and additional

controls which have been put in place

PRIMARY LINK TO STRATEGY

Asset performance

Technology

Macroeconomic and geopolitical

RISK OWNER

Chief Data & Information Officer

Non-delivery of strategic initiatives

Network and primary airport risks

DRIVERS

Organisational priorities change

Scope changes

Inefficient resource allocation

Inappropriate delivery methodology

Supplier capacity and capability

Financial constraints

Organisational readiness

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Annual Report and Accounts 2024

Contents

RISK MANAGEMENT (CONTINUED)

Significant operational disruption

MITIGATIONS

> Business interruption insurance provides cover

for significant shock events such as extreme

weather, air traffic management issues and loss

of access to key airports and liquidity buffer to

better manage the impact of downturns in

business or temporary curtailment of activities.

> Use of data analytics and technology across

the operation to predict and manage disruptive

events and aid decision making.

> Full visibility of Airbus delivery schedule for new

aircraft and continuous monitoring of a

consolidated and up-to-date fleet availability

forecast.

> Up-to-date seasonal crew establishment target

based on peak flying volumes.

> Phased onboarding and training plan aligned to

schedule.

> Airline Design team, co-chaired by the Chief

Operations Officer and the Chief Commercial

Officer, in place to provide cross-functional

governance for readiness and resilience.

> The Safety & Operational Readiness Committee

meets quarterly and is provided with updates

on operational readiness, challenges around

disruption and initiatives undertaken to

minimise disruption. The Board also receives

regular timely updates from the Chief

Operations Officer.

> Disruption management self-service tool in

place to make it easier for customers to make

changes when disruption does occur.

> Air traffic control system engagement and

close working relationship with key stakeholders

including but not limited to airport authorities

and slot coordinators.

> Rigorous established aircraft maintenance

programme approved by relevant regulatory

bodies.

> Union engagement with regular meetings to

engage discussions before any formal

escalations. This is supported by our Industrial

Relations plan and governance in place to

oversee negotiations.

> We have well-managed, planned and regularly

tested processes for dealing with incidents and

crises that could cause significant operational

disruption including, but not limited to, aircraft

damage, IT and cyber events and

environmental factors.

> Regular tracking and reporting for network-wide

station performance including, but not limited

to, ground-handling resource, airport resource

and de-icing resource.

RISK APPETITE

> Risk appetite decreasing in the short term with

our significant ongoing investment in resilience

measures such as crew availability, investment

in spares and spare aircraft. These measures

are all designed to reduce the impact of

disruption on our customers. In the medium

term we are lobbying the relevant authorities to

modernise airspace and improve resilience in air

traffic control across Europe, which we would

expect to lead to a further reduction in this risk

once those measures are in place.

DRIVERS

Disruption due to insufficient crew

Disruption due to insufficient aircraft

Disruption due to station specific

performance issues

Disruption due to geopolitical issues

restricting airspace

Disruption due to environmental

factors and climate change

Disruption due to planning, governance

and back-office processes

POTENTIAL IMPACTS

> Customer dissatisfaction

> EU261 compensation and welfare payable

to customers

> Inefficient use of resources

> Negative impact on brand

> Share price movement

> Adverse media coverage

> Reduction in future revenue

> Operational disruption

CHANGE IN RISK

Risk perceived to have declined due to

the investment in operational resilience

measures.

PRIMARY LINK TO STRATEGY

Safety, security and operations

RISK OWNER

Chief Operating Officer

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easyJet plc

Annual Report and Accounts 2024

Contents

RISK MANAGEMENT (CONTINUED)

Talent and critical skills acquisition

DRIVERS

Failure to understand and meet

future skills gaps for key roles

RISK OWNER

Group People Director

CHANGE IN RISK

PRIMARY LINK TO STRATEGY

Our people

POTENTIAL IMPACTS

> Sustained inability to deliver key strategic

initiatives

> Loss of corporate knowledge

> Potential operational disruption and

associated costs

MITIGATIONS

> Biannual talent reviews and validation of

successors with HR business partners

and AMB.

> Annual plc Board and Nominations

Committee updates on the overall health of

our talent and succession plans.

> Monthly reporting on attrition to highlight any

areas of concern to address in a timely way.

> Review the Target Operating Model and

assess what impact this will have on skills and

capability requirements in the future.

> Review the Organisation Design framework

and structure for easyJet to ensure that

this remains on track and in line with the

strategic goals.

> Identify interventions to meet these gaps

either to train or acquire where there may be

skill shortages:

– Strategies to recruit future pilots through

provision of own training facility

– Programme to recruit more engineering

apprentices and widen the recruitment net.

DRIVERS

Civil society

Cost of emissions

Emissions reductions

Financial markets sentiment

Climate change transition risks

RISK OWNER

Chief Financial Officer

CHANGE IN RISK

PRIMARY LINK TO STRATEGY

Environmental sustainability

POTENTIAL IMPACTS

> Increased operational costs driven by

regulation relating to the use of Sustainable

Aviation Fuel (SAF), withdrawal of free

allowances under the ETS, fuel taxes, taxation

of non-carbon GHG emissions and other air

travel related charges

> Suppression of demand driven by changes in

consumer preferences

> Increased compliance and reporting requirements

> Shareholder activism

> Adverse publicity and impact on our

reputation

> Climate change-related regulatory and legal

challenge

MITIGATIONS

> Developed and published a net zero roadmap

with an interim SBTi-validated target which

provides the framework to manage easyJet’s

climate change transition risks, and a key

stakeholder communication tool.

> Robust governance structure comprising the

ESG Steering Committee, AMB and plc Board,

as well as specific forums such as the

Environmental Policy Forum, Fuel

Conservation Working Group, Airspace

Strategy Working Group and Integrated

Communications Forum.

> Inclusion of climate regulation related

operational costs in financial modelling.

> Sustainable aviation fuel strategy focused on

supply security and competitive pricing, and

optimising fuel usage through operational and

technological initiatives to reduce emissions.

> Proactive advocacy with UK and EU authorities

to ensure that industry decarbonisation policies

do not disproportionately disadvantage

short-haul and/or low-cost carriers.

> Securing next generation Airbus A320neo and

A321neo aircraft which are between 15% and

25% more fuel efficient than the previous

generation CEO aircraft.

> Collaborating with airlines and trade bodies to

develop a lobbying strategy for the modernisation

of airspace across the easyJet network.

> Partnering with appropriate stakeholders, to

maximise the likelihood of all decarbonisation

levers being available at scale, for example

investing in Direct Air Carbon Capture and

Storage (DACCS) to support development

and formal recognition of carbon removal

through a partnership with Airbus.

> Supporting future technologies including

hydrogen aircraft development with our

partners such as Rolls-Royce and Airbus,

investing in DACCS and securing SAF supply

through long-term contractual commitments.

1) Talent and critical skills acquisition was renamed

from ‘Talent acquisition and retention risks’ to

additionally reflect the requirement for critical

skills in certain key roles.

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Annual Report and Accounts 2024

Contents

GOING CONCERN AND VIABILITY STATEMENT

ASSESSMENT OF PROSPECTS

The Strategic Report on pages 2 to 78 sets out

easyJet’s activities and the factors likely to impact

its future development, performance and position.

The Financial Review on pages 27 to 35 sets out

its financial position for the year ending

30 September 2024, cash flows, liquidity position

and borrowing activity. The notes to the Financial

Statements include the objectives, policies and

procedures for managing capital, financial risk

management objectives, details of financial

instruments and hedging activities and exposure

to credit risk and liquidity risk.

In accordance with the requirements of the 2018

UK Corporate Governance Code, the Directors

have assessed easyJet’s long-term prospects,

taking into account its current position, the

medium-term targets set out in the strategic plan

(see page 13) and a range of internal and external

factors, including the principal risks. The Directors

have determined that a three-year period is an

appropriate timeframe for this viability

assessment. In concluding on a three-year period,

the Directors considered the reliability of forecast

information, the current macroeconomic and

market conditions and longer-term management

incentives. However, it is noted that the high-level

fleet plan used by easyJet is necessarily over a

longer time period to enable the future planning

of aircraft deliveries which underpin our plans for

fleet modernisation, future growth, cost

efficiencies and sustainability improvements. This

longer-term planning is evidenced this year by the

aircraft purchase transaction which has secured

aircraft deliveries for the period FY29–34.

The assessment of the prospects of the Group

includes the following factors:

> The strategic plan – which takes into

consideration growth expected by way of

creating value through the business model,

market conditions, future commitments, cash

flow, expected impact of key risks, funding

requirements and the maturity of existing

financing facilities (see table, above right).

The business is exposed to fluctuations in fuel

prices and foreign exchange rates. easyJet is

currently c.80% hedged for fuel in H1 of FY25 at

c.$808 per metric tonne, c.59% hedged for H2

FY25 at c.$771 and c.24% hedged for H1 FY26 at

c.$761.

In modelling the impact of severe but plausible

downside risks, the Directors have considered

demand suppression leading to a reduction in

ticket yield of 5% and a reduction in easyJet

holidays’ contribution of 5%. The model also

includes the reoccurrence of additional disruption

costs (at FY22 levels), an additional $50 per

metric tonne on the fuel price, 1.5% additional

operating cost inflation and an adverse

movement on the US dollar rate. These impacts

have been modelled across the whole going

concern period. In addition, this downside model

also includes a grounding of 25% of the fleet for

the duration of the peak trading month of August,

to cover the range of severe but plausible risks

that could result in significant operational

disruption. This downside scenario resulted in a

significant reduction in liquidity but still

maintained sufficient headroom on liquidity

requirements.

After reviewing the current liquidity position,

committed funding facilities, the base case and

the severe but plausible downside financial

forecasts incorporating the uncertainties

described above, the Directors have a reasonable

expectation that the Group has sufficient

resources to continue in operation for the

foreseeable future. For these reasons, the

Directors continue to adopt the going concern

basis of accounting in preparing the Group’s

financial statements.

> The fleet plan – the plan retains some flexibility

to adjust the size of the fleet in response to

opportunities or risks.

> Strength of the balance sheet and

unencumbered assets – this sustainable

strength gives us access to capital markets.

> Risk assessment – see detailed risk assessment

on pages 70 to 74.

STRESS TESTING

The corporate risk management framework

facilitates the identification, analysis and response

to plausible risks, including emerging risks, as our

business evolves in an ever-changing environment.

Through our corporate risk management process,

a robust assessment of the principal risks facing

the organisation has been performed (see pages

70 to 74) and the controls and mitigations

identified.

Both individually and combined these potential

risks are unlikely to require significant additional

management actions to support the business to

remain viable; however, there could be actions

that management would deem necessary to

reduce the impact of the risks. The stress testing

scenarios identified in the table on the next page

and applied separately, show that there remains

sufficient liquidity under all scenarios. In the first

four scenarios one of the assumptions is that new

Eurobonds are issued, whereas in the last scenario

no issuance of new Eurobonds is assumed.

GOING CONCERN STATEMENT

The financial statements have been prepared on

a going concern basis. In adopting the going

concern basis, the Directors have considered

easyJet’s business activities, together with factors

likely to affect its future development and

performance, as well as easyJet’s principal risks

and uncertainties through to June 2026.

As at 30 September 2024, easyJet had a net cash

position of £181 million including cash and cash

equivalents of £1.3 billion, with access to

£5.1 billion of liquidity, and has retained

ownership of 54% of the total fleet, all of which

are unencumbered.

The Directors have reviewed the financial

forecasts and funding requirements with

consideration given to the potential impact of

severe but plausible risks. easyJet has modelled a

base case representing management’s best

estimation of how the business plans to perform

over the period. The future impact of climate

change on the business has been incorporated

into strategic plans, including the estimated

financial impact within the base case cash flow

projections of the cost of future fleet renewals,

the future estimated price of ETS allowances, the

phasing out of the free ETS allowances, the

expected price and quantity required of

Sustainable Aviation Fuel (SAF) and the cost of

carbon removal credits and other sustainability

initiatives.

As at September 2024 Maturity date

Available funds

(drawn and undrawn)

Eurobonds June 2025 €500m

March 2028 €1,200m

March 2031 €850m

Revolving credit facility September 2025

$400m

Undrawn UKEF backed facility June 2028 $1,750m

1) Option to extend to September 2026 at lender’s consent.

Strategic report

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Annual Report and Accounts 2024

Contents

GOING CONCERN AND VIABILITY STATEMENT (CONTINUED)

VIABILITY STATEMENT

Based on the assessment performed, the

Directors have a reasonable expectation that

the Company and the Group will be able to

continue in operation and meet all liabilities as

they fall due up to September 2027. In making

this statement, the Directors have made the

following key assumptions:

1. easyJet has access to a variety of funding

options including capital markets, aircraft

financing and bank or government debt. The

stress testing demonstrates that the current

funding with both the repayment and new

issue of Eurobonds would be sufficient to

retain liquidity in both the base and downside

scenarios (noting that the new issue of

Eurobonds is excluded from the specific lack

of funding scenario).

2. In assessing viability, it is assumed that the

detailed risk management process as outlined

on pages 67 to 74 captures all plausible risks,

and that in the event that multiple risks occur,

all available actions to mitigate the impact to

the Group would be taken on a timely basis

and have the intended impact.

3. There is no prolonged grounding of a

substantial portion of the fleet greater than

that included in the downside and alternative

downside scenarios. These include a grounding

of 25% of the fleet for the duration of the peak

trading month of August, to cover the range of

severe but plausible risks that could result in

significant operational disruption.

The key risks that are most likely to have a

significant impact on easyJet’s viability have been

considered in the stress testing across multiple

scenarios and are shown on the right. These

scenarios are applied separately and there

remains sufficient liquidity in all cases. The

assumptions applied are based on the plausible

but severe impacts of the risks, as assessed by

our review of the current macroeconomic

position. The principal risks have continued to be

assessed for any changes in the risk environment.

The actions in place to mitigate against these risks

are included in the Risk section on pages 70 to 74.

Scenario modelled Description Assumptions applied Corporate risk covered

Demand suppression and

operational disruption

Downside scenario covering multiple

risks that may lead to a reduction in

demand, resulting in a prolonged yield

reduction over the period. In addition,

this scenario combines risks that also

would lead to operational disruption

and/or short-term grounding of the fleet.

Across the whole period:

> reduction in ticket yield of 5%

> reduction in Holidays’ contribution

of 5%

> additional disruption costs (based

on FY22 levels).

One-off:

> a grounding of 25% of the fleet for

the duration of the peak trading

month of August.

Changing legal and regulatory landscape

Significant safety or security event

Significant digital security event

Network and primary airport risks

Significant operational disruption

Increase in costs and

operational disruption

Scenario covers multiple risks that

would result in an increase in costs

across the period or a significant spike

in costs. In addition, this scenario

combines risks that also would lead to

operational disruption and/or short-

term grounding of the fleet.

Across the whole period:

> additional $100 per metric tonne

on the fuel price

> increased costs (additional inflation

assumed on all costs)

> additional disruption costs (based

on FY22 levels)

> an adverse movement on the

US dollar rate.

One-off:

> a grounding of 25% of the fleet for

the duration of the peak trading

month of August.

Changing legal and regulatory landscape

Significant safety or security event

Significant operational disruption

Significant digital security event

Network and primary airport risks

Macroeconomic conditions

Climate change

Scenario covers climate-based risks

that would result in both a reduction

in demand and increased costs. This

includes SAF and ETS costs, capex and

maintenance costs due to technology

changes and additional costs for

regulatory and legal challenge.

Across the whole period:

> reduction in demand – reduced

yields or capacity

> increased fuel costs (SAF and ETS)

> increased maintenance costs

> new taxes.

Climate change transition risks

Failure to deliver on plans

Scenario covers the risks that would

result in easyJet being unable to deliver

on its plans for the period.

Across the whole period:

> reduced initiatives income

> increased costs

> reduction in ticket yield of 5%

> reduction in Holidays’ contribution

of 5%.

Non-delivery of strategic initiatives

Talent and critical skills acquisition

Lack of funding

Scenario covers the risk that would

result in no further funding being

available to easyJet during the period.

Across the whole period:

> uncommitted funding excluded.

Macroeconomic conditions

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT

SECTION 172 STATEMENT

Our stakeholders are a fundamental part of our operations. We have set out on pages 100 to 103

details of who our key stakeholders are, how we have engaged with them and the associated

outcomes. Further details are contained in the summary of the Board’s activities in the year on

page 82. Details of how the Board has had regard to the matters set out in section 172(1)(a) to (f)

can be found throughout the Strategic and Governance reports.

The table below and the information incorporated by

reference comprises our Non-Financial and Sustainability

Information Statement required by s414CA and 414CB of

the Companies Act 2006.

Read more on our business model on page 22 and our non-financial KPIs

on page 26.

ENVIRONMENTAL MATTERS

Our approach Our policies Due diligence, outcome and key performance indicators Related principal risks

We are passionate about making a

meaningful difference for our planet,

communities and people. Sustainability is

important to us and we work tirelessly to

minimise our environmental impact across

our operations and are taking action to

pioneer a sustainable future for travel.

Read more in the Sustainability section on

pages 36 to 55.

> Environment Policy – our policy focuses on minimising the

environmental impact across the organisation.

> Net zero roadmap – our roadmap to net zero carbon

emissions by 2050 focuses on zero carbon emission

technology.

> Sustainability Strategy – easyJet’s Sustainability Strategy has

evolved to reflect our ambition to pioneer positive change for

our planet, communities and people.

> Environment Management System (EMS) – allows us to

manage and continually improve our environmental

performance in a structured and systematic way.

> Supplier Code of Conduct – we require our suppliers to

comply with environmental standards.

> The ESG Steering Committee is responsible for monitoring the

outcome of our Sustainability Strategy, driving key sustainability

related decisions, delivering against strategic KPIs and the

consideration and disclosure of climate-related risks and

opportunities.

> Further details on sustainability and our roadmap to net zero can be

found on pages 36 to 55.

> Streamlined Energy and Carbon Reporting can be found on page 44.

> Climate-related financial disclosures can be found on pages 61 to 65.

> easyJet has received IATA IEnvA Stage 2 certification, making us the first

low-cost carrier worldwide with a fully IATA IEnvA certified EMS. More

information can be found on page 45.

> The impacts of climate change on our

business and operations, regulation/

taxation, and changing consumer and

colleague expectations are recognised as

one of our principal risks. More information

can be found on page 74.

> Our strategy and risk management on

climate-related risks and opportunities can

be found in the Task Force on Climate-

related Financial Disclosures section on

pages 61 to 65.

Many of the policies

listed below can be

found on our corporate

website at

corporate.easyJet.com

PEOPLE

Our approach Our policies Due diligence, outcome and key performance indicators Related principal risks

Our people are our greatest asset and we

want to continue to attract, retain and

develop top talent by focusing on creating

an inclusive and energising environment

that inspires everyone to learn and grow,

enabling the Orange Spirit to thrive.

Read more in the People section on pages

56 to 60.

> Equal opportunity and inclusion – encourages our employees

to make the best use of their skills and experience, and ensure

we treat staff, potential staff and the public fairly.

> Inclusion and Diversity Framework – keeps us focused on

what is important for creating an inclusive and diverse culture

and an authentic workforce.

> Wellbeing Strategy – drives impact and cultural change

through a programme of activities.

> Code of Business Ethics – promotes a culture that encourages

open lines of communication and free access to information.

> ‘Speak Up, Speak Out’ whistleblowing process – enables

easyJet employees and suppliers to be able to raise concerns

about any safety, ethical or legal issues.

> Engagement with colleagues across the Company to ensure

everyone understands the part they play in creating an inclusive

culture.

> Continued to promote behavioural framework across the business.

More information on page 56.

> We continue to measure how our employees feel about the inclusive

environment that we are striving to create, through our regular

employee listening activities. More information on page 57.

> Ethical and compliance policies are monitored by the Business

Integrity Committee and People team. The Audit Committee reviews

the Business Integrity Committee’s activities quarterly.

> Stakeholder engagement (employees) on page 101.

> Whistleblowing on pages 86, 109 and 113 .

> Talent and critical skills acquisition is

recognised as a principal risk and we seek

to control and mitigate that risk in order to

reduce its impact. Further information is

set out on page 74.

Strategic report

Governance Financials

easyJet plc

Annual Report and Accounts 2024

Contents

NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT (CONTINUED)

SOCIAL MATTERS

Our approach Our policies Due diligence, outcome and key performance indicators Related principal risks

easyJet is committed to doing the right

thing for our customers, our people, our

partners, the communities in which we

operate and the environment.

> We have entered into a new partnership with Make-A-Wish

International to help them grant the travel wishes of children

suffering with critical illness across Europe.

> easyJet has renewed its ‘Every Child Can Fly’ partnership with

UNICEF to support its education programmes and help every

child access their right to a quality education.

> easyJet provide families with flights for their adventures. Further

information on this new partnership can be found on page 54.

> Our cabin crew make onboard appeals for customers to make

donations in support of UNICEF’s work. More information can be

found on page 54.

> Created a development programme for women, with the wider goal

of increasing the number of women in leadership roles. More

information can be found on page 58.

> Social impact matters are not considered

to be principal risks. However, these

matters are considered by the plc Board

as part of its stakeholder engagement

programme; further information is set out

on pages 100 to 103.

HUMAN RIGHTS

Our approach Our policies Due diligence, outcome and key performance indicators Related principal risks

We are committed to human rights, both

in our business and our supply chain. This

includes observance of the principles set out

by the International Labour Organization

Declaration on Fundamental Principles and

Rights at Work.

> Human Rights and Modern Slavery Policy – supports recognised

human rights principles.

> Supplier Code of Conduct – easyJet’s suppliers have an

important role in delivering our ambition, and we strive to

ensure that our suppliers have aligned views on corporate

responsibility and compliance.

> Both induction training and annual refresher training at Group level

ensures the workforce is continually mindful of human rights and

modern slavery.

> easyJet seeks to identify and prevent adverse human rights impacts

directly linked to its business relationships, through obtaining

appropriate contractual commitments and undertaking appropriate

due diligence on suppliers (including enhanced due diligence on high

risk suppliers).

> Cross-functional modern slavery working group updates the Modern

Slavery Risk Register, ensures legal compliance, complies and maintains

up-to-date policies and procedures, identifies and mitigates modern

slavery breaches. More information can be found on page 54.

> We continue to use the Global Slavery

Index to support our analysis of

geographic risks and assess whether the

country/ area has a high prevalence of

modern slavery or other labour rights

violations.

ANTI-CORRUPTION AND ANTI-BRIBERY

Our approach Our policies Due diligence, outcome and key performance indicators Related principal risks

At easyJet we conduct all of our business

in an honest and ethical manner. We take

a zero-tolerance approach to bribery and

corruption and are committed to acting

professionally, fairly and with integrity in all

business dealings and relationships

wherever easyJet operates. We encourage

our employees and suppliers to raise

concerns on ethical issues via the ‘Speak

Up, Speak Out’ whistleblowing process.

> Anti-Bribery and Anti-Corruption Policy – sets out the

responsibilities of easyJet, and of those working for and on

behalf of easyJet, to observe and uphold easyJet’s prohibition

on bribery and corruption.

> Gifts and Hospitality Policy – sets out the rules on receiving

and giving gifts and hospitality.

> Code of Ethics – ethical and compliance policies, covering

topics that include bribery and corruption, gift-giving and fraud.

> All existing and new employees receive mandatory ethics training

annually and upon joining the business.

> Risks associated with bribery and corruption are regularly reviewed by

the Audit Committee.

> Ethical and compliance policies are monitored by the Business

Integrity Committee and People team. The Business Integrity

Committee’s activities are reviewed by the Audit Committee on a

quarterly basis.

> The changing legal and regulatory

landscape is recognised as a principal risk.

More details can be found on page 70.

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CONTENTS

Governance highlights

Activities in the year

Board at a glance

Chair’s statement 80

Highlights

> Governance highlights 81

> Board activities in

the year 82

Understanding the

business and culture

> Our business and culture 86

> Our performance 88

Ensuring effective

governance

> Our governance

framework 89

> Board at a glance 92

> Board of Directors’

biographies 93

> Airline Management

Board biographies 96

> Board performance

review 99

Stakeholders

> Engaging with

stakeholders 100

Committee reports

> Nominations Committee

Report 104

> Audit Committee

Report 107

> Finance Committee

Report 116

> Safety & Operational

Readiness Committee

Report 118

> Directors’

Remuneration Report 120

Other disclosures 143

Statement of Directors’

responsibilities 147

GOVERNANCE

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ENSURING

EFFECTIVE

GOVERNANCE

CHAIR’S STATEMENT

Sir Stephen Hester Chair

I am pleased to present our Corporate

Governance Report, setting out the

Board’s activities during the year,

along with details of our governance

framework.

At easyJet, we understand that robust governance

practices are essential in supporting our business

objectives. The Board has continued to ensure

progress is being made against our strategic

priorities and towards our medium-term targets,

whilst maintaining an appropriate engagement in

near-term operational and commercial matters. We

have also spent time engaging with the business,

and taken steps to ensure the Board itself

continues to be appropriately effective, including

undertaking an external board performance review

which is set out later in this report.

We have continued our dialogue with our

stakeholder groups throughout the year and thank

them for their partnership. As I mention in the

introduction to this Annual Report, our customers

and shareholders remain front of mind. We are

focused on improving the customer experience

and it is pleasing to see the increase in customer

satisfaction to above historical levels.

The work of the Board is supported by the hard

work of our Committees, who have assisted with

important governance matters during the year.

For example:

> The Audit Committee has led a thorough and

transparent audit tender process, resulting in

the selection of Deloitte to succeed PwC as our

external auditors from 2026. Further details are

set out on page 115.

> The Nominations Committee has supported the

Board with the CEO succession plan that was

announced in May, set out on page 105, and we

look forward to achieving a seamless transition

from Johan to Kenton in the new year.

> The Remuneration Committee has reviewed our

Remuneration Policy to ensure it remains

appropriate prior to its renewal at the forthcoming

AGM, and details of the Committee’s work is set

out on pages 120 to 142.

We set out some of the key highlights on the next

page and I hope that the remainder of the report,

which provides more detail on the Board and

Committee activities during the year, gives an

insight into the breadth of our work and our

efforts to ensure easyJet serves customers well,

whilst delivering attractive shareholder value.

Sir Stephen Hester

Chair

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HIGHLIGHTS

ENSURING EFFECTIVE GOVERNANCE

> Having last had an external review in 2021, an

external Board Performance Review took place in

the year. The Board spent time together at various

dinners and base visits, acting on the internal

review recommendations from the prior year.

> The Audit Committee undertook a competitive

audit tender, with PricewaterhouseCoopers LLP

(PwC) unable to continue beyond 2025 for reasons

of tenure. The Board selected Deloitte LLP to

succeed PwC as the Group’s external auditors.

> The Board continued to focus on succession

planning and executed an orderly succession

plan for Johan Lundgren, CEO, during the year.

They also worked with Kenton Jarvis on the

start of the recruitment process for a new CFO.

> The Board continued to keep Directors’ external

appointments and time commitments under

review, and approved significant additional

external appointments throughout the year.

Read more on pages 86 to 87

COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE

easyJet adheres to the principles of the 2018 UK Corporate Governance Code (the ‘Code’),

available in full at frc.org.uk. The Board confirms full compliance with the Code’s principles and

provisions throughout the year, detailed in this section with references to further information in

the relevant sections of this report together with the Directors’ Remuneration Report on pages

120 to 142 and Other Disclosures’ section on pages 143 to 146.

The Board considers the Annual Report as fair, balanced, and understandable, and provides the

necessary information for shareholders to assess the Company’s position, performance, business

model, and strategy. More details are available in the Audit Committee Report on page 112.

The Board is reviewing the updated Corporate Governance Code which will apply from 2025 and

intends to comply with its provisions.

GOVERNANCE

HIGHLIGHTS

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HIGHLIGHTS (CONTINUED)

BOARD ACTIVITIES

IN THE YEAR

The Board meets regularly and held eight scheduled

meetings during the year.

Each Board meeting follows a carefully tailored

agenda agreed in advance by the Chair, Chief

Executive Officer and Company Secretary. The

Company Secretary provides support to the Chair

in planning the Board’s forward agenda to ensure

appropriate matters are brought to the Board’s

attention throughout the year. The agenda items

correspond to the strategic priorities and take into

consideration the impact of stakeholders.

The Board has a formal schedule of matters

reserved for its decision and is assisted in its work

by its Committees. Each Committee Chair reports

to the Board on matters discussed at Committee

meetings and highlights any significant issue that

requires Board attention.

The matters reserved for the Board and the terms

of reference of the Board Committees are

available on our corporate website at

corporate.easyJet.com.

The Board is collectively responsible for promoting

the long-term sustainable success of the Group,

generating value for shareholders as a whole

and contributing to wider society by fulfilling its

purpose. In exercising this responsibility, the

Board considers all relevant stakeholders including

customers, employees, suppliers, shareholders,

the communities we operate in, regulators and

governments, and the effect of the activities of

the Group on the environment.

Further information on how we have engaged

with our stakeholders and the outcomes of that

engagement, can be found on pages 100 to 103.

The following pages set out some, but not all, of

the main activities of the Board during the year,

to provide insight into the items that have been

discussed and approved, along with the related

stakeholder considerations.

Announcements

> Full-year results

> Notice of General Meeting (GM) for

aircraft purchase

Board meetings

Business updates

> CEO, CFO, trading and operations

> Investor relations

> Safety

Strategy

> Budget

> People and Your Voice Matters

> Technology and change

> Fleet

Governance

> Reviewing principal risks

> Year-end approvals, including dividend

and Annual Report

> Annual General Meeting (AGM) matters

> Reviewing Board forward agenda

> Approving purchase of SR Technics Malta

in principle

> Employee Representative Director (ERD)

update

> Committee updates

Stakeholders

> Investor engagement around full-year

results, Annual Report and aircraft

purchase

> Leadership breakfast

> Consideration of shareholders when

reintroducing dividends

Announcements

> Full-year trading update including launch

of new medium-term targets, proposed

fleet order and update on capital

allocation

Stakeholders

> Investor engagement around full-year

trading update

NOV 2023

OCT 2023

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HIGHLIGHTS (CONTINUED)

MAR 2024

Announcements

> €850 million bond issuance under EMTN

Board meetings

Business updates

> CEO, CFO, trading and operations

> Safety

Strategy

> Crew deep dive

> Five-year plan – network strategy and

growth plan

> Sustainability

Governance

> Modern Slavery Statement approval

Stakeholders

> Consideration of cabin crew, with

particular focus on demographics,

training, reward and engagement

> Consideration of stakeholders in the

supply chain in relation to preventing

modern slavery

Outcomes

> Issuance of an €850 million Eurobond

Announcements

> Result of AGM

> Publication of Euro Medium Term Note

(EMTN) prospectus

Board meetings

Business updates

> CEO, CFO, trading and operations

> Investor relations

> Safety

Strategy

> Five-year plan – European market

context

> Culture deep dive

Governance

> AGM update

> ERD update – easyJet holidays and

Safety team

Stakeholders

> Investor engagement around AGM

> Consideration of stakeholders and

long-term strategic priorities in Europe

> Engagement by ERDs with employee

groups

Outcomes

> Approval of all resolutions put to the

AGM with support from investors

FEB 2024

JAN 2024

DEC 2023

Announcements

> Notice of AGM

> Q1 results announcement

Board meetings

Business updates

> CEO, CFO, trading and operations

> Investor relations

Stakeholders

> Investor engagement around first quarter

trading update and AGM

Announcements

> Result of GM for aircraft purchase

Stakeholders

> Investor engagement around GM

> Assessment of resolutions to be put to

the AGM in the interests of the Company

and investors

Outcomes

> Approval of the purchase of 157 new

A320neo aircraft and the purchase rights

for a further 100

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MAY 2024

HIGHLIGHTS (CONTINUED)

BASE VISIT

Berlin, Germany

In June 2024, the Board spent two days at our

base in Berlin Brandenburg to understand the

easyJet operation and review our city strategy in

Germany and the challenges to the aviation

industry in the wider German market. The

itinerary was designed to allow the Board to see

as much of the operation as possible and gain a

deeper understanding of the airport, engineering

operations and relationships with key local

stakeholders. The visit included:

> Meeting the management of Berlin

Brandenburg Airport, who took the Board

round the airport, shared their approach to

using data to improve the customer

experience, drive efficiencies by bringing

security control in-house and set out the

opportunities and challenges for the airport.

> A visit to easyJet’s crew and management

office, and the new four-bay maintenance

hangar, meeting the engineering and local

country team and seeing the state-of-the-art

technology up close.

> Dinner with the local management team and

key stakeholders from the airport and tourism

boards, reinforcing the strong presence

easyJet has in the market and the importance

of constructive local relationships.

The visit enabled the Board to engage with local

stakeholders and our employees directly, seeing

the easyJet culture in action, and allowed Directors

to spend more time together as a group. The

discussions covered the following issues:

> The impact of taxes, fees and charges on the

viability of routes and how those influence the

lagging recovery rate of the German aviation

market and city inbound tourism to the

German capital region.

> Operational measures, ground handling

performance and customer satisfaction plans.

> The commercial turnaround of the base,

including ongoing cost challenges, as well as

local and national growth opportunities.

JUN 2024

APR 2024

Board meetings

Business updates

> CEO, CFO, trading and operations

Governance

> ERD update

> External appointment approval

Stakeholders

> Discussions with the management of

Berlin Brandenburg Airport, the Berlin

Management team, and key stakeholders

from the airport and tourism boards

> Consideration of stakeholders and

long-term strategic priorities in Germany

> Engagement by ERDs with employee

groups

Announcements

> Half-year results

Board meetings

Business updates

> CEO, CFO, trading and operations

> Investor relations

Strategy

> Five-year plan – productivity, ease and

reliability, financials

> Sustainability update with presentation

from Airbus on net zero technology plans

Governance

> Legal update

> Reviewing principal risks

> Approval of tax strategy

Stakeholders

> Investor engagement around half-year

results

> Consideration of long-term strategy

when reviewing the five-year plan

> Consideration of stakeholders in relation to

sustainability and relationship with Airbus

> Consideration of multiple stakeholders in

reviewing tax strategy

Announcements

> Half-year pre-close

announcement

Stakeholders

> Investor engagement around

trading update and post-AGM

matters

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Announcements

> Q3 results announcement

Board meetings

Business updates

> CEO, CFO, trading and operations

> Investor relations

> Safety

> Digital Safety (cyber)

Strategy

> easyJet holidays

> Technology and change

Governance

> Audit tender approval

Stakeholders

> Investor engagement around trading

update

> Consideration of long-term strategy for

easyJet holidays

Outcomes

> Approval of Deloitte as the Group’s

external Auditor from 2026

Board meetings

Business updates

> CEO, CFO, trading and operations

> Investor relations

> Electronic travel regulations

Strategy

> Revenue management

> Brand and marketing

> FY25 budget

Governance

> Risk appetite review

> ERD update – easyJet holidays

Stakeholders

> Leadership breakfast

> Board dinner with AMB

> Engagement by ERDs with easyJet

holiday employees

BASE VISIT

Integrated control centre

(ICC), Luton

The September Board and Committee meetings

were held at the new home of the ICC and

easyJet holidays in Luton.

The Board had a tour of the new facilities, led by

the Director of Network Control, and met with

members of the ICC and engineering teams,

including two engineering apprentices.

They saw first-hand the new world-leading ICC,

which has been designed to ensure the team

have a calm environment where noise is limited

and there is plenty of natural daylight with

individual desk lighting so that those working on

shift have the best working environment. They

were also able to hear about how a new

generative AI tool, Jetstream, is being used to

help solve operational issues for pilots and crew

on the ground more quickly.

The visit allowed them to understand the

complexity of the day-to-day operational

decisions the ICC are required to make.

SEP 2024

JUL 2024

HIGHLIGHTS (CONTINUED)

Assessment mechanism Insight gained Outcomes/actions

REVIEWING THE RESULTS OF THE

YOUR VOICE MATTERS SURVEY

Understanding how employees see the

Company and their experience helps the

Board make an assessment of the

Company’s culture.

The Board reviewed engagement scores

as part of the culture deep dive and how

progress would be measured going

forward.

EMPLOYEE REPRESENTATIVE

DIRECTOR (ERD) MEETINGS

WITH EMPLOYEE GROUPS

Understanding of the different concerns,

priorities and experiences of the

different employee populations through

direct one-on-one meetings.

The ERDs provide an update to the Board

following each engagement on the key

themes raised, which allows the Board to

discuss any developing trends – see the

following page for further detail.

SENIOR MANAGEMENT

BREAKFASTS

Opportunity to engage directly with

senior management below the AMB and

build an understanding of their roles and

experiences.

The Directors gain a greater

understanding of the roles and functions

within easyJet, and of those who may

feature in future succession planning.

POLICIES AND PROCEDURES

With the assistance of the Committees,

the Board oversees the effectiveness

of a number of Company policies in

relation to Modern Slavery, Digital Safety

(including cyber security), Inclusion and

Diversity, and more.

This enables the Board to understand

the practice and behaviours across the

Group and how these align with our

purpose and promises, and actions

taken in these areas to make easyJet a

better place to work.

INDUCTION MEETINGS WITH

SENIOR MANAGEMENT

Opportunity to ask questions about the

culture in one-on-one sessions.

Having an opportunity to ask questions

in private sessions allows the Board to

build an understanding of the culture in

practice and has led to direct follow ups

with senior management.

VISITS TO OPERATIONS IN

BERLIN AND LUTON

Opportunity to see easyJet’s culture in

action and tour the new facilities at Berlin’s

maintenance hangar, and the ICC and

easyJet holidays office at Capability Green.

The Board has an understanding of the

complexity of the daily operations and how

easyJet is upgrading its facilities to provide

market-leading work environments.

SPEAK UP, SPEAK OUT

(SUSO) WHISTLEBLOWING

ARRANGEMENTS AND REGULAR

REPORTS TO AUDIT COMMITTEE

Understanding of the issues and

incidents being flagged through SUSO,

and the mitigations and actions put in

place to deal with them.

The Audit Committee requested a deep

dive where it saw increased SUSO reports

to determine whether more targeted

interventions were necessary or if this was

the benefit of increased visibility and use of

the SUSO mechanism. The latter was

deemed to be the case.

HEALTH AND SAFETY

easyJet has a Safety Policy that

promotes a ‘just culture’, to ensure that

any incidents are openly reported

without negative repercussions. The

Safety & Operational Readiness

Committee regularly reviews safety

strategy and performance to ensure

appropriate mitigations are in place and

any trends identified, which are then

reported to the Board.

The Safety & Operational Readiness

Committee requested a number of

safety focused deep dives, including

mental health, Hangar 89 resilience,

digital safety risks. More detail on these

deep dives can be found in the Safety &

Operational Readiness Committee

Report on page 119.

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UNDERSTANDING THE BUSINESS AND CULTURE

OUR BUSINESS AND CULTURE

An in-depth understanding of, and engagement

with, easyJet’s business and culture is essential for

our Non-Executive Directors. This enables them to

fully contribute to Board discussions and oversee

performance. Achieving an understanding of the

business is done in a number of ways that are

evident throughout this report, including:

> holding meetings around the easyJet network

> undertaking base visits to key sites

> using the easyJet product when travelling

> meeting with a wide variety of employees and

employee representative groups

> receiving updates on market context and deep

dives on relevant topics.

We have a unique culture, which is open, positive

and collaborative, and is embodied as the Orange

Spirit. Our culture is underpinned by the values

and behaviours we call ‘Our Promise Behaviour

Framework’, which can be found on page 56.

The Board places great importance on ensuring

that these behaviours are established throughout

the Company, and that they are integrated into its

decision making. The Board ensures that the

correct policies and procedures are put in place to

maintain the culture, and where policies, practices

or behaviour are not aligned with the Company’s

purpose, values or strategy, the Board and

management seek to ensure that appropriate

action is taken.

HOW THE BOARD MONITORED CULTURE

DURING THE YEAR

As well as aiming to lead by example and embody

the culture through their actions and decision

making, the Board uses a number of methods to

understand, monitor and assess the Company’s

culture. The table on the right and case studies

overleaf provide further detail on this.

OUR BUSINESS

AND CULTURE

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> Our Employee Representative Directors,

Catherine Bradley, Ryanne van der Eijk and

Moni Mannings, engage with a variety of

employees throughout the year, adopting the

most appropriate methods to ensure inclusivity

and foster an open dialogue. They regularly

report back to the Board and are encouraged

to integrate employee perspectives into

boardroom discussions. During the year,

Ryanne van der Eijk had meetings with easyJet

pilots and separately with staff at the ICC. Moni

Mannings met with the Safety, Security &

Compliance management team, and also with

members of the easyJet holidays team.

Catherine Bradley met with the ICC, easyJet

holidays team and the Management &

Administration Consultative Group (MACG).

The insights from this engagement were

relayed and discussed at the Board, covering

topics from enhancing employee involvement

in strategic development, to celebrating and

reinforcing the success of easyJet holidays and

their culture of clear accountability, data-driven

decision making, and customer-centric

strategies.

As part of International Women’s Day Sophie

Dekkers, Chief Commercial Officer and an

Diversity, Equity & Inclusion AMB sponsor,

hosted a fireside chat with Moni Mannings,

Non-Executive Director, where they discussed

their experiences as women in senior leadership

positions, the challenges they faced and how

they overcame them.

The event was livestreamed and recorded to

ensure accessibility for all employees. It offered

an opportunity for staff to engage by asking

questions about Moni and Sophie’s experiences

and to discuss how easyJet can support similar

journeys for others.

> The Board held a focused session on culture

in February, where discussions centred on

enhancing the Company’s culture. This

included the implementation of initiatives such

as defining clear behavioural expectations,

monitoring adherence to these behaviours,

and supporting leaders in reinforcing these

behaviours. The Board also discussed the

effectiveness of the culture in supporting

strategic objectives, considered variations

across different employee groups, and

discussed potential modifications to

processes and systems to reinforce cultural

alignment and measure progress.

> The Board dedicated an extended session in

its March meeting to a comprehensive crew

deep dive with the Director of Cabin Services

and his team. This session included

demonstrations of new uniform prototypes by

the crew, who also discussed the collaborative

design process. The presentation addressed

various aspects of crew experience, including

recruitment, retention, diversity in gender and

age, and feedback from the Your Voice

Matters survey which gave a sense of the

culture amongst the crew. The Board found

this interaction and discussion extremely

valuable and has decided to make it a

recurring agenda item.

> The Board’s own culture is discussed as part

of the Board Performance Review, as set out

on page 99.

Garry Wilson, CEO of easyJet holidays, is also

an AMB sponsor for Diversity, Equity & Inclusion,

and chaired a panel discussion with graduates

from easyJet’s Accelerate Women’s Development

Programme. The panel explored the significance

of initiatives like Accelerate as vital tools for

creating opportunities, and discussed strategies

to promote gender equality and inclusion within

the organisation.

UNDERSTANDING THE BUSINESS AND CULTURE (CONTINUED)

CASE STUDY CASE STUDY

board discussions on

culture

inspiring inclusion

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UNDERSTANDING THE BUSINESS AND CULTURE (CONTINUED)

OUR PERFORMANCE

easyJet’s strategy is set out on page 10, and part

of the Board’s role is overseeing management’s

execution of the strategy. The Board’s forward

agenda is designed to ensure that the Board

considers a balance of business updates, and

strategic and governance matters, while

maintaining an appropriate focus on monitoring

management’s delivery of the strategy and

progress against longer-term objectives, which can

be seen in the summary of activities in the year on

pages 82 to 85. The performance of the business

has been strong, as set out on pages 27 to 35.

HOW THE BOARD MONITORED PERFORMANCE

DURING THE YEAR

The Board received updates on trading, operational

and financial performance at each Board meeting

and challenged management on trends, actions and

progress against the strategic initiatives.

TRADING

> The Board reviewed trading performance at

each meeting via an update from the Chief

Commercial Officer, reviewing demand trends,

pricing, load factors, the impact of marketing

campaigns and other commercial initiatives.

OPERATIONS

> The Board received updates on operations and

operational readiness from the Chief Operating

Officer at each meeting, with a specific focus

on summer readiness.

FINANCE

> The Chief Financial Officer updated the Board

at each meeting on the financial performance

of the Company. This included reviewing costs,

revenue, net debt and cash balances. The

Board approved the renewal of the Company’s

Euro Medium Term Note Programme (EMTN)

and the issuance of a €850 million bond under

the programme.

BUDGET

> The Board reviewed the previous year’s

performance versus budget and competitor

performance; monitored FY24 financial

performance against budget throughout the

year; and reviewed the draft budget for FY25.

STRATEGY

> The Board regularly reviewed operational and

financial performance against the Company’s

strategy and KPIs; reviewed country and

business area deep dives; and received regular

strategic updates in a number of key areas.

CUSTOMER

> The Board received presentations from the

Chief Customer & Marketing Director on the

customer strategy and initiatives planned to

improve ease and reliability and the customer

experience, as well as key brand and marketing

activity.

TECHNOLOGY

> The Chief Data & Information Officer updated

the Board on the Technology, Data and Change

Programme and status of the various

workstreams, and the Board continued to

challenge the team to accelerate progress

wherever possible.

SUSTAINABILITY

> There were several updates during the year on

progress towards easyJet’s net zero roadmap

and delivery of the Sustainability Strategy. The

Board also received a presentation from Airbus

on net zero technology plans and its business

performance.

PEOPLE

> The CEO updates the Board on people matters

regularly, including updates on the outcome of

the Your Voice Matters survey.

HOW THE COMMITTEES MONITORED PERFORMANCE

DURING THE YEAR

> The Nominations Committee monitored the

Company’s progress against diversity targets

and succession plans, and reviewed the Board’s

performance through the Board Performance

Review.

> The Audit Committee monitored progress on

the continual programme of improvement to

easyJet’s financial control framework and the

corporate risk plan through regular updates at

meetings and feedback from the external

auditors.

> The Finance Committee monitored the

performance of easyJet’s fuel and capex

hedging policies, liquidity management and

balance sheet policies.

> The Remuneration Committee reviewed

progress on the gender pay gap, how effective

the Remuneration Policy was in incentivising

management to deliver the Company’s

strategic objectives, and how performance and

outcomes benchmarked against others.

> The Safety & Operational Readiness Committee

monitored safety and operational performance

metrics through incident and risk trackers,

deep-dive sessions on key risks and operational

areas, and regular reports from the Director of

Safety, Security & Compliance and the Chief

Operating Officer.

> More information on Committee activities are

set out on pages 104 to 142.

OUR PERFORMANCE

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ENSURING EFFECTIVE GOVERNANCE

To ensure effective governance,

the Board has established a clear

and robust governance framework,

which we set out on page 90

The composition of the Board is a critical

part of the effective operation of this

framework, and we set out details of the

different responsibilities of the Board roles

on page 91, and the attributes, skills,

attendance and biographies on pages 92

to 95. During the year, there were no

changes to the composition of the Board

given the recent refresh of membership,

so we have not set out in detail how the

Board approaches appointments and

inductions other than a summary in the

Nominations Committee report on pages

104 to 106.

A comprehensive induction and support

programme will be put in place for Jan

De Raeymaeker when he joins as Chief

Financial Officer in January 2025, and to

support Kenton Jarvis’s transition from

Chief Financial Officer to Chief Executive,

details of which will be set out in next

year’s report.

The Board also regularly reviews how it is

performing through an annual

performance review, which was

supported by an external evaluator during

the year and is detailed on page 99.

OUR

GOVERNANCE

FRAMEWORK

Read more on pages 100 to 103

Nominations Committee

To evaluate the balance of skills,

knowledge, experience and diversity on

the Board, and keep the composition,

structure and size of the Board and its

Committees under regular review.

To provide succession planning for senior

executives and the Board, leading the

process for all Board appointments.

To oversee the Board elements of the

Inclusion and Diversity Policy and

monitor Group-wide initiatives.

Audit Committee

To monitor the integrity of the Group’s

financial and narrative reporting, and

the adequacy and effectiveness of the

systems for risk management and

internal control.

To monitor the effectiveness and

independence of the internal and

external auditors.

Finance Committee

To review and monitor the Group’s

treasury policies, treasury operations

and funding activities, along with the

associated risks and provide approvals

in relation to fuel, currency and interest

rate hedging, letters of credit and

guarantees.

Safety & Operational

Readiness Committee

To oversee easyJet’s safety strategy to

address existing and emerging safety

risks, identify and monitor any new,

emerging or changing safety risks,

ensure an appropriate governance

framework is in place and receive reports

on operational performance indicators.

Remuneration Committee

To set remuneration for all Executive

Directors, the Chair and the Airline

Management Board (AMB), including

pension rights and any compensation

payments.

To oversee remuneration and

workforce policies and practices and

take these into account when setting

the policy for Directors’ remuneration.

BOARD COMMITTEES

The terms of reference of each Committee are documented and agreed by the Board. The Committees’ terms of reference are available on our website at: corporate.easyJet.com.

The key responsibilities of each Committee are set out below.

CHIEF EXECUTIVE

Responsible for the day-to-day running of the Group’s business and performance, and the development and implementation of strategy.

AIRLINE MANAGEMENT BOARD

Led by the Chief Executive, the AMB members are collectively responsible for driving the performance of the Group against strategic KPIs and managing the allocation of central funds and capital.

Read more on pages 104 to 106 Read more on pages 107 to 115 Read more on pages 116 to 117 Read more on pages 118 to 119 Read more on pages 120 to 142

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ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

Chief Executive

> Responsible for recommending the Group’s

strategy to the Board and for delivering the

strategy once approved.

> Together with the Chief Financial Officer,

monitors the Group’s operating and financial

results and directs the day-to-day business of

the Group.

> Responsible for recruitment, leadership and

development of the Group’s executive

management team below Board level.

> Keeps the Chair and the Board appraised of

important and strategic issues facing the Group.

> Acts as Secretary of the Board and its

Committees and attends all meetings.

> Supports and works closely with the Chair,

the Chief Executive and the Chairs of the

Board Committees in setting agendas for

meetings of the Board and its Committees.

> Supports the provision of accurate, timely and

clear information flows to and from the Board

and the Board Committees, and between

Directors and senior management in order to

ensure that the Board has the information and

resources it needs in order to function effectively.

> Supports the Chair in designing and delivering

Directors’ induction programmes and the Board

and Committee performance evaluations.

> Provides advice and support to the Board

and individual Directors on corporate

governance matters and Board procedures.

> Responsible for administering the Share Dealing

Code and the Annual General Meeting.

INFORMATION FLOWS, TRAINING AND DEVELOPMENT

All Board members are provided with clear and accurate information in a timely manner for Board or

Committee meetings via an electronic Board portal at least one week prior to meetings. The Company

Secretary has individual meetings with Non-Executive Directors to address any additional support

needs. Directors may also seek independent legal advice concerning their duties at the Group’s

expense.

Upon appointment, Directors partake in a tailored and thorough induction programme, developed in

consultation with the Chair and Company Secretary, detailed further in the 2023 Annual Report as

there have been no new Board members in FY24. They are urged to identify areas for skill

enhancement during their annual performance reviews, with training supported by internal and

external sessions, workshops and presentations.

Chair

> Responsible for leadership of the Board and

ensuring effectiveness in all aspects of its role.

> Responsible for setting the Board’s agenda and

ensuring adequate time is available for discussion

of all agenda items, including strategic issues.

> Responsible for encouraging and facilitating

active engagement by and between all

Directors, ensuring a culture of openness is

maintained and drawing on each of their

extensive skills, knowledge and experience.

> Ensures effective engagement between the

Board, its shareholders and key stakeholders.

Senior Independent Director

> Acts as a sounding board for the Chair and as

an intermediary for the other Directors when

necessary.

> Responsible for addressing shareholders’

concerns that have not been resolved through

the normal channels of communication with the

Chair, Chief Executive or Chief Financial Officer.

> Responsible for evaluating the performance of

the Chair in consultation with the other

Non-Executive Directors.

Non-Executive Directors

> Provide an external perspective, sound

judgement and objectivity to the Board’s

deliberations and decision making.

> Use their diverse range of skills and expertise to

support and constructively challenge the Executive

Directors and monitor and scrutinise the Group’s

performance against agreed goals and objectives.

> Responsible for determining appropriate levels

of executive remuneration, appointing and

removing Executive Directors, and succession

planning through their membership of the

Remuneration and Nominations Committees.

> Review the integrity of financial reporting and

that financial controls and systems of risk

management are robust.

Employee Representative Directors

> Provide the mechanism for the Board to engage

with the workforce in line with the Corporate

Governance Code.

> Responsible for meeting the Company’s

European Works Council (EWC) and

Management & Administration Consultative

Group (MACG) at least once a year, and other

works councils on a periodic basis, along with

other informal engagement.

> Provide regular updates to the Board to ensure

employee voice is clearly reflected in the boardroom.

Chief Financial Officer

> Supports the Chief Executive in developing

and implementing strategy.

> Provides financial leadership to the Group

and alignment between the Group’s business

and financial strategy, including developing

the Group’s annual budget prior to the formal

agreement of the Board.

EXECUTIVE DIRECTORS COMPANY SECRETARYINDEPENDENT NON-EXECUTIVE DIRECTORS

THE BOARD

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ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

BOARD AT A GLANCE

The Board continues to meet

best practice guidelines for

independence and ethnic

diversity and keeps the balance

of skills, knowledge and

experience on the Board under

regular review. Biographies are

set out on pages 93 to 95.

BOARD COMPOSITION AS AT 30 SEPTEMBER 2024

Male 6

Female 4

White 9

Asian 1

Dutch 1

German 2

Swedish 1

UK/French 1

UK 5

3–7 years 6

0–3 years 4

Chair 1

Executive Directors 2

Non-Executive Directors 7

Gender Ethnicity Nationality Tenure

Independence

Board Audit Finance Nominations Remuneration

Safety &

Operational

Readiness

Sir Stephen Hester 8/8 – – 4/4 – –

Johan Lundgren 8/8 – – – – –

Kenton Jarvis 8/8 – – – – –

Sue Clark

8/8 6/6 – 4/4 – 3/4

Catherine Bradley CBE 8/8 6/6 3/3 4/4 – –

Ryanne van der Eijk 8/8 – – – – 4/4

Harald Eisenächer 8/8 – 3/3 – 5/5 –

Moni Mannings OBE 8/8 – – 4/4 5/5 –

David Robbie 8/8 6/6 3/3 4/4 5/5 –

Dr Detlef Trefzger 8/8 6/6 – 4/4 – 4/4

1) Absences were due to unavoidable prior commitments. Directors who are unable to attend meetings continue to receive the papers in

advance of the meeting and have the opportunity to discuss with the relevant Chair or the Company Secretary. Feedback is provided on the

decisions taken at the meeting.

SKILLS AND EXPERIENCEMEETING ATTENDANCE

Airline/travel

Finance

Strategy

Safety/sustainability

Commercial/consumer

Digital/marketing

Ex CEO/CFO

Operations

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BOARD OF

DIRECTORS’

BIOGRAPHIES

NATIONALITY: British

APPOINTED: September 2021 (Chair from December

2021)

CONTRIBUTION TO THE BOARD

> Stephen is a strategic and successful leader with

more than 35 years of wide-ranging business

experience, including significant experience

leading major international businesses in regulated

industries.

> He brings a strong track record of value creation

and listed company experience to the Board.

> As well as ensuring the Board operates effectively,

chairing Board meetings and meetings of the

Nominations Committee, he regularly engages

with management, employees and investors to

ensure their views are represented in the Board’s

deliberations.

CAREER AND EXPERIENCE

Stephen served as a Chief Executive of RSA

Insurance Group plc from February 2014 to May 2021,

and prior to this as Chief Executive of Royal Bank of

Scotland Group, Chief Executive of British Land plc

and Chief Operating Officer of Abbey National plc, as

well as holding a number of senior executive roles at

Credit Suisse First Boston in London and New York.

He has also held senior non-executive positions as

Deputy Chairman of Northern Rock and Senior

Independent Director of Centrica plc. Stephen was

honoured with a knighthood in the 2024 New Year’s

Honours list for services to business and the

economy.

CURRENT EXTERNAL APPOINTMENTS

Lead Independent Director, Kyndryl Holdings, Inc. and

Chair, Nordea Bank Abp.

NATIONALITY: Swedish

APPOINTED: December 2017

CONTRIBUTION TO THE BOARD

> Experienced leader who is strategic yet

operationally focused, having designed and

implemented a number of easyJet’s key strategic

initiatives since his appointment, including the

transformation of revenue capabilities and the set

up of easyJet holidays. Johan has also

spearheaded the Sustainability Strategy and our

pathway to net zero emissions, which has widely

been referred to across the aviation industry.

> Proven experience with a successful track record

in European travel and more than 30 years’

experience in the industry.

CAREER AND EXPERIENCE

Prior to joining easyJet, Johan was the Group Deputy

Chief Executive Officer and Chief Executive Officer

of Mainstream Tourism at TUI AG. He was the

Managing Director for the Northern Region at TUI

Travel plc from 2007 until 2011. From 2003 until 2007,

he was the Managing Director and Chief Executive

Officer of TUI Nordic. Johan led MyTravel’s

businesses out of Canada and Sweden between 1999

and 2003, prior to which he was Managing Director

of Always Tour Operations from 1996.

CURRENT EXTERNAL APPOINTMENTS

Senior Adviser, Blackstone (private equity group).

NATIONALITY: British

APPOINTED: February 2021

CONTRIBUTION TO THE BOARD

> Kenton brings over 25 years’ experience of the

travel and aviation sector to the Board, having held

senior group and divisional finance roles at TUI and

Airtours Holidays.

> His significant contribution and leadership skills

have been recognised with his appointment as

CEO from January 2025.

CAREER AND EXPERIENCE

Kenton was previously CEO of Aviation and Business

Improvement Director – Markets, at TUI Group,

having held a number of senior group and divisional

finance roles at TUI since 2003. Before joining TUI,

Kenton was the Finance Director of Airtours Holidays

and held a number of commercial finance roles at

Adidas, prior to which he qualified as a chartered

accountant with PwC.

CURRENT EXTERNAL APPOINTMENTS

None

SIR STEPHEN HESTER

Chair

JOHAN LUNDGREN

Chief Executive

KENTON JARVIS

Chief Financial Officer and CEO designate

ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

Board Committees key

Committee Chair

Audit Committee

Finance Committee

Nominations Committee

Remuneration Committee

Safety & Operational Readiness Committee

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NATIONALITY: British

APPOINTED: March 2023

CONTRIBUTION TO THE BOARD

> Strong international, strategic and commercial

experience from Executive and Non-Executive

roles in consumer facing, transport and utility

businesses. Her wide-ranging board, regulatory

and stakeholder experience is valuable in driving

long-term shareholder value.

> Sue’s corporate governance insight creates a

strong fit to her role as Senior Independent

Director.

CAREER AND EXPERIENCE

Sue served as a member of the Executive

Management team at SABMiller plc from 2003,

initially as Director of Corporate Affairs until 2012 and

then Managing Director, Europe, until the business

was acquired in 2016. Prior to SABMiller, she served

as Director of Corporate Affairs for Railtrack plc and

Scottish Power plc. Sue also served as Non-Executive

Director and Chair of the Remuneration Committee

at Britvic plc from 2016 to 2024, Non-Executive

Director of Bakkavor Group plc from 2017 to 2020,

and member of the Supervisory Board of AkzoNobel

NV from 2017 to 2021.

CURRENT EXTERNAL APPOINTMENTS

Senior Independent Director and Chair of

Remuneration Committee, Imperial Brands PLC

and Mondi plc.

NATIONALITY: French and British

APPOINTED: January 2020

CONTRIBUTION TO THE BOARD

> Extensive financial expertise gained across senior

finance roles in investment banking and M&A over

33 years, along with an in-depth understanding of

corporate governance and regulatory matters.

> Her experience in financial and capital markets makes

her ideally suited as Finance Committee Chair.

> Experienced in stakeholder engagement as

evidenced in her role as an Employee

Representative Director.

CAREER AND EXPERIENCE

Catherine began her career with Merrill Lynch in the

US and finished the executive phase of her career as

Head of Advisory Global Markets with Societe

Generale in Asia. Catherine then served as a Non-

Executive Director of the UK Financial Conduct

Authority and Chair of its Audit Committee from 2014

to July 2020, and of WS Atkins plc from 2015 until its

delisting in 2017. Catherine was also a member of the

Supervisory Board and Chair of the Finance and Audit

Committee of Peugeot S.A. from 2016 to 2021, and

Non-Executive Director and Chair of the Audit

Committee of abrdn plc from 2022 to 2024.

CURRENT EXTERNAL APPOINTMENTS

Chair of Nominations and Governance Committee,

Johnson Electric Holdings Limited; Senior

Independent Director, Kingfisher plc; Chair, Interactive

Investor Limited a wholly-owned subsidiary of abrdn

plc.

NATIONALITY: Dutch

APPOINTED: September 2022

CONTRIBUTION TO THE BOARD

> In-depth airline and customer services experience,

along with a valuable European perspective to

Board deliberations.

> Experienced in stakeholder engagement as

evidenced in her role as an Employee

Representative Director.

CAREER AND EXPERIENCE

Ryanne has extensive airline operations and customer

service experience, having more than 20 years’

experience with KLM, her last role being the Chief

Experience Officer. Her previous senior executive

appointments also include Chief Operating Officer for

Dubai Airports and Chief Experience Officer for Ras Al

Khaimah Economic Zone in the UAE. Ryanne has

recently served as an interim executive at various

boards, such as COO at Mental Beter and Director of

Maintenance & Asset Management at GVB. She was

previously the chair of the advisory board of CPRC, a

child protection research centre.

CURRENT EXTERNAL APPOINTMENTS

Member of the Supervisory Board, Krasnapolsky

Hotel and Restaurants N.V.

NATIONALITY: German

APPOINTED: September 2022

CONTRIBUTION TO THE BOARD

> Brings extensive travel and aviation sector

commercial experience as well as a deep

knowledge of digital and data driven businesses,

combined with a European outlook.

CAREER AND EXPERIENCE

Harald brings significant experience of the travel and

aviation industry, having held senior executive

positions with Lufthansa and Sabre Travel Network.

He most recently served as Chief Commercial Officer

for Infare A/S, the leading provider of competitor air

travel data based in Denmark, and later served as a

member of the Supervisory Board (2021 to 2023). He

has previously held senior positions with Deutsche

Telekom, eBay Inc. and Hoechst AG, and served as a

Non-Executive Director of Groz-Beckert SE (2007 to

2021) and Ifolor AG (2013 to 2019). Additionally he

was a member of the Advisory Board of Solytic

GmbH (2021 to 2024).

CURRENT EXTERNAL APPOINTMENTS

Member of the Advisory Board, Omnevo GmbH and

Chair of the Advisory Board, Mimi Hearing

Technologies GmbH.

SUE CLARK

Senior Independent Director

CATHERINE BRADLEY CBE

Non-Executive Director

RYANNE VAN DER EIJK

Non-Executive Director

HARALD EISENÄCHER

Non-Executive Director

ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

BOARD OF DIRECTORS’ BIOGRAPHIES (CONTINUED)

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NATIONALITY: British

APPOINTED: August 2020

CONTRIBUTION TO THE BOARD

> Brings extensive legal and corporate finance

experience to the Board.

> Deep knowledge of executive remuneration as an

experienced Remuneration Committee Chair

means she is well placed as Chair of the

Remuneration Committee.

> Experienced in stakeholder engagement as

evidenced in her role as an Employee

Representative Director.

CAREER AND EXPERIENCE

Moni was a Partner and Head of the International

Banking and Finance Division of Olswang LLP (2000

to 2016), before which she held senior positions with

Dewey & LeBoeuf LLP, Simmons & Simmons and

Clifford Chance LLP. Moni was Chief Operating Officer

of Aistemos Limited (2016 to 2017) and has also held a

number of non-executive positions, including a Board

member of the Solicitors Regulation Authority and

Cranfield University. Moni has also served as a

Non-Executive Director of Polypipe Group plc (2014 to

2019), Dairy Crest Group plc (2017 to 2019), Breedon

Group plc (2019 to 2021), Investec Bank plc (2016 to

2023), and Cazoo Group Ltd (2021 to 2023), and

Hargreaves Lansdown plc (2020 to 2024) and Deputy

Chair of Barnardo’s (2017 to 2022).

CURRENT EXTERNAL APPOINTMENTS

Senior Independent Director, Land Securities Group plc

and Co-operative Group Limited, and Member of the

Takeover Panel.

NATIONALITY: British

APPOINTED: November 2020

CONTRIBUTION TO THE BOARD

> Brings strong financial, risk management and

corporate finance experience to the Board and

Audit Committee as Chair.

> His international and strategic outlook, combined

with over 20 years serving as a Director on FTSE

Boards, provides a valuable perspective in Board

and Committee discussions.

CAREER AND EXPERIENCE

David was Finance Director of Rexam plc from 2005

until 2016. Prior to his role at Rexam, David served in

senior finance roles at Invensys plc before becoming

Group Finance Director at CMG plc in 2000 and then

Chief Financial Officer at Royal P&O Nedlloyd N.V. in

2004. He served as interim Chairman, Senior

Independent Director and Chair of the Audit

Committee of FirstGroup plc from 2018 to 2021, and

Non-Executive Director and Chair of the Audit

Committee for the BBC between 2006 and 2010.

David qualified as a chartered accountant at KPMG.

CURRENT EXTERNAL APPOINTMENTS

Senior Independent Director and Chair of Audit

Committee, DS Smith plc.

NATIONALITY: German

APPOINTED: September 2022

CONTRIBUTION TO THE BOARD

> Brings recent and in-depth experience of global

logistics and commercial strategy, along with a

European outlook.

> Broad experience of technology enabled and data

supported business transformation.

CAREER AND EXPERIENCE

Detlef brings more than 30 years’ experience leading

global transport and logistics companies. Detlef served

as Chief Executive of Kuehne + Nagel International AG,

from 2013 to 2022. During his tenure, he led the

company through an important period of growth,

transformation and consolidation, doubling revenue and

quadrupling profit to become the largest third-party

transport and logistics provider in the world. Prior to

Kuehne + Nagel, he spent 15 years with DB Schenker in

various senior executive positions, including EVP of

Global Contract Logistics & Supply Chain Management,

having started his career at Siemens AG and Roland

Berger. Detlef also served as a member of the Singapore

Economic Development Board from 2015 to 2018 and as

Non-Executive Director of SATS Ltd from 2023 to 2024.

CURRENT EXTERNAL APPOINTMENTS

Non-Executive Director, Accelleron Industries AG, PSA

International, Swiss Prime Site AG, Swissport

International AG; and Adviser, Clayton, Dubilier & Rice.

CAREER AND EXPERIENCE

Ben joined easyJet in July 2019 as Deputy Company

Secretary and became Group Company Secretary on

1 January 2023. He is a Fellow of the Chartered

Governance Institute and has over 20 years’

experience working for leading UK listed brands

including ITV, Burberry and Sky.

MONI MANNINGS OBE

Non-Executive Director

DAVID ROBBIE

Non-Executive Director

DR DETLEF TREFZGER

Non-Executive Director

BEN MATTHEWS

Group Company Secretary

CHANGES TO THE BOARD DURING THE YEAR AND UP TO

27 NOVEMBER 2024

> The appointment of Jan De Raeymaeker as

CFO was announced on 14 October 2024.

Jan will join the Board and AMB with effect

from 20 January 2025.

ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

BOARD OF DIRECTORS’ BIOGRAPHIES (CONTINUED)

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ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

NATIONALITY: American

AREAS OF EXPERTISE: Marketing, ecommerce and

customer

CAREER AND EXPERIENCE

Robert joined the AMB in August 2022. Robert is a

highly experienced consumer marketing and general

management leader with a track record of driving

growth, building brands and leading winning teams

across ecommerce, travel, online apparel, wireless

and consumer goods for both large companies and

start-ups. Before joining easyJet, Robert was Chief

Growth Officer at ASOS in a role that encompassed

marketing, end-to-end customer experience, data

insight and media publishing, increasing revenue

growth from 13% in 2019 to 21% in 2021. Previously

Robert spent six years as CMO at KAYAK, establishing

it as a leader in the travel industry, leading to public

listing. He was also part of the original start-up team

that created US online travel agency Orbitz.

See Board of Directors profile.

ROBERT BIRGE

Chief Customer & Marketing Officer

AIRLINE

MANAGEMENT

BOARD

BIOGRAPHIES

KENTON JARVIS

Chief Financial Officer and CEO designate

JOHAN LUNDGREN

Chief Executive

Read more on page 93

STUART BIRRELL

Chief Data & Information Officer

NATIONALITY: British

AREAS OF EXPERTISE: Data and information technology

CAREER AND EXPERIENCE

Stuart joined the AMB in November 2020. Before

joining easyJet, Stuart spent five years as Director

and Chief Information Officer at Heathrow Airport

Limited. He previously held the role of CIO at Formula

1’s McLaren Technology Group where he worked in

the high-performance environment, building a team

of in-house experts and specialist suppliers. Prior to

that, he spent three years at Gatwick Airport where

he successfully separated the airport systems from

BAA and brought improvements to complex IT

foundations and transformation processes. Stuart

brings with him significant experience and expertise

in IT security, cloud-based solutions, big data sets

and technology to support business expansion.

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ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

AIRLINE MANAGEMENT BOARD BIOGRAPHIES (CONTINUED)

THOMAS HAAGENSEN

Group Markets Director

NATIONALITY: British

AREAS OF EXPERTISE: Legal and digital safety

CAREER AND EXPERIENCE

Rebecca joined the AMB in January 2023 on her

appointment as Group General Counsel. Rebecca has

over 20 years’ experience as a lawyer, having started

her career at Herbert Smith Freehills, where she

specialised in IP, technology and media law, and

disputes. She joined easyJet in 2010 as a senior

commercial lawyer and has progressed her career

through a variety of roles, before taking on

responsibility for the management of the legal and

claims teams in 2018. From 2019 to 2023, she led

these teams in the role of Deputy General Counsel

and was at the heart of easyJet’s response to, and

emergence from, the pandemic. Rebecca has also

been the Legal Director of easyJet holidays since it

was established in 2019. Rebecca’s sharp commercial

skills, combined with her deep understanding of the

airline and holidays businesses, give her a unique and

powerful perspective.

NATIONALITY: Danish

AREAS OF EXPERTISE: Commercial and operations

management

CAREER AND EXPERIENCE

Thomas joined the AMB in May 2018. Thomas has over

20 years’ experience in operations management built

in a variety of roles across Europe. Thomas began his

career with Tetra Pak, working his way up to Regional

Manager of the East Med where he developed and

succeeded in implementing ambitious growth and

profitability improvement plans. Since joining easyJet

in 2008 Thomas has significantly grown the Swiss

market, developed easyJet’s market entry strategy for

Germany and developed the business traveller

segment in Northern Europe. Most recently he was

appointed Managing Director of easyJet Europe,

establishing the Company’s Austrian AOC, a key part

of its Brexit migration plan, and managed the

transition of 100 aircraft to easyJet Europe.

REBECCA MILLS

Group General Counsel

SOPHIE DEKKERS

Chief Commercial Officer

NATIONALITY: British

AREAS OF EXPERTISE: Aviation and strategy

CAREER AND EXPERIENCE

Sophie joined the AMB in December 2020. Having

started at easyJet in 2007, she was previously

Customer Director. Prior to this, she was Director of

Scheduling for the airline, implementing systems and

process improvements. She has also led easyJet in

the UK as Country Director for five years, responsible

for driving the airline’s commercial success and

strategic direction in the UK as well as representing

aviation at both House of Lords and House of

Commons Select Committees. Previous roles in the

airline include Head of Change Management and

Customer Insight, and she has a background in

customer insight, working with a range of brands

from Jaguar Land Rover to Mars, Unilever and

Vodafone. Sophie was also Non-Executive Director

for Airport Coordination Limited from 2017 to 2021

and sat on their Remuneration and Nomination

Committees. Sophie is easyJet’s AMB lead on

diversity, equity and inclusion, a qualified MindGym

coach, business mentor, and was a founding member

of easyJet’s Women’s Network.

DAVID MORGAN

Chief Operating Officer

NATIONALITY: British

AREAS OF EXPERTISE: Flight operations

CAREER AND EXPERIENCE

David joined the AMB in July 2022, having joined

easyJet in September 2016 as the airline’s Chief Pilot,

and in December 2017 took up the position of

Director of Flight Operations, taking responsibility for

the safe and efficient operation of the airline’s flights

across Europe. David previously served as interim

COO in 2019, when he oversaw operations across the

airline and delivered significant improvements in

operational performance. David and his operations

team focus on safe, efficient and sustainable

operations in an increasingly complex and

challenging environment. Prior to joining the airline,

David was Chief Flight Operations Officer at Wizz Air.

His long career in aviation has taken him around the

world including Australia and the Middle East.

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NATIONALITY: British

AREAS OF EXPERTISE: Travel, business transformation

and global markets

CAREER AND EXPERIENCE

Garry joined the AMB in 2018 and has over 25 years’

experience in the travel sector. He has successfully

developed significant business growth strategies

across several international markets and has built and

led large global teams throughout his career. Garry

works extensively with overseas governments and

emerging economies to create sustainable tourism

policies, whilst promoting major economic growth

and positive social change. He is an AMB sponsor for

diversity, equity and inclusion, and health and

wellbeing. He has held Board positions in the Travel

Foundation and Travelife and was appointed to the

board of ABTA in 2021.

Contents

ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

AIRLINE MANAGEMENT BOARD BIOGRAPHIES (CONTINUED)

CHANGES TO THE AMB DURING THE YEAR AND UP TO

27 NOVEMBER 2024

> Richard Scott was appointed interim Group

People Director on 4 July 2024, replacing

Jane Storm.

> The appointment of Jan De Raeymaeker as

CFO was announced on 14 October 2024.

Jan will join the Board and AMB with effect

from 20 January 2025.

GARRY WILSON

CEO, easyJet holidays

RICHARD SCOTT

Interim Group People Director

NATIONALITY: British

AREAS OF EXPERTISE: People strategy, industrial

relations and organisation design

CAREER AND EXPERIENCE

Richard joined the AMB as Interim Group People

Director in July 2024. He joined easyJet in 2016 as

Director of Business Transformation before

progressing to HR & IR Director for Operations, where

he oversaw the people strategy for crew, engineering

and operational head-office staff, the airline’s

approach to Brexit and our People programme in

response to the pandemic. Prior to easyJet, Richard

spent over 15 years working as a Management

Consultant, supporting the delivery of people focused

transformation programmes for global brands

including Mars Inc, Nestle, SR Technics, TUI Travel,

InterContinental Hotels Group, Liverpool Victoria (LV)

Insurance and TalkTalk. He has a passionate focus on

organisation design, driving a high-performance

culture and leadership development.

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EXTERNAL

YEAR 1

INTERNAL

YEAR 2

INTERNAL

YEAR 3

ENSURING EFFECTIVE GOVERNANCE (CONTINUED)

BOARD

PERFORMANCE

REVIEW

An annual review of the performance of

the Board, its Committees, the Chair and

individual Directors is undertaken. The

review aims to identify the Board’s

strengths and any opportunities for

improvement, as well as highlighting

any training and development needs.

The Board follows a formal three-year cycle for an

externally facilitated annual review. The 2021

Board evaluation was externally facilitated by

Manchester Square Partners, and therefore the

2022 and 2023 performance reviews were

facilitated internally by the Nominations

Committee. Further information on these reviews

can be found in previous Annual Reports.

In keeping with the three-year cycle, the 2024

Board performance review was facilitated by a

third party, Alison Gill of Bvalco, who has no

connection with the Group or individual Directors.

Bvalco follow the Code of Practice from the

Board Effectiveness Guild. A summary of the

process followed and the findings is set out on

this page.

selection of third-party

facilitator

1. Longlist

The Company Secretary reviewed the

board performance market and sought

the views of the Chair, Senior

Independent Director (SID) and Directors

with experience of the UK listed market to

compile a longlist for consideration.

A Request For Proposal (RFP) was

prepared and sent to seven potential

facilitators in March 2024.

2. Shortlist and evaluation

The responses to the RFP were reviewed

by the Chair, SID and Company Secretary,

who undertook an evaluation in terms of

approach, experience, people and value

for money.

3. Selection

A shortlist of two was considered by the

Chair and SID before Bvalco were

selected as the preferred provider and a

letter of engagement signed in May.

performance review process

1. Scoping

The scope of the review was to assess the

effectiveness of the Board and Committees,

to understand their strengths and weaknesses,

to develop a set of future priorities to continue

to improve the effectiveness of the Board in

the context of easyJet’s purpose and strategy,

and to support the SID with the annual review

of the Chair.

2. Document review

Bvalco conducted a desktop review of key

Board materials such as the Board and

Committee papers from the prior year and the

forward agenda, as well as details of easyJet’s

purpose and strategy.

3. Interviews

Fifteen in-depth interviews were held with the

individual Board members, the Company

Secretary, and some members of senior

management, including the Chief Commercial

Officer, Chief Operations Officer and CEO of

easyJet holidays. The topics for consideration

were shared prior to the individual interviews

and the discussions remained confidential at

all times.

4. Board and Committee observations

Bvalco attended the September Board and

Committee meetings to enable them to form

an independent view of the meeting dynamics,

before providing an interim report on their

findings.

5. Report and recommendations

An initial draft report was discussed with the

Chair, SID, Committee Chairs and Company

Secretary, before a final written report was

presented to the Board in November and

Bvalco invited discussion on the report’s

findings and recommendations. No views were

attributed to any individual in the final report.

2024 FINDINGS AND ACTIONS

The review found that the Board had a

number of strengths – it was engaged and

ambitious for easyJet, with substantive

evidence that it was delivering significant

and positive outcomes for the business.

The culture was found to be open and

positive, with a good collective

understanding of the issues, risks and

strategic opportunities facing easyJet and

appropriate challenge of management by

Board members. The opportunities

identified in the review included:

> The Board considering its own

objectives for FY25 and how it will

support a successful CEO and CFO

transition

> Reviewing the strategic priorities for the

coming year and how management

best leverage the Board’s expertise in

these areas

> Increasing the regularity and depth of

people and culture coverage on the

board agenda

> Revising the structure and location of

meetings to allow for greater reflective

time and an opportunity to deepen

relationships

The Committee review found that they

function well, with effective Chairs who

worked with management and advisers in

a positive, supportive and – where

necessary – challenging way to ensure

that the Committees deliver impact.

The review of the Chairman was also

positive and confirmed that Sir Stephen

Hester continued to lead the Board

successfully, had a thorough

understanding of – and was valued by –

the business and had helped embed a

mindset of continuous improvement.

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STAKEHOLDERS

As set out in the Corporate Governance Code, the

Board recognises the importance of identifying its

key stakeholders and understanding their

perspectives. They are a fundamental part of our

operations and are referenced throughout this

report. We have set out on the following pages

details of who our key stakeholders are, how we

have engaged with them and the associated

outcomes, and included some examples of

stakeholders being considered in strategic

decisions. Further details are contained in the

summary of the Board’s activities in the year on

pages 82 to 85.

As set out on pages 51 to 55, there was extensive

engagement around our sustainability activities

in the year with our people, customers,

policymakers, suppliers and industry peers.

We have not repeated these below but

incorporate by reference.

CONSIDERATIONS AND OUTCOMES

> The Board reviewed easyJet’s customer

strategy and priority to deliver ease and

reliability during the year.

> The Board visit to the ICC helped members to

understand on-the-day factors and how this

impacts the customer experience, including

identifying opportunities to deploy AI and

other technologies to improve operational

efficiencies.

> The Board received operational updates from

the COO at each Board meeting on operational

readiness, challenges around air traffic control

disruption and initiatives undertaken to

minimise disruption. In addition, they also

received regular weekly updates on trends and

metrics on operational performance. This

allowed the Board to have an oversight of

easyJet’s operational performance.

> The CSAT score improved by 76%, a 3ppts

improvement on the prior year, compared

to the previous year, and the Board continued

to regularly discuss and monitor customer

satisfaction.

A key part of our strategy is a focus on the

customer, both to win our customers’ loyalty

and to achieve our purpose of making

low-cost travel easy.

Customers have increased choice, and their

expectations are rising. Ensuring we meet their

evolving needs will position us as the brand of

choice when flying within Europe.

Our understanding of who our current and

potential customers are, how they perceive

easyJet and what products they need, enables

us to prioritise our efforts towards delivering a

positive customer experience and loyalty.

KEY FOCUS

> Safety

> Product choice

> Ease of making and managing bookings

> Ease of travelling and minimising disruption

> Sustainability

KEY ISSUES DURING THE YEAR

> Disruption due to air traffic control

shortcomings

HOW WE ENGAGE DIRECTLY

> Customer communications, including emails,

our app, call centres, our self-service disruption

management tool, our corporate website, our

dedicated sustainability website and on social

media.

> easyJet Customer Community, who share

experiences and help test messaging, policies,

products and propositions via polls, discussions,

forums, video diaries and surveys.

> Regular customer surveys to find out about

customers’ travel experiences.

HOW WE ENGAGED INDIRECTLY

> Crew feedback sessions via management and

online forums.

> Customer sentiment and satisfaction is

regularly discussed by the AMB and the Board.

> We measure our performance through our

customer satisfaction KPI (see page 19) which

is reported to the Board monthly.

> The AMB reviewed and provided feedback on

the new five-year customer strategy during

the year.

OUR CUSTOMERS

Read more on page 11

ENGAGING WITH

STAKEHOLDERS

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STAKEHOLDERS (CONTINUED)

CONSIDERATIONS AND OUTCOMES

> The Board received regular updates from our

Employee Representative Directors to ensure

our employee voice was reflected when taking

strategic decisions, including during the fleet

discussions during the year. This included

feedback from meetings with the ICC,

Holidays, Safety Security & Compliance,

Cabin Services teams and pilots.

> The Board and its Committees have

considered this feedback during its

deliberations in the year, including when

reviewing SUSO whistleblowing cases, culture

and matters such as the gender pay gap

during the year.

> The Your Voice Matters survey, which is detailed

more on pages 57 and 86 was discussed by the

Board to understand employee behaviours and

its role in measuring culture.

Our people are a critical part of our business

and we want to create an inclusive culture

where people can be their best, feel that they

truly belong and live the Orange Spirit.

Engaging effectively with them is key to doing

this successfully. More information about our

people and our approach to Inclusion and

Diversity can be found on pages 57 to 58.

KEY FOCUS

> Health, safety and working conditions

> Wellbeing and mental health

> Training and career development

> Inclusion and diversity

> Reward and benefits

KEY ISSUES DURING THE YEAR

> Crew food and uniform

> Improved healthcare benefits

> Menopause friendly accreditation

> Employee recognition

> Over-45s ‘returnships’

HOW WE ENGAGE DIRECTLY

> Employee Representative Directors’ meetings.

> Base visits and informal interaction with crew.

> Hosting events such as breakfasts with senior

leaders in order to get to know the

management layer below the AMB.

> Engagement with employee representative

groups, pilot and cabin crew unions.

> Regular internal communications.

> Participation in the Group’s performance

through employee share schemes.

> The Board received a presentation on crew

food and progress on the new crew uniform

designs, due for launch next year. This gave the

Board the opportunity to engage directly with

the crew and teams involved in the process.

HOW WE ENGAGED INDIRECTLY

> Updates from the CEO and Group People

Director on people strategy and other matters.

> Your Voice Matters employee surveys are

discussed by the AMB and Board.

> Monitoring of themes and trends arising from

the ‘Speak Up, Speak Out’ (SUSO)

whistleblowing mechanism.

OUR PEOPLE

Read more on page 12

CONSIDERATIONS AND OUTCOMES

> We have a number of key suppliers, including

aircraft and engine suppliers, ground handling

and logistics, critical technology suppliers, fuel

providers, engineering and maintenance

providers, aircraft lessors, and hoteliers,

destination management companies and

trade distribution partners for easyJet

holidays.

> The Board has engaged with the

organisations operating key airports during

the year, such as in Berlin (see page 84).

> Following the conclusion of the order for

purchase of new aircraft, Airbus presented to

the Board on their business performance and

sustainability progress.

> The AMB visited the Microsoft offices in Munich

and engaged with them on key strategic priorities

across two days.

easyJet’s suppliers have an important role in

delivering our ambition, and we strive to ensure

that they have aligned views on corporate

responsibility and compliance.

We partner with key suppliers to deliver many of

our operational and commercial activities. Our

partners are carefully selected, and significant

emphasis is placed on managing these

relationships, with the aim of encouraging

incremental innovation and performance.

KEY FOCUS

> Compliance with regulations

> Health and safety

> Treatment of suppliers

> Sustainability

> Payment practices

KEY ISSUES DURING THE YEAR

> Focused on understanding risks in our supply

chain with help from an independent third party.

HOW WE ENGAGE DIRECTLY

> Meetings between AMB members and senior

executives of major suppliers on a regular basis

to understand the strategy and health of their

businesses.

> The Board looks to engage with key suppliers

whenever appropriate, including tourism bodies

at key bases on base visits.

> Supplier forums, providing oversight from AMB

level across many areas in the organisation on

how they manage their suppliers and drive

outcomes.

> Regular review meetings between AMB

members and senior executives at London

Gatwick Airport and other key bases.

HOW WE ENGAGED INDIRECTLY

> Discussion at Audit Committee and Board with

central procurement function on supplier

management.

> Quarterly Airport Strategy Forums to discuss

operational issues across key airports and agree

on the right strategy.

OUR SUPPLIERS

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STAKEHOLDERS (CONTINUED)

> We record and publish summary videos of

seminars and business updates on our

website.

> There is also engagement with the brokers

and other advisers.

CONSIDERATIONS AND OUTCOMES

> Engagement took place in advance of the GM

relating to the aircraft purchase, and on the

resolutions being proposed at the AGM.

> Engagement also took place following the

AGM, to understand where investor policies

differed from the Company’s approach and

where any steps could be taken to address

these gaps, for example around share capital

authorities. These views will be considered

when finalising the business for the next AGM.

Shareholders and investors are the main

providers of capital to invest and grow the

Group’s business, and therefore understanding

the views of our shareholders remains a key

priority.

Taking account of their views on the Company’s

operational and financial performance and its

strategic direction is also an important part of

ensuring we deliver strong shareholder value.

KEY FOCUS

> Operational and financial performance

> Creation of long-term sustainable shareholder

value

> Share price and capital returns

> Environmental, social and governance matters

KEY ISSUES DURING THE YEAR

> Progress towards medium-term targets

> Capital allocation framework

> Management change

> Macroeconomic environment

HOW WE ENGAGE DIRECTLY

> The Board actively seeks engagement with

investors, major institutional shareholders and

shareholder representative bodies.

> The Chair, SID, CEO and CFO, together with

members of the AMB, engage with

shareholders regularly.

> The Company Secretary engages with

shareholders as required to understand their

views and policies on corporate governance

matters.

> The Chair and Committee Chairs make

themselves available for engagement with

major shareholders.

> The Investor Relations team engage with

investors, analysts and governance teams

throughout the year.

> The Remuneration Committee Chair engages

with shareholders on remuneration matters and

upon request.

HOW WE ENGAGED INDIRECTLY

> The Board are regularly updated with the views

of shareholders.

> We publish all financial result announcements

and presentations on our website.

OUR SHAREHOLDERS AND INVESTORS

Annual General Meeting

Shareholders are encouraged to participate

in the AGM either in person or remotely and

communicate directly with the Board.

Shareholders are given the opportunity to raise

issues formally at the AGM or informally with

Directors after the meeting. All Directors attend

the AGM where possible and the Chairs of the

Committees are available to answer questions.

The Company’s 2024 AGM was held on

8 February 2024, and shareholders had the

opportunity to ask questions in advance of the

meeting or during the meeting, in person and

electronically. Notice of the Company’s next

AGM, comprising a letter from the Chair, Notice

of Meeting and explanatory notes on the

resolutions proposed, will be issued separately at

the appropriate time and will also be published

on easyJet’s corporate website at

corporate.easyJet.com.

ENGAGEMENT DURING THE YEAR

The Investor Relations (IR) team and

Company Secretary proactively engage

with investors throughout the year through

an annual programme of activity, alongside

communication with market analysts and

the Company’s brokers, and attending

regular investor conferences with the CEO,

CFO and management team.

> Trading update for the year ended

30 September 2023

– Setting out new medium-term targets

– Set out proposed aircraft purchase and

purchase rights and related general meeting

– Re-instatement of dividends post-pandemic

> Full-year results

> Road shows and conferences with UK,

European and US investors with management

> Trading update for six months ended

31 March 2024

> Half-year results

> Road shows with UK, European and US

investors with management

> Capital structure seminar

> European conference with CEO and CFO

> First quarter trading update and

discussion with investors and

advisory bodies ahead of AGM

> AGM

> easyJet holidays seminar

> European conference with CFO

> UK conference with management

> Third quarter trading update

> IR road shows in Europe and UK

> London conference with IR

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STAKEHOLDERS (CONTINUED)

CONSIDERATIONS AND OUTCOMES

> We offer support for employees to volunteer

in their local communities, such as flexible

working and time off.

> This year we renewed our partnership with

UNICEF for another three years, launching our

Every Child Can Fly campaign. We also

announced that we will be supporting

Make-A-Wish International to grant the travel

wishes for children suffering with serious illness

across Europe. More information on these

partnerships can be found on page 54.

> easyJet was once again the official airline

sponsor of the Eurovision Song Contest in

Malmo, and allowed employees the chance to

take part in the celebrations.

We want to make a positive impact and we

value our relationships with the communities

where our employees and customers live and

operations are based, as they are important to

the effective operation of our business.

More information on our engagement with our

communities in relation to sustainability can be

found on pages 51 to 55.

KEY FOCUS

> Local employment and social mobility

> Sustainability, including carbon and other

aircraft emissions; aircraft noise; energy usage;

recycling and waste

> Charitable activity

KEY ISSUES DURING THE YEAR

> Net zero roadmap

> EU Emissions Trading Scheme (ETS)

HOW WE ENGAGE DIRECTLY

> Country managers lead the community

engagement in their markets, and base

managers also engage directly with their

local airport communities.

> Partnerships with individual airports and air

traffic control teams to implement reduction

in cabin waste and noise mitigation activities

that seek to minimise the impact on local

communities.

> Employee volunteering with local charities

and organisations.

HOW WE ENGAGED INDIRECTLY

> We provide updates on our progress against

our sustainability targets directly to customers

and via our corporate website.

OUR COMMUNITIES

CONSIDERATIONS AND OUTCOMES

> Meetings with various governments resulted in

confirmation of our commitment to various

markets in our network and discussed some

of the key challenges and opportunities.

> In 2023, easyJet founded Hydrogen in Aviation

(HIA) – an alliance of leading organisations

that see hydrogen-powered aircraft as a key

way to decarbonise short-haul aviation,

alongside a number of our peers. In March

2024, the HIA released its first report –

Launching Hydrogen-Powered Aviation.

> easyJet co-chairs the Alliance for Zero

Emission Aviation (AZEA) along with Airbus.

AZEA is an alliance formed of 170 companies

that operate with oversight from the European

Commission. This year it launched its vision

paper to reduce aviation’s climate impact in

Europe, which outlines goals for policymakers

and commits its industry members to action.

Regulators and governments take decisions

which directly impact our operations and

business environment. easyJet engages with

them to understand their strategic drivers and

the impact of any regulatory changes on the

Company and customers, and to ensure that

policymakers understand our business and the

social and economic benefits it delivers.

KEY FOCUS

> Advocate for policy changes that helps deliver

carbon efficiency and operational resilience

> Compliance with regulations

> Health and safety

> Sustainability

KEY ISSUES DURING THE YEAR

> Engaged with the UK Government on a number

of issues such as the unbundled pricing model

that airlines offer, the UK slot regulation, the UK

SAF mandate and the inclusion of GGRs in the

UK ETS.

> Engaged with the European Commission on

a number of issues, including reform of the

European passenger rights framework,

development of climate policy in aviation, EU

ETS carbon pricing, SAF allowances and EU

slot allocation regulations.

HOW WE ENGAGE DIRECTLY

> AMB members and senior management engage

with members of government and regulatory

bodies at a national and regional level.

> Discussions with operations and safety regulators.

> The policy team engages with officials in the

European Commission, the UK Government,

other national governments, legislators,

policymakers, industry stakeholders, non-

profits, and academia, to understand and shape

future policy,

> Discussions with air traffic control operators.

HOW WE ENGAGED INDIRECTLY

> Participation in trade associations such as

Airlines 4 Europe and Airlines UK, and tourism

bodies, such as ABTA and the GSTC.

> Participate in industry and other collaboration

groups, such as the Aerospace Technology

Institute, the Aviation Council, the EU’s Climate

Change Expert Group, Destination 2050, the

Jet Zero Council (UK Government) and

Sustainable Aviation (UK).

REGULATORS AND GOVERNMENTS

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Members

Sir Stephen Hester (Chair)

Catherine Bradley CBE

Sue Clark

Moni Mannings OBE

David Robbie

Dr Detlef Trefzger

NOMINATIONS

COMMITTEE

REPORT

COMMITTEE REPORTS

I am pleased to present an overview of the

Nominations Committee’s activities during the

year. The main purpose of the Committee is to

ensure plans are in place for orderly succession of

Board and senior management positions while

maintaining an appropriate balance of skills,

experience, independence and diversity. The

Committee regularly reviews the structure, size

and composition of the Board and makes

recommendation to the Board with regard to

any changes.

During the year, the Committee, along with the

remaining Non-Executive Directors, led the

succession planning process for Johan Lundgren

resulting in the appointment of Kenton Jarvis as

CEO designate. The Committee also supported

the search to identify Kenton’s successor as CFO,

Jan De Raeymaeker, who will join the Board in

January 2025. Further information on the

recruitment processes for both roles can be found

on page 105.

The Committee also continued to review the

Company’s wider talent and succession plans for

the Board and senior management, along with

our talent development and retention strategies.

Diversity, equity and inclusion continue to be a

key priority for the Board and the Committee was

updated on the progress in this area, including

updates to the Company’s DEI framework and

measurable goals on gender representation

across the organisation.

Further details of the Committee’s activities

during the year are set out in this report.

Sir Stephen Hester

Chair of the Nominations Committee

ACTIVITIES IN THE YEAR

BOARD COMPOSITION AND APPOINTMENTS

The Committee is responsible for the orderly

succession of both Board and senior

management positions, and oversees the

development of a diverse pipeline for that

purpose. The Committee ensures that a formal,

rigorous and transparent procedure is followed for

Board appointments based on merit and objective

criteria to ensure Non-Executive Directors can

apply their wider business skills, knowledge and

experience to the oversight of the Group, and

provide input and challenge in the boardroom to

assist in the development and execution of the

Board’s strategy. Similarly, Executive Director

appointments are made to ensure the effective

implementation of the Group’s strategy. See

overleaf for details on the Chief Executive and

Chief Financial Officer succession processes.

The Committee reviews the composition of the

Board at least annually, identifying any areas of

skills, experience and knowledge that can be

strengthened further, and identifies and

nominates candidates for approval by the Board

as required. The Committee also reviews the

membership across the Committees to ensure

they remain appropriate, and no changes were

made in the year.

INDUCTION

All Directors receive a comprehensive and tailored

induction programme on appointment, designed

through discussion with the Chair and Company

Secretary. Given Kenton Jarvis’s existing

experience as a member of the Board and AMB, a

more targeted plan will support his transition from

CFO to the CEO role.

A tailored induction plan will be developed for

Jan De Raeymaeker on appointment as CFO,

further details of which will be set out in next

year’s report.

All members of the Committee are

Independent Non-Executive Directors. Member

biographies can be found on pages 93 to 95.

The Chair of the Board acts as Chair of the

Committee with members of the executive

management invited to attend meetings. The

Company Secretary acts as Secretary to the

Committee.

The Committee met four times in the year and

meeting attendance can be found on page 92.

The Committee’s terms of

reference can be found on

the Company’s website at

corporate.easyJet.com

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COMMITTEE REPORTS (CONTINUED)

NOMINATIONS COMMITTEE REPORT (CONTINUED)

CHIEF EXECUTIVE SUCCESSION

The Committee led a thorough and inclusive

process to identify Johan Lundgren’s successor

as CEO during the year. All the Non-Executive

Directors were involved in the process which

began by reviewing the skills and experience

that would be required in any potential

successor.

Egon Zehnder (EZ) were then engaged as

search consultants to help support the process

and identify suitable external candidates. EZ

are signatories to the Enhanced Code of

Conduct for Executive Search Firms and do not

have any other connection with the Company

nor individual Directors, except where they may

have liaised with them as prospective

candidates for other positions.

EZ compiled a longlist of candidates which was

considered before being reduced to a

proposed shortlist. To ensure fairness and

consistency, EZ interviewed both the internal

and external shortlisted candidates before they

were interviewed by members of the Board in

small groups. The Non-Executive Directors

collaborated closely during the process,

regularly regrouping to discuss progress and

views on the candidates. The shortlist was very

strong, and after a final round of in person

interviews, the Committee recommended to

the Board that Kenton succeed Johan as CEO.

Kenton’s appointment was subsequently

approved by the Board and his biography can

be found on page 93.

CHIEF FINANCIAL OFFICER SUCCESSION

Given their involvement in the CEO succession

process and understanding of easyJet’s

business, culture and management, both

Kenton and the Committee felt that EZ would

be well placed to support on the CFO search.

After the role specification was finalised, EZ

compiled a longlist of candidates which was

then reviewed and reduced to a shortlist.

Interviews were held between the current CFO,

Chair, other Board members and Group People

Director. The Board were kept regularly

updated on progress and following completion

of the final interviews, the Committee sought

appropriate references and then recommended

to the Board that Jan De Raeymaeker be

appointed Chief Financial Officer.

commitment of each of the Non-Executive

Directors, with the approach to each as set out on

this page.

Following the conclusion of this year’s review, the

Board are satisfied that each Director is able to

allocate sufficient time to discharge his or her

responsibilities effectively. As evidenced by the

attendance table on page 92, the attendance

remained high and demonstrates the Directors’

ability to devote sufficient time.

INDEPENDENCE

The Board consists of 10 Directors, with over half of

the Board (excluding the Chair) being independent

Non-Executive Directors. Additionally, the Chair

was considered independent on appointment. The

composition of the Committees also complies with

the Code.

Factors such as length of tenure and relationships

or circumstances that are likely to affect, or

appear to affect, the Directors’ judgement, are

considered in determining whether they remain

independent. Non-Executive Directors do not

participate in any of the Group’s share option or

bonus schemes.

The Board is satisfied that all of the Non-

Executive Directors continue to remain

independent in character and judgement, and are

free from any business or other relationships that

could materially affect the exercise of their

judgement.

TIME COMMITMENT AND EXTERNAL APPOINTMENTS

The expected time commitment of the Chair and

Non-Executive Directors is agreed and set out in

writing in the letter of appointment, available on

our corporate website at corporate.easyJet.com.

For the Chair, this is a minimum of one day per

week, and for Non-Executive Directors a minimum

of three days per month. The Directors often

spend time in excess of this minimum

requirement, for example the Chair meets with

the CEO and other members of the AMB regularly

and undertakes regular base visits across Europe.

Details of the Directors’ attendance at the Board

and Committee meetings can be found on page

92. The core activities of the Board and its

Committees are covered in scheduled meetings

held during the year. Additional ad hoc meetings

may be held to consider and decide matters when

required. Non-Executive Directors are encouraged

to communicate directly with each other and

senior management between Board meetings.

Directors are invited to attend all Board and

Committee meetings, but in certain

circumstances meetings may be called at short

notice and, due to prior business commitments

and time differences, Directors may not always be

able to attend. Even if a Director is unable to

attend a meeting, they continue to receive the

papers and have the opportunity to discuss with

the relevant Chair or the Company Secretary any

matters on the agenda which they wish to raise.

Feedback is provided to the Directors not able to

attend on the decisions taken at the meeting.

The Chair holds regular meetings with the

Non-Executive Directors without the Executive

Directors present. There is a standing agenda item

at the end of each Board meeting for the

Non-Executive Directors to meet without the

Executive Directors present.

In addition to the regular Board meetings, and to

provide opportunities for the Board to engage

with senior management to discuss key elements

of the business, a number of Board dinners and

lunches were held, as well as a breakfast with

management detailed further on pages 81 and 86.

Executive Directors and the AMB are permitted to

take up non-executive positions on the board of one

other listed company as long as this is not deemed

to interfere with the business of the Group.

In line with the Code, Directors are required to

seek Board approval prior to taking on any

additional external appointments and by way of

example the following were approved during the

year in line with this requirement:

> Dr Detlef Trefzger’s appointment as a Non-

Executive Director of Swiss Prime Site AG and

Swissport International AG.

> Catherine Bradley’s (CBE) appointment as Chair

of the Board of Interactive Investor Limited and

future appointment as a Non-Executive Director

of Worldpay Holdco, LLC.

TALENT AND SUCCESSION PLANNING

The Committee continued to review the plans for

orderly succession so that the right balance of

appropriate skills, diversity and experience is

represented on the Board and AMB, building on

the work previously undertaken. The Committee

also recognises that building a broad and diverse

talent pipeline for executive succession, the AMB

and Executive Leadership Team (ELT) is a key

priority to lead the growth of easyJet’s business

going forward.

In addition to executing the CEO succession plan

and the appointment of an external CFO, the

Committee reviewed the Group’s senior

management talent pipeline during the year, their

development and own succession plans, as well

as progress against the talent and development

framework. The Committee has visibility of

emergency successors and those identified as

medium-term successors, and reviews the

development programme for these individuals to

understand their strengths and skill gaps.

Board members engaged with the AMB and a

number of ELT members throughout the year

during formal presentations at Board meetings, as

well as at informal breakfasts and dinners. This

provided the opportunity for them to get to know

individuals identified in the succession plans.

BOARD PERFORMANCE

Details of the 2024 Board Performance Review

are set out in full on page 99.

As part of the annual review process, and prior to

the Committee’s recommendation to the Board

on reappointment, consideration is also given to

the independence, attendance and time

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COMMITTEE REPORTS (CONTINUED)

NOMINATIONS COMMITTEE REPORT (CONTINUED)

> Moni Mannings’s (OBE) appointment as Senior

Independent Director of the Co-operative

Group Limited and Land Securities Group plc.

> Harald Eisenächer’s appointment as Chair of the

Advisory Board of Mimi Hearing Technologies

GmbH and member of the Advisory Board of

Omnevo GmbH.

Prior to these appointments, the Board

considered the time required, including whether

the role would impact the Director’s ability to

devote sufficient time to their current role, and

concluded that the appointments would not

interfere with their roles with the Company.

ELECTION AND RE-ELECTION

In line with the provisions of the Code and the

Company’s Articles of Association, each Director

is required to seek election or re-election annually

at the Company’s AGM.

The Committee is mindful of differing policies and

guidelines amongst shareholders and proxy

advisers on the number of appointments the

Directors should hold. However when reviewing the

contribution of individual Directors, the Board

reviews their attendance, their availability to attend

ad hoc meetings and their contribution outside of

meetings. Following this review, the Committee has

satisfied itself as to the individual skills, relevant

experience, contributions and time commitment of

all the Non-Executive Directors, taking into account

their other external appointments and interests

held, remains appropriate.

The Board is therefore recommending the

election or re-election of all continuing Directors

at this year’s AGM.

Details of the service agreements for the

Executive Directors and letters of appointment for

the Non-Executive Directors, and their availability

for inspection, are set out in the Directors’

Remuneration Report on page 139.

DIVERSITY, EQUITY AND INCLUSION

The Committee and the Board are committed to

ensuring that together the Directors possess the

requisite diversity of skills, experience, knowledge

and perspectives to support the long-term

success of the Company. The role of diversity in

promoting balanced and considered decision

making which aligns with the Group’s purpose,

values and strategy is fully recognised. All Board

appointments are made on an objective and

shared understanding of merit, in line with

required competencies relevant to the Company

as identified by the Committee, and consistent

with the Inclusion and Diversity Policy.

During the year, the Committee reviewed the

Company’s wider strategic approach on inclusion

and diversity as well as progress on gender

representation across the Company.

The Nominations Committee also oversees the

development of a diverse pipeline for future

succession to Board and senior management

appointments, including reviewing the gender

balance of senior management and its direct

reports. Where there is a known desire to improve

diversity at a certain level or in a certain function

in the organisation, the recruiting team will ask to

see a higher proportion of candidates fitting the

diversity criteria. However, the final selection will

always be on merit.

DIVERSITY TARGETS

The Committee is pleased to confirm that as at

30 September 2024, the Board meets the

following targets:

Target Legislation/requirement

At least 40% of the

Board being women

FTSE Women Leaders

target

FCA Diversity Targets

as required by UK

Listing Rule 6.6.6

At least one of the

senior Board positions

being held by a woman

FCA Diversity Targets

At least one member

of the Board being

from an ethnic minority

background

FCA Diversity Targets

The Company is also targeting having 40%

women on the AMB (Executive Committee) and

their direct reports by 2025 (2024: 33%). The

Company will be submitting a 10% target for

ethnic minority in senior management (AMB and

their direct reports) as required by the Parker

Review in December 2024. Further Information is

set out on page 58.

The data required by UK Listing Rule 6.6.6 for the

Board of Directors and executive management as

at 30 September 2024, is set out on page 144.

BOARD DIVERSITY POLICY

Our people are critical to our success, and as set out on pages 56 to 60 we want to create an

inclusive culture where our people can feel they belong and be at their best. This extends to the

Board and its Committees and is managed through the Board Diversity Policy.

Policy principles Outcomes

Appropriately review all

aspects of diversity in relation

to Board and Committee

composition.

The Board and Committee meet FCA diversity

targets, with 40% female, one member from an

ethnic minority, and the role of Senior Independent

Director held by a woman.

Review diversity of the Board

on an annual basis as part of

the Board Performance

Review.

This has been reviewed during the year, including

as part of the CEO succession process and Board

Performance Review.

New appointments to the

Board will be made on merit,

in the context of the

requirements of the Board at

that time.

All appointments to the Board are made on merit

reviewing the balance of skills and experience

needed on the Board. The Committee considered

these aspects before recommending the

appointment of Kenton Jarvis as CEO and Jan De

Raeymaeker as CFO.

Identify suitable candidates

based on merit against

objective criteria and with due

regard for the benefits of

diversity on the Board

including social and ethnic

background, cognitive and

personal strengths as well as

diversity of gender.

The Committee emphasises identification of

suitable candidates based on the role profile

required on the Board following discussion with the

Board members as well as considering diversity,

social and ethnic background. These requirements

are briefed to the external consultants for them to

be able to develop a role profile that suits our

purposes, including for the appointments

undertaken in the year.

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COMMITTEE REPORTS (CONTINUED)

AUDIT

COMMITTEE

REPORT

Members

David Robbie (Chair)

Catherine Bradley CBE

Sue Clark

Dr Detlef Trefzger

The Committee consists of the Independent

Non-Executive Directors listed below left. All

members of the Committee are Independent

Non-Executive Directors. Member biographies

can be found on pages 93 to 95.

The Company Secretary acts as Secretary to

the Committee and members of the executive

management are invited to attend meetings. In

addition, the Committee Chair holds regular

private sessions with the Chief Financial Officer

(CFO), senior members of the Finance team,

the Director of Risk & Assurance, and the

External Audit team, to ensure that open and

informal lines of communication exist should

they wish to raise any concerns outside formal

meetings.

The Committee met six times in the year and

meeting attendance can be found on page 92.

I am pleased to present the Audit Committee

Report for the year ended 30 September 2024.

The report sets out details of the Committee’s

main activities and key areas of focus during the

year, including:

FINANCIAL AND NARRATIVE REPORTING

The Committee continued to play a key role in

assisting the Board in its oversight responsibility

and monitoring the integrity of the financial

information for the benefit of our shareholders.

This has included challenging management on the

significant accounting judgements made in our

financial reporting, as well as reviewing the

analysis behind our going concern and viability

statements and considering the processes that

underpin the production of the Annual Report

and Accounts.

The Committee also focused on overseeing the

ongoing implementation of a monitored financial

control framework. This framework provides a

strong blueprint in preparation for compliance

with Provision 29 of the UK Corporate Governance

Code which was published earlier this year but

does not apply to the Group until its 2026-2027

financial year. We also reviewed the evolving

corporate governance reporting requirements,

particularly relating to non-financial reporting and

the EU Corporate Sustainability Reporting

Directive (CSRD).

RISK MANAGEMENT AND INTERNAL CONTROL

The Committee reviewed the effectiveness of the

system of internal control and risk management

and the process for identification and mitigation

of principal and emerging risks during the year.

The Committee is mindful of the changes

introduced in the 2024 UK Corporate Governance

Code on risk management and internal controls,

including Provision 29 referenced above, and while

these changes do not apply until later reporting

periods, it is intending to comply fully with the

requirements once they are in force.

INTERNAL AUDIT

The Committee is responsible for reviewing the

robustness and effectiveness of the Group’s

Internal Audit function and reviewed the Internal

Audit plan, reports on the work of the internal

auditor across different areas of the business and

the resourcing of the Internal Audit team.

EXTERNAL AUDIT

PwC has been easyJet’s external auditor since

2006 and has therefore served a 19-year term.

During the year, in accordance with applicable

audit legislation the Committee conducted a

competitive tender. The Committee was mindful

of best practice and ensured that the tender was

conducted in accordance with the FRC’s External

Audit Minimum Standard.

Following a comprehensive process, the Committee

recommended to the Board the appointment of

Deloitte LLP as the Group’s external auditor subject

to shareholder approval at the 2026 Annual General

Meeting. For more information on the audit tender

process see page 115.

To ensure the key issues get addressed at each

meeting, I meet with the CFO, the Director of

Reporting and Financial Control, the Director of

Risk & Assurance, and the External Audit team

before each meeting. After each Committee

meeting, I provide an update to the Board on the

key topics discussed during our meetings.

David Robbie

Chair of the Audit Committee

The Committee’s terms of

reference can be found on

the Company’s website at

corporate.easyJet.com

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COMMITTEE REPORTS (CONTINUED)

AUDIT COMMITTEE REPORT (CONTINUED)

KEY ACTIVITIES

DURING THE YEAR

FINANCIAL AND NARRATIVE REPORTING

Reviewing the integrity of the 2023

full-year financial statements and formal

announcements relating to the financial

performance of the Group.

Reviewing the information, underlying

assumptions and stress-test analysis

presented in support of the viability

statement and going concern status for

the full-year.

Receiving an update on developing

non-financial reporting and assurance

requirements.

Receiving an update on ESG assurance

and CSRD requirements.

Reviewing the integrity of the 2024

half-year financial statements and

related disclosures.

Reviewing the information, underlying

assumptions and stress-test analysis

presented in support of the going

concern status at the half-year.

Reviewing and challenging the material

areas in which significant judgements

were applied in the preparation for the

2024 full-year financial statements.

Further information is set out on pages

110 to 111.

Reviewing proposed approach in relation

to UK Corporate Governance Code

requirements and CSRD requirements in

narrative reporting.

RISK MANAGEMENT AND INTERNAL CONTROL

Reviewing the risk disclosures in the

2023 full-year financial statements.

Deep dives on corporate risks to

understand the risks, controls, and

assurances over those controls.

Confirming the adequacy and

effectiveness of the Group’s risk

management systems and internal

control processes, through evaluating

risk and assurance plans risk

assessments and control themes.

Overseeing the Group’s risk framework

and receiving an update on the results

of the control self-assessment

undertaken on the implementation of

financial controls and understanding of

the policies and processes underpinning

them.

Considering the progress made on the

financial control framework and system

implementations to strengthen the

control framework.

Reviewing existing and emerging digital

safety risks and receiving an update on

the Group’s Digital Safety (cybersecurity).

Review and approval of the Group’s

delegated authority policy.

Receiving an update on approach to

third-party risk management.

Reviewing the Group’s insurance

programme including updates on

aviation and non-aviation insurance

renewals.

NOVEMBER

MAY

FEBRUARY

SEPTEMBER

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COMMITTEE REPORTS (CONTINUED)

AUDIT COMMITTEE REPORT (CONTINUED)

COMPLIANCE, WHISTLEBLOWING AND FRAUD

Reviewing the Business Integrity

measures including the ‘Speak Up,

Speak Out’ whistleblowing process and

investigations.

Monitoring the process undertaken by

the Business Integrity team around

compliance activity undertaken within

the business and creation of a policy

framework to standardise policies across

the business.

Receiving updates on fraud investigations

and activity around fraud prevention

(including review of the fraud risk

INTERNAL AUDIT

Reviewing internal audit reports

including a review of activity, key

recommendations arising from audits

and themes across audits.

Status update on outstanding internal

audit actions including updates from

action owners, where appropriate.

Assessing the independence of the

Internal Audit function. The Audit

Committee Chair meets the internal

auditor independently to address any

issued or concerns.

Approval of the internal audit budget.

Receiving final report on the external

quality assessment of the internal audit

function.

Approving the FY25 Internal Audit Plan.

Receiving an update from the Chief

Data & Information Officer on

outstanding internal audit actions.

INTERNAL AUDIT (CONTINUED)

Reviewing the progress against the

FY24 Internal Audit Plan.

Approving the FY24 Annual Report of

Internal Audit and Business Integrity

activities and themes to explore the

common themes and trends in those

areas.

Approving the internal audit charter.

EXTERNAL AUDIT

Approving the audit fees including

review of non-audit fees to ensure they

remain in line with the Non-Audit

Services Policy.

Reviewing the external audit approach

taken by PwC, significant risks and

challenges, areas of audit focus, scope,

and materiality for the 2023 financial year.

Reviewing the effectiveness and quality

of the external audit process, taking into

consideration relevant UK professional

and regulatory requirements.

Assessing the performance and

continued objectivity and independence

of the external auditors.

Agreeing the audit tender process

including approval of the scope,

approach, and timeline.

Approval of the non-audit services

policy to ensure there is prior approval

of non-audit services.

Progress update on the external audit

tender process.

Reviewing the year end audit plan.

NOVEMBER

MAY

FEBRUARY

SEPTEMBER

NOVEMBER

MAY

FEBRUARY

SEPTEMBER

KEY ACTIVITIES

DURING THE YEAR (CONTINUED)

AREA OF JUDGEMENT / ESTIMATE

GOING CONCERN

ACTION TAKEN BY THE COMMITTEE

The Committee reviewed and

challenged management’s

assessment of base case and

downside forecast cash flows,

including sensitivity to macro-

economic uncertainties such as a

sustained downturn in demand

and higher interest rates and fuel

prices, combined with significant

operational disruption.

OUTCOME

Having considered and

challenged these downside

scenarios and reviewed the

associated going concern

disclosures in the financial

statements, the Committee was

comfortable with recommending

to the Board that it adopt the

going-concern basis of

preparation for these financial

statements.

AREA OF JUDGEMENT / ESTIMATE

DEFERRED TAX ASSET

ACTION TAKEN BY THE COMMITTEE

The Committee has considered

the recoverability of the deferred

tax asset based on the expected

future taxable income of the

Group.

AREA OF JUDGEMENT / ESTIMATE

RESTRUCTURING PROVISION AND NON-

HEADLINE DISCLOSURE

ACTION TAKEN BY THE COMMITTEE

The Committee reviewed and

challenged management’s paper

on the calculation of the

restructuring provision arising as a

consequence of the decision to

close bases in France and Italy,

and considered whether it was an

appropriate judgement to disclose

the cost as a non-headline item on

the income statement.

OUTCOME

The Committee was comfortable

with the quantum of these items

and considered the associated

disclosures to be appropriate.

OUTCOME

The Committee was in

agreement with the calculation of

the provision and its disclosure

within non-headline items.

AREA OF JUDGEMENT / ESTIMATE

PURCHASE PRICE ALLOCATION

ACTION TAKEN BY THE COMMITTEE

On 31 May 2024 easyJet acquired

100% of the issued share capital of

SR Technics Malta Ltd. Total

consideration for the acquisition

was £30 million and the Committee

assessed management’s estimates

of the fair value of assets and

liabilities acquired and therefore the

quantum of goodwill recognised.

OUTCOME

Having assessed management’s

estimates of the fair value of

assets and liabilities acquired, the

Committee was in agreement

with the quantum of goodwill

recognised as a result of the

acquisition.

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COMMITTEE REPORTS (CONTINUED)

AUDIT COMMITTEE REPORT (CONTINUED)

FINANCIAL AND NARRATIVE REPORTING

SIGNIFICANT JUDGEMENTS AND ESTIMATES

The Committee focuses on maintaining the

integrity and quality of our financial reporting,

considering the significant accounting

judgements made by management and the

findings of the external auditors. The Committee

assesses whether suitable accounting policies

have been adopted and whether management

has made appropriate estimates and judgements

through reviewing and challenging accounting

papers prepared by management. The

Committee also reviewed the reports by the

external auditors on the half-year and full-year

results, which highlighted any issues arising from

the work undertaken on the audit. The significant

issues considered in relation to the financial

statements are detailed across and on the

following page.

AREA OF JUDGEMENT / ESTIMATE

AIRCRAFT MAINTENANCE PROVISION

ACTION TAKEN BY THE COMMITTEE

The aircraft maintenance provision is the

most material provision on the consolidated

statement of financial position and the

Committee therefore reviews the provision at

both the half-year and the year-end. The

estimates and assumptions used in the

calculation of the provision are reviewed at

least annually by management, and when

information becomes available that is

capable of causing a material change to an

estimate, such as the renegotiation of end of

lease return conditions, increased or

decreased aircraft utilisation, or changes in

the cost of heavy maintenance services and

the expected uplift in future prices.

The utilisation of aircraft and the timing of

maintenance checks also impacts the

calculation of the provision. The Committee

assessed these matters using reports

received from management which detailed

the basis of the estimates and assumptions

used and challenged those assumptions to

test their validity.

AREA OF JUDGEMENT / ESTIMATE

CARRYING VALUE OF ASSETS

ACTION TAKEN BY THE COMMITTEE

The Committee considered whether the

carrying value of goodwill, landing rights,

aircraft assets and investments in subsidiaries

held by easyJet should be impaired or

otherwise adjusted. The recoverable amount

has been determined based on value in use

calculations which relies on a number of key

estimates, including the ability to meet

easyJet’s strategic plans, future fuel prices

and exchange rates, long-term economic

growth rates for the principal countries in

which it operates, its pre-tax weighted

average cost of capital and the potential

impact of climate change on forecast cash

flows. The Committee addressed these

matters by challenging management on the

stress testing performed on the calculation

of the value in use and other relevant

information used to support the carrying

value of assets. The forecasted cash flows

used in the calculation were presented to the

Board. The Committee also reviewed the

proposed disclosures, including those for the

plc entity financial statements.

OUTCOME

Having assessed the forecast cash flows and

challenged management on the downside

scenarios used to stress test the value in use

calculations, the Committee was comfortable

with management’s assertion that no

impairment was required to the carrying

value of goodwill, landing rights, aircraft

assets and investments in subsidiaries. The

Committee was also comfortable that the

proposed disclosures were appropriate.

OUTCOME

After reviewing management’s reports

detailing the basis of the estimates and

assumptions used, the Committee concluded

that the year-end maintenance provision was

appropriately valued and disclosed.

AREA OF JUDGEMENT / ESTIMATE

OTHER KEY JUDGEMENTAL ACCRUALS, PROVISIONS,

AND CONTINGENT LIABILITIES

ACTION TAKEN BY THE COMMITTEE

The Committee reviewed and challenged

the level and calculations of key accruals

and provisions which use assumptions and

estimates in their valuation and are

judgemental in nature and considered the

appropriate disclosures, including customer

claims in respect of flight delays and

cancellations and, legal liabilities and

restructuring provisions. The Committee

also considered the appropriateness of the

recognition of contingent liabilities as at

the year end.

OUTCOME

The Committee was comfortable with the

quantum of these items and considered the

associated disclosures to be appropriate.

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COMMITTEE REPORTS (CONTINUED)

AUDIT COMMITTEE REPORT (CONTINUED)

Contents

FINANCIAL AND NARRATIVE REPORTING (CONTINUED)

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AUDIT COMMITTEE REPORT (CONTINUED)

REPORTING CONTROLS

Management is responsible for maintaining

adequate internal control over the financial

reporting of the Group. A summary of the Group’s

financial results and commentary on performance

measures is provided to the Board each month.

Controls are in place over the preparation of

financial data including: balance sheet

reconciliations, review meetings on key balances

and commentary on variances to forecast and

prior periods. On a monthly basis, senior

management, including the Director of Reporting

and Financial Control, and the CFO, review the

management reporting packs.

The Annual Report and Accounts are produced

by the Group Financial Control team based on

submissions from individual teams across the

business including Investor Relations, Finance, HR,

Company Secretariat and Risk & Assurance. The

report contributors are required to maintain

supporting evidence for their submissions and

ensure they are reviewed. The figures are then

independently validated by the Group Financial

Control team. Senior members of the Finance

team including the CFO, the Director of Reporting

and Financial Control, and the Group Chief

Accountant meet with the Committee to present

key events and discuss areas of judgement or

in-depth presentations on significant areas.

The Finance team has regular proactive

conversations with the external auditors on topics

which are of audit relevance. The external auditors

perform audit procedures and challenge of the

Annual Report and Accounts and present their

findings to the Committee. The Committee

reviewed the Group’s going concern and viability

statements and considered the thorough

assessment reports prepared by management in

support of these statements. The Viability

Statement section on pages 75 to 76 provides

details of the base case and downside scenarios

applied in assessing the appropriateness of this

statement and the Committee provided robust

challenge of the assumptions applied by

management as part of this assessment.

The Committee continues to conclude that the

time period of three years used to assess the

Viability Statement remains appropriate. Based on

these assessments, the Committee confirmed

that the application of the going concern basis for

the preparation of the financial statements

continued to be appropriate and recommended

the approval of the Viability Statement.

FAIR, BALANCED AND UNDERSTANDABLE

The Committee conducted an assessment and

recommended to the Board that, taken as a whole,

the 2024 Annual Report and Accounts (which the

Board subsequently approved) is fair, balanced and

understandable, and provides the necessary

information for shareholders to assess the Group

and Company’s position and performance,

business model and strategy. In reaching this

conclusion, the Committee critically considered the

overall review and confirmation process around the

Annual Report and Accounts including:

> The input of subject matter experts, the AMB

and other senior management and, where

applicable, the Board and its Committees.

> The processes and controls which underpin the

overall review and confirmation process,

including the preparation, control process,

verification of content and consistency of

information being carried out by internal

financial controls specialists.

> Ensuring key messages are clearly summarised

and reflect the Group’s performance as a

whole, as well as provide stakeholders with

clear, concise and transparent disclosures.

> Review of the Annual Report and Accounts held

by senior management and other subject

matter experts to focus solely on the reporting

being fair, balanced and understandable.

The Committee was provided with the

opportunity to review and comment on iterations

of the draft copy of the Annual Report and

Accounts. In carrying out the above assessment,

key considerations included ensuring that there

was consistency between the financial statements

and the narrative provided in the front half of the

Annual Report, and that there was an appropriate

balance between the reporting of weaknesses,

difficulties and challenges, as well as successes, in

an open and balanced manner, including linkage

between key messages throughout the

document.

NON-FINANCIAL REPORTING

The ESG reporting landscape continued to be an

area of significant regulatory development. The

Group has begun to assess new disclosures with

reference to the requirements including the EU

Corporate Sustainability Reporting Directive

(CSRD), including assessing ‘readiness’ to report

against material topics, and the Committee has

received updates as set out in the activity for the

year. Our Task Force on Climate-related Financial

Disclosures (TCFD) is set out on pages 61 to 65.

The Non-Financial and Sustainability Information

Statement on pages 77 and 78 and Streamlined

Energy and Carbon Reporting (SECR) in alignment

with the greenhouse gas protocol on page 44.

RISK MANAGEMENT AND INTERNAL CONTROL

The Board as a whole, including the Committee

members, considers the nature and extent of

easyJet’s risk appetite that is acceptable to

achieve the Group’s strategic objectives and for

ensuring that an appropriate culture has been

embedded throughout the organisation. The

Committee has reviewed the work undertaken by

management on the assessment of the Group’s

emerging and principal risks, including their

impact on the prospects of the Group. Details

about our corporate risk framework, principal and

emerging risks can be found on pages 67 to 74.

During the year, the Committee continued to

review the development of the corporate risk

management framework and risk appetite,

including the process for identifying, evaluating

and managing the Company’s principal risks. The

programme, led by the Risk & Assurance function,

focuses on understanding current and emerging

risks and how these are managed in line with the

risk appetite, developing a risk and assurance

map, and implementing a consistent risk scoring

mechanism and risk taxonomy to cover all risks.

This activity included:

> Reviewing the Company’s principal and

emerging risks.

> Reviewing and adjusting the risk themes and

categorisation of corporate risks to ensure

alignment with strategic priorities.

> Understanding risk appetite, validating the

perceived risk appetite of management and

the Board.

> Undertaking deep dives into corporate risk

areas focusing on critical risks.

> Reviewing the implementation of Riskonnect,

a comprehensive risk management system,

enhancing risk identification, assessment and

mitigation efforts.

easyJet’s system of internal controls, along with

its design and operating effectiveness, which

includes the Group’s financial reporting process,

is subject to review by the Committee, through

reports received from management, along with

those from both internal and external auditors.

Any control deficiencies identified are followed up,

with action plans tracked by the AMB and the

Committee.

To ensure the robustness of our financial controls

the Committee continued to monitor the progress

of the financial control improvement programme

and received updates during the year on

management’s implementation of control

improvements. Management has also worked to

implement a system which will facilitate the

ongoing monitoring of the operation of key

financial controls, through a combination of

self-certification (or attestation) by control

operators and independent testing of the

operation of controls by appropriate compliance

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AUDIT COMMITTEE REPORT (CONTINUED)

teams. The Committee undertook regular reviews

of the effective operation of these key financial

controls in the year and no significant control

gaps had been identified and there were no

significant financial control deficiencies identified

by the Committee during the year.

As a result of this annual review of the

effectiveness of the risk management and internal

control systems, which the Committee undertakes

on behalf of the Board, it is considered that the

Board has fulfilled its obligations under the Code.

COMPLIANCE, WHISTLEBLOWING AND FRAUD

Building on the foundation laid in FY23, the

Committee continued to receive regular updates

on the Group-wide compliance and assurance

framework throughout FY24. This framework,

implemented in the previous year, includes a

standardised approach to managing and assuring

all policies across the organisation (Group-wide

Policy Management Framework) and a process

for identifying and managing supplier compliance

with our policies (Supplier Relationship

Management Framework). These elements ensure

consistent application, clear ownership and

efficient monitoring of policies, while mitigating

potential risks associated with non-compliant

suppliers.

Demonstrating its commitment to ethical

conduct, the Group maintains a robust

whistleblowing mechanism called ‘Speak Up,

Speak Out’ (SUSO). This empowers employees to

confidentially raise concerns, fostering a culture of

openness and accountability in line with the Code

requirements. The Board and Committee receives

regular reports on SUSO’s effectiveness. The

Committee assists the Board in ensuring that

adequate arrangements are in place for the

proportionate and independent investigation of

such matters and for appropriate follow-up action,

with trends being regularly reported to the Board.

Furthermore, the SUSO mechanism offered

multilingual support and benefits from

management oversight by the Business Integrity

Committee, which guarantees fair outcomes,

identifies root causes of concerns, and implements

corrective actions. Any matters of significance are

reported to the Committee and the Board, along

with a comprehensive full-year report.

As a result, the increase in SUSO cases continued

in FY24, with a total of 354 cases received,

compared to 233 cases in FY23. All reports were

followed up, triaged to relevant areas of the

business, and investigated where appropriate. The

Committee was pleased to see both the increased

use of the whistleblowing channels and

appropriate action taken for underlying themes.

To ensure mitigation against fraud risks,

management has refreshed the Group’s Anti-Bribery

and Corruption risk assessment and will launch a

wider fraud investigation framework across the

Company in early FY25. In addition, new roles have

been created in the Revenue Protection team to

conduct cross-Group investigations. The Committee

received updates on anti-fraud activities throughout

FY24 as well as issues identified because of deep

dives and any mitigating actions developed. In

addition, the Committee has been kept up to date

with changes to fraud legislation and how we will

meet these requirements.

INTERNAL AUDIT

The Committee is responsible for overseeing the

work of the Internal Audit function, which provides

independent and objective assurance to

management, the Committee, and the Board on

the effectiveness of the Group’s risk management

and internal controls. The purpose, scope and

authority of Internal Audit is defined within its

charter which is approved annually by the

Committee. To safeguard independence, the

Director of Risk & Assurance has a dual reporting

line into the Chair of the Audit Committee and

CFO and can meet privately with the Committee

without management. External providers can be

engaged where specific skills are required.

The Committee reviews and approves the scope

of the Internal Audit annual plan and resourcing

levels. Increased focus on financial processes and

controls was included in FY24 and future audit

plans. The Committee also reviews continuous

improvement in the audit methodology. Members

have access to detailed Internal Audit reports and

the Committee assesses the quality of Internal

Audit reports and considers management’s

actions to address findings.

At each Committee meeting, an update is

received on progress against the Internal Audit

annual plan and the status of the closure of

recommended actions. The Committee received

detailed updates on audits with limited assurance

including recommended action plans and

management responses. The Committee also

considers stakeholder feedback on the quality of

Internal Audit work.

INTERNAL AUDIT EFFECTIVENESS

The Internal Audit function underwent an

independent External Quality Assessment (EQA)

by Forvis Mazars during the year. The objective of

the EQA was to assess the conformance of the

function with the standards issued by the Institute

of Internal Auditors (IIA) and Code of Practice

issued by the UK-based Chartered Institute of

Internal Auditors (CIIA).

The EQA concluded that the Internal Audit

function was well established, collaborated closely

with senior management, holds frequent

meetings to identify emerging risks and ensures

that the annual audit plan effectively addresses

easyJet’s most significant threats.

While the Internal Audit function currently delivers

valuable insights, the review identified an

opportunity to further leverage their expertise

through increased participation in strategic

change initiatives, where their insights can

promote efficiency, strong governance and robust

risk management. These areas of improvements

as recommended by Forvis Mazars have been

incorporated into an action plan which was shared

and agreed with the Committee. Forvis Mazars

also provided an update to the Committee on the

key highlights of the EQA.

Taking all these elements into account, the

Committee concluded that the Internal Audit

function was an effective provider of assurance

over the Group’s risks and controls, and

appropriate resources were available as required.

EXTERNAL AUDIT

The Committee has a primary responsibility of

overseeing the relationship with the external

auditors, including assessing its performance,

effectiveness, and independence annually and

making a recommendation to the Board on their

appointment, reappointment, and removal. PwC,

as the external auditors, is engaged to conduct a

statutory audit and express an opinion on the

Group’s financial statements. During the year,

PwC presented the strategy and scope of the

audit undertaken as well as the areas of focus

providing an opportunity for the Committee to

monitor progress and raise questions. PwC shared

insights and feedback with management and

refined the planned audit approach for the

financial year ended 30 September 2024. The

external audit plan and the fee proposal of £1.7

million for the financial year (2023: £1.5 million)

was prepared by PwC and presented to the

Committee for consideration and approval.

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COMMITTEE REPORTS (CONTINUED)

AUDIT COMMITTEE REPORT (CONTINUED)

EXTERNAL AUDITOR EFFECTIVENESS

The Committee is focused on ensuring the external

auditors deliver a high-quality audit and plays an

essential role in overseeing the Group’s relationship

with the external auditors to ensure their

independence, the quality of the external audit

process and provide challenge where necessary.

The Committee has regular engagement with the

external auditors, including meetings without any

member of management being present. It also

assesses the effectiveness, independence,

objectivity, and quality of the external auditors by

reviewing, among other things:

> The audit approach and the planning process

for the delivery of efficient and effective audit,

areas of focus, scope and level of fees for

the audit.

> Quality of the external auditors’ plans and

reports, in particular those summarising audit

work performed to address significant risks and

critical judgements identified, and detailed audit

testing thereon.

> Key accounting and audit judgements and how

the external auditors have challenged

management in reaching a conclusion.

> Reviewing the findings from the audit (or

management letter) and other communications

with the Committee, to assess whether it is

based on a good understanding of the

Company’s business.

> Reviewing and discussing FRC audit quality

inspection reports.

> Quality, knowledge and expertise of the Audit

Engagement team, the nature of their interaction

with management and Audit Committee

members, and the culture they display.

> Expertise of the audit team conducting the

audit and the independence demonstrated by

the external auditors.

The Committee was satisfied that the agreed

audit plan had been met and that the external

audit process had provided appropriate focus to

those areas identified as the key risk areas to be

considered by the Committee and that the

auditors had challenged management as part of

the process. It had also continued to address the

areas of significant accounting estimates. On this

basis, and considering the views of senior

management, including the CFO and Director of

Financial & Reporting Controls (including the

quality of interaction between the audit partner

and senior members of the audit team and the

Company) the Committee concurred that the

external audit had been effective and was of a

high standard.

EXTERNAL AUDITOR INDEPENDENCE AND OBJECTIVITY

The Committee also assesses the independence

and objectivity of the external auditor through the

assurances provided by the external auditors on

the independence, challenges to management on

significant accounting judgements and

professional scepticism. In addition, oversight of

the Non-Audit Services Policy and level of fees

paid, as well as employment of former PwC

employees, are also considered in determining the

independence of the external auditors.

PwC confirmed that they have complied with the

UK regulatory and professional requirements,

including the ethical standard issued by the FRC

including assurance that all of PwC’s partners and

staff are independent of any links to the Group.

To preserve objectivity and independence,

the external auditors do not provide consulting

services unless this is in compliance with the

Group’s Non-Audit Services Policy which reflects

the applicable audit regulations and the FRC’s

Revised Ethical Standard on permitted services.

The policy also covers the approach around

hiring former external audit employees to

avoid any conflict of interest and to protect

external auditor independence. This policy is

available to view on the Company’s website at

corporate.easyJet.com.

The policy sets out the categories of non-audit

services and related approvals required, and those

non-audit services which the auditors are

prohibited from undertaking. Certain audit-related

non-audit services are deemed pre-approved by

the Committee but only up to a value of

£100,000, such as reporting on regulatory

returns. Other non-audit services require Audit

Committee approval as set out in the policy. An

additional protection is provided by way of a

non-audit services fee cap.

The Committee (or the Company) may not

approve an engagement of the external auditors

if annual non-audit services fees would exceed

70% of the average audit fees (not including fees

for audit-related services or for services required

by regulation) charged in the previous three

financial years.

During the year, PwC undertook non-audit

services for the Company with a total value of

£0.6 million, as set out in note 3 to the financial

statements. These fees were within the limit of

the non-audit services fee cap mentioned above

and included audit-related non-audit service fees

of £0.2 million (principally for performing the

half-year review) and other assurance related

non-audit services fees of £0.4 million, primarily

related to a working capital review to support the

Airbus order transaction, ESG assurance and the

Euro Medium Term Programme.

AUDIT COMMITTEES AND THE EXTERNAL AUDIT:

MINIMUM STANDARD

This Audit Committee Report describes how the

Audit Committee has complied with each of the

provisions of the Minimum Standard during the

year (the ‘External Audit’ section of this report).

An explanation of Group’s accounting policies is

provided on pages 159 to 167.

There were no shareholder requests for certain

matters to be covered in the audit during the year

and there were no regulatory inspections of the

quality of Company’s audit.

CMA ORDER

The Company confirms that it has complied with

the provisions of the Statutory Audit Services for

Large Companies Market Investigation (Mandatory

Use of Competitive Tender Processes and Audit

Committee Responsibilities) Order 2014 relating to

tendering and non-audit services.

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COMMITTEE REPORTS (CONTINUED)

AUDIT COMMITTEE REPORT (CONTINUED)

EVALUATION CRITERIA

A panel including members of the Finance and

Procurement teams along with subject matter

experts reviewed and evaluated all the responses

(including where appropriate subsequent

meetings, visits and presentations). The top two

scoring firms were then invited to present to the

Committee. The non-discriminatory evaluation

criteria against which the firms were assessed

included the following:

> Quality of the audit team and personnel

> Appropriateness of the audit approach

> Audit service, including reporting and

deliverables

> Audit quality

> Transition plans including the approach to and

experience of transition

> Response to pre-set technical scenario to

demonstrate approach to assessing a

judgemental topic

RECOMMENDATION

Following the conclusion of the comprehensive

process above, the Committee recommended

the Board consider two firms as potential external

auditors with a preference for Deloitte LLP. The

Board subsequently approved the appointment of

Deloitte LLP as the external auditors of the

Company from 1 October 2025, subject to the

approval of shareholders at the 2026 AGM, as on

balance, Deloitte LLP performed best against the

Committee’s evaluation criteria including quality,

technical competence and independence. PwC will

remain as the Group’s statutory auditors until

30 September 2025. A process will commence

during 2025 where Deloitte will shadow PwC for the

half-year review process and full-year audit process.

AUDIT TENDER PROCESS AND TIMELINE

The Committee finalised the

approach and timeline for the audit

tender process.

A Request for Information (RFI) was

issued to six audit firms, including

three challenger firms, to gather

information on their capabilities and

experience .

FEBRUARY

MAY

JUNE

JULY

Responses to the RFI were received

from all six firms.

MARCH

A Request for Proposal (RFP) was

issued to five firms, including the

Big Four and challenger audit firms.

One challenger firm did not

participate as they were unable to

audit our finance subsidiary in the

Netherlands.

Information was provided to

participating firms to allow them to

design an audit plan, including

details of financial controls and

policies; Group structure and

organisation charts; and relevant IT

system details. Each firm met with

management in order to

understand easyJet’s ‘Ways of

Working’.

APRIL

RFPs were submitted by

participating firms setting out

their capacity and expertise,

proposed transition plan, audit

approach and areas of focus and

response to a technical scenario

demonstrating their audit

approach and understanding of

our business.

The submission was assessed and

independently scored by an

Evaluation Panel comprised of

CFO, Director of Reporting &

Financial Control, Group Chief

Accountant, Head of Financial

Control for easyJet holidays, and

Procurement Manager. Three

firms were selected to present to

the Selection Committee.

The Selection Committee

received presentations from each

firm which enabled them to probe

on criteria including quality review

ratings; technical expertise;

understanding of the business

and airline industry; planned audit

approach; proposed team

structure; and transition plans.

A scorecard approach was used to

objectively assess the audit quality

of each firm and the Selection

Committee shortlisted two firms

for the Audit Committee’s

consideration.

Audit Committee members

received a presentation from the

shortlisted firms and probed the

capability and approach of their

respective teams in a Q&A session.

The Audit Committee

recommended two firms to the

Board with a preference for

Deloitte LLP.

The Board approved the

appointment of Deloitte LLP as the

external auditors of the Company

from 1 October 2025, subject to

shareholder approval at the 2026

AGM.

External

audit tender

PwC was first appointed to audit the Annual

Report and Accounts for the year ended

30 September 2006 and has therefore

served a 19-year term. Under applicable audit

legislation, companies are required to have a

mandatory rotation of auditors after 10 years,

or 20 years if there is a competitive retender

at 10 years. During the 2015 financial year, the

Committee led a tender process for external

audit services, following which the

Committee agreed to recommend that the

Board reappoint PwC as, on balance, it

performed best against the Committee’s

pre-agreed selection and assessment criteria.

PwC cannot therefore continue as Group

auditors beyond the financial year ending

30 September 2025.

As indicated in the previous report the

Committee undertook a competitive tender

process during the current year to identify

new external auditors that could be in place

from 1 October 2025. This timing enables an

appropriate ‘cooling-off’ period for existing

services provided by the new auditors to be

tendered to a new supplier in good time.

The tender process was led by the Chair of

the Audit Committee, supported by a

Selection Committee which comprised the

Committee Chair, the CFO and the Director

of Reporting & Financial Control. The full

Committee was kept updated throughout

and its primary objective was to ensure a fair

and transparent tender process, and to

appoint the audit firm that provided the

highest quality in the most effective and

efficient manner. The Committee considered

the FRC guidance on audit tenders and the

External Audit: Minimum Standard published

by the FRC in May 2023.

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COMMITTEE REPORTS (CONTINUED)

I am pleased to present the Finance Committee

Report for the year ended 30 September 2024.

This report provides an outline of the key activities

of the Committee during the year in overseeing

the Group’s treasury operations and funding

activities.

The Committee provides oversight by reviewing

and monitoring the Group’s liquidity and hedging

approach, treasury activities and associated risks

in this area. The Committee is also responsible for

reviewing and recommending to the Board any

financing arrangements that may be appropriate

for the Company to enter into, including aircraft

financing. In doing so, it assists the Board in the

effective discharge of its duties in relation to

balance sheet considerations, financing options

and treasury arrangements.

During the year, the Committee continued to

focus on ensuring the Company’s approach to

hedging and treasury strategies remained

appropriate. This included a liquidity review

including an assessment of the instruments

easyJet uses for its investments.

The Committee also approved the refresh of the

Company’s Euro Medium Term Note (EMTN)

Programme and the issuance of €850 million of

bonds under it. Over 200 investors participated in

the issue, and part of the proceeds will be used to

repay existing debt as it matures.

After each Committee meeting, I presented an

update to the Board on the key issues discussed

during our meetings.

Catherine Bradley CBE

Chair of the Finance Committee

The Committee’s terms of

reference can be found on

the Company’s website at

corporate.easyJet.com

Members

Catherine Bradley CBE (Chair)

David Robbie

Harald Eisenächer

The Committee consists of the Independent

Non-Executive Directors listed below left. All

members of the Committee are Independent

Non-Executive Directors. Member biographies

can be found on pages 93 to 95.

The Company Secretary acts as Secretary to

the Committee, and members of the executive

management and other non-executive

members of the Board are invited to attend

meetings.

The Committee met three times in the year and

in March 2024 considered, and approved, the

Bond issuance in writing. Meeting attendance

can be found on page 92.

FINANCE

COMMITTEE

REPORT

COMMITTEE ACTIVITIES DURING THE YEAR

FEBRUARY 2024

> EMTN Programme refresh and potential

bond issuance

> Funding strategy and alternative funding

options

> Foreign currency hedging

MARCH 2024

> Bond issuance

MAY 2024

> Liquidity review

> Treasury risk management strategy

> Aircraft lease extension and aircraft

retirement plan

SEPTEMBER 2024

> Capex hedging strategy review

> Rating agency update

> Card acquiring review

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COMMITTEE REPORTS (CONTINUED)

FINANCE COMMITTEE REPORT (CONTINUED)

COMMITTEE ROLE AND ACTIVITIES IN THE YEAR

LIQUIDITY

The Committee continued to monitor the

Company’s liquidity during the year, including

where cash balances were held. easyJet has a

clear policy of holding liquidity of at least

Unearned Revenue plus £500 million that

protects customers’ money and creates a buffer

for shock events. The Committee received regular

updates to ensure that the Company was

forecasting liquidity in excess of its policy after

considering future debt maturities and capital

expenditure.

HEDGING

easyJet minimises cash flow and income

statement volatility by hedging its largest financial

exposures. The Committee monitored the

hedging activity on an ongoing basis through

review of jet fuel, USD and Euro policies and

ensured the hedging policies were benchmarked

appropriately.

FUNDING

The Committee reviewed and recommended to

the Board the refresh of the Company’s EMTN

Programme, which had originally been established

in January 2016. The refresh of the EMTN

Programme allows easyJet to access a diverse

range of funding alternatives.

Following the renewal of the EMTN Programme,

the Committee reviewed easyJet’s capital

structure and recommended to the Board the

issuance of an €850 million Eurobond. This bond

was executed in March and matures in 2031. The

transaction itself was more than four times

oversubscribed and easyJet managed to achieve

a coupon of 3.75%. The proceeds of this issuance

will be used for general corporate purposes as

well as for the repayment of debt at maturity.

AIRCRAFT

During the year, the Committee also received an

update on aircraft lease extensions which had

been approved by the Board in February 2024.

This provided the Committee with insight into the

negotiations, market conditions and an update on

progress against easyJet’s fleet plan.

The Committee also considered wider fleet

financing options available to easyJet. The

Committee agreed with management that bond

issuances remained easyJet’s preferred source of

liquidity but other options would be considered

when making future financing decisions.

CUSTOMER PAYMENTS

The Committee reviewed the Group’s position

with credit card acquirers and the trends in the

payment industry. easyJet’s customer payment

strategy aims to provide cost savings and

enhanced customer satisfaction.

OTHER MATTERS

The Committee reviewed the counterparty credit

limits assessing that they were suitable for

easyJet’s liquidity position and also reapproved

the Treasury Policy capturing all approved

changes.

The Group finishes the year in a strong financial

position with a net cash position of £181 million

and a strong liquidity position of £5.1 billion.

The Committee reviewed easyJet’s credit rating

position and noted the upgrade of rating from

Moody’s from Baa3 to Baa2 in February 2024.

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Members

Dr Detlef Trefzger (Chair)

Sue Clark

Ryanne van der Eijk

COMMITTEE REPORTS (CONTINUED)

I am pleased to present the Safety & Operational

Readiness Committee Report for the year ended

30 September 2024.

Following last year’s updates to the Committee’s

role and terms of reference, the Committee has

continued to focus on safety issues through

regular reviews of safety statistics and KPI

dashboards, and reviews of existing and emerging

risks to understand how the risk landscape was

changing going forward.

The Committee also received updates on winter

2023 and summer 2024 operational readiness

across all areas of operations (internal and

external), general operational resilience, key issues

and action plans.

After each meeting, the Board is updated on the

key issues discussed during the Committee

meetings.

Dr Detlef Trefzger

Chair of the Safety & Operational

Readiness Committee

The Committee’s terms of

reference can be found on

the Company’s website at

corporate.easyJet.com

The Committee consists of the Independent

Non-Executive Directors listed below left.

Member biographies can be found on pages

93 to 95.

The Company Secretary acts as Secretary to

the Committee and attends all the meetings.

As does the Chief Operating Officer and

Director of Safety, Security & Compliance.

Other members of the executive management

team are invited to attend all or part of the

meetings as appropriate or necessary, including

the CEO, Head of Safety, Director of Flight

Operations and Director of Engineering &

Maintenance.

The Committee met four times in the year and

meeting attendance can be found on page 92.

SAFETY &

OPERATIONAL

READINESS

COMMITTEE

REPORT

COMMITTEE ACTIVITIES DURING THE YEAR

NOVEMBER 2023

> Approach to mental health

> Hangar 89 management system

> Winter readiness

FEBRUARY 2024

> Risk categorisation

> Summer 2023 performance review

MAY 2024

> Review of low performing routes

> Sky simulator

> High risk event escalation

> Summer readiness

SEPTEMBER 2024

> Safety Plan FY25–FY30

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COMMITTEE REPORTS (CONTINUED)

SAFETY & OPERATIONAL READINESS COMMITTEE REPORT (CONTINUED)

COMMITTEE ROLE AND ACTIVITIES IN THE YEAR

SAFETY STRATEGY

Our Safety, Security and Compliance Plan

supports our promise of ‘safety at our heart’

for our people, our customers, our suppliers

and those affected by our activities, in

terms of operational safety, health and

safety, occupational health, compliance and

environmental protection. The Committee

monitored the progress made against the

FY22–FY27 Plan and reviewed the safety

performance against the plan as well as

keeping track of the longer-term

deliverables. The Committee also reviewed

the new FY25–FY30 Safety Plan, and will

monitor progress against the new plan

moving forward.

SAFETY PERFORMANCE

The Committee oversaw the safety issues

and performance against the risk framework

through safety dashboards and trends. This

allows the Committee to understand

easyJet’s safety performance in each area of

the business as well as highlight current and

emerging threats and risks at easyJet and

the aviation industry as a whole and actions

taken to mitigate them.

SAFETY GOVERNANCE

To ensure that easyJet’s Safety, Security

and Compliance team was adequately

resourced and had the appropriate

information to perform its functions

effectively and in accordance with the

relevant professional standards, the

Committee received regular reports from

the Director of Safety, Security &

Compliance. These reports provided

assurance to the Committee on the Safety,

Security and Compliance programme.

The Director of Safety, Security & Compliance

reports regularly to the AMB, the Committee

and the Board. He has the right of direct

access to the Committee Chair and to the

Chair of the Board, which reinforces the

independence of safety oversight.

OPERATIONAL READINESS

Operational readiness is key to delivering a

safe, efficient and reliable operation for

easyJet’s winter and summer schedule. The

governance review of the Committee’s role

highlighted the importance of the

Committee receiving updates on

operational readiness on a regular basis to

ensure resources, infrastructure and

processes were in place to deliver an

efficient operation.

As a result, the Committee received

detailed reports from the Chief Operating

Officer on seasonal planning, recruitment

and training, fleet, ground handling,

engineering and maintenance as well as

specific base and air traffic control issues

and mitigations.

Winter readiness

The Committee reviewed the seasonal readiness

for winter 2023 to ensure tasks across all

departments were on schedule, and that cross-

departmental communications were in place to

deal with issues faced in the previous winter, for

example ensuring there were adequate de-icing

stock levels and that the relevant training had

been completed.

Hangar 89 resilience

The Committee was updated on business

resilience in relation to Hangar 89, easyJet’s Luton

head office, following a flooding incident. The

update included mitigations being put in place to

protect the management systems run out of

Hangar 89.

Low-performing routes

The Committee received an update on the routes

and flights which were the most under-performing

operationally, and what the primary disruption

drivers were. The Committee discussed the

proposals on how to mitigate the operational issues

and improve the overall situation on those routes.

Digital safety risks

The Committee received an update on digital

safety risks and the different action and project

groups that had been established to monitor and

mitigate digital safety risks both internally and

with external suppliers.

DEEP DIVES DURING THE YEAR

Whilst monitoring the areas described to the left,

a number of deep dives were undertaken across

a wide range of topics and these included the

following:

Summer 2023 performance

The Committee received an update on operational

and safety performance during summer 2023. The

update covered the disruption experienced during

the period, which was caused by a number of

different factors including wildfires, NATS outage,

storms and halting operations to Tel Aviv. It also

covered the effect of this disruption on reporting

rates, the safety outcomes and highlighted the key

drivers for any increase in reporting.

Summer readiness

The Committee received regular updates on the

operational readiness for summer 2024 and any

action plans to mitigate issues that had arisen in

the previous summer.

Mental health

The Committee received updates on employee

mental health and what was being done in this

area to address the risks associated with it and

improve resources such as awareness training and

peer support programmes.

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DIRECTORS’ REMUNERATION REPORT

REMUNERATION

COMMITTEE

REPORT

Members

Moni Mannings OBE (Chair)

David Robbie

Harald Eisenächer

The Committee consists of Independent

Non-Executive Directors, listed below left.

Member biographies can be found on

pages 93 to 95.

The Company Secretary acts as Secretary of

the Committee. Other key invitees include the

Chief Executive, the Group People Director, the

Reward Director, the Chief Financial Officer and

external advisers as relevant.

The Committee met four times during the year.

Meeting attendance can be found on page 92.

ANNUAL STATEMENT BY THE CHAIR OF THE

REMUNERATION COMMITTEE

THE 2024 FINANCIAL YEAR

It has been another successful year for easyJet,

delivering continued progress towards our

medium-term targets with performance

surpassing most of our competitors. Revenue has

been strong, increasing by 14% and we have seen

continued delivery in the growth of easyJet

holidays. This is despite a sometimes challenging

operational environment and the ongoing

conflicts in Ukraine and the Middle East. We have

also opened two new bases in Birmingham and

Alicante in 2024 with three aircraft at each base

and agreed an order for 157 Airbus A320neo

family aircraft.

Overall, easyJet achieved a strong performance in

the 2024 financial year with a pre-tax headline profit

of £610 million compared to £455 million for the

2023 financial year, an increase of 34%. We

continued to grow capacity with an 8% increase to

100.4 million seats on sale with an overall load factor

of 89.3% for the year. easyJet holidays made a

significant contribution to overall Group outcomes

with a PBT performance of £190 million, an increase

of £68 million from 2023.

INCENTIVE OUTCOMES

ANNUAL BONUS

The FY24 annual bonus was based 30% on PBT

performance, 50% on a balanced scorecard of

key performance targets including ROCE, cost

programme performance, on-time performance

and customer satisfaction (CSAT), and 20% on

individual performance including measures linked

to sustainability, strategy, balance sheet resilience,

inclusive culture and employee engagement.

These measures were selected to align with our

key priorities for the year. As was the case last

year, the Committee chose to use a balanced

scorecard approach to assess performance for

50% of the bonus to ensure that the bonus

provided a balanced incentive to drive

performance across a range of key strategic and

operational areas and to provide flexibility to

determine that payouts were fair, taking into

account the underlying performance and

stakeholder experience.

Our financial performance during the year was

strong with PBT performance between target and

maximum. We also delivered excellent CSAT

scores along with strong ROCE and on-time

performance. The CEO and CFO’s performance

against their individual strategic objectives were

considered to be excellent and a summary of key

achievements are provided on pages 134 and 135.

Whilst as a business we have delivered an

improved on-time performance overall, we did

experience some external operational challenges

due to the industry environment we are operating

in and this led to some flight cancellations. The

Committee was conscious of the knock-on impact

that this has on our customers’ experience. The

Committee was careful to consider this when

determining the annual bonus outcomes, noting

that our overall customer experience scores were

also above our stretch target for the year.

The Committee agreed that performance in the

year resulted in an outcome of 64% out of a

maximum score of 80% across the PBT and

scorecard measures, whilst delivery in full of

personal objectives resulted in an outcome of

20% out of a maximum score of 20% in the year.

Overall this resulted in a total payout of 84% of

maximum. The Committee considered that the

overall bonus outcome is appropriate in the

context of performance in the year and the

experience of wider stakeholders so no discretion

was applied.

Therefore, the final bonuses agreed were £1,362,329

for Johan Lundgren (84% of maximum), and

£840,540 for Kenton Jarvis (84% of maximum), of

which one-third will be deferred under our Deferred

Share Bonus Plan (DSBP).

RESTRICTED SHARE PLAN

2022 RSP

Following the year end the Committee assessed

the underpins attached to the Restricted Share

Plan (RSP) award made in February 2022. These

underpins were that easyJet does not fall below

its minimum liquidity target through the three-

The Committee’s terms of

reference can be found on

the Company’s website at

corporate.easyJet.com

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year performance period (1 October 2021 to

30 September 2024), and that there is

satisfactory governance performance including

no ESG issues that result in material reputational

damage to the Company. The Committee

operated a third underpin requiring that the

Company’s performance as a whole could not

materially underperform what might reasonably

be expected for the sector for reasons

attributable to management action or inaction.

The Committee assessed the overall performance

achieved over the three-year period and

determined that the underpins had been met,

and that the 2022 RSP awards should vest in full.

BOARD CHANGES

In May 2024, we announced our Chief Executive

Officer (CEO) succession plan, and that Johan

Lundgren will step down as CEO and leave

easyJet on 1 January 2025, having served seven

years as CEO. At that time Kenton Jarvis will

succeed Johan as CEO. Johan will then remain

with the business until the conclusion of his notice

period on 16 May 2025 during which period he will

support the business as required.

In October 2024, we announced that Jan De

Raeymaeker will be joining the Board as Chief

Financial Officer with effect from 20 January

2025.

Remuneration arrangements for both Kenton and

Jan in their new roles can be found on page 122

and 130. Johan Lundgren will be treated in

accordance with easyJet’s remuneration policy

and his service contract for the remaining term of

his employment. He will be treated as a good

leaver for the purpose of incentives. Details of his

remuneration terms on departure can be found

on page 141.

POLICY RENEWAL AT THE 2025 AGM

In accordance with the mandatory three-year

period, we will submit a Policy for shareholder

approval at the 2025 Annual General Meeting

(AGM). The Committee has therefore conducted a

thorough review of our Policy, including the

current model of an annual bonus and RSP.

We introduced the RSP during the last policy cycle

in 2021, and believed it was the best approach to

reward our senior management. The rationale for

this approach included (i) the asset heavy nature of

easyJet’s business which requires long-term

decision making to deliver sustainable value; (ii) the

alignment of management with the experience of

shareholders through the linking of reward

outcomes with the share price; (iii) the impact of

external factors outside of management’s control

on the performance of the business; and (iv) the

alignment with the reward structure below

Board-level where RSP awards are awarded.

Since 2021, easyJet has evolved as a business, and

we have set clear medium-term targets focused

on creating shareholder value which includes the

ambition to deliver annual PBT of more than £1

billion. Our CEO succession plan is intended to

maintain our positive momentum and to continue

the strong progress we have made towards these

medium-term targets.

Given this context, we carefully considered

whether the RSP remained appropriate or whether

to include a performance-based Long Term

Incentive Plan alongside the RSP. The Committee

concluded that the RSP continues to align

management with shareholders and encourages

our executives to focus on making the right

decisions for the creation of long-term shareholder

value. Therefore, considering the upcoming change

of CEO, the Committee did not believe it was the

right time to make any significant changes to the

structure of executive remuneration.

As the business evolves, we will continue to review the

incentive plan structure, aiming to incorporate an

element linked to achieving our medium-term targets.

We greatly value our shareholders’ perspectives on our

remuneration framework and will continue to consult

with them before making any significant changes to

ensure alignment and understanding with your views.

IMPLEMENTATION OF REMUNERATION FOR FY25

Looking ahead to FY25 the Committee has

continued to consider the operation of our incentive

plans, including the performance measures and

targets used for the annual bonus, and the

performance underpins for RSP awards.

After consideration, the Committee determined that

although the approach used in FY24 remained

broadly fit for purpose, to ensure continued

alignment with KPIs and motivation in progress

towards our ambitious medium-term goals, some

amendments and rebalancing of performance

conditions under the Annual Bonus are proposed:

> 30% PBT (same as FY24)

> 10% ROCE (moved from the balanced scorecard

to a standalone metric)

> 10% Profit per seat (new measure for FY25)

> 30% Balanced scorecard (costs, customer

satisfaction and on-time performance)

> 20% Individual (same as FY24)

The Committee feels this updated approach will

ensure a continued focus on the delivery of financial

results whilst retaining a strong focus on customer

and operational targets.

The RSP will continue in the same form as last year.

As previously disclosed, Kenton Jarvis’ salary as

CEO has been set at £800,000, and Jan De

Raeymaeker’s salary as CFO has been set at

£550,000. Both salaries are set at a lower level

than those of their predecessors but are aligned

with the experience and deep knowledge of the

transport and airline sector that both individuals

bring to their roles. Across easyJet in 2025, the

weighted average salary increase for all

employees is c.6%.

A review and benchmarking of Non-Executive

Director (NED) fees was also conducted to ensure

alignment with time commitment and contributions

to the Board. As a result, the Chair’s fee was set at

£375,000, representing a c.9% increase.

Additionally, a 3.5% increase was approved for

both base NED fees and Committee Chair fees

whilst a new fee of £6,000 for Committee

Membership will be introduced in FY25.

These increases are considered proportionate in

the context of the growing time commitment,

complexity, and experience required of our NEDs.

WORKFORCE PAY AND ENGAGEMENT

As in previous years, members of the Board

in their roles as the Board’s Employee

Representative Directors, met with employees in

a succession of meetings over the year. These

meetings provide an opportunity for the Board to

hear directly from our employees to understand

the employee voice and bring that back to inform

our Committee deliberations.

Whilst the Committee closely reviews the

approach for executive reward, the Committee

also considers the wider remuneration

arrangements within easyJet to ensure that these

are aligned with the approach for executive

rewards and the broader reward philosophy. As

we did last year, the Committee received a

detailed update from management on the

developments in reward strategy across all

employee groups, including pilots, cabin crew,

M&A and engineering. This continues to provide

the Committee with a wider perspective on the

Company’s approach to reward to inform

decisions around pay for Executive Directors and

Airline Management Board (AMB) members when

compared to our lower-paid colleagues. The

Committee also takes a close interest in the

position on gender pay at easyJet and how any

issues are being addressed, through regular

reporting as well as developments to support the

future broader reporting of reward across other

prescribed groups.

We continue to undertake regular dialogue with

colleague consultative groups to gather their

feedback on remuneration and benefits at

easyJet, including the remuneration approaches

for executives and other colleague groups. As in

previous years, regular meetings are held with the

Reward Director and the Group People Director to

discuss developments in reward over the year,

whilst structured meetings have also been held

with members of the AMB.

On behalf of the Committee, I would like to thank

shareholders for their continued support during

2024 and ahead of the next AGM.

Moni Mannings OBE

Chair of the Remuneration Committee

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REMUNERATION AT A GLANCE

Reward principles Application in remuneration framework

Simple and

cost-effective

To establish a simple and cost-effective

reward package in line with our low-cost

and efficient business model.

Aligned

with business

strategy

To support the achievement of our

business strategy of long-term sustainable

growth and returns. The combination of

our annual bonus plan based on a mix of

financial, operational and strategic targets

and our long-term Restricted Share Plan

ensures that value is delivered to

shareholders and that Executive Directors

are rewarded for the successful and

sustained delivery of the key strategic

objectives of the Group.

Sustainable

long-term

success

Total remuneration is weighted towards

elements which align with sustainable

long-term shareholder value creation.

This ensures that there is a clear link

between the value created for

shareholders and the amount paid

to our Executive Directors.

Mindful of the

wider stakeholder

experience

Notwithstanding the financial

performance of the business, overall

remuneration outcomes will be mindful

of the wider stakeholder experience to

ensure Executive Director remuneration

remains fair, responsible and sustainable.

FIXED PAY

Salary

CEO

£803k

CFO

£567k

Pension

Amount of salary

6.15%

Benefits

> Life assurance

> Other insurances

> Travel expenses

Implementation for FY25: From 1 January 2025 Kenton Jarvis’ salary as CEO will be £800,000, and from 20 January 2025 Jan De

Raeymaeker’s salary as CFO will be £550,000. The approach to Benefits and Pension will be aligned with the above.

LONG-TERM INCENTIVES

Implementation for FY25: No changes to the operation of the RSP.

February 2022

RSP award

CEO:

125% of salary

CFO:

100% of salary

FY24 outcomes — 84% of maximum

Implementation for FY25: No change to opportunity levels. Performance measures will be 30% PBT (same as FY24), 10% ROCE (moved

from the balanced scorecard to a standalone metric), 10% Profit per seat (new measure for FY25), 30% Balanced scorecard (costs, customer

satisfaction and on-time performance), 20% Individual (same as FY24)

Measure Threshold (10%) Target (50%) Max (100%) Actual % of max

PBT (30%) £400 million £535 million £670 million £586 million 68.9%

Balanced scorecard (50%)

Cost programme £135 million £145 million £155 million £177 million

Balanced

scorecard

outcome:

86.6%

ROCE 12% 15% 18% 15.7%

Customer satisfaction 73.1% 74.6% 76.1% 76.2%

On-time performance -1 Industry avg. 1 0.5%

Individual performance (20%) n/a On target Max fully achieved 100% 100%

ANNUAL BONUS

Maximum

opportunity

Paid in

cash

Awarded as a

share option

that vests over

three years

JOHAN LUNDGREN

CEO

200%

KENTON JARVIS

CFO

175%

2/3 1/3

Three-year performance

period to September 2024

Two-year holding period to

December 2026

Underpins

> That easyJet does not fall below its

minimum liquidity target (such that a

credit risk is triggered) through the vesting

period.

> That there is satisfactory governance

performance, including no ESG issues that

result in material reputational damage to

the Company (as determined by the

Board).

> That the Company’s performance taken as

a whole does not materially underperform

what might reasonably have been expected

for the sector for reasons attributable to

management action or inaction.

> It is the view of the Committee that there

is no reason to consider that the underpins

have not been met for these awards, and

these will vest at 100% in December 2024,

subject to the two-year holding period

that will run to December 2026.

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100%

30% 38%

Minimum

Mid

Maximum

Maximum with 50% share price increase

859,434

£2,

659,434

£3,

459,434

3,959,434

32%

25%

22%

46%

40%

29%

38%

100%

30% 34%

Minimum

Mid

Maximum

Maximum with 50% share price increase

£594,059

£1,625,309

£2,106,559

£2,381,559

37%

28%

25%

46%

40%

26%

35%

DIRECTORS’ REMUNERATION REPORT (CONTINUED)

REMUNERATION AT A GLANCE (CONTINUED)

IMPLEMENTATION OF THE REMUNERATION POLICY FOR FY25 (£’000) ON AN FTE BASIS

ILLUSTRATION OF REMUNERATION POLICY TIMELINES

KENTON JARVIS (CHIEF EXECUTIVE)

JAN DE RAEYMAEKER (CHIEF FINANCIAL OFFICER)

The diagram sets out detail on the period of time that Executive Directors are required to retain shares from the annual bonus and RSP. It also shows for

how long malus and/or clawback provisions could be applied to incentives.

Performance period

Fixed

Holding/deferral period

Annual bonus

Subject to malus and/or clawback

Restricted Share Plan (RSP)

FY25 FY26 FY27 FY28 FY29 FY30

ANNUAL

BONUS

CASH AWARD

DEFERRED SHARE AWARD

RESTRICTED

SHARE PLAN

ROLE OF THE REMUNERATION COMMITTEE

The key role of the Committee is to make recommendations

to the Board on executive remuneration packages and to

ensure that the Remuneration Policy and practices of the

Company reward fairly and responsibly, with a clear link to

corporate and individual performance.

KEY ACTIVITIES DURING THE YEAR

> Undertook a review of the Directors

Remuneration Policy and liaised with key

stakeholders to consider whether it remained

appropriate.

> Assessed the level of performance in respect

of the bonus for the 2024 financial year, and

RSP awards granted in February 2022 and

vesting in December 2024, to determine

appropriate payouts.

> Reviewed and approved remuneration

arrangements related to CEO and CFO

succession.

> Undertook a review of the reward

frameworks in easyJet across M&A, pilots,

cabin crew and engineering.

> Reviewed and approved the remuneration

packages for the new AMB members.

> Reviewed the total packages and service

contracts of the AMB and senior

management.

> Reviewed the outcome of the AGM and

agreed appropriate actions following

engagement with shareholders.

> Considered the results and implications of

the UK gender pay gap report and reviewed

and commented on recommendations to

address the gap and challenges faced by the

aviation sector.

> Reviewed and approved the all-colleague

Performance Share Award in respect of the

2024 financial year.

> Provided oversight on the broader

remuneration framework for the wider

workforce across easyJet and, in particular,

the response to retaining key colleagues and

the cost of living crisis.

On balance, having taken into account a number

of internal and external measures as well as the

pay ratio analysis, the Committee believes the

proposed remuneration decisions in this report

appropriately reflect the needs of the business

and long-term interests of shareholders. The

Committee also believes the Remuneration

Policy operated as intended in terms of

reflecting Company performance and the overall

level of quantum delivered was considered

appropriate given the business context.

REMUNERATION COMMITTEE KEY

RESPONSIBILITIES

> To set the Remuneration Policy for all

Executive Directors and the Company’s Chair.

> To set the remuneration packages for the

AMB and monitor the principles and

structure of remuneration for other senior

management.

> To oversee remuneration and workforce

policies and practices and take these into

account when setting the policy for Executive

Directors and AMB remuneration to ensure

that they remain reasonable and appropriate

in comparison with the wider workforce and

external market.

> To approve the design of, and determine

targets for, all colleague share schemes

operated by the Group.

> To oversee any major changes in colleague

benefit structures throughout the Company

or Group.

> To review and monitor the Group’s compliance

with relevant gender pay reporting requirements.

> To assess that all incentives implemented are

consistent with Company culture and

purpose.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

REMUNERATION AT A GLANCE (CONTINUED)

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

DIRECTORS’ REMUNERATION POLICY

This part of the Directors’ Remuneration Report sets out easyJet’s Directors’ Remuneration Policy. This

policy will be put to shareholders for approval in a binding vote at the Company’s next AGM, currently

intended to be held on 13 February 2025, and will be effective from this date, if approved by

shareholders. The Committee’s current intention is that the policy will operate for a three-year period.

As outlined in the Remuneration Committee Chair’s statement, following a detailed review of the

Remuneration Policy, the Committee has concluded that the current structure remains appropriate,

supporting the execution of our strategy and the creation of long-term shareholder value.

There are no other major changes to this policy compared to the 2022 Directors’ Remuneration Policy.

Minor changes have been made to the wording of the policy in certain areas to aid operation and to

increase clarity.

ROLE OF THE REMUNERATION COMMITTEE

The Remuneration Committee has responsibility for determining remuneration for the Executive

Directors, the Chair of the Board, and members of the Airline Management Board. The Committee takes

into account the need to recruit and retain executives and ensure that they are properly motivated to

perform in the long-term interests of the Company and its shareholders, while paying no more than is

necessary. In addition, the Committee will review and be appraised of the application of the

Remuneration Policy for senior management and all employee populations across the Group to ensure

that decisions remain mindful of the wider employee experience.

In determining the new Directors’ Remuneration Policy, the Committee followed a robust process which

included discussions on the content of the policy at Remuneration Committee meetings during the year.

The Committee considered input from management and independent advisers, as well as taking into

account feedback provided by major shareholders and proxy and advisory services.

CONSIDERATIONS WHEN DETERMINING THE REMUNERATION POLICY

The primary objective of the Directors’ Remuneration Policy is to align management interests with the

long-term interests of shareholders and to promote the sustainable long-term success of the business

by operating pay arrangements which are appropriately competitive. When setting the policy for

Executive Directors’ remuneration, the Committee takes into account total remuneration levels operating

in companies of a similar size and complexity as well as companies in the wider aviation and travel and

leisure sector, the responsibilities of each individual role, individual performance and an individual’s

experience.

Our overall policy, having given due regard to the factors noted above, is to weight remuneration

towards elements which align management with sustainable long-term shareholder value creation.

This is typically achieved through setting base pay at a competitive level, offering modest benefits with

pension provision at similar levels to the wider UK workforce, and providing the potential to earn a

performance-based annual bonus linked to Group financial and strategic or operational targets. An

award of restricted shares supports long-term decision making and aligns management’s interest with

those of shareholders.

CONSIDERING THE VIEWS OF EMPLOYEES WHEN DETERMINING THE REMUNERATION POLICY

In setting remuneration for the Executive Directors, the Committee takes note of the overall approach to

reward for employees in the Group. Salary increases will ordinarily be (in percentage of salary terms) no

higher than those of the wider workforce (other than in circumstances described on page 126).

The Board has appointed three Non-Executive Directors as Employee Representative Directors. The

Employee Representative Directors meet individually with the Company’s European Works Council

(EWC) and Management & Administration Consultative Group (MACG) at least once a year, and other

works councils and other groups of employees on a periodic basis. In addition, other more informal

engagement also takes place. A standing agenda item allows the Employee Representative Directors to

report to the Board regularly on their discussions, and they are encouraged to bring the employee voice

into conversations in the boardroom whenever possible, including any matters that may contribute to

the decision making of the Committee.

During the year Catherine Bradley met with the MACG to discuss a range of topics and answer their

questions. Feedback was received on the reward framework at easyJet and what changes may be

considered in the future to support retention and engagement. In addition Moni Mannings met with the

Safety, Security & Compliance team and also with easyJet holidays colleagues. Whilst Ryanne van der

Eijk met with colleagues in the Integrated Control Centre and the easyJet pilots group.

In addition, the Group People Director and the Reward Director meet with the EWC and MACG to

update them on reward activities, answer questions and receive feedback, which is then reported to the

Committee.

CONSIDERING THE VIEWS OF SHAREHOLDERS WHEN DETERMINING THE REMUNERATION POLICY

easyJet remains committed to shareholder dialogue and takes an active interest in voting outcomes.

We consult extensively with our major shareholders when considering any significant changes to our

remuneration arrangements. The Committee also considers shareholder feedback received in relation

to the Directors’ Remuneration Report each year following the AGM. This, plus any additional feedback

received from time to time, is then considered as part of the Committee’s annual review of the

remuneration policy and its implementation.

The Committee also considers developments in best practice expectations from institutional investors’

and the views expressed by shareholders during any dialogue when making executive remuneration

decisions.

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DIRECTORS’ REMUNERATION POLICY

REMUNERATION STRUCTURE

The table below sets out the main components of easyJet’s remuneration policy:

Element, purpose

and link to strategy

Operation (including maximum

levels where applicable)

Framework used to assess performance and provisions

for the recovery of sums paid

Base salary

To provide the core

reward for the role.

Set at a sufficient level

to recruit and retain

individuals of the

necessary calibre to

execute the Company’s

business strategy.

Salaries are normally reviewed annually, with changes typically effective from 1 January.

Salaries are typically set after considering salary levels in companies of a similar size and

complexity as well as companies in the wider aviation and travel and leisure sector, the

responsibilities of each individual role, progression within the role, individual performance,

and an individual’s experience. Our overall policy, having given due regard to the factors

noted, is normally to target salaries at a broadly market competitive level in the context of

the total package.

Salaries may be increased, and any increase will ordinarily be no higher than those of the

wider workforce (in percentage of salary terms).

However, increases beyond those granted to the wider workforce (in percentage of salary

terms) may be awarded in certain circumstances such as to reflect performance,

significant changes in market practice or the size of the Company, to recognise changes

in roles and responsibilities or where a new Executive Director has been appointed to the

Board at a lower than typical market salary to allow for growth in the role or other

exceptional circumstances.

The Committee considers individual salaries at the appropriate Committee meeting each

year after having due regard to the factors noted in operating the salary policy.

No recovery provisions apply to base salary.

Benefits

In line with the

Company’s policy to

keep remuneration

simple and consistent.

Executive Directors are entitled to a combination of modest benefits aligned to the

market, such as life assurance and other insurance arrangements as well as a range

of voluntary benefits including the purchase of additional holiday.

The Company provides Directors’ and Officers Liability Insurance and may provide

an indemnity to the fullest extent permitted by the Companies Act (see Directors’

Report section).

Where required, a car allowance or the use of a driver for Company business may

be provided.

Executive Directors shall be reimbursed for all reasonable business expenses and the

Company may settle any tax incurred in relation to these where appropriate.

Where an Executive Director is required to relocate to perform their role, appropriate

one-off or ongoing benefits may be provided (such as housing support, schooling etc).

Executive Directors are also eligible to participate in any all-employee share plans operated

by the Company, in line with HMRC guidelines currently prevailing (where relevant), on the

same basis as for other eligible employees.

The Committee may introduce other benefits or allowances if it is considered appropriate

to do so.

Not applicable.

No recovery provisions apply to benefits.

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Element, purpose

and link to strategy

Operation (including maximum

levels where applicable)

Framework used to assess performance and provisions

for the recovery of sums paid

Pension

To provide employees

with long-term savings

via pension provisions in

line with the Company’s

strategy to keep

remuneration simple

and consistent.

Defined contribution plan with the same monthly employer contributions as those offered to

eligible employees in the wider UK workforce (i.e. up to 7% of base salary); or a cash

alternative to the same value, which will normally be less the equivalent value of employer

National Insurance contribution costs. A combination of pension contribution and the balance

as a cash alternative may also be offered to meet UK pension taxation requirements.

easyJet operates a pension salary sacrifice arrangement whereby all UK employees, including

Executive Directors, can exchange part of their salary for Company-paid pension

contributions. Where employees exchange salary this reduces employer National Insurance

contributions. easyJet credits half of this National Insurance reduction (currently 6.9% of the

salary exchanged) to the individual’s pension plan.

Not applicable.

No recovery provisions apply to employer pension contributions.

Annual bonus

To incentivise and

recognise execution of

the business strategy

on an annual basis.

Rewards the

achievement of annual

financial and operational

goals.

Deferral of a portion of

the bonus provides

alignment with

shareholders.

Maximum opportunity of 200% of salary for Chief Executive and 175% of salary for

other Executive Directors.

One-third of the pre-tax bonus earned is normally subject to deferral into an award over

shares under the DSBP (or equivalent), typically for a period of three years, and is

normally subject to continued employment. Deferral may be scaled back (including

to zero) where shareholding guidelines have been met.

The remainder of the bonus is typically paid in cash.

Dividend equivalent payments may be made on the deferred bonus and may assume

the reinvestment of dividends.

All bonus payments are at the discretion of the Committee, as set out following this table.

Bonuses are normally based on stretching financial and non-financial measures, which may

include personal or strategic performance measures.

Performance measures are set and assessed by the Committee at its discretion, with

performance normally measured over a one-year period.

Financial measures will normally represent the majority of the bonus, with other non-

financial measures representing the balance. Bonus awards made against the targets set at

Threshold would be 10% of the maximum opportunity, with 50% awarded for Target

performance.

Safety underpins all of the operational activities of the Group and the bonus plan includes a

provision that enables the Committee to scale back the bonus earned (including to zero) in

the event that there is a safety event which it considers warrants the use of such discretion.

The annual bonus plan includes provisions which enable the Committee (in respect of both

the cash and the deferred elements of bonuses) to recover or withhold value in the event of

certain defined circumstances, as set out on page 129.

The Committee may, at its discretion, adjust the level of bonus payout if it considers that

the payout would not reflect the underlying performance of the executive, the Group, the

experience of shareholders, other stakeholders or if such a level would not be appropriate in

the circumstances.

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Element, purpose

and link to strategy

Operation (including maximum

levels where applicable)

Framework used to assess performance and provisions

for the recovery of sums paid

Restricted Share Plan

(RSP) award

To incentivise the

execution of the

business strategy over

the longer term.

Rewards sustained

increase in shareholder

value.

Each year RSP awards may be granted. Awards normally vest over a three-year period.

A holding period applies to RSP awards which requires the Executive Directors to retain

the post-tax value of shares for 24 months from the vesting date.

The maximum opportunity contained within the plan rules for RSP awards is 125% of salary

(with awards up to 150% of salary eligible to be made in exceptional circumstances).

The normal maximum face value of annual awards will be 125% of base salary for the

Chief Executive and 100% of base salary for other Executive Directors.

Dividend equivalent awards may be made on RSP awards that vest and may assume

the reinvestment of dividends.

Awards will be subject to performance underpins normally measured over the vesting

period. If the Company does not meet one or more of the underpins the Committee would

consider whether it was appropriate to scale back the level of payout under the award to

reflect this.

The Committee would retain discretion to determine what level of scale back, if any, was

appropriate.

The RSP includes provisions which enable the Committee to recover or withhold value in

the event of certain defined circumstances, as set out on page 129.

The Committee retains discretion to review the performance underpins, and to set the

triggers for each underpin.

The Committee may, at its discretion, adjust the vesting level of an award if it considers that

the vesting level would not reflect the underlying performance of the executive, the Group,

the experience of shareholders, other stakeholders or if such a level would not be

appropriate in the circumstances.

Share ownership

To ensure alignment

between the interests of

Executive Directors and

shareholders.

The Chief Executive and the Chief Financial Officer are required to build and maintain a

holding equivalent to 250% and 200% of salary respectively. Executive Directors are

required to retain 50% of the post-tax shares vesting under the RSP and 100% of the

post-tax deferred bonus shares until the guideline is met.

Not applicable.

Post-employment

share ownership

guideline

Executive Directors are required to hold up to 100% of their shareholding requirement for

two years after stepping down from the Board (or their total shareholding, if they have

not met their shareholding requirement at the date of stepping down from the Board).

The Committee retains discretion to waive this guideline if it is not considered appropriate

in the specific circumstances.

Not applicable.

DISCRETION RETAINED BY THE COMMITTEE IN OPERATING THE INCENTIVE PLANS

The Committee will operate the annual bonus plan and RSP according to their respective rules (or

relevant documents) and in accordance with the UK Listing Rules where relevant. The Committee retains

discretion, consistent with market practice in the operation and administration of these plans. In relation

to the annual bonus plan, the Committee retains discretion over:

> the participants

> the timing of a payment

> the determination of the bonus payment

> decision making in relation to the treatment of remuneration in the event of a change of control

> determination of the treatment of leavers based on the rules of the plan and the appropriate

treatment chosen

> the annual review of performance measures and weighting, and targets for the annual bonus plan

from year to year.

In relation to the RSP and DSBP, the Committee retains discretion on the following:

> the participants

> the timing of grant of an award

> the size of an award

> the determination of vesting

> the payment vehicle for the award/payment

> decision making in relation to the treatment of awards in the event of a change of control

> determination of the treatment of leavers based on the rules of the plan and the appropriate

treatment chosen

> adjustments required in certain circumstances (e.g. rights issues, corporate restructuring events and

special dividends).

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In relation to both the Group’s RSP and the annual bonus plan, the Committee retains the ability to adjust

the targets (in the case of the annual bonus) or underpins (in the case of the RSP) and/or set different

measures if events occur which cause it to determine that the conditions are no longer appropriate (e.g.

material acquisition and/or divestment of a Group business), and the amendment is required so that the

conditions achieve their original purpose and are not materially less difficult to satisfy.

Any use of the above discretions would be explained in the relevant Annual Report on Remuneration

and may be the subject of consultation with the Company’s major shareholders.

The use of discretion in relation to the Group’s Save As You Earn, and Share Incentive Plans will be as

permitted under HMRC rules and the UK Listing Rules.

Details of outstanding share awards granted to existing Executive Directors are set out on page 136.

These remain eligible to vest based on their original award terms.

Malus and clawback provisions are included in the annual bonus plan, DSBP and RSP: the annual bonus

(up to three years from date of payment/award), and the RSP (up to six years from the date of award).

The circumstances in which malus and clawback could apply may include some or all of the following as

determined by the Board:

> A material misstatement resulting in an adjustment to the Company’s audited consolidated accounts.

> The determination of the number of shares subject to an award or the assessment of any

performance condition was in error or based on inaccurate or misleading information.

> The Board determining in its reasonable opinion that any action or conduct of the participant

amounts to serious misconduct, fraud, or gross misconduct.

> That there has been a material failure of risk management.

> That there has been a safety incident which has damaged the reputation of the Company to a

material extent.

> That there has been serious reputational damage.

> That there has been a material corporate failure.

> Any other circumstances which the Board in its discretion considers to be appropriate.

PERFORMANCE METRICS AND TARGET SETTING

The choice of the performance metrics applicable to the annual bonus plan reflect the Committee’s

belief that any incentive compensation should be appropriately challenging and tied to the delivery of a

blend of key financial and non-financial measures. These bonus measures are intended to ensure that

Executive Directors are incentivised to deliver across a range of objectives for which they are

accountable. Financial measures will normally be used for the majority of the bonus and will be selected

in order to provide a clear indication of how successful the Group has been in managing operations

effectively overall. Overall the company measures will account for 80% of the bonus award. The

remainder of the bonus may be based on key operational or strategic objectives, set for the Executive

Directors, which are set annually and account for the remaining 20% of the bonus opportunity.

Since safety is of central importance to the business, the award of any bonus is subject to an underpin

that enables the Committee to reduce the bonus earned (including to zero) in the event that there is a

safety event that it considers warrants the use of such discretion.

RSP awards are subject to performance underpins. These are intended to represent a minimum level of

performance below which vesting may not be appropriate. The performance underpins will normally be

linked to key financial, operational or governance minimum standards. Underpins are set taking into

account what would be considered to be a minimum acceptable level of performance. The Committee

may reduce the level of vesting (including to nil) if it considers this to be appropriate having regard to

performance against the underpins.

The Committee has retained flexibility on the specific measures which can be used for the annual bonus

plan and the underpins for the RSP to ensure that they will be fully aligned with the strategic imperatives

prevailing at the time they are set. Performance targets are set taking into account internal and external

expectations of performance to align with our remuneration philosophy and principles.

No performance targets are set for Save As You Earn awards since these are purposefully designed to

encourage employees across the Group to purchase shares in the Company. A measure of Group

performance based on financial and operational targets set in the prior year is used in determining

awards under the Share Incentive Plan.

HISTORICAL AWARDS

The Committee reserves the right to make any remuneration payments and/or payments for loss of office

(including exercising any discretions available to it in connection with such payments) notwithstanding that

they are not in line with the policy set out above where the terms of the payment were agreed (i) before

the policy set out above came into effect, provided that the terms of the payment were consistent with

any applicable shareholder-approved Directors’ remuneration policy in force at the time they were agreed

or where otherwise approved by shareholders; or (ii) at a time when the relevant individual was not a

Director of the Company (or other persons to whom the policy set out above applies) and, in the opinion

of the Committee, the payment was not in consideration for the individual becoming a Director of the

Company or such other person. For these purposes ‘payments’ include the Committee satisfying awards

of variable remuneration and, in relation to an award over shares, the terms of the payment are ‘agreed’ no

later than the time the award is granted. This policy applies equally to any individual who is required to be

treated as a Director under the applicable regulations.

DIFFERENCES IN PAY POLICY FOR EXECUTIVE DIRECTORS COMPARED TO OTHER EASYJET EMPLOYEES

In line with the Group’s policy to keep remuneration simple, aligned, and performance-based, the benefit

and pension arrangements for the current Executive Directors are typically on broadly the same terms

as those offered to eligible UK employees in the wider workforce. In addition, all employees have the

opportunity to participate in a number of broad-based share plans.

However, the overall remuneration policy for the Executive Directors is more heavily weighted towards

variable and share-based pay than for other employees. This is to ensure that a greater proportion of

executive pay is linked directly to the creation of value for shareholders. This approach is to create a clear

link between the value created for shareholders and the remuneration received by the Executive Directors.

DIRECTORS’ REMUNERATION REPORT (CONTINUED)

DIRECTORS’ REMUNERATION POLICY

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£859,434

100%

£800,000

30%

£1,000,000

38%

Minimum

Mid

Maximum

Maximum with 50% share price increase

£859,434

£2,659,434

£3,459,434

£3,959,434

£859,434

32%

£859,434

25%

£859,434

22%

£1,600,000

46%

£1,600,000

40%

£1,000,000

29%

£1,500,000

38%

£594,059

100%

£481,250

30%

£550,000

34%

Minimum

Mid

Maximum

Maximum with 50% share price increase

£594,059

£1,625,309

£2,106,559

£2,381,559

£594,059

37%

£594,059

28%

£594,059

25%

£962,500

46%

£962,500

40%

£550,000

26%

£825,000

35%

DIRECTORS’ REMUNERATION REPORT (CONTINUED)

DIRECTORS’ REMUNERATION POLICY

ILLUSTRATION OF HOW MUCH THE EXECUTIVE DIRECTORS COULD EARN UNDER THE REMUNERATION POLICY

The charts below show how much the Chief Executive and Chief Financial Officer could earn, on an FTE

basis, through easyJet’s remuneration policy under different performance scenarios in the 2025 financial

year. The following assumptions have been made:

Minimum (performance below threshold) – fixed pay only (including the value of benefits received in

FY24), with no vesting under any of easyJet’s incentive plans.

Mid (performance in line with expectations) – fixed pay plus a bonus at the mid-point of the range

(giving 50% of the maximum opportunity), plus 100% vesting of the Restricted Share Plan.

Maximum (performance meets or exceeds maximum) – fixed pay plus maximum bonus, plus 100%

vesting of the Restricted Share Plan.

Maximum plus 50% increase in share price (performance meets or exceeds maximum) – fixed pay

plus maximum bonus, plus 100% vesting of the RSP and easyJet’s share price increases by 50%.

Fixed pay comprises:

Salaries – salary effective as at 1 January 2025 for Kenton Jarvis and 20 January 2025 for Jan De

Raeymaeker.

Benefits – amount receivable in the 2024 financial year. For the purposes of the charts below, the

amount received by Kenton Jarvis in his role as CFO in the 2024 financial year have been included.

Pension – employer contributions or cash-equivalent payments receivable in the 2025 financial year.

The scenarios shown above do not include any dividend assumptions. It should be noted that since the

analysis above shows what could be earned by the Executive Directors based on the Remuneration

Policy described above, these numbers will differ to values included in the table on page 133 detailing

the actual earnings by Executive Directors.

Chief Executive (Kenton Jarvis)

Fixed

Annual bonus

RSP

Chief Financial Officer (Jan de Raeymaeker)

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

DIRECTORS’ REMUNERATION POLICY

EXECUTIVE DIRECTORS’ TERMS OF EMPLOYMENT

The Group’s policy is for Executive Directors to have service contracts which may be terminated with no

more than 12 months’ notice from either party. There are no provisions in the service contracts that

would impact on application of the Directors Remuneration Policy.

The Executive Directors’ service contracts are available for inspection by shareholders at the Company’s

registered office.

APPROACH TO LEAVERS

If notice is served by either party, the Executive Director will continue to receive basic salary, benefits

and pension for the duration of their notice period, during which time the business may require the

individual to continue to fulfil their current duties and/or may assign a period of garden leave.

A payment in lieu of notice may be made, and, in this event, the Committee’s normal policy is to make

the payment in up to 12 monthly instalments which may be reduced if alternative employment is taken

up during this period.

For good leavers, bonus payments may be made on a pro-rata basis, taking into account the period of

time served from the start of the financial year to the date of termination. Any bonus paid would

normally be subject to the normal bonus targets, tested at the end of the financial year. Any bonus for

the year of cessation of employment may be paid wholly in cash.

In relation to a termination of employment, the Committee may make any payment in relation to

statutory entitlements or to settle or compromise claims in connection with a termination of any existing

or future Executive Director as necessary. The Committee also retains the discretion to reimburse

reasonable legal expenses incurred in relation to a termination of employment, to meet any

outplacement costs or cost of a similar nature if deemed necessary. A payment may be made in

respect of untaken annual leave.

The rules of the Company’s share plans set out what happens to awards if a participant ceases to be an

employee or Director of easyJet before the end of the vesting period. Generally, any outstanding share

awards will lapse on such cessation, except in certain circumstances.

If an Executive Director ceases to be an employee or Director of easyJet as a result of death, injury,

retirement, the sale of the business or company that employs the individual, or any other reason at the

discretion of the Committee, then they will be treated as a ‘good leaver’ under the relevant plan’s rules.

Under the DSBP, the shares for a good leaver will normally vest in full on the normal vesting date (or on

cessation of employment in the case of death) and if the award is in the form of an option, there is a

12-month window in which the award can be exercised. Awards structured as options which have vested

prior to cessation can be exercised within 12 months of cessation of office or employment.

Under the RSP, a good leaver’s unvested awards will normally vest (either on the normal vesting date or

the relevant date of cessation, if determined by the Committee) subject to achievement of the

performance underpin, with a pro-rata reduction to reflect the proportion of the vesting period served.

The holding period shall normally continue to apply. The Committee has the discretion to dis-apply or

alter time pro-rating if it considers it appropriate to do so. A good leaver may exercise their vested

awards structured as options for a period of 12 months following the individual’s cessation of office or

employment. Unvested awards may be exercised within 12 months of vesting.

In determining whether an Executive Director should be treated as a good leaver, and the extent to which

their award may vest, the Committee will take into account the circumstances of an individual’s departure.

In the event of a takeover or solvent winding-up of easyJet plc (which is not part of an internal

reorganisation of the easyJet Group, in circumstances where equivalent replacement awards are not

granted) all awards will vest taking into account the achievement of any relevant performance underpins

(in the case of the RSP) with a pro-rata reduction for the RSP to reflect the proportion of the vesting

period served. The Committee has discretion to dis-apply time pro-rating if it considers it appropriate to

do so. In the event of a takeover, the Committee may determine, with the agreement of the acquiring

company, that awards will be exchanged for equivalent awards in another company.

POLICY ON EXTERNAL APPOINTMENTS

Executive Directors are permitted to accept appropriate outside Non-Executive Director appointments

so long as the overall commitment is compatible with their duties as Executive Directors and is not

thought to interfere with the business of the Group. Any fees received in respect of these appointments

are normally retained directly by the relevant Executive Director.

APPROACH TO DETERMINING REMUNERATION ON RECRUITMENT

Base salary levels will normally be set in accordance with easyJet’s remuneration policy as well as taking

into account the experience and calibre of the individual. Benefits will normally be provided in

accordance with easyJet’s remuneration policy taking into account those offered to other employees.

Where an Executive Director is required to relocate from their home location to take up their role, the

Committee may provide assistance with relocation (via either one-off or ongoing payments or benefits).

The maximum level of variable pay that may be offered and the structure of remuneration will be in

accordance with the approved policy detailed above, i.e. at an aggregate maximum of up to 325% of

salary (200% annual bonus and 125% under the RSP) and 350% in exceptional circumstances (200%

annual bonus and 150% under the RSP), taking into account annual and long term variable pay. This limit

does not include the value of any buy-out arrangements.

Different performance measures may be set initially for the annual bonus, taking into account the

responsibilities of the individual, and the point in the financial year that they join. The size of awards may

be reduced to account for circumstances where an individual joins part-way through the year. RSP

awards can be made shortly following an appointment, if considered appropriate (assuming the

Company is not in a closed period).

The above policy applies to both an internal promotion to the Board or an external hire.

Where an individual forfeits outstanding variable pay opportunities or contractual rights at a previous

employer as a result of appointment, the Committee may offer compensatory payments or awards if,

after careful consideration, it is determined that it is appropriate to offer a buy-out. Any buy-out may be

on such terms as the Committee considers appropriate, taking into account relevant factors including

the form of awards, expected value and vesting timeframe of forfeited opportunities.

To the extent that it was not possible or practical to provide the buy-out within the terms of the

Company’s existing incentive plans, a bespoke arrangement may be used (including granting an award

under the UK Listing Rule 9.3.2 which allows for the granting of awards, to facilitate, in unusual

circumstances, the recruitment of an Executive Director).

In the case of an internal promotion, any outstanding variable pay awarded in relation to the previous

role will be paid according to its terms of grant.

On the appointment of a new Chair or Non-Executive Director, fees will be set taking into account the

experience and calibre of the individual. Where specific cash or share arrangements are offered to

Non-Executive Directors, these will not include share options or other performance-related elements.

The Board evaluation and succession planning processes in place are designed to ensure there is the correct

balance of skills, experience, and knowledge on the Board. The activities of the Nominations Committee

overseeing these matters are disclosed in the Nominations Committee report on pages 104 to 106.

NON-EXECUTIVE DIRECTOR FEES

The Non-Executive Directors receive an annual fee (normally paid in monthly instalments). The fee for

the Chair is set by the Remuneration Committee and the fees for the other Non-Executive Directors are

approved by the Board, on the recommendation of the Chair and Chief Executive.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

DIRECTORS’ REMUNERATION POLICY

Element Purpose and link to strategy Operation (including maximum levels where applicable)

Fees

To attract and retain high-calibre Chair and Non-Executive Directors

by offering market-competitive fee levels.

The Chair is paid an all-inclusive fee for all Board responsibilities.

The other Non-Executive Directors receive a basic fee, with supplementary fees payable for additional

responsibilities including Board or Committee responsibilities.

The Chair and Non-Executive Directors do not participate in any of the Group’s incentive arrangements.

Fee levels are reviewed on a regular basis, and may be adjusted, taking into account factors such as the

time commitment of the role, market levels in companies of comparable size and complexity and any

changes in the size and complexity of the organisation.

Flexibility is retained to exceed current fee levels if it is necessary to do so in order to appoint a new Chair

or Non-Executive Director of an appropriate calibre.

In exceptional circumstances, if there is a temporary yet material increase in the time commitments for

Non-Executive Directors, the Board may pay extra fees to recognise the additional workload.

Necessary expenses incurred will be reimbursed so that the Chair and Non-Executive Directors are not

worse off, on a net of tax basis, as a result of fulfilling Company duties.

No other benefits or remuneration are provided to the Chair or Non-Executive Directors. Selected benefits

may be introduced if considered appropriate.

From 1 January 2025 the Chair fee will be increased to £375,000 to better reflect the size and complexity of the

organisation and the time commitment for the role. The Non-Executive Director base fee and Committee Chair

fees have also been uplifted in line with the increase for the wider workforce. The Senior Independent Director

(SID) fee remains unchanged. From 1 January 2025, to reflect the additional time commitment related to

Committee work we have also introduced a Committee fee of £6,000 per Committee.

January 2025 January 2024

Chair £375,000 £343,508

Basic fee for other Non-Executive Directors £71,100 £68,702

Fees for SID role £25,000 £25,000

Chair of the Audit, Safety and Remuneration Committees

£16,953 £16,380

Chair of the Finance Committee £11,302 £10,920

Membership of the Audit, Finance, Remuneration and Safety Committees £6,000 –

TERMS OF APPOINTMENT OF THE NON-EXECUTIVE DIRECTORS

The terms of appointment of the Chair and the other Non-Executive Directors are recorded in letters of

appointment. The required notice from the Company is three months. The Non-Executive Directors are

not entitled to any compensation on loss of office.

The Non-Executive Directors’ letters of appointment are available for inspection by shareholders at the

Company’s registered office.

UK CORPORATE GOVERNANCE CODE – PROVISION 40 DISCLOSURES

When developing the proposed remuneration policy and considering its implementation for 2022, the

Committee was mindful of the UK Corporate Governance Code and considers that the executive

remuneration framework appropriately addresses the following factors:

> Clarity – The Committee is committed to providing open and transparent disclosures regarding our

executive remuneration arrangements.

> Simplicity – Remuneration arrangements for our Executives and our wider workforce are simple in

nature, in particular the use of the RSP, and well understood by both participants and shareholders.

> Risk – The Committee considers that the incentive arrangements do not encourage inappropriate

risk-taking. Malus and clawback provisions apply to annual bonus and RSP awards, and the Committee

has overarching discretion to adjust formulaic outcomes to ensure that they are appropriate.

> Predictability and proportionality – The RSP provides outcomes in line with delivering the strategy

and minimises the potential of unintended outcomes. Our policy illustrates opportunity levels for

Executive Directors under various scenarios for each component of pay. Alignment to culture – Any

financial and strategic targets set by the Committee are designed to drive the right behaviours across

the business. The RSP encourages our executives to focus on making the right decisions for the

execution of our strategy and the creation of long term shareholder value.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

SINGLE TOTAL FIGURE OF REMUNERATION FOR THE YEAR ENDED 30 SEPTEMBER 2024

The table below sets out the amounts earned by the Directors (audited).

£’000

Fees and salary Benefits

Bonus

RSP

Other emoluments

Pension

Total

Total fixed Total variable

2024 2023 2024 2023 2024 2023 2024 2023 2004 2023 2024 2023 2024 2023 2024 2023 2024 2023

Executive Directors:

Johan Lundgren 803 770 57 50 1,362 1,326 607 0 3 0 49 48 2,881 2,194 909 868 1,972 1,326

Kenton Jarvis 567 542 10 8 841 818 341 0 3 0 35 34 1,797 1,402 612 584 1,185 818

Non-Executive Directors:

Sir Stephen Hester 340 326 – – – – – – – – – – 340 326 340 326 – –

Catherine Bradley CBE 79 76 – – – – – – – – – – 79 76 79 76 – –

Sue Clark 93 53 – – – – – – – – – – 93 53 93 53 – –

Ryanne van der Eijk 68 65 – – – – – – – – – – 68 65 68 65 – –

Harald Eisenächer 68 65 – – – – – – – – – – 68 65 68 65 – –

Moni Mannings OBE 84 81 – – – – – – – – – – 84 81 84 81 – –

David Robbie 84 75 – – – – – – – – – – 84 75 84 75 – –

Dr Detlef Trefzger 84 75 – – – – – – – – – – 84 75 84 75 – –

1) Benefits relate to the cost to the Company of life assurance and other insurance of £23,244, together with reimbursements for business-related travel expenses in respect of domestic car travel to the value of £33,630 made to the Chief Executive

and the cost to the Company of life assurance and other insurance of £10,234 for the Chief Financial Officer.

2) One-third of the annual bonus is satisfied via the grant of a nil cost option under the DSBP, vesting over three years. There are no performance conditions attaching to the DSBP award. The award is subject to continued employment.

3) Johan Lundgren and Kenton Jarvis received a cash alternative to pension contributions equivalent to 6.15% of base salary. From April 2024 Kenton Jarvis received an annual pension contribution of £10,000 with the balance paid in cash at the

previous rate of 6.15% of basic salary. No Director who served during the year accrued any other pension benefits.

4) This value represents the vesting of the awards made in February 2022 that will vest in December 2024. For the purpose of this table, this award has been valued using the three-month average share price to 30 September 2024 of £4.69, which will

be restated in next year’s Remuneration Report once the share price on the date of vesting is known. No amount of the award is attributable to share price appreciation.

5) Other incentives include the grant face value of awards made under the all-employee share plans. Awards do not have performance conditions attached.

6) No clawback has been applied for FY24.

PAYMENTS FOR LOSS OF OFFICE AND PAYMENTS TO PAST DIRECTORS (AUDITED)

There were no payments for loss of office or payments to past Directors.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

ANNUAL BONUS OUTTURN FOR PERFORMANCE IN THE 2024 FINANCIAL YEAR (AUDITED)

The measures selected for the FY24 annual bonus aligned with our key priorities for the year and were:

30% on PBT; 50% on a balanced scorecard of Group performance targets including ROCE, cost control,

customer feedback and operational performance; and 20% on individual performance including measures

linked to sustainability, strategy and employee engagement.

The Committee chose to use a balanced scorecard approach to assessing performance for 50% of the

bonus for FY24 to ensure that we provided a balanced incentive to drive performance across a range of

areas. At least 25% of the scorecard was linked to financial measures ensuring that at least 55% of the

overall bonus was linked to financial measures.

The Committee reviewed performance against these measures and it was determined that the bonus would pay

out at 84% of maximum. The Committee also had the discretion to determine the appropriate level of award at

the end of the financial year based on overall performance achieved. The Committee felt the performance of the

Executive Directors had been particularly strong in the year with excellent progress made towards a number of

key financial and strategic objectives and therefore determined that the 84% outcome was appropriate.

Measure

FY24 targets

Weighting

CEO and CFO

Threshold

(10%

minimum

award)

On target

(50% award)

Maximum

(100% award) Outcome Payout

PBT (at constant currency)

£ million

30% 400 535 670 586 68.9%

Balanced scorecard 50%

86.6%

Cost programme

performance £ million 135 145 155 177

ROCE 12% 15% 18% 15.7%

Customer satisfaction 73.1% 74.6% 76.1% 76.2%

On-time performance -1 Industry

average

+1 0.5

Individual 20% n/a 50% 100% Fully achieved 100%

Tota l 100% 84%

Overall, FY24 was a very successful year for easyJet with a strong performance of pre-tax headline profit (at

constant currency) of £610 million (£586 million on a constant currency basis), an increase of 34% from

2023. However, the Committee was conscious that, whilst as a business we have delivered an improved

on-time performance overall, we did experience some operational challenges that led to some flight

cancellations and the knock-on impact that this has on our customers’ experience.

The Committee was careful to consider this when determining the annual bonus outcomes, noting that our

overall customer experience scores were also above our stretch target for the year. Following review, it was felt

the overall outcome was appropriate in the context of performance in the year and no discretion was applied.

The Committee considered the individual performance of the Executive Directors against their individual

objectives as well as their broader contribution to the business during the year and determined that this 20%

portion of the bonus should payout in full (see below).

As a result of this assessment and the Group performance achieved, the final bonuses agreed were £1,362,329

for Johan Lundgren (84% of maximum), and £840,540 for Kenton Jarvis (84% of maximum) of which one-third

will be settled via an award under the DSBP, vesting over three years. DSBP awards are not subject to

performance conditions but are subject to continued service.

PERSONAL OBJECTIVES (20% WEIGHTING) (AUDITED)

This component focuses on personal performance against the priorities set by the Board for the

Executive Directors in 2024. The Remuneration Committee considers their performance holistically in

relation to the development and driving of strategy, financial performance, sustainability, customer and

people initiatives (both what was delivered and how each of these priorities is considered relevant to the

business and they are not subject to formal weighting). The assessment for each Executive Director was

as shown in the following tables:

JOHAN LUNDGREN (CEO)

The Committee assessed performance against the objective focus areas set out below and determined

that the personal objectives element had been met in full. Details of performance against these

objective focus areas is provided below.

Focus area Outcomes and evidence

Strategy – Leading the

Company strategy to deliver

long-term value

> Engineering insourcing strategy – SR Technics in Malta

successfully acquired and integrated to support engineering

insourcing strategy.

> Fleet strategy – negotiations successfully completed with full

approval achieved from shareholders with high yes vote.

> Focus on reducing winter losses – FY24 H1 performance: loss

before tax£350 million, a £61 million year-on-year improvement.

Environmental, Social

and Governance – Taking an

industry lead on sustainability

through delivering on our net

zero ambition to underpin the

strategy delivery

> FTSE4Good listing retained.

> CDP rating of A- achieved.

> 2024 Sustainalytics rating as fourth best airline worldwide and

best airline in Europe.

> MSCI rating at AA.

> FY24 CO

emissions intensity improved 0.9% year on year.

Performance remains better than the net zero roadmap.

> SAF sourcing strategy agreed.

Balance sheet resilience

– Generate and maintain strong

liquidity above policy and CCA

thresholds for lowest P&L cost

> Strong liquidity in place with significant headroom to policy.

> Successfully completed Eurobond raise for €850 million.

> 10 aircraft sale and leaseback deals achieved in FY24 on attractive

terms.

People and employee

engagement – To lead a

continued improvement in

employee engagement scores

through the anticipation and

implementation of agreed

actions and initiatives

> Consistent outcomes achieved in Your Voice Matters employee

engagement survey.

> Strong M&A engagement score maintained.

> Notably improved engagement scores achieved with pilots and

maintained for cabin crew and engineers.

> On track to deliver gender and ethnicity targets.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

KENTON JARVIS (CFO)

The Committee assessed performance against the objective focus areas set out below and determined

that the personal objectives element had been met in full. Details of performance against these

objective focus areas is provided below.

Focus area Outcomes and evidence

Strategy – Leading the

company strategy to deliver

long-term value.

> Engineering insourcing strategy – SR Technics in Malta successfully

acquired and integrated.

> Fleet strategy – negotiations successfully completed with full

approval achieved from shareholders with high yes vote.

> Profit improvement plans agreed.

> Focus on reducing winter losses – FY24 H1 performance: loss

before tax£350 million, a £61 million year-on-year improvement.

Environmental, Social and

Governance – Taking an

industry lead on sustainability

through delivering on our net

zero ambition to underpin the

strategy delivery.

> FTSE4Good listing retained.

> CDP rating of A- achieved.

> 2024 Sustainalytics rating as fourth best airline worldwide and best

airline in Europe.

> MSCI rating at AA.

> FY24 CO

emissions intensity improved 0.9% year on year.

Performance remains better than the net zero roadmap.

> SAF sourcing strategy agreed.

Balance sheet resilience

– Generate and maintain strong

liquidity above policy and CCA

thresholds for lowest P&L cost.

> Strong liquidity in place with significant headroom to policy.

> Successfully completed Eurobond raise for €850 million.

> 10 aircraft sale and leaseback deals achieved in FY24 on attractive

terms.

Governance/automation

– Continue to strengthen the

control environment and

progress automation within

Finance department.

> Controls attestation implemented and now actioned for six

months.

> Accounts payable automation/e-invoicing implemented in H1.

> Revenue reporting system live in H1.

> Riskonnect system implemented to better identify and track risks

and mitigations.

Investor relations – Build

confidence in delivery of

medium-term targets and

communicate effectively to the

market.

> Positively received year end/H1 roadshows.

> Targets clearly articulated to the market in October 2023.

> Meetings centred around strategy and targets.

People and employee

engagement – To lead a

continued improvement in

employee engagement scores

in the Finance function through

the implementation of agreed

actions and initiatives.

> High colleague engagement scores maintained in Finance team

with participation above 96%

> Action plans in place

> Strategy understanding score is above benchmark

> Scores for equality and management support in the upper quartile

2022 RSP AWARD

Following the year end the Committee assessed the underpins attached to the RSP award made in

February 2022. These underpins were that easyJet does not fall below its minimum liquidity target

through the three-year performance period, and that there is satisfactory governance performance

including no ESG issues that result in material reputational damage to the Company. The Committee

assessed the overall performance achieved over the three-year period and determined that the

underpins had been met, and that the 2022 RSP awards should vest in full.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

EXECUTIVE DIRECTORS’ SHARE AWARDS OUTSTANDING AT THE FINANCIAL YEAR END (AUDITED)

Details of share options and share awards outstanding at the financial year end are shown in the following tables:

JOHAN LUNDGREN

Scheme

No. of shares/options

at 30 September 2023

Shares/options

granted in year

Shares/options

lapsed in year

Shares/options

exercised in year

No. of shares/options

at 30 September

2024

Date of grant

Exercise price

(£)

Market price on

exercise date

(£)

Date from which

exercisable Expiry date

254,621 – 254,621 – – 29 Dec 2020

– – n/a n/a

129,334 – – – 129,334 16 Feb 2022

– – 19 Dec 2024 16 Feb 2032

241,136 – – – 241,136 12 Dec 2022

– – 12 Dec 2025 12 Dec 2032

– 198,776 – – 198,776 13 Dec 2023

– – 13 Dec 2026 13 Dec 2033

36,775 – – – 36,775 19 Dec 2018 – – 19 Dec 2021 19 Dec 2028

6,818 – – – 6,818 19 Dec 2019

– – 19 Dec 2022 19 Dec 2029

104,331 – – – 104,331 12 Dec 2022

– – 12 Dec 2025 12 Dec 2032

– 90,112 – – 90,112 13 Dec 2023

– – 13 Dec 2026 13 Dec 2033

KENTON JARVIS

Scheme

No. of shares/options

at 30 September 2023

Shares/options

granted in year

Shares/options

lapsed in year

Shares/options

exercised in year

No. of shares/options

at 30 September

2024

Date of grant

Exercise price

(£)

Market price on

exercise date

(£)

Date from which

exercisable Expiry date

159,803 – 159,803 – – 20 May 2021

– – n/a n/a

72,706 – – – 72,706 16 Feb 2022

– – 19 Dec 2024 16 Feb 2032

135,557 – – – 135,557 12 Dec 2022

– – 12 Dec 2025 12 Dec 2032

– 112,130 – – 112,130 13 Dec 2023

– – 13 Dec 2026 13 Dec 2033

64,149 – – – 64,149 12 Dec 2022

– – 12 Dec 2025 12 Dec 2032

– 55,598 – – 55,598 13 Dec 2023

– – 13 Dec 2026 13 Dec 2033

1,963 – – – 1,963 20 Jul 2021

6.42 – 1 Sep 2024 1 Mar 2025

1,353 – – – 1,353 19 Jul 2022

3.99 – 1 Sep 2025 1 Mar 2026

– 3,596 – – 3,596 17 Jul 2024

3.61 – 1 Sep 2027 1 Mar 2028

Key:

LTI P

Deferred Share Bonus Plan (DSBP)

RSP

Save As You Earn Awards (SAYE)

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

The closing share price of the Company’s ordinary shares at 30 September 2024 was £5.20 and the

closing price range during the year ended 30 September 2024 was £3.60 to £5.78.

NOTE 1: NUMBER OF SHARE AWARDS GRANTED

The number of shares is calculated according to the scheme rules of individual plans based on the

middle-market closing share price on the day prior to grant.

NOTE 2: LONG-TERM INCENTIVE PLAN AWARDS MADE IN DECEMBER 2020

The targets were not met at the end of the three-year performance period and as a result the award did not vest.

NOTE 3: LONG-TERM INCENTIVE PLAN AWARD MADE IN MAY 2021

The targets were not met at the end of the three-year performance period and as a result the award did not vest.

NOTE 4: RESTRICTED SHARE PLAN AWARDS MADE IN FEBRUARY 2022

The RSP awards made in February 2022 relate to the performance period (1 October 2021 to

30 September 2024) and, subject to the underpins being met, the awards will vest on 19 December

2024. Awards were made in line with the approval of the new Directors’ Remuneration Policy and

Restricted Share Plan rules at the AGM in February 2022 and are treated as having been granted on the

normal grant date of 19 December 2021 for the purposes of Provision 36 of the Corporate Governance

Code. The face value of the award granted to Johan Lundgren was £925,000 (125% of salary) and for

Kenton Jarvis £520,000 (100% of salary). This was based on the middle-market closing share price on

the day prior to grant, being £7.15. The awards were granted as nil cost options and are subject to the

following underpins: that easyJet does not fall below its minimum liquidity target through the three-year

performance period; and that there is satisfactory governance performance including no ESG issues

that result in material reputational damage to the Company (as determined by the Board).

The Committee operates a further underpin such that if the Company’s performance, taken as a whole, materially

underperforms what might reasonably have been expected for the sector for reasons attributable to

management action or inaction, the Committee will at its discretion reduce the award quantum appropriately.

The Committee has determined that the underpins have been met for these awards, and they will vest

at 100% in December 2024.

NOTE 5: RESTRICTED SHARE PLAN AWARDS MADE IN DECEMBER 2022

The face value of the award granted to Johan Lundgren was £925,000 (125% of salary) and for Kenton

Jarvis £520,000 (100% of salary). This was based on the middle-market closing share price on the day

prior to grant, being £3.84. The awards were granted as nil-cost options and are subject to the following

underpins: that easyJet does not fall below its minimum liquidity target through the three-year

performance period (1 October 2022 to 30 September 2025); and that there is satisfactory governance

performance including no ESG issues that result in material reputational damage to the Company (as

determined by the Board).

The Committee will operate a further underpin such that if the Company’s performance, taken as a whole,

materially underperforms what might reasonably have been expected for the sector for reasons attributable to

management action or inaction, the Committee will at its discretion reduce the award quantum appropriately.

Subject to the underpins being met, the awards will vest on 12 December 2025.

NOTE 6: RESTRICTED SHARE PLAN AWARDS MADE IN DECEMBER 2023

The face value of the award granted to Johan Lundgren was £975,000 (125% of salary) and for Kenton

Jarvis £550,000 (100% of salary). This was based on the middle-market closing share price on the day

prior to grant, being £4.91. The awards were granted as nil-cost options and are subject to the following

underpins: that easyJet does not fall below its minimum liquidity target through the three-year

performance period (1 October 2023 to 30 September 2026); and that there is satisfactory governance

performance including no ESG issues that result in material reputational damage to the Company (as

determined by the Board).

The Committee will operate a further underpin such that if the Company’s performance, taken as a whole,

materially underperforms what might reasonably have been expected for the sector for reasons attributable to

management action or inaction, the Committee will at its discretion reduce the award quantum appropriately.

Subject to the underpins being met, the awards will vest on 13 December 2026.

NOTE 7: DEFERRED SHARE BONUS PLAN AWARD MADE IN DECEMBER 2019

The face value of the award granted to Johan Lundgren was £75,481 and relates to the deferral into

shares of one-third of the bonus paid in 2019. This was based on the middle-market closing share price

on the day prior to grant, being £14.29. The award was granted as a nil-cost option and is not subject to

performance conditions, but is subject to continued employment.

NOTE 8: DEFERRED SHARE BONUS PLAN AWARDS MADE IN DECEMBER 2022

The face value of the award granted to Johan Lundgren was £400,217 and for Kenton Jarvis £246,079

and relates to the deferral into shares of one-third of the bonus paid in 2022. This was based on the

middle-market closing share price on the day prior to grant, being £3.84. They were granted as nil-cost

options and are not subject to performance conditions, but are subject to continued employment.

NOTE 9: DEFERRED SHARE BONUS PLAN AWARDS MADE IN DECEMBER 2023

The face value of the award granted to Johan Lundgren was £441,999 and for Kenton Jarvis £272,708

and relates to the deferral into shares of one-third of the bonus paid in 2023. This was based on the

middle-market closing share price on the day prior to grant, being £4.91. They were granted as nil-cost

options and are not subject to performance conditions, but are subject to continued employment.

NOTE 10: SAVE AS YOU EARN AWARDS

Executive Directors are eligible to participate in the SAYE on the same terms as all other UK-based colleagues of

the Company. Options are granted under the SAYE, which, in the UK, is an HMRC tax-advantaged plan.

Participants contract to save up to the equivalent of £350 per month over a period of three years. Under the

applicable plan rules the maximum permitted monthly saving, across all SAYE plans is £500. There is a 20%

discount to market value for these awards.

As is usual market practice, the option price for SAYE awards is determined by the Committee in

advance of the award by reference to the share price following announcement of the half-year results

the day immediately preceding the date the invitations are sent.

In common with most plans of this type, there are no performance conditions applicable to options

granted under the SAYE.

SHAREHOLDING GUIDELINES IN THE 2024 FINANCIAL YEAR (AUDITED)

The Chief Executive and Chief Financial Officer are expected to build up a shareholding of 250% and

200% of salary respectively. The Committee noted that Johan Lundgren is stepping down from the Board

on 31 December 2024 and the post-employment shareholding guidelines will continue to apply. The

Committee also notes that the Executive Directors are required to retain a minimum of 50% of net vested

shares from the LTIP and RSP and 100% of net vested deferred bonus shares until the guidelines are met.

This will be kept under review on an ongoing basis.

The Non-Executive Directors, including the Chair of the Board, are required to build up a shareholding of

100% of annual fees. Details of their holdings are set out below.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

DIRECTORS’ CURRENT SHAREHOLDINGS (AUDITED)

The following table provides details on current Directors’ interests in shares at 30 September 2024 (unless otherwise noted).

Interests in share schemes

Unconditionally

owned shares

Shareholding

guidelines achieved

Vested but

unexercised

Unvested –

subject to continued

employment

Unvested –

subject to

performance

underpins

SAYE

SIP

Total

Stephen Hester 120,000 100% –

Johan Lundgren 66,713 50% 43,593 194,443 569,246 – 537 8 07, 81 9

Kenton Jarvis 16,197 34% – 119,747 320,393 6,912 537 4 47, 5 8 9

Catherine Bradley 16,000 100% – – – – – –

Sue Clark 17,281 90% – – –

Ryanne van der Eijk 15,670 100% – – – – – –

Harald Eisenächer 17,500 100% – – – – – –

Moni Mannings 6,990 49% – – – – – –

David Robbie 16,596 100% – – – – – –

Detlef Trefzger 20,000 100% – – – – – –

1) Includes SIP Partnership Shares, vested SIP Performance (Free) Shares, vested SIP Matching Shares, and any shares owned by connected persons.

2) Based on the shareholding guidelines and including unconditionally owned shares and for the Executive Directors, the post-tax value of vested but unexercised share interests under the DSBP. The extent to which the guidelines have been achieved is

calculated based on the price at purchase or vesting; therefore, the values will be different for each Director based on their purchase history.

3) Vested but unexercised awards include 36,755 options awarded under the DSBP in December 2018 and 6,818 (6,272 plus dividend equivalent of 545 shares) options awarded under the DSBP in December 2019 to Johan Lundgren

4) Unvested options that are subject to continued employment include Deferred Share bonus awards granted under the DSBP

5) Unvested options subject to performance underpins included restricted stock awards granted under the RSP plan

6) SAYE are granted as options and are not subject to performance conditions

7) Consists of unvested SIP Performance (Free) Shares

Between 30 September 2024 and the date of this report, the only change to the above holdings is the purchase of 58 partnership shares under the Buy As You Earn (SIP) scheme for Kenton Jarvis. There have

been no other changes.

Executive Directors are deemed to be interested in the unvested shares held by the easyJet Share Incentive Plan Trust and the easyJet plc Employee Benefit Trust. At 30 September 2024, the unvested ordinary

shares held in the Trusts were as follows:

Number of

ordinary shares

easyJet Share Incentive Plan Trust 2,233,122

easyJet plc Employee Benefit Trust 5,028,947

Tota l 7,262,069

Changes since the year end: as at 27 November 2024, the easyJet Share Incentive Plan Trust held 2,201,032 shares and the easyJet plc Employee Benefit Trust held 5,019,953 shares.

DILUTION LIMITS

easyJet complies with the Investment Association’s Principles of Remuneration with regard to dilution limits.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

EMPLOYEE SHARE PLAN PARTICIPATION

A key component of easyJet’s reward philosophy is to provide share ownership opportunities throughout

the Group by making annual awards of performance-related shares to all eligible employees under the

tax-advantaged SIP, when necessary financial targets are achieved. In addition, easyJet operates a

voluntary discounted share purchase arrangement for all employees via a Save As You Earn scheme and

a Buy As You Earn arrangement with matching shares in the UK under the SIP. A 20% discount was

offered on Save As You Earn 2024; however, Matching Shares remain suspended.

DETAILS OF DIRECTORS’ SERVICE CONTRACTS AND LETTERS OF APPOINTMENT

Details of the service contracts and letters of appointment in place as at 30 September 2024 for

Directors are as follows:

Date of appointment

Date of current service

contract Unexpired term at 30 September 2024

Sir Stephen Hester 1 September 2021 20 August 2021

Executive Directors are subject

to a 12-month notice period.

Letters of appointment for

the Non-Executive Directors do

not contain fixed-term periods

(but provide for three-month

notice periods); however,

they are appointed in the

expectation that they will serve

for a maximum of nine years,

subject to satisfactory

performance and re-election

at AGMs.

Johan Lundgren 1 December 2017 10 November 2017

Kenton Jarvis 3 February 2021 15 September 2020

Catherine Bradley CBE 1 January 2020 9 December 2019

Sue Clark 1 March 2023 4 January 2023

Ryanne van der Eijk 1 September 2022 22 August 2022

Harald Eisenächer 1 September 2022 22 August 2022

Moni Mannings OBE 6 August 2020 5 August 2020

David Robbie 17 November 2020 16 November 2020

Dr Detlef Trefzger 1 September 2022 22 August 2022

REVIEW OF PAST PERFORMANCE

The chart sets out the TSR performance of the Company relative to the FTSE 250, FTSE 100, and a

group of European airlines

since 30 September 2014. The FTSE 100 and FTSE 250 were chosen as

easyJet has been a member of both indices during the period.

This graph shows the value, by 30 September 2024, of £100 invested in easyJet on 30 September 2014,

compared with the value of £100 invested in the FTSE 100 and FTSE 250 Indices or a comparator group

of airlines on the same date.

The other points plotted are the values at intervening financial year ends. Overseas companies have

been tracked in their local currency, i.e. ignoring exchange rate movements since 30 September 2014.

250

200

150

100

Sep 14 Sep 15

easyJet

Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Sep 23 Sep 24

FTSE 100 index FTSE 250 index Comparator airlines

1) Lufthansa, Ryanair, Air France-KLM and Wizz Air have all been included in the comparative European airlines group. Wizz

Air has been tracked from listing.

CHIEF EXECUTIVE TOTAL REMUNERATION TABLE

The table below shows the total remuneration figure earned for the Chief Executive over the same

10-year period. The total remuneration figure includes the annual bonus and LTIP/RSP awards which

vested based on performance in those years.

The annual bonus and LTIP/RSP vesting percentages show the payout for each year as a percentage of

the maximum.

2015 2016 2017 2018

2019 2020 2021 2022 2023 2024

Single total

figure of

remuneration

(£000)

Johan

Lundgren

– – – 1,500 1,006 755

794 2,034 2,194

2,881

Carolyn

McCall

6,241 1,453 757 125 – – – – –

–

Annual bonus

(%)

Johan

Lundgren

– – – 73% 16% 0% 0% 81% 85%

84%

Carolyn

McCall

66% 13% 0% – – – – – –

–

LTIP/RSP

vesting (%)

Johan

Lundgren

– – – – – 0% 0% 0% 0%

100%

Carolyn

McCall

100% 32% 0% – – – – – –

–

1) This amount is after the voluntary 20% reduction in base salary during April, May and June 2020.

2) Johan Lundgren was appointed to the Board on 1 December 2017 and Carolyn McCall stepped down from the Board on

30 November 2017.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

CHANGE IN DIRECTORS’ PAY FOR THE YEAR

The table below shows the year-on-year percentage change in pay for the Directors, compared to the average earnings of all other easyJet UK colleagues.

2024 2023 2022 2021 2020

Salary/Fees Benefits

Annual bonus Salary/Fees Benefits Annual bonus Salary/Fees Benefits Annual bonus Salary/Fees Benefits Annual bonus Salary/Fees Benefits Annual bonus

Executive Directors

Johan Lundgren 4.3% 14.0% 2.7% 4.1% 6.4% 10.4% 0% 487. 5% n/a 6.0% -43% n/a -2.6% 0% -100%

Kenton Jarvis

4.6% 25.0% 2.8% 4.2% 0% 10.8% 52.0% n/a n/a n/a n/a n/a – – –

Non-executive Directors

Sir Stephen Hester

4.3% – – 19.4% – – n/a – – n/a – – – – –

Catherine Bradley

3.9% – – 4.1% – – – – – 62.2% – – n/a – –

Sue Clark

75.5% – – n/a – – n/a – – – – – – – –

Ryanne van der Eijk

4.6% – – 1200% – – n/a – – – – – – – –

Harald Eisenächer

4.6% – – 1200% – – n/a – – – – – – – –

Moni Mannings OBE

3.7% – – 3.8% – – – – – 680% – – n/a – –

David Robbie

12.0% – – 19.0% – – 21.2% – – n/a – – – – –

Dr Detlef Trefzger

12.0% – – 1400% – – n/a – – – – – – – –

Colleagues

Average pay based on

easyJet’s UK colleagues

8.8% 166% -7.3% 7.0 % 0% 0% 1.9% 0% n/a 0% 0% n/a 2.0% 0% -100%

n/a refers to a nil value in the previous year, meaning that the year-on-year change cannot be calculated.

1) Appointed Executive Director on 3 February 2021.

2) Appointed to the Board on 1 September 2021 and Chair from 1 December 2021.

3) Appointed to the Board on 1 January 2020.

4) Appointed to the Board on 1 March 2023.

5) Appointed to the Board on 1 September 2022.

6) Appointed to the Board on 6 August 2020.

7) Appointed to the Board on 17 November 2020.

8) There are no colleagues in easyJet plc; therefore, the Committee decided to use the average for all UK colleagues as the appropriate comparator group given they comprise over 50% of total colleagues and therefore this is considered to be the

most representative for comparison. There was an average change in pay of 8.8% in FY24 for UK colleagues.

9) Benefits relate to the cost to the Company of life assurance and other insurance, as well as reimbursements made to the Chief Executive for business-related travel expenses in respect of domestic car travel. Company funded supplementary

healthcare has been introduced for UK colleagues.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

RELATIVE IMPORTANCE OF SPEND ON PAY

The table below Illustrates the relative importance of the spend on pay showing the total pay for all

easyJet’s colleagues compared to the distributions to shareholders in the year and the percentage

change in the year ended 30 September 2024. Other reported key financial indicators are included for

further points of reference including information on the number of colleagues in the year, the reported

total revenue and the reported profit. For further information the majority of easyJet’s colleagues

(around 90%) perform flight and ground operations, with the rest performing administrative and

managerial roles.

Year ended

30 September

2024

Year ended

30 September

2023 Change %

Colleague costs (£ million) 1,319 1,130 17%

Ordinary dividend (£ million) 34 0 n/a

Average monthly number of colleagues 17,639 15,937 11%

Revenue (£ billion) 9.3 8.2 14%

Headline profit before tax (£ million) 610 455 34%

CHIEF EXECUTIVE PAY RATIO

The table below sets out the Chief Executive pay ratio as at 30 September 2024. The report will build up

over time to show a rolling 10-year period. The ratios compare the single total figure of remuneration of

the Chief Executive with the equivalent figures for the lower quartile (P25), median (P50) and upper

quartile (P75) colleagues.

We have used the ‘Option A’ methodology which uses actual earnings for the Chief Executive and UK

colleagues over the financial year to provide the most accurate comparison. The total FTE remuneration

paid during the year for each colleague in each of the groups was then calculated, on the same basis as

the information set out in the single figure table for the Chief Executive on page 133.

In calculating the figures, the following considerations were made:

> The single total figure of remuneration of our UK colleagues was calculated as at 30 September 2024.

> Annual bonus will be paid in relation to the year ended 30 September 2024.

> For participating employees in the RSP, the value of awards that vest in relation to the year ended

30 September 2024 have been included.

> Earnings for those who are part-time or joined during the year have been annualised on an FTE basis.

The Chief Executive’s remuneration differs significantly from that of most colleagues as it is largely

performance-based, influenced by business results and the share price, with a significant proportion tied

to Bonus and RSP schemes. This structure can therefore lead to year-on-year fluctuations in ratios, as

illustrated by the higher ratio for FY24. The increased ratio is also due to the company’s strong recent

performance which has resulted in a payout from both the bonus and RSP and therefore a higher total

single figure for the CEO.

The Committee has reviewed the final ratio and confirmed that it aligns with easyJet’s broader pay and

reward philosophy whilst reflecting market conditions, experience, and skills.

This data then identified those employees at the 25th, 50th (median) and 75th percentile points.

Year Method

25th

percentile pay

ratio

Median pay

ratio

75th

percentile pay

ratio

2020 Option A 30:1 23:1 12:1

2021 Option A 27:1 21:1 10:1

2022 Option A 75:1 56:1 24:1

2023 Option A 74:1 57:1 27:1

2024 Option A 93:1 74:1 34:1

2024 Total pay and benefits £31,128 £38,812 £83,805

2024 Salary £18,402 £24,340 £62,587

DEPARTURE TERMS FOR JOHAN LUNDGREN

In May 2024 we announced our CEO succession plan, and that Johan Lundgren will be retiring and step

down as Chief Executive on 1 January 2025, having served seven years as CEO. Details of Johan’s

remuneration arrangements related to his departure are below and follow the agreed policy without the

need for discretion by the Committee. Further details will be provided in next year’s Directors’

Remuneration Report.

Element Treatment

Notice

> Johan will step down as Chief Executive on 1 January 2025, and will remain with the

business until the conclusion of his notice period on 16 May 2025, during which

period he will be available to support the business.

Bonus

> Johan will remain eligible for an FY25 bonus in respect of the period worked to

31 December 2024, subject to performance. Any bonus earned will be paid in cash.

Restricted Share

Plan (RSP)

> No RSP awarded in December 2024.

> Johan will retain all outstanding RSP awards, subject to time pro-rating. Awards

will vest at the normal time subject to assessment of performance underpins.

> Awards will be subject to post vesting holding requirement of two years.

Deferred Share

Bonus Plan (DSBP)

> All outstanding share awards will remain capable of vesting at the normal time.

Performance (Free)

Shares under SIP

> Transferred by trustees after sale for tax within 30 days of cessation date.

Post-employment

Shareholding

> Will be required to hold up to 100% of their shareholding requirement for two

years after stepping down from the Board in respect of shares received from

incentive awards.

Other benefits

> Total of £25,000 paid for legal fees.

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DIRECTORS’ REMUNERATION REPORT (CONTINUED)

JOINING ARRANGEMENTS FOR JAN DE RAEYMAEKER

Jan De Raeymaeker will join as Chief Financial Officer on 20 January 2025.

Salary – Set at £550,000 on appointment.

Pension and benefits - Provided in line with the Directors’ Remuneration Policy.

Bonus – Eligible to participate in the Annual Bonus scheme approved in the Directors’ Remuneration

Policy with a maximum of 175%. This will be pro-rated from 20 January 2025.

One-third of the pre-tax bonus will be deferred into shares for a period of three years. Dividend

equivalent payments may be made on the deferred bonus.

Restricted Share Plan – 2025 award of 100% of salary (£550,000) will be made shortly after

appointment in line with the shareholder approved Directors’ Remuneration Policy.

Shareholding – Expected to build and maintain a holding equivalent to 200% of salary. Will be expected

to retain 50% of the post-tax shares vesting under the RSP and 100% of the post-tax deferred bonus

shares until the guideline is met.

Other – No buy-out payments will be made in respect of forfeited remuneration from previous

employment. Relocation support will be provided in line with the company policy. This will include

temporary accommodation, tax advice, immigration advice and support for visa applications, the

provision of time limited school fees support if needed and additional one-off financial support for other

reasonable expenses incurred.

Further details of the support provided will be detail in next year’s Directors’ Remuneration Report.

STATEMENT OF SHAREHOLDERS’ VOTING AT AGM

The table below provides details of shareholder voting in respect of the Directors’ Remuneration Policy

(approved in February 2022), and the Annual Report on Remuneration (in February 2024).

Policy

(February 2022 AGM)

Annual Report on

Remuneration

(February 2024 AGM)

Votes cast in favour 186,561,503 73.38% 316,092,533 91.76%

Votes cast against 67,687,41 2 26.62% 28,375,376 8.24%

Total votes cast in favour or against 254,248,915 100% 344,467,909 100%

Votes withheld 19,999,292 – 158,224 –

We were pleased that the Remuneration Report passed at the 2024 AGM with a vote of 92% in favour;

however, we are also mindful that a very small number of shareholders voted against the resolution.

The Committee remains satisfied that the current bonus and RSP structure supports the business and

long-term strategic decision making. We are not therefore proposing any significant changes to the

Remuneration Policy that will be put to a vote at the next AGM. We have written to our shareholders to

explain our approach and rationale for keeping our remuneration policy broadly consistent.

The Board believes that the updated Remuneration Policy will not only support long-term strategic

decision-making and help retain and motivate management to drive the performance of the business

but will also support the longer-term performance of the business including delivering sustainable

shareholder value. The views since the 2022 AGM policy vote have been taken into account in

formulating the proposed new policy.

REMUNERATION COMMITTEE

The Remuneration Committee is advised by Deloitte which was appointed by the Committee in 2021

following an independent review process. Deloitte advises the Committee on developments in executive

pay and on the operation of easyJet’s incentive plans. Other than to the Committee, advice is also

provided to easyJet in relation to, for example, senior management pay practices and the fees of the

Non-Executive Directors. Total fees (excluding VAT) paid to Deloitte in respect of services to the

Committee during the 2024 financial year were £118,575 based on time and materials. Deloitte is a

founding member of the Remuneration Consultants Group and a signatory to its Code of Conduct.

Any advice received is governed by that code. Deloitte LLP also provided strategic and technology

consulting and wider risk advisory and assurance services to the Company during the year.

The Committee is satisfied that the Deloitte engagement team, which provides remuneration advice to

the Committee, does not have connections with easyJet plc or its Directors that may impair its

independence. The Committee has reviewed the operating processes in place at Deloitte and is satisfied

that the advice it receives is independent and objective. In line with the appointment of Deloitte as

company auditors, Deloitte will step down as Remuneration Committee Advisors in 2025 and the

Remuneration Committee will review and appoint a new advisor.

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OTHER DISCLOSURES

The Directors present their Annual Report and

Accounts together with the audited consolidated

financial statements for the year ended

30 September 2024. This Directors’ Report and

the Strategic Report, which includes the trends

and factors likely to affect the future

development, performance and position of the

business and a description of the principal risks

and uncertainties of the Group (which can be

found on pages 67 to 74 and are incorporated by

reference), collectively comprise the management

report as required under the Disclosure Guidance

and Transparency Rules (DTRs).

RESULTS AND DIVIDEND

The profit for the financial year after taxation is

£452 million (last year: £324 million). The Board

recommends a dividend of 12.1 pence per share,

totalling £92 million and representing about 20%

of headline profit after tax. This dividend is subject

to shareholder approval at the Annual General

Meeting (AGM), due to be held on 13 February

2025, and will be payable on 21 March 2025 to

shareholders registered by the close of business

on 21 February 2025.

BOARD

DIRECTORS AND THEIR INTERESTS

Details of the Directors who held office during the

year and their biographical details are set out on

pages 93 to 95. The Directors’ interest in the

ordinary shares and options of the Company are

disclosed within the Directors’ Remuneration

Report on pages 120 to 142.

DIRECTORS’ APPOINTMENT AND RETIREMENT

The Directors may from time to time appoint one

or more Directors. Any such Director shall hold

office only until the next AGM and shall then be

subject to appointment by the Company’s

shareholders.

It is the current intention that at the Company’s

next AGM all Executive and Non-Executive

Directors will retire and offer themselves for

election or re-election. Further information is set

out in the Nominations Committee Report on

page 106.

DIRECTORS’ CONFLICTS OF INTEREST

Directors must avoid conflicts of interest with

easyJet, requiring Board approval if such conflicts

arise. The Company has procedures and

provisions in its Articles of Association to manage

and authorise these conflicts, ensuring

compliance with company law. Directors must

inform the Board of any direct or indirect interests

in transactions with easyJet and continually

update any changes to their conflicts of interest.

DIRECTORS’ INDEMNITIES

Directors’ and officers’ insurance has been set up

for all Directors, covering their reasonable actions

for the Company. A 2007 deed indemnifies all

current and past Directors of the Company and its

subsidiaries, supplementing this insurance. These

indemnities, qualifying as third-party indemnity

provisions under section 234 of the Companies

Act 2006, were active in the 2024 financial year

and continue to protect all eligible Directors.

DIVERSITY

The Board prioritises diversity, recognising that a

mix of skills and experience is essential for the

Company’s future success. The Company has

achieved the FTSE Women Leaders target with

40% women on Boards for 2023–2024 and aims

for 40% women in the Airline Management Board

and their direct reports by 2025 (2024: 33%).

Additionally, the Company meets FCA Diversity

Targets as per UK Listing Rule 6.6.6:

> At least 40% of the Board are women (2024:

40%).

> At least one senior Board position is held by a

woman (2024: Senior Independent Director).

> At least one Board member is from an ethnic

minority background (2024: one).

More details on the Board and Committee Diversity

Policy and the development of a diverse pipeline are

in the Nominations Committee Report on pages 104

to 106. The broader approach to Inclusion and

Diversity is detailed on pages 57 and 58.

Data for the Board of Directors and executive

management as of 30 September 2024, based on

information from the Company’s HR team and

individual confirmations during the year-end

sign-off, is available on the following page.

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OTHER DISCLOSURES (CONTINUED)

Number of

Board members

Percentage of

the Board

Number of

senior positions

on the Board

(CEO, CFO, SID

and Chair)

Number

in executive

management*

Percentage

in executive

management*

Men 6 60% 3 9 81%

Women 4 40% 1 2 19%

Not specified/prefer not to say – – – – –

Ethnicity

Number

of Board

members

Percentage of

the Board

Number of

senior positions

on the Board

(CEO, CFO, SID

and Chair)

Number

in executive

management*

Percentage

in executive

management*

White British or other White

(including minority-white groups) 9 90% 4 11 100%

Mixed/Multiple Ethnic Groups – – – – –

Asian/Asian British 1 10% – – –

Black/African/Caribbean/

Black British – – – – –

Other ethnic group – – – – –

Not specified/prefer not to say – – – – –

* For the purposes of the FCA disclosures, ‘executive management’ is required to refer to the AMB (the most senior

executive body below the Board) and the Company Secretary, as set out under UK Listing Rule 6.6.6. However, the

Company Secretary is not a member of the AMB. Therefore as set out earlier in this report, the AMB (Executive

Committee) (and their direct reports) currently comprises 33% female and 77% male colleagues. Further details of our

female and male representation are set out on page 58.

EMPLOYEES

EMPLOYEES WITH A DISABILITY

As part of our commitment to inclusion and

diversity, we treat every applicant in our

recruitment process fairly, including those

requiring workplace adjustments. We also

continue to support employees who require

workplace adjustments to achieve their full

potential, including through training and

development needs. This includes colleagues who

become disabled whilst in employment. However,

for our two largest communities, pilots and cabin

crew, we are bound by regulatory requirements

for ability with which all applicants and employees

must comply, for operational safety reasons.

COMMUNICATION AND ENGAGEMENT

Details on how the Board and management have

communicated and engaged with employees and

the wider workforce while taking into account

their interests in decision making during the year

can be found in the Stakeholder engagement

section on pages 100 to 103

PARTICIPATION IN SHARE SCHEMES

A key component of easyJet’s reward philosophy

is to provide share ownership opportunities

throughout the Group by making annual awards

of performance-related shares to all eligible

employees when certain criteria are met. In

addition, easyJet operates a voluntary discounted

share purchase arrangement for all employees via

a Save As You Earn scheme, and a Buy As You

Earn arrangement in the UK under the tax-

approved Share Incentive Plan. Further details of

the Company’s share schemes are disclosed

within the Directors’ Remuneration Report on

pages 120 to 142.

STAKEHOLDERS

Details on the methods the Board has used to

engage and build strong business relationships

with the Group’s suppliers, customers and other

key stakeholders are given on pages 100 to 103.

Further information on how the Board considered

stakeholders in its decision making can be found

in the Governance Report on pages 80 to 103.

The section 172 statement is available on pages 77

to 78.

SHARE CAPITAL AND RIGHTS ATTACHING TO SHARES

The Company’s issued share capital as at

30 September 2024 comprised a single class of

ordinary shares. Further details of the Company’s

share capital during the year are disclosed in note

22 to the consolidated financial statements.

All of the issued ordinary shares are fully paid and

rank equally in all respects. The rights and

obligations attaching to the Company’s ordinary

shares are set out in its Articles of Association.

Holders of ordinary shares are entitled, subject to

any applicable law and the Company’s Articles of

Association, to:

> have shareholder documents made available to

them, including notice of any general meeting;

> attend, speak and exercise voting rights at

general meetings, either in person or by proxy,

unless they are subject to disenfranchisement;

and

> participate in any distribution of income or

capital.

DIRECTORS’ POWERS IN RELATION TO ISSUING

OR BUYING BACK SHARES

Subject to applicable law and the Company’s

Articles of Association the Directors may exercise

all powers of the Company, including the power to

authorise the issue and/or market purchase of the

Company’s shares (subject to an appropriate

authority being given to the Directors by

shareholders in a general meeting and any

conditions attaching to such authority).

At the AGM held on 8 February 2024 the

Directors were given the following authority:

> to allot shares up to a nominal amount of

£68,873,873 representing approximately

one-third of the Company’s then-issued share

capital;

> to allot shares comprising equity securities up

to a further aggregate nominal amount of

£68,873,873 in connection with an offer by way

of a rights issue, representing approximately

one-third of the Company’s then issued share

capital;

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OTHER DISCLOSURES (CONTINUED)

> to allot shares, without first offering them to

existing shareholders in proportion to their

holdings, up to a maximum nominal value of

£20,682,844, representing approximately 10%

of the Company’s then issued share capital;

> to allot shares, without first offering them to

existing shareholders in proportion to their

holdings, up to a maximum nominal value of

£20,682,844, representing approximately 10%

of the Company’s then issued share capital only

in connection with the financing (or refinancing,

if the authority is to be used within 12 months

after the original transaction) of an acquisition

or specified capital investment; and

> to purchase in the market a maximum of

75,801,002 shares representing approximately

10% of the Company’s then share capital.

No shares were allotted or bought back under the

above authorities during the year and up to the

date of this report.

VOTING RIGHTS AND RESTRICTIONS ON TRANSFER OF SHARES

None of the ordinary shares carry any special

rights with regard to control of the Company.

There are no restrictions on transfers of shares

other than:

> certain restrictions which may from time to

time be imposed by laws or regulations such as

those relating to insider dealing;

> pursuant to the Company’s Share Dealing Code,

whereby the Directors and designated

employees require approval to deal in the

Company’s shares;

> where a person with an interest in the

Company’s shares has been served with a

disclosure notice and has failed to provide the

Company with information concerning interests

in those shares;

> where a proposed transferee of the Company’s

shares has failed to provide to the Directors a

declaration of nationality (together with such

evidence as the Directors may require) as

required by the Company’s Articles of

Association; and

> the powers given to the Directors by the

Company’s Articles of Association to implement

disenfranchisement and to limit the ownership

of the Company’s shares by non-UK nationals

or, following a decision of the Directors, by

non-EU nationals, and powers to enforce this

limitation, including the right to force a sale of

any affected shares.

There are no restrictions on exercising voting

rights save in situations where the Company is

legally entitled to impose such a restriction (for

example under the Articles of Association where

an Affected Share Notice has been served,

amounts remain unpaid in the shares after

request, or the holder is otherwise in default of an

obligation to the Company).

Those shareholders who own shares whose voting

rights will be suspended at the AGM will receive

an Affected Share Notice by post from Equiniti in

January 2025 notifying them of the suspension of

voting rights in respect of their Affected Shares.

Shareholders in receipt of an Affected Share

Notice will not be entitled to attend, speak or vote

at the AGM, in respect of those shares subject to

an Affected Share Notice. The Company is not

aware of any other arrangements between

shareholders that may result in restrictions on the

transfer of securities or voting rights.

VARIATION OF RIGHTS

Subject to the Companies Act 2006, rights

attached to any class of shares may be varied

with the consent in writing of the holders of

three-quarters in nominal value of the issued

shares of the class or with the sanction of a

special resolution passed at a separate general

meeting of such class.

EMPLOYEE SHARE SCHEMES – RIGHTS OF CONTROL

The trustees of the easyJet UK Share Incentive

Plan, which is used to acquire and hold shares in

the Company for participants in the UK Share

Incentive Plan, does not seek to exercise voting

rights on shares held other than on direction of

the underlying beneficiaries. The trustees take no

action in respect of ordinary shares for which they

have received no direction to vote, or in respect of

ordinary shares which are unallocated.

The trustee of the easyJet plc Employee Benefit

Trust (the Trust), which is used to acquire and hold

shares in the Company for the benefit of

employees, including in connection with the easyJet

Long Term Incentive Plan, the Restricted Share Plan,

the International Share Incentive Plan and Save As

You Earn plans, has the power to vote or not vote, at

its absolute discretion, in respect of any shares in

the Company held unallocated in the Trust.

However, in accordance with good practice, the

trustee adopts a policy of not voting in respect of

such shares. Both the trustees of the easyJet UK

Share Incentive Plan and the easyJet plc Employee

Benefit Trust have a dividend waiver in place in

respect of shares which are the beneficial property

of each of the trusts.

ADDITIONAL INFORMATION

SUBSTANTIAL INTERESTS

As at 30 September 2024, the Company had

been notified of the following disclosable interests

in its issued ordinary shares in accordance with

DTR 5:

Number of

shares as

notified to the

Company

% of issued

share capital

as at

30 September

2024

The Haji-Ioannou family

concert party

shareholding, consisting

of easyGroup Holdings

Limited (holding vehicle

for Sir Stelios Haji-Ioannou

and Clelia Haji-Ioannou)

and Polys Haji-Ioannou

(through his holding

vehicle Polys Holdings

Limited) 115,737,821 15.27%

Societe Generale 33,384,779 4.40%

Between 30 September 2024 and 27 November

2024, the Company received further notifications

under DTR 5. As at 27 November 2024, the

Company had been notified that Bank of America

Corporation had a notifiable interest of 64,822,997

shares, representing 8.55% of voting rights.

ANNUAL GENERAL MEETING

The Board currently intends to hold the AGM on

13 February 2025. The arrangements for the

Company’s 2025 AGM and details of the

resolutions to be proposed, together with

explanatory notes, will be set out in the Notice of

AGM to be published on the Company’s website.

ARTICLES OF ASSOCIATION

The Company’s Articles of Association may only

be amended by a special resolution at a general

meeting of the shareholders, and were last

amended at the AGM on 23 December 2020. A

copy of the Articles is available on the Company’s

website: corporate.easyJet.com.

BRANCHES

The Group, through various subsidiaries, has

established branches in France, Germany, Italy,

the Netherlands, Portugal and Spain, in which the

business operates.

FINANCIAL INSTRUMENTS

Details of the Group’s use of financial instruments,

together with information on our financial risk

management objectives and policies, hedging

policies and our exposure to financial risks, can be

found in notes 26 and 27 of the consolidated

financial statements.

GOING CONCERN AND VIABILITY STATEMENT

The Company’s going concern and viability

statements are detailed on pages 75 and 76 of

the Strategic Report.

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OTHER DISCLOSURES (CONTINUED)

POLITICAL DONATIONS AND EXPENDITURE

easyJet works constructively with all levels of

government across its network, regardless of

political affiliation. easyJet believes in the rights of

individuals to engage in the democratic process;

however, it is easyJet’s policy not to make political

donations. There were no political donations

made or political expenditure incurred during the

2024 financial year.

GREENHOUSE GAS EMISSIONS AND ENERGY CONSUMPTION

Details of the Company’s greenhouse gas

emissions (GHG), energy consumption, energy

efficiency action and Streamlined Energy and

Carbon Reporting (SECR) disclosures can be

found on pages 44 to 45 of the Strategic Report.

SIGNIFICANT AGREEMENTS – CHANGE OF CONTROL

The Company licenses the easyJet brand from

easyGroup Limited. Further details are set out in

note 30 to the financial statements.

The following significant agreements, which were

in force at 27 November 2024, take effect, alter or

terminate on a change of control of the Company.

EMTN PROGRAMME AND EUROBOND ISSUE

On 7 January 2016, the Group established a Euro

Medium Term Note Programme (the EMTN

Programme) which provides the Group with a

standardised documentation platform to allow for

senior unsecured debt issuance in the Eurobond

markets. The maximum potential issuance under

the EMTN Programme is £4 billion.

Under the EMTN Programme, the following notes

(the Notes) have been issued by the Company

and easyJet Finco B.V.:

> February 2016: Eurobonds consisting of €500

million guaranteed Notes paying 1.75% coupon.

This was repaid on its maturity date in February

2023;

> October 2016: Eurobonds consisting of €500

million guaranteed Notes paying 1.125% coupon.

This was repaid on its maturity date in October

2023;

> June 2019: Eurobonds consisting of €500

million guaranteed Notes paying 0.875%

coupon and maturing in June 2025;

> March 2021: Eurobonds consisting of €1.2 billion

guaranteed Notes paying 1.875% coupon and

maturing in March 2028; and

> March 2024: Eurobonds consisting of €850

million guaranteed Notes paying 3.750%

coupon and maturing in 2031.

Pursuant to the final terms attaching to the Notes,

the Company will be required to make an offer to

redeem or purchase the Notes at their principal

amount plus interest up to the date of redemption

or repurchase if there is a change of control of the

Company which results in a downgrade of the

credit rating of the Notes to a non-investment

grade rating or withdrawal of the rating by both

Moody’s and Standard & Poor’s.

REVOLVING CREDIT FACILITY

On 9 September 2021, easyJet entered into a

revolving credit facility (the RCF). The RCF

amounts to a $400 million commitment,

supported by a syndicate of banks, and has a

termination date of September 2025. If there is a

change of control of the Company, the lenders

are not required to lend easyJet any money under

the RCF. Lenders may also request that any

amounts that have been borrowed (together with

accrued interest and all other amounts accrued or

outstanding under the RCF) become immediately

due and payable.

UK EXPORT FINANCE FACILITIES AGREEMENT

On 16 June 2023, easyJet entered into a five-year

sustainability-linked term loan facility of $1.75

billion underwritten by a syndicate of banks and

supported by a partial guarantee from UK Export

Finance under their Export Development

Guarantee scheme (the EDG Facility). If there is a

change of control of the Company, the lenders

are not required to lend easyJet any money under

the EDG Facility. Lenders may also request that

any amounts that have been borrowed (together

with accrued interest and all other amounts

accrued or outstanding under the EDG Facility)

become immediately due and payable. The EDG

Facility is undrawn and replaced easyJet’s

previous export development guarantee facility of

$1.87 billion entered into in January 2021.

OTHER AGREEMENTS

The Company does not have agreements with

any Director or employee that would provide

compensation for loss of office or employment

resulting from a change of control on takeover,

except that provisions of the Company’s share

schemes and plans may cause options and

awards granted to employees under such

schemes and plans to vest on a takeover.

By order of the Board

Ben Matthews

Company Secretary

27 November 2024

The Annual Report and Accounts have been

drawn up and presented in accordance with

UK company law and the liabilities of the

Directors in connection with the report shall be

subject to the limitations and restrictions

provided by such law.

easyJet plc is incorporated as a public limited

company and is registered in England under

number 3959649. easyJet plc’s registered

office is Hangar 89, London Luton Airport,

Luton, Bedfordshire LU2 9PF.

The Strategic Report (comprising pages 2 to

78) and Directors’ Report (comprising pages

80 to 146) were approved by the Board and

signed on its behalf by the Company Secretary.

DISCLOSURES REQUIRED UNDER UK LISTING RULE 6.6

The information to be included in the 2024 Annual

Report and Accounts under UKLR 6.6, where

applicable, can be located as set out below.

Information Page

Shareholder waiver of future

dividends 145

Other information that is relevant to this report,

and which is incorporated by reference, can be

located as follows:

Information Page

Directors’ service contracts 139

Environmental, Social and

Governance (ESG) matters 36–55

Corporate governance report 80–103

Activities in relation to research

and development

18–19,

43–55

Events after statement of financial

position date 198

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STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

The Directors are also responsible for keeping

adequate accounting records that are sufficient

to show and explain the Group’s and Company’s

transactions and disclose with reasonable

accuracy at any time the financial position of the

Group and Company and enable them to ensure

that the financial statements and the Directors’

Remuneration Report comply with the Companies

Act 2006.

The Directors are responsible for the maintenance

and integrity of the Company’s website.

Legislation in the United Kingdom governing the

preparation and dissemination of financial

statements may differ from legislation in other

jurisdictions.

DIRECTORS’ CONFIRMATIONS

Each of the Directors, whose names and functions

are listed on pages 93 to 95, confirm that, to the

best of their knowledge:

> the Group financial statements, which have

been prepared in accordance with UK-adopted

international accounting standards, give a true

and fair view of the assets, liabilities, financial

position and profit of the Group;

> the Company financial statements, which have

been prepared in accordance with United

Kingdom Accounting Standards, comprising

FRS 101, give a true and fair view of the assets,

liabilities and financial position of the Company;

and

> the Strategic Report, included in the Annual

Report, includes a fair review of the

development and performance of the business

and the position of the Group and Company,

together with a description of the principal risks

and uncertainties that it faces.

The Directors are responsible for preparing the

Annual Report and Accounts 2024 and the

financial statements in accordance with

applicable law and regulation.

Company law requires the Directors to prepare

financial statements for each financial year. Under

that law the Directors have prepared the Group

financial statements in accordance with UK-

adopted international accounting standards and

the Company financial statements in accordance

with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting

Standards, comprising FRS 101 ‘Reduced

Disclosure Framework’, and applicable law).

Under company law, directors must not approve

the financial statements unless they are satisfied

that they give a true and fair view of the state of

affairs of the Group and Company and of the

profit or loss of the Group for that period. In

preparing the financial statements, the Directors

are required to:

> select suitable accounting policies and then

apply them consistently;

> state whether applicable UK-adopted

international accounting standards have been

followed for the Group financial statements and

United Kingdom Accounting Standards,

comprising FRS 101 have been followed for the

Company financial statements, subject to any

material departures disclosed and explained in

the financial statements

> make judgements and accounting estimates that

are reasonable and prudent; and prepare the

financial statements on the going concern basis

unless it is inappropriate to presume that the

Group and Company will continue in business.

The Directors are responsible for safeguarding the

assets of the Group and Company and hence for

taking reasonable steps for the prevention and

detection of fraud and other irregularities.

In the case of each Director in office at the date

the Directors’ Report is approved:

> so far as the Director is aware, there is no

relevant audit information of which the Group’s

and Company’s auditors are unaware; and

> they have taken all the steps that they ought to

have taken as a Director in order to make

themselves aware of any relevant audit

information and to establish that the Group’s

and Company’s auditors are aware of that

information.

This responsibility statement was approved by the

Board of Directors on 27 November 2024 and

signed on its behalf by:

Johan Lundgren

Chief Executive

Kenton Jarvis

Chief Financial Officer

Governance

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF easyjet plc

OPINION

In our opinion:

> easyJet Plc’s group financial statements and company financial

statements (the “financial statements”) give a true and fair view of

the state of the group’s and of the company’s affairs as at

30 September 2024 and of the group’s profit and the group’s

cash flows for the year then ended;

> the group financial statements have been properly prepared in

accordance with UK-adopted international accounting standards

as applied in accordance with the provisions of the Companies

Act 2006;

> the company financial statements have been properly prepared in

accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards, including FRS

101 “Reduced Disclosure Framework”, and applicable law); and

> the financial statements have been prepared in accordance with

the requirements of the Companies Act 2006.

We have audited the financial statements, included within the

Annual Report and Accounts 2024 (the “Annual Report”), which

comprise: the Consolidated and Company statements of financial

position as at 30 September 2024; the Consolidated income

statement and the Consolidated statement of comprehensive

income, the Consolidated and Company statements of changes in

equity, and the Consolidated statement of cash flows for the year

then ended; and the notes to the financial statements, comprising

material accounting policy information and other explanatory

information.

Our opinion is consistent with our reporting to the Audit Committee.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards

on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities

under ISAs (UK) are further described in the Auditors’ responsibilities

for the audit of the financial statements section of our report. We

believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

INDEPENDENCE

We remained independent of the group in accordance with the

ethical requirements that are relevant to our audit of the financial

statements in the UK, which includes the FRC’s Ethical Standard, as

applicable to listed public interest entities, and we have fulfilled our

other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, we declare that non-audit

services prohibited by the FRC’s Ethical Standard were not provided.

Other than those disclosed in Note 3 to the financial statements

and the Audit Committee report, we have provided no non-audit

services to the company or its controlled undertakings in the period

under audit.

OUR AUDIT APPROACH

OVERVIEW

Audit scope

> We performed full scope audit procedures over the Company and

two individually significant components in the Group. Procedures

over material financial statement lines were performed in relation

to four further components.

> Separate audit procedures were performed in relation to

consolidation adjustments and balances which arise or eliminate

on consolidation of the Group financial statements, including

goodwill, tax, cash and post-employment benefit obligations.

Key audit matters

> Assessment of impairment of easyJet plc’s investment in easyJet

Airline Company Limited (parent)

> Valuation of the leased aircraft maintenance provision (group)

Materiality

> Overall group materiality: £30,500,000 (2023: £30,000,000)

based on 5% of headline profit before tax.

> Overall company materiality: £51,500,000 (2023: £46,000,000)

based on 1% of total assets, capped at 95% of Group materiality

for the purposes of the Group audit.

> Performance materiality: £22,875,000 (2023: £22,500,000)

(group) and £38,625,000 (2023: £34,000,000) (company).

THE SCOPE OF OUR AUDIT

As part of designing our audit, we determined materiality and

assessed the risks of material misstatement in the financial

statements.

KEY AUDIT MATTERS

Key audit matters are those matters that, in the auditors’

professional judgement, were of most significance in the audit of

the financial statements of the current period and include the most

significant assessed risks of material misstatement (whether or not

due to fraud) identified by the auditors, including those which had

the greatest effect on: the overall audit strategy; the allocation of

resources in the audit; and directing the efforts of the engagement

team. These matters, and any comments we make on the results of

our procedures thereon, were addressed in the context of our audit

of the financial statements as a whole, and in forming our opinion

thereon, and we do not provide a separate opinion on these

matters.

This is not a complete list of all risks identified by our audit.

The key audit matters below are consistent with last year.

REPORT ON THE AUDIT OF

THE FINANCIAL STATEMENTS

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EASYJET PLC (CONTINUED)

Key audit matter How our audit addressed the key audit matter

Valuation of the leased aircraft maintenance provision (group)

The Group operates aircraft which are held

under lease arrangements and for which it

incurs liabilities for maintenance costs

during the term of the lease. These arise

from legal and contractual obligations

relating to the condition of the aircraft

when they are returned to the lessor.

Significantly material maintenance

provisions for aircraft maintenance costs in

respect of leased aircraft were recorded in

the financial statements at 30 September

2024. At each statement of financial

position date, the calculation of the

maintenance provision includes a number

of variable factors and assumptions

including primarily the expected cost of the

heavy maintenance check and the point in

time it is expected to occur. We focused on

this area because of the inherent level of

management estimation required in

calculating the amount of provision needed

as a result of the subjective estimation of

uncontracted variable costs and

uncontracted inflationary increases which

may arise as part of the overall cost

estimate.

Refer to the Accounting policies,

judgements and estimates note (note 1)

and Note 20, for management’s disclosures

of the relevant estimates and judgements

involved in assessing this provision

valuation. The Audit Committee’s views are

set out in the Significant judgements and

estimates section of the Audit Committee

report.

> We evaluated the maintenance provision model and tested the

calculations therein.

> We assessed the process by which the variable elements within the

provision are estimated, evaluating the reasonableness of the

assumptions, testing the input data and re-performing calculations. Our

testing has focussed on those elements of the cost assumptions which

are most exposed to estimation uncertainty, being the non-fixed

elements of the current estimate of event costs and uncontracted

future escalation of these costs to the date at which the event is

expected to arise.

> We challenged the key assumptions using both the Group’s internal

data, such as maintenance contract terms and pricing, historical

experience, business plans and forecasts as well as external data points

such as external contracts, and price indices. We also performed

sensitivity analysis in respect of the key cost and inflationary

assumptions identified above, which are the elements most exposed to

estimation uncertainty. We found no material exceptions from these

assessments and comparisons.

> We have assessed the methodology by which the gross provision has

been discounted back to present value and considered it to be

appropriate.

> We evaluated the judgements made by management to calculate

certain elements of the provision based on the expectation of incurring

penalties rather than performing maintenance restoration work before

the lease end date. We also performed testing to agree these penalty

rates back to the contractual agreements.

> Having ascertained the magnitude of movements in those key

assumptions that would be required for the provision to be misstated,

we considered the likelihood of such movements arising and any impact

on the overall level of aircraft maintenance provisions recorded in the

financial statements. Our assessment as to likelihood and magnitude of

misstatement did not identify any material exceptions.

> We reviewed the adequacy of disclosures made in the financial

statements and challenged management to be clear on what the

critical sources of estimation uncertainty are with respect to this

balance and to ensure that the sensitivity disclosures provided are

relevant to those specific areas.

Based on the work performed, as summarised above, we have concluded

the Group’s valuation of maintenance provisions on leased aircraft and

disclosure of the related critical estimates is materially appropriate.

Key audit matter How our audit addressed the key audit matter

Assessment of impairment of easyJet plc’s investment in easyJet Airline Company Limited (parent)

At 30 September 2024, easyJet plc holds

an investment of £1.1bn (2023: £1.0bn) in

easyJet Airline Company Limited (EACL).

The directors have considered the cash

flow projections for the Airline cash-

generating unit (“CGU”), which are

considered to be the relevant cash flows

for the purposes of assessing impairment

of the investment in EACL. We focussed on

the risk of impairment as the impairment

test involves estimates to be made by

management, many of which are

forward-looking. These estimates include

key assumptions underpinning the strategic

plan, fuel prices (including the ability of

cost increases to be passed through to the

customer), contracted increases in fleet

size, revenue per seat, long-term economic

growth rates and the impacts of climate

change on future cash flows.

Refer to the Accounting policies,

judgements and estimates note (note 1),

Note 11 to the consolidated financial

statements, and Notes a) and c) to the

Company financial statements for

management’s disclosures of the relevant

estimates and judgements involved in

assessing the total investment balance for

impairment. The Audit Committee’s views

are set out in the Significant judgements

and estimates section of the Audit

Committee report.

We obtained management’s annual impairment assessment and ensured

the calculations were mathematically accurate and that the methodology

used was in line with the requirements of IAS 36 ‘Impairment of Assets’.

> We concluded that using the Airline CGU cash flows is appropriate for

the purposes of performing the assessment of impairment of the

investment held in EACL.

> We evaluated the future cash flow forecasts of the CGU, and the

process by which the forecasts were drawn up. In doing this, we

confirmed that the forecasts used for the impairment assessment were

appropriately consistent with the latest available Board plans (excluding

the impact of easyJet holidays which is a separate CGU).

> We evaluated the inputs in the Value in Use (“VIU”) calculation and

challenged the key assumptions including assessment of short and

medium-term flying assumptions by comparing them to industry

forecasts;

> Using our internal valuation experts to calculate an independent WACC

rate range, with reference to comparable businesses, to assess the

appropriateness of the WACC rate used in management’s assessment;

> Assessment of the fuel price assumptions, to ensure the foreign

exchange rates used at 30 September 2024 were appropriate and that

sufficient disclosure of the underlying assumptions for dealing with

future potential fuel and Emissions Trading Scheme credit price

volatility via pass through to customers have been adequately disclosed

in the financial statements; and

> We evaluated the extent to which the considerations of climate change,

such as costs associated with emissions trading schemes and the

expected increased use of sustainable aviation fuels, had been reflected

in the underlying cash flows and management’s sensitivities. This

included an assessment of the consistency of the assumptions used

with the latest impact assessments that have been carried out by

easyJet’s sustainability team, including the continuing fleet transition.

> We reviewed the adequacy of disclosures made in the financial

statements and assessed compliance with disclosure requirements,

including challenging management to be transparent about the

underlying risk scenarios which have been assessed and embedded into

its future cash flow assumptions.

Based on our work summarised above, we have concluded that the

investment in easyJet Airline Company Limited is not impaired at 30

September 2024, and that appropriate assumption and sensitivity

disclosures have been made in the financial statements.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EASYJET PLC (CONTINUED)

HOW WE TAILORED THE AUDIT SCOPE

We tailored the scope of our audit to ensure that we performed

enough work to be able to give an opinion on the financial

statements as a whole, taking into account the structure of the

group and the company, the accounting processes and controls,

and the industry in which they operate.

The Group operates through the Company and its thirteen

subsidiary undertakings of which nine were actively trading through

the year. The remaining subsidiaries are either holding companies or

currently dormant. The accounting for these subsidiaries, each of

which is considered to be a separate component in the way we

scope our audit, is primarily centralised in the UK.

We determined the most effective approach to scoping was to

perform full scope audit procedures over the Company and two

individually significant components in the Group which are

registered in the UK. Procedures over material financial statements

lines were performed in respect of four further components. In

some cases, financial statement line items are tested in aggregate

to the Group materiality where they arise on consolidation. All Group

audit work has been performed by the UK Group engagement

team.

Additional audit procedures were performed in relation to

consolidation adjustments by the UK Group engagement team. The

testing approach ensured that appropriate audit evidence was

obtained over all financial statement line items in order to support

our opinion on the Group financial statements as a whole.

THE IMPACT OF CLIMATE RISK ON OUR AUDIT

Climate change risk is expected to have a significant impact on the

aviation industry. As explained in the Sustainability Report, the

Group is clearly mindful of their impact on the environment and in

September 2022 set out their roadmap to net zero carbon

emissions by 2050, including an interim target to have reduced

well-to-wake GHG emissions by 35% by 2035, aligned with the

Science-Based Targets initiative and how they aim to deliver on

these targets.

In planning and executing our audit we have considered the Group’s

risk assessment process and the steps the business expects to take

to deliver on its GHG emissions target. This, together with

discussions with management and our own sustainability specialists

and reading the Group’s most recent sustainability reporting,

including their latest CDP (Carbon Disclosure Project) submission,

provided us with a good understanding of the potential impact of

climate change on the financial statements.

We assessed that the key financial statement line items and

estimates which are more likely to be materially impacted by climate

risks are those associated with future cash flows, given that the

more notable impacts of climate change on the business are

expected to arise in the medium to long term. These include the key

audit matter in respect of the assessment of impairment of easyJet

plc’s investment in easyJet Airline Company Limited, as well as the

assessment of impairment of goodwill and other intangible assets

and the recoverability of the Group’s deferred tax assets. We have

considered the estimated costs used by management in relation to

carbon credits required to be purchased under Emission trading

schemes and the minimum levels of SAF usage required under

currently implemented mandates. We have also specifically

considered how easyJet’s net zero targets impact on likely aircraft

ownership periods, and the related impact on ongoing depreciation

charges in respect of aircraft assets held at 30 September 2024. In

addition we also considered the consistency of the disclosures in

relation to climate change (including the disclosures in the Task

Force on Climate-related Financial Disclosures (TCFD) section)

within the Annual Report and Accounts with the financial

statements and our knowledge obtained from our audit.

Whilst the Group has started to quantify some of the impacts that

may arise on its pathway towards its net zero targets, the future

financial impacts are clearly uncertain given the medium to long

term time horizon and the technological advancements that will be

necessary, including further updates to sustainable aviation fuel

mandates and the development of zero emissions aircraft. We have

discussed with management and the Audit Committee that the

estimated financial impacts of climate change, which are expected

to be significant, will need to be frequently reassessed and our

expectation that climate change disclosures will continue to evolve

as greater understanding of the actual and potential impacts on the

Group’s future operations is obtained.

MATERIALITY

The scope of our audit was influenced by our application of

materiality. We set certain quantitative thresholds for materiality.

These, together with qualitative considerations, helped us to

determine the scope of our audit and the nature, timing and extent of

our audit procedures on the individual financial statement line items

and disclosures and in evaluating the effect of misstatements, both

individually and in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for

the financial statements as a whole as follows:

Financial statements – group Financial statements – company

Overall materiality

£30,500,000 (2023: £30,000,000). £51,500,000 (2023: £46,000,000).

How we determined it

Based on 5% of headline profit before tax Based on 1% of total assets, capped at 95% of

Group materiality for the purposes of the Group

audit

Rationale for benchmark

applied

We consider that the income statement remains

the principal measure used by the shareholders in

assessing the underlying performance of the

Group and therefore an approach to materiality

based on 5% of the headline profit/loss before tax

has been applied. In 2023, we used a five-year

average of headline profit/loss before tax due to

the volatility caused by COVID and the subsequent

recovery. As the Group has now returned to

profitability for two consecutive years, we consider

it appropriate to return to a materiality level based

on this year’s profit. This is consistent with the

approach taken prior to 2020.

We believe that a total asset benchmark is

appropriate given that the Company does not

generate revenues of its own.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EASYJET PLC (CONTINUED)

For each component in the scope of our group audit, we allocated a

materiality that is less than our overall group materiality. The range

of materiality allocated across components was between

£7,625,000 and £28,975,000. Certain components were audited to

a local statutory audit materiality that was also less than our overall

group materiality.

We use performance materiality to reduce to an appropriately low

level the probability that the aggregate of uncorrected and

undetected misstatements exceeds overall materiality. Specifically,

we use performance materiality in determining the scope of our

audit and the nature and extent of our testing of account balances,

classes of transactions and disclosures, for example in determining

sample sizes. Our performance materiality was 75% (2023: 75%) of

overall materiality, amounting to £22,875,000 (2023: £22,500,000)

for the group financial statements and £38,625,000 (2023:

£34,000,000) for the company financial statements.

In determining the performance materiality, we considered a

number of factors - the history of misstatements, risk assessment

and aggregation risk and the effectiveness of controls - and

concluded that an amount at the upper end of our normal range

was appropriate.

We agreed with the Audit Committee that we would report to them

misstatements identified during our audit above £1,525,000 (group

audit) (2023: £1,500,000) and £1,525,000 (company audit) (2023:

£1,500,000) as well as misstatements below those amounts that, in

our view, warranted reporting for qualitative reasons.

CONCLUSIONS RELATING TO GOING CONCERN

Our evaluation of the directors’ assessment of the group’s and the

company’s ability to continue to adopt the going concern basis of

accounting included:

> Review of management’s base case and severe but plausible

downside scenario, ensuring the directors have considered

appropriate factors. This included consideration of the cash flows

against current industry forecasts, the liquidity position of the

Group, available financing facilities, the timing of contractual debt

repayments and committed capital expenditure.

Based on the work we have performed, we have not identified any

material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the group’s

and the company’s ability to continue as a going concern for a

period of at least twelve months from when the financial statements

are authorised for issue.

the financial statements and has been prepared in accordance with

applicable legal requirements.

In light of the knowledge and understanding of the group and

company and their environment obtained in the course of the audit,

we did not identify any material misstatements in the Strategic

report and Directors’ Report.

DIRECTORS’ REMUNERATION

In our opinion, the part of the Directors’ remuneration report to be

audited has been properly prepared in accordance with the

Companies Act 2006.

CORPORATE GOVERNANCE STATEMENT

The Listing Rules require us to review the directors’ statements in

relation to going concern, longer-term viability and that part of the

corporate governance statement relating to the company’s compliance

with the provisions of the UK Corporate Governance Code specified for

our review. Our additional responsibilities with respect to the corporate

governance statement as other information are described in the

Reporting on other information section of this report.

Based on the work undertaken as part of our audit, we have concluded

that each of the following elements of the corporate governance

statement, included within the Governance and Strategic Report

sections of the Annual Report is materially consistent with the financial

statements and our knowledge obtained during the audit, and we have

nothing material to add or draw attention to in relation to:

> The directors’ confirmation that they have carried out a robust

assessment of the emerging and principal risks;

> The disclosures in the Annual Report that describe those principal

risks, what procedures are in place to identify emerging risks and

an explanation of how these are being managed or mitigated;

> The directors’ statement in the financial statements about

whether they considered it appropriate to adopt the going

concern basis of accounting in preparing them, and their

identification of any material uncertainties to the group’s and

company’s ability to continue to do so over a period of at least

twelve months from the date of approval of the financial

statements;

> The directors’ explanation as to their assessment of the group’s

and company’s prospects, the period this assessment covers and

why the period is appropriate; and

> The directors’ statement as to whether they have a reasonable

expectation that the company will be able to continue in

operation and meet its liabilities as they fall due over the period of

its assessment, including any related disclosures drawing

attention to any necessary qualifications or assumptions.

In auditing the financial statements, we have concluded that the

directors’ use of the going concern basis of accounting in the

preparation of the financial statements is appropriate.

However, because not all future events or conditions can be

predicted, this conclusion is not a guarantee as to the group’s and

the company’s ability to continue as a going concern.

In relation to the directors’ reporting on how they have applied the

UK Corporate Governance Code, we have nothing material to add or

draw attention to in relation to the directors’ statement in the

financial statements about whether the directors considered it

appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the directors with

respect to going concern are described in the relevant sections of

this report.

REPORTING ON OTHER INFORMATION

The other information comprises all of the information in the Annual

Report other than the financial statements and our auditors’ report

thereon. The directors are responsible for the other information. Our

opinion on the financial statements does not cover the other

information and, accordingly, we do not express an audit opinion or,

except to the extent otherwise explicitly stated in this report, any

form of assurance thereon.

In connection with our audit of the financial statements, our

responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the

audit, or otherwise appears to be materially misstated. If we identify

an apparent material inconsistency or material misstatement, we are

required to perform procedures to conclude whether there is a

material misstatement of the financial statements or a material

misstatement of the other information. If, based on the work we

have performed, we conclude that there is a material misstatement

of this other information, we are required to report that fact. We

have nothing to report based on these responsibilities.

With respect to the Strategic report and Directors’ Report, we also

considered whether the disclosures required by the UK Companies

Act 2006 have been included.

Based on our work undertaken in the course of the audit, the

Companies Act 2006 requires us also to report certain opinions and

matters as described below.

STRATEGIC REPORT AND DIRECTORS’ REPORT

In our opinion, based on the work undertaken in the course of the

audit, the information given in the Strategic report and Directors’

Report for the year ended 30 September 2024 is consistent with

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EASYJET PLC (CONTINUED)

Our review of the directors’ statement regarding the longer-term

viability of the group and company was substantially less in scope

than an audit and only consisted of making inquiries and

considering the directors’ process supporting their statement;

checking that the statement is in alignment with the relevant

provisions of the UK Corporate Governance Code; and considering

whether the statement is consistent with the financial statements

and our knowledge and understanding of the group and company

and their environment obtained in the course of the audit.

In addition, based on the work undertaken as part of our audit, we

have concluded that each of the following elements of the

corporate governance statement is materially consistent with the

financial statements and our knowledge obtained during the audit:

> The directors’ statement that they consider the Annual Report,

taken as a whole, is fair, balanced and understandable, and

provides the information necessary for the members to assess

the group’s and company’s position, performance, business model

and strategy;

> The section of the Annual Report that describes the review of

effectiveness of risk management and internal control systems;

and

> The section of the Annual Report describing the work of the

Audit Committee.

We have nothing to report in respect of our responsibility to report

when the directors’ statement relating to the company’s compliance

with the Code does not properly disclose a departure from a

relevant provision of the Code specified under the Listing Rules for

review by the auditors.

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

RESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL STATEMENTS

As explained more fully in the Statement of Directors’ responsibilities

in respect of the financial statements, the directors are responsible

for the preparation of the financial statements in accordance with

the applicable framework and for being satisfied that they give a

true and fair view. The directors are also responsible for such

internal control as they determine is necessary to enable the

preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible

for assessing the group’s and the company’s ability to continue as a

going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless the

directors either intend to liquidate the group or the company or to

cease operations, or have no realistic alternative but to do so.

AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether

the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an

auditors’ report that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a

material misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial

statements.

Irregularities, including fraud, are instances of non-compliance with

laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect material misstatements in

respect of irregularities, including fraud. The extent to which our

procedures are capable of detecting irregularities, including fraud, is

detailed below.

Based on our understanding of the group and industry, we

identified that the principal risks of non-compliance with laws and

regulations related to regulatory compliance to ensure Air

Operator’s Certificates (held in the UK, Switzerland and Austria) and

travel provider licences remain valid and fully operational, Task Force

on Climate-Related Financial Disclosures and Streamlined Energy

and Carbon Reporting (SECR) requirements, and we considered the

extent to which non-compliance might have a material effect on the

financial statements. We also considered those laws and regulations

that have a direct impact on the financial statements such as

compliance with the requirements of emissions trading schemes

and customer claims regulation, The Listing Rules, UK and overseas

tax legislation, The UK Corporate Governance Code and Companies

Act 2006. We evaluated management’s incentives and

opportunities for fraudulent manipulation of the financial

statements (including the risk of override of controls), and

determined that the principal risks were related to inappropriate

journal entries in the underlying books and records and

management bias in accounting estimates. Audit procedures

performed by the engagement team included:

> Discussions with management, internal audit and the Group’s

legal team, including consideration of known or suspected

instances of non-compliance with laws and regulations and fraud;

> Challenging assumptions and judgements made by management

in its significant accounting estimates that involved making

assumptions and considering future events that are inherently

uncertain. We focused on the valuation of the maintenance

provision, and for the Company the assessment of impairment of

the investment in easyJet Airline Company Limited (see related

key audit matters above). We also specifically assessed the

liabilities held in respect of items including actual and potential

litigation matters, liabilities held for customer compensation, the

assessment of impairment of intangible assets, and the

recoverability of deferred tax assets;

> Consideration of recent correspondence with the Group’s legal

advisors to ensure that it aligned with the conclusions drawn on

obligations recognised and contingent liabilities disclosed in

respect of uncertain legal matters;

> Identifying and testing journal entries, in particular certain journal

entries posted with unusual account combinations;

> Designing audit procedures to incorporate unpredictability around

the nature, timing or extent of our testing.

There are inherent limitations in the audit procedures described

above. We are less likely to become aware of instances of non-

compliance with laws and regulations that are not closely related to

events and transactions reflected in the financial statements. Also,

the risk of not detecting a material misstatement due to fraud is

higher than the risk of not detecting one resulting from error, as

fraud may involve deliberate concealment by, for example, forgery

or intentional misrepresentations, or through collusion.

Our audit testing might include testing complete populations of

certain transactions and balances, possibly using data auditing

techniques. However, it typically involves selecting a limited number

of items for testing, rather than testing complete populations. We

will often seek to target particular items for testing based on their

size or risk characteristics. In other cases, we will use audit sampling

to enable us to draw a conclusion about the population from which

the sample is selected.

A further description of our responsibilities for the audit of the

financial statements is located on the FRC’s website at: www.frc.

org.uk/auditorsresponsibilities. This description forms part of our

auditors’ report.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EASYJET PLC (CONTINUED)

USE OF THIS REPORT

This report, including the opinions, has been prepared for and only

for the company’s members as a body in accordance with Chapter

3 of Part 16 of the Companies Act 2006 and for no other purpose.

We do not, in giving these opinions, accept or assume responsibility

for any other purpose or to any other person to whom this report is

shown or into whose hands it may come save where expressly

agreed by our prior consent in writing.

OTHER REQUIRED REPORTING

COMPANIES ACT 2006 EXCEPTION REPORTING

Under the Companies Act 2006 we are required to report to you if,

in our opinion:

> we have not obtained all the information and explanations we

require for our audit; or

> adequate accounting records have not been kept by the

company, or returns adequate for our audit have not been

received from branches not visited by us; or

> certain disclosures of directors’ remuneration specified by law are

not made; or

> the company financial statements and the part of the Directors’

remuneration report to be audited are not in agreement with the

accounting records and returns.

We have no exceptions to report arising from this responsibility.

APPOINTMENT

Following the recommendation of the Audit Committee, we were

appointed by the members on 22 February 2006 to audit the

financial statements for the year ended 30 September 2006 and

subsequent financial periods. The period of total uninterrupted

engagement is 19 years, covering the years ended 30 September

2006 to 30 September 2024.

OTHER MATTER

The company is required by the Financial Conduct Authority

Disclosure Guidance and Transparency Rules to include these

financial statements in an annual financial report prepared under

the structured digital format required by DTR 4.1.15R - 4.1.18R and

filed on the National Storage Mechanism of the Financial Conduct

Authority. This auditors’ report provides no assurance over whether

the structured digital format annual financial report has been

prepared in accordance with those requirements.

Matthew Mullins (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Watford

27 November 2024

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CONSOLIDATED INCOME STATEMENT

					Year ended 30 September
			2024			2023
			Non-headline			Non-headline
		Headline	(note 5)	Total	Headline	(note 5)	Total
	Notes	£ million	£ million	£ million	£ million	£ million	£ million
Passenger revenue 		5,715	–	5,715	5,221	–	5,221
Ancillary revenue
Airline ancillary revenue 		2,457	–	2,457	2,174	–	2,174
Holidays incremental revenue 		1,137	–	1,137	776	–	776
Total ancillary revenue 		3,594	–	3,594	2,950	–	2,950
Total revenue	8	9,309	–	9,309	8,171	–	8,171
Fuel 		(2,223)	–	(2,223)	(2,033)	–	(2,033)
Airports and ground handling 		(1,989)	–	(1,989)	(1,800)	–	(1,800)
Crew 		(1,074)	–	(1,074)	(941)	–	(941)
Navigation 		(463)	–	(463)	(422)	–	(422)
Maintenance 		(390)	–	(390)	(341)	–	(341)
Holidays direct operating costs (excluding flights)		(840)	–	(840)	(582)	–	(582)
Selling and marketing 		(257)	–	(257)	(232)	–	(232)
Other costs 		(758)	(9)	(767)	(695)	(10)	(705)
Other income 		52	1	53	5	6	11
EBITDA 		1,367	(8)	1,359	1,130	(4)	1,126
Depreciation	12	(727)	–	(727)	(625)	(19)	(644)
Amortisation of intangible assets	11	(43)	–	(43)	(29)	–	(29)
Operating profit 		597	(8)	589	476	(23)	453
Interest receivable and other financing income 		141	–	141	132	–	132
Interest payable and other financing charges 		(132)	–	(132)	(180)	–	(180)
Foreign exchange gain 		4	–	4	27	–	27
Net finance income/(charges)	2	13	–	13	(21)	–	(21)
Profit before tax	3	610	(8)	602	455	(23)	432
Tax cha rge	6	(151)	1	(150)	(114)	6	(108)
Profit for the year		459	(7)	452	341	(17)	324
Earnings per share, pence      
Basic	7  			60.3  			43.1
Diluted	7  			59.6  			42.7

      

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Year ended	Year ended
		30 September	30 September
		2024	2023
	Notes	£ million	£ million
Profit for the year 		452	324
Other comprehensive (loss)/income   
Items that may be reclassified to the income statement:
Cash flow hedges   
Fair value losses in the year 		(358)	(19)
Losses/(gains) transferred to the income statement 		23	(51)
Hedge ineffectiveness/discontinuation losses transferred to the income statement 		2	1
Related deferred tax credit	6	83	12
Cost of hedging 		(8)	(9)
Related deferred tax credit	6	2	2
Items that will not be reclassified to the income statement:
Remeasurement loss of post–employment benefit obligations	21	(11)	(8)
Related deferred tax credit/(charge)	6	3	(1)
Fair value gain on equity investment 		20	–
		  (244)	(73)
Total comprehensive income for the year 		208	251

  

Fair valuation losses in the year are driven by a fall in the fuel price and strengthening of sterling, resulting in an adverse move in the value of hedges.

Losses/(gains) on cash flow hedges reclassified from other comprehensive income to the income statement by income statement caption are as follows:

2024

£ million

2023

£ million

Revenue (25) 6

Fuel (13) (86)

Maintenance 4 (5)

Eurobonds (within foreign exchange gain) 38 21

Other financing income 19 13

 23 (51)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION



		As at 30	As at 30
		September 2024	September 2023
	Notes	£ million	£ million
Non-current assets   
Goodwill	11	387	365
Other intangible assets	11	406	276
Property, plant and equipment	12	5,475	4,864
Derivative financial instruments	26	2	35
Equity investment	26	51	31
Restricted cash	15	–	2
Other non-current assets	13	169	138
		  6,490	5,711
Current assets   
Trade and other receivables	14	483	343
Current intangible assets	11	572	676
Derivative financial instruments	26	29	186
Other investments	15	2,118	–
Cash and cash equivalents	15	1,343	2,925
		  4,545	4,130
Current liabilities   
Trade and other payables	16	(1,656)	(1,764)
Unearned revenue	17	(1,737)	(1,498)
Borrowings	18	(416)	(433)
Lease liabilities	19	(227)	(217)
Derivative financial instruments	26	(270)	(54)
Current tax liabilities	6	(9)	(3)
Provisions for liabilities and charges	20	(156)	(175)
		  (4,471)	(4,144)
Net current assets/(liabilities) 		74	(14)



		As at 30	As at 30
		September 2024	September 2023
	Notes	£ million	£ million
Non-current liabilities   
Unearned revenue	17	(4)	(3)
Borrowings	18	(1,690)	(1,462)
Lease liabilities	19	(947)	(772)
Derivative financial instruments	26	(51)	(14)
Other liabilities 		(6)	(4)
Post–employment benefit obligations	21	(17)	(7)
Provisions for liabilities and charges	20	(806)	(626)
Deferred tax liabilities	6	(70)	(22)
		  (3,591)	(2,910)
Net assets 		2,973	2,787
Shareholders’ equity   
Share capital	22	207	207
Share premium 		2,166	2,166
Hedging reserve 		(137)	113
Cost of hedging reserve 		(8)	(2)
Translation reserve 		72	72
Retained earnings 		673	231
Total equity 		2,973	2,787

The financial statements on pages 154 to 198 were approved by the Board of Directors and authorised

for issue on 27 November 2024 and signed on behalf of the Board.

Johan Lundgren Kenton Jarvis

Director Director

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

						Retained
						earnings/
	Share	Share	Hedging	Cost of hedging	Translation	(accumulated
	capital	premium	reserve	reserve	reserve	losses)	Total equity
	£ million	£ million	£ million	£ million	£ million	£ million	£ million
At 1 October 2023	207	2,166	113	(2)	72	231	2,787
Profit for the year	–	–	–	–	–	452	452
Other comprehensive (loss)/income	–	–	(250)	(6)	–	12	(244)
Total comprehensive (loss)/income	–	–	(250)	(6)	–	464	208
Dividends paid	–	–	–	–	–	(34)	(34)
Share incentive schemes
Employee share schemes –
Value of employee services (note 23)	–	–	–	–	–	30	30
Purchase of own shares	–	–	–	–	–	(18)	(18)
At 30 September 2024	207	2,166	(137)	(8)	72	673	2,973

      

						Retained
						earnings/
	Share	Share	Hedging	Cost of hedging	Translation	(accumulated
	capital	premium	reserve	reserve	reserve	losses)	Total equity
	£ million	£ million	£ million	£ million	£ million	£ million	£ million
At 1 October 2022	207	2,166	170	5	(6)	(9)	2,533
Profit for the year	–	–	–	–	–	324	324
Other comprehensive loss	–	–	(57)	(7)	–	(9)	(73)
Total comprehensive (loss)/income	–	–	(57)	(7)	–	315	251
Share incentive schemes       
Employee share schemes –
Value of employee services (note 23)	–	–	–	–	–	18	18
Purchase of own shares	–	–	–	–	–	(15)	(15)
Currency translation transfer 1	–	–	–	–	78	(78)	–
At 30 September 2023	207	2,166	113	(2)	72	231	2,787

1) The translation reserves transfer relates to a correction of a historical error in the retranslation of monetary assets and liabilities in overseas subsidiaries on consolidation. The cumulative

amount of exchange differences on these balances were previously presented within retained earnings/(accumulated losses) in the consolidated statement of changes in equity and the

consolidated statement of financial position. However, these exchange differences should have been presented as part of the translation reserve. This has resulted in a £78 million transfer

between retained earnings/(accumulated losses) and the translation reserve to more accurately present the cumulative foreign exchange gains recognised on consolidation. The nature of

the error is considered to not constitute a material error on a qualitative basis and therefore the impact was adjusted in the FY23 financial statements, being the year the error was noted.

There is no change in brought forward or carried forward total equity from this change and no restatement of the consolidated statement of financial position or consolidated statement of

changes in equity has been made.

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments relating to highly

probable transactions that are forecast to occur after the year end.

At 30 September 2024, amounts in the cost of hedging reserve comprised a £1 million loss related to cross-currency basis (2023: £3 million gain) and a £9

million loss related to the time value of options (2023: £5 million loss).

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CONSOLIDATED STATEMENT OF CASH FLOWS

		Year ended	Year ended
		30 September	30 September
		2024	2023
	Notes	£ million	£ million
Cash flows from operating activities   
Cash generated from operations	24	1,483	1,509
Dividends paid	9	(34)	–
Interest and other financing charges paid		(101)	(162)
Interest and other financing income received		124	125
Settlement of derivatives 		1	91
Tax paid	6	(8)	(12)
Net cash generated from operating activities 		1,465	1,551
Cash flows from investing activities   
Purchase of property, plant and equipment 		(811)	(677)
Proceeds from sale of property, plant and equipment 		9	–
Acquisition of subsidiary, net of cash acquired	10	(22)	–
Purchase of non–current other intangible assets 		(118)	(77)
(Increase)/decrease in other investments	25	(2,118)	126
Proceeds from sale and leaseback of aircraft 		114	76
Net cash used in investing activities 		(2,946)	(552)
Cash flows from financing activities   
Purchase of own shares for employee share schemes 		(18)	(15)
Proceeds from debt financing	25	718	–
Repayment of bank loans and other borrowings	25	(434)	(1,192)
Settlement of derivatives 		(11)	–
Repayment of capital element of leases	25	(222)	(218)
Decrease in restricted cash	15	2	5
Net cash generated from/(used in) financing activities 		35	(1,420)
Effect of exchange rate movements 		(136)	(168)
Net decrease in cash and cash equivalents 		(1,582)	(589)
Cash and cash equivalents at beginning of year 		2,925	3,514
Cash and cash equivalents at end of year	15	1,343	2,925

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NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES, JUDGEMENTS AND ESTIMATES

STATEMENT OF COMPLIANCE

easyJet plc (the ‘Company’) and its subsidiaries (‘easyJet’ or the ‘Group’ as applicable) is a low-cost

airline carrier operating principally in Europe . The Company is a public limited company (company

number 03959649), incorporated and domiciled in the United Kingdom, whose shares are listed on the

London Stock Exchange under the ticker symbol EZJ. The address of its registered office is Hangar 89,

London Luton Airport, Luton, Bedfordshire, LU2 9PF, England.

The consolidated financial statements of easyJet plc have been prepared in accordance with UK-

adopted International Accounting Standards and with the requirements of the Companies Act 2006 as

applicable to companies reporting under those standards.

BASIS OF PREPARATION

The financial statements are prepared based on the historical cost convention except for certain

financial assets and liabilities, including derivative financial instruments, financial guarantees, equity

investments, and certain contingent liabilities and commitments, which are measured at fair value.

easyJet’s business activities, together with factors likely to affect its future development and

performance, are described in the strategic report on pages 2 to 78. Principal risks and uncertainties are

described on pages 69 to 74. Note 27 to the financial statements sets out the Group’s objectives,

policies and procedures for managing its capital and gives details of the risks related to financial

instruments held by the Group.

The financial statements have been prepared on a going concern basis. In adopting the going concern basis,

the Directors have considered easyJet’s business activities, together with factors likely to affect its future

development and performance, as well as easyJet’s principal risks and uncertainties through to June 2026.

As at 30 September 2024, easyJet had a net cash position of £181 million including cash and cash

equivalents of £1.3 billion, with access to £5.1 billion of liquidity, and has retained ownership of 54% of the

total fleet, all of which are unencumbered.

The Directors have reviewed the financial forecasts and funding requirements with consideration given

to the potential impact of severe but plausible risks. easyJet has modelled a base case representing

management’s best estimation of how the business plans to perform over the period. The future impact

of climate change on the business has been incorporated into strategic plans, including the estimated

financial impact within the base case cash flow projections of the cost of future fleet renewals, the

future estimated price of Emissions Trading Scheme (ETS) allowances, the phasing out of the free ETS

allowances, the expected price and quantity required of Sustainable Aviation Fuel (SAF) and the cost of

carbon removal credits and other sustainability initiatives. Further detail is given in the sustainability

section on pages 36 to 55.

The business is exposed to fluctuations in fuel prices and foreign exchange rates. easyJet is currently

c.80% hedged for fuel in H1 of FY25 at c.$808 per metric tonne, c.59% hedged for H2 FY25 at c.$771

and c.24% hedged for H1 FY26 at c.$761.

In modelling the impact of severe but plausible downside risks, the Directors have considered demand

suppression leading to a reduction in ticket yield of 5% and a reduction in easyJet holidays’ contribution

of 5%. The model also includes the reoccurrence of additional disruption costs (at FY22 levels), an

additional $50 per metric tonne on the fuel price, 1.5% additional operating cost inflation and an adverse

movement on the US dollar rate. These impacts have been modelled across the whole going concern

period. In addition, this downside model also includes a grounding of 25% of the fleet for the duration of

the peak trading month of August, to cover the range of severe but plausible risks that could result in

significant operational disruption. This downside scenario resulted in a significant reduction in liquidity

but still maintained sufficient headroom on liquidity requirements.

After reviewing the current liquidity position, committed funding facilities, the base case and the severe

but plausible downside financial forecasts incorporating the uncertainties described above, the Directors

have a reasonable expectation that the Group has sufficient resources to continue in operation for the

foreseeable future. For these reasons, the Directors continue to adopt the going concern basis of

accounting in preparing the Group’s financial statements.

The use of critical accounting estimates and management judgement is required in applying relevant

accounting policies to the Group’s consolidated financial statements. Areas involving a higher degree of

judgement, or where assumptions and estimates are significant to the financial statements and carry

estimation risk, are highlighted on pages 167 to 168.

CLIMATE CHANGE

In preparing the financial statements, the Directors have considered the impact of climate change,

particularly in the context of the climate change risks identified in the Sustainability section of the

strategic report, the Group’s stated target of net zero carbon emissions by 2050, and our commitment

to reducing our carbon emissions intensity by 35% by 2035. These targets and risks have been

considered in relation to the financial reporting judgements and estimates in the current year and these

have not materially impacted the conclusions reached including;

> the estimates of future cash flows used in impairment assessments of the carrying value of non-

current assets;

> the estimates of future profitability used in our assessment of the recoverability of deferred tax assets

in the UK; and

> the useful economic lives (UELs) and related residual values for our less fuel-efficient aircraft.

Known climate-related impacts are incorporated into the Group’s short-term and medium-term cash

flows including the fleet planning, the purchase of next-generation aircraft, fuel-saving initiatives and the

costs associated with carbon, i.e., updated mandates for the phase-out of free ETS allowances, the

expected price and quantity required of SAF usage and the cost of carbon removal credits.

Climate change is not expected to have any significant impact on demand or further impact on the

Group’s short-term cash flows considered in the going concern and viability assessments. Additional

identified climate-based risks and the impact of these in the absence of actions taken by easyJet to

manage the transition are considered in the stress testing for impairment and viability. In particular the

impact of a reduction in demand due to investor/market sentiment and increased costs due to changes

in technology, regulatory and legal requirements have been considered.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1A. MATERIAL ACCOUNTING POLICIES

The material accounting policies applied in the preparation of the consolidated financial statements are

summarised below. Unless otherwise stated they have been applied consistently to both years

presented. The explanations of these policies focus on areas where judgement is applied or which are

particularly significant in the financial statements.

BASIS OF CONSOLIDATION

The consolidated financial statements incorporate those of easyJet plc and its subsidiaries for the years

ended 30 September 2023 and 30 September 2024. A full list of subsidiaries can be found in the Notes

to the Company financial statements on page 202.

A subsidiary is an entity controlled by easyJet plc. Control is achieved when easyJet is exposed to, or has

rights to, variable returns from its involvement with the investee and has the ability to affect those

returns through its power, directly or indirectly, over the investee.

The Group applies the acquisition method to account for business combinations. The consideration paid

is the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the

Group. Identifiable assets acquired and liabilities assumed in a business combination are measured

initially at their fair values at the acquisition date.

Intragroup balances, transactions, and any unrealised gains and losses arising from intragroup

transactions are eliminated in preparing the consolidated financial statements.

FOREIGN CURRENCIES

The primary economic environment in which a subsidiary operates determines its functional currency.

The consolidated financial statements of easyJet are presented in sterling, rounded to the nearest

£ million, which is the Company’s functional currency and the Group’s presentation currency.

Transactions arising in foreign currencies are recorded using the rate of exchange ruling at the date of

the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the

functional currency using the rate of exchange ruling at the end of a reporting period and (except where

the asset or liability is designated as a cash flow hedge) the gains or losses on translation are included in

the income statement. Non-monetary assets and liabilities denominated in foreign currencies are

translated into the functional currency at foreign exchange rates ruling at the dates the transactions

were effected.

Certain subsidiaries have operations that are primarily influenced by a currency other than sterling.

Exchange differences arising on the translation of these foreign operations are taken to the translation

reserve within shareholders’ equity until all or part of the interest is disposed of, when the relevant

portion of the accumulated exchange gains or losses is recognised in the income statement. Profits and

losses of foreign operations are translated into sterling at average monthly rates of exchange during the

year, as this approximates the rates on the dates of the transactions.

I MPAIRMENT OF NON-FINANCIAL ASSETS

easyJet has identified two separate cash-generating units (CGUs) which are two separate groups of

assets generating largely independent cash flows, these being easyJet’s airline route network and its

Holidays business.

All goodwill, landing rights, current intangible assets, associated working capital balances, aircraft and

aircraft spares belong to the Airline CGU which is tested annually for impairment or when there is an

indication of impairment. A single value in use (VIU) calculation is performed in order to assess the

recoverability of the assets.

The Holidays CGU includes other intangible assets, which are subject to amortisation and working

capital associated to the Holidays segment. The CGU is tested for impairment annually or when there is

an indication of impairment.

A further description of the calculation of the VIU and current year outcome and sensitivities for the

Airline CGU is given in note 11.

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill arising on acquisition has been recognised as an asset and initially measured at cost, being the

excess of the cost of the business combination over easyJet’s interest in the net fair value of the

identifiable assets acquired and the liabilities assumed. Goodwill is stated at cost less any accumulated

impairment losses. It has an indefinite expected useful life and is tested for impairment as part of the

Airline CGU on an annual basis or when there is an indication of impairment.

Landing rights are stated at cost less any accumulated impairment losses. They are considered to have

an indefinite useful life as they remain available for use for the foreseeable future provided minimum

utilisation requirements are observed. Landing rights form part of the Airline CGU and are tested for

impairment at least annually or when there is an indication of impairment. Landing rights with a carrying

value that have no further VIU and have been surrendered for nil value are de-recognised and a loss on

disposal recognised in the income statement at the point of surrender.

When assessing for impairment or reassessing UELs, easyJet considers potential significant future

changes including in relation to market, technological, economic and legal developments. The potential

future impacts of climate change have been incorporated by including the estimated financial impact

within cash flow projections of the future estimated price of ETS allowances, the expected price and

quantity required of SAF usage, and the cost of carbon removal credits and other sustainability

initiatives. Additional risks associated with climate change have also been stress tested, including

sensitivities of SAF usage and ETS costs, additional legal and technology costs, reduced demand and

increased cost of maintenance and replacement aircraft.

Computer software is stated at cost and is amortised from the point at which the asset is ready for use

on a straight-line basis over the asset’s UEL. UELs are reviewed annually.

	Expected useful life
Computer software	2–7 years

Annual licence agreements to use Cloud software are expensed and treated as a service agreement.

Perpetual licences to use Cloud software are capitalised if easyJet has both a contractual right to the

software and the ability to run the software independently of the host vendor, but are otherwise

expensed. Customisation and configuration costs related to the implementation of cloud based

applications are expensed unless the activity creates an asset that is separate and identifiable from the

software.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1A. MATERIAL ACCOUNTING POLICIES (CONTINUED)

EU ETS, CH ETS AND UK ETS CARBON ALLOWANCES

easyJet participates in the EU ETS, CH (Swiss) ETS and UK ETS schemes. Participants are required to

purchase and surrender ETS carbon allowances to cover their annual carbon emissions from flying. The

surrender process takes place ahead of the compliance deadline of 30 April each year in respect of the

preceding calendar year. A proportion of allowances are issued for free and are recognised at fair value,

being the market value on the date they are received, with a corresponding liability recognised

simultaneously. Purchased allowances are recognised at the purchase price. Both free and purchased

carbon allowances are held as intangible assets and are not subsequently revalued as they are held for

own use.

As part of the annual surrender process free allowances will be surrendered first with purchased

allowances then surrendered on a first in, first out (FIFO) basis. The income statement expense

(included in fuel costs), recognised throughout the year as the liability is incurred through flying, is based

on a weighted average cost of the free and purchased allowances estimated to be surrendered (on the

FIFO basis described above) as part of the annual surrender process. A corresponding liability of the

same value is also recognised. As such, for any financial year, three months of the related expense will

be known having already been surrendered, with nine months of the expense subject to a degree of

estimation. Both the related asset and liability are extinguished only at the point when the allowances

are surrendered.

These intangible assets form part of the Airline CGU and are reviewed for impairment annually or when

there is an indication of impairment within the Airline CGU.

CARBON OFFSETTING AND VERIFIED EMISSION REDUCTIONS

Up until 31 December 2022, easyJet operated a voluntary policy to offset every tonne of carbon and

carbon equivalents emitted from fuel used for its flights. This was done through purchasing Verified

Emission Reduction (VER) certificates arising from Gold Standard or Verified Carbon Standard (VCS)

accredited projects. The Voluntary Offsetting Policy was retired in September 2022 but VER assets

remain on the consolidated statement of financial position. No contractual commitments remain for the

purchase of VERs. These certificates are being actively marketed for sale, but are held on the

consolidated statement of financial position at purchase price. The value is not material. When sold, any

excess of sale value over the purchase price value held on the consolidated statement of financial

position will be recognised in other income.

Additionally, easyJet has an obligation under French law to offset CO

emissions incurred for French

domestic flights. Carbon certificates have been purchased for the obligation and are held on the

consolidated statement of financial position at purchase price.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment (PPE) is stated at cost less accumulated depreciation. Depreciation is

calculated to write off the cost, less estimated residual value, of assets on a straight-line basis over their

UELs. UELs and residual values are reviewed annually.

	Expected useful life
Aircraft 1	18–23 years 2, 3
Aircraft spares	18 years
Aircraft – prepaid maintenance	7–10 years
Aircraft – subsequent maintenance	5–10 years
Leasehold improvements	5–10 years or the length of the lease if shorter
Freehold land	Not depreciated
Fixtures, fittings and equipment 4	3 years or length of the lease of the property where the equipment is
	used if shorter
Computer hardware 4	3–5 years

1) Aircraft held as right of use assets are depreciated over the lease term; see leases section. Contractual capital

maintenance associated with leased aircraft is charged as depreciation to the income statement as the usage that

defines the maintenance event occurs.

2) easyJet operates a fleet of Airbus CEO and NEO aircraft. The newer NEO aircraft have a UEL of 23 years. Aligning to the

longer-term plan for CEO aircraft, and the ambition to replace these over time with the more fuel-efficient NEO aircraft

as part of easyJet’s net zero commitment, CEO aircraft have a shorter UEL of 18–20 years.

3) Aircraft are depreciated once in the location and condition necessary to be capable of operating in the manner

intended by management.

4) Included within owned other assets within note 12.

Residual values are reviewed annually, at the end of the reporting period, against prevailing market rates

for assets of an equivalent age, and the depreciation applied is adjusted accordingly on a prospective

basis. The carrying value of PPE assets is part of the Airline CGU and is therefore reviewed for

impairment at least annually or when there is any indication of impairment within the CGU. For aircraft,

easyJet is dependent on Airbus as its sole supplier. This gives rise to an increased valuation risk, which

crystallises when aircraft exit the fleet, where easyJet is reliant on the future demand for second-hand

aircraft and specifically Airbus aircraft. Future developments, such as the impact of climate change on

the market, technological, economic or legal environment, are considered when assessing residual

values and UELs.

An element of the cost of a new aircraft is attributed on acquisition to prepaid maintenance, reflecting

the ‘full-life’ maintenance status of key components of the aircraft at the point of transition of

ownership. This cost is depreciated over a period of between seven to ten years from the date of

manufacture, in accordance with the maintenance schedule for the aircraft. Subsequent costs incurred

which lend enhancement to future periods, such as long-term scheduled maintenance and major

overhauls of aircraft and engines, are capitalised at the time of the event and depreciated over the

length of the period benefiting from these events. All other maintenance costs for owned aircraft are

charged to the income statement as incurred.

Pre-delivery payments made in respect of aircraft are recorded in PPE at cost. These amounts are not

depreciated. A proportion of easyJet’s financing costs have been attributed to pre-delivery payments,

made in respect of aircraft and other qualifying assets under construction. These financing costs are

capitalised and added to the cost of the relevant asset. Pre-delivery payments are depreciated from the

point at which the aircraft to which they relate is received and ready for commercial use.

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Gains and losses on disposals (other than aircraft-related sale and leaseback transactions) are

determined by comparing the net proceeds with the carrying amount of the asset and are recognised in

the income statement.

Freehold land is recorded at cost and not depreciated as it is considered to have an indefinite useful life.

LEASES

When a contractual arrangement contains a lease, easyJet recognises a lease liability and a

corresponding right of use asset at the commencement of the lease.

At the commencement date the lease liability is measured at the present value of the future lease

payments, discounted using the Group’s incremental borrowing rate where the interest rate in the lease

is not readily determined. Lease payments include fixed payments and variable payments which are

dependent on an index or rate. Where an index or rate is used this is initially measured using the index or

rate at commencement. Subsequently, the lease liability is adjusted by increasing the carrying amount to

reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made,

and remeasuring the carrying amount to reflect any reassessment or lease modifications.

The lease term is determined from the commencement date of the lease and the duration of the

non-cancellable term. If easyJet has an extension option, which it considers it is reasonably certain to

exercise, then the lease term will be considered to extend beyond that non-cancellable period to the

end of the extension period available. Where easyJet has previously assessed that there is no intention

to exercise an extension option but subsequently opts to exercise the option, then a modification would

be carried out. If easyJet has a termination option, which it considers it is reasonably certain to exercise,

then the lease term will be accounted for until the point when the termination option will take effect.

At the commencement date the right of use asset is measured at an amount equal to the lease liability

plus any lease payments made before the commencement date and any initial direct costs, less any

lease incentive payments. An estimate of costs to be incurred in restoring an asset before return to the

lessor, in accordance with the terms of the lease, is also included in the right of use asset at initial

recognition. Subsequently, for leased aircraft, the right of use asset attracts maintenance work in

accordance with the contractual obligations of the lease, and a provision for the maintenance work is

built up as the aircraft is flown, with the offset being against the right of use asset. The maintenance

asset created is immediately fully depreciated as the liability is incurred as the aircraft is flown.

Adjustment is also made to the right of use asset to reflect any remeasurement of the corresponding

lease liability. The right of use assets form part of the Airline CGU and are therefore subject to review for

impairment annually or when there is an indication of impairment within the Airline CGU.

Short-term leases less than 12 months in length and low-value leases are not recognised as lease

liabilities and right of use assets but are recognised as an expense on a straight-line basis over the lease

term.

In the consolidated statement of cash flows, payments for the interest element of recognised lease

liabilities are included in interest and other financing charges paid within cash flows from operating

activities. Payments for the principal element of recognised lease liabilities are presented within cash

flows from financing activities.

easyJet periodically enters into sale and leaseback transactions whereby it sells either new or mid-life

aircraft or engines to a third party and immediately leases them back. Where the transaction is judged

to reflect the aircraft’s fair value, any gain or loss arising on disposal is recognised in the income

statement, to the extent that it relates to the rights that have been transferred. Gains and losses that

relate to the rights that have been retained are included in the carrying amount of the right of use asset

recognised at commencement of the lease. If sale proceeds received were determined to not be at the

aircraft’s fair value, any below market terms would be recognised as a prepayment of lease payments,

and above market terms recognised as additional financing provided by the lessor. Gains on sale and

leaseback transactions are recognised in other income, with losses on sale and leaseback transactions

recognised in other costs. Proceeds received for the sale of the fair value of the asset are recognised in

the statement of cash flows within investing activities as it relates to property, plant and equipment.

OTHER NON-CURRENT ASSETS

Other non-current assets include both general lease deposits, as stipulated in lease agreements, as well

as mid-life aircraft delivery assets for maintenance obligations incurred on mid-life aircraft before

easyJet acquired the aircraft. The payments and receivables are recorded within current and non-

current assets as applicable, pending reimbursement or receipt in accordance with contract specific

terms. Management assess the recoverability of these assets on an annual basis through consideration

of the credit position of the debtors and other relevant inputs. Under the general approach to assess

impairment of financial assets, easyJet recognises a loss allowance equal to the 12-month expected

credit losses.

FINANCIAL GUARANTEES

Financial guarantees are initially measured at fair value and subsequently at the higher of the initial fair

value or the amount of the loss allowance determined by an expected credit loss calculation.

A loss allowance is calculated where easyJet is jointly and severally liable for financial guarantee

contracts. This is calculated based on the probability-weighted estimate of cash shortfalls to reimburse

the holder for a credit loss that it incurs and based on the agreements which may exist between any

co-guarantors.

TAX

Tax expense in the income statement consists of current and deferred tax. Tax is recognised in the

income statement except when it relates to items credited or charged directly to other comprehensive

income or shareholders’ equity, in which case it is recognised in other comprehensive income or

shareholders’ equity. The charge for current tax is based on the results for the year as adjusted for

income that is exempt and expenses that are not deductible, using tax rates that are applicable to the

taxable income.

Deferred tax is provided in full on temporary differences relating to the carrying amount of assets and

liabilities, where it is probable that the recovery or settlement will result in an obligation to pay more, or a

right to pay less, tax in the future, with the following exceptions:

> where the temporary difference arises from goodwill or from the initial recognition (other than in a

business combination) of other assets and liabilities in a transaction that affects neither taxable

income nor accounting profit; and

> deferred tax arising on investments in subsidiaries is not recognised where easyJet is able to control

the reversal of the temporary difference and it is probable that the temporary difference will not

reverse in the foreseeable future.

Deferred tax is calculated at the tax rates that are expected to apply in the periods in which recovery of

assets and settlement of liabilities are expected to take place, based on tax rates or laws enacted or

substantively enacted at the date of the statement of financial position.

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Deferred tax assets represent amounts considered recoverable in future periods in respect of deductible

temporary differences, losses and tax credits carried forward. Deferred tax assets are recognised to the

extent that these are estimated to be fully recoverable against the unwind of taxable temporary

differences and future taxable income.

Deferred tax liabilities represent the amount of income taxes payable in future periods in respect of

taxable temporary differences.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current

tax assets against current tax liabilities and it is the intention to settle these on a net basis.

PROVISIONS

Provisions are recognised when a present legal or constructive obligation arises as a result of a past

event, it is probable that the Group will be required to settle that obligation, and a reliable estimate can

be made of the amount of the obligation. Amounts provided for represent the best estimate of the

consideration required to settle the present obligation at the statement of financial position date, taking

into account all related risks and uncertainties.

Restructuring

Provisions for restructuring arise principally in relation to network optimisation and head office reviews.

Provisions for restructuring programmes are made when easyJet has a demonstrable commitment to a

restructuring programme, for example through an announcement made to the impacted employees.

Restructuring provisions are measured based on the expected outcome of consultations with impacted

employees. Where specific individuals at risk have not been identified, estimations are based on

information available such as average payroll data, employee age and length of service.

Maintenance

easyJet incurs liabilities for maintenance and restoration costs in respect of leased aircraft during the

term of the lease. These arise from legal and constructive contractual obligations relating to the

condition of the aircraft when it is returned to the lessor or when heavy maintenance events are

expected to occur during the period of the lease. Contractual maintenance obligations arising from the

ongoing use of the aircraft are provided for over the term of the lease based on the estimated future

costs of the maintenance events, or forecast penalty charges, discounted to present value. The

provision is built as the aircraft are flown, and recognised against the right of use asset, where it is

immediately fully depreciated as the flying hours that determine the provision have taken place. The

restoration cost obligation is described in the lease section.

Other

Other provisions include amounts in respect of onerous contracts, compensation for quality issues and

personal injury and illness for Holidays’ customers, the provision for refunds of air passenger duty and

similar charges, and potential liabilities for employee related and litigation matters which arise in the

normal course of business. Onerous contracts are recognised at the first indication that a loss is

anticipated, and the provision based on the expected economic outflow arising from the contracts.

EMPLOYEE BENEFITS

easyJet contributes to defined contribution pension schemes for the benefit of employees. The assets

of the schemes are held separately from those of easyJet in independently administered funds.

easyJet’s contributions are charged to the income statement in the year in which they are incurred.

easyJet has no further payment obligations once the contributions have been paid for defined

contribution schemes.

The expected cost of compensated annual leave and other employee benefits is recognised at the time

that the related employees’ services are provided.

Switzerland pension scheme

easyJet contributes to an independently administered post-employment fund for employees in

Switzerland. The benefit is contribution-based with certain minimum guarantees required by Swiss law

to the mandatory part of the benefit. Due to these minimum guarantees, the Swiss pension plan meets

IAS 19 Employee Benefits requirements to be treated as a defined benefit plan for the purposes of these

consolidated financial statements.

The easyJet portion of the current service costs and the net interest costs are charged to the

consolidated income statement in the year in which they relate. Actuarial gains and losses are

recognised in the consolidated statement of comprehensive income and the consolidated statement of

financial position reflects the net surplus or deficit at the reporting date.

The actuarial assumptions used to calculate the defined benefit obligation are based on the

requirements set out in IAS 19. They are set by management, based on advice from an independent

actuary. The defined benefit obligation is calculated using the projected unit credit method. The costs of

managing the plan assets are deducted as incurred in determining the return on plan assets and the

present value of projected future general administration expenses that are a direct consequence of past

service are included as part of the retirement benefit obligation.

SHARE CAPITAL AND DIVIDEND DISTRIBUTION

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new

ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where any Group company or employee benefit trust purchases the Company’s equity shares, the

consideration paid, and any directly attributable incremental costs are deducted from retained earnings

until the shares are cancelled or reissued. Proceeds from re-issue are shown as a credit to retained

earnings.

easyJet settles share awards under the Long Term Incentive Plan, the Save As You Earn scheme,

Restricted Share Plan, Share Incentive Plans and Deferred Annual Bonus by purchasing its own shares on

the market through employee benefit trusts. The costs of such purchases are deducted from retained

earnings in the period that the transaction occurs.

Final dividend distributions to the Company’s shareholders are recognised as a liability in the period in

which the dividends are approved by the Company’s shareholders. Interim dividends are recognised

when paid.

SHARE-BASED PAYMENTS

easyJet has a number of equity-settled share incentive schemes. The fair value of share options granted

under the Save As You Earn scheme is measured at the date of grant using the Binomial Lattice option

pricing model. The fair value of grants under the Long Term Incentive Plan is measured at the date of

grant using the Stochastic model (also known as the Monte Carlo model) for awards based on Total

Shareholder Return (TSR) performance targets. The fair value of all other awards is the share price at the

date of grant.

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The fair value of the estimated number of options and awards that are expected to vest is expensed to

the income statement on a straight-line basis over the period that employees’ services are rendered,

with a corresponding increase in shareholders’ equity. Where non-market performance criteria (such as

sustainability targets) attached to the share options and awards are not met, any cumulative expense

previously recognised is reversed. For awards with market-related performance criteria (such as TSR), an

expense is recognised irrespective of whether the market condition is satisfied.

The social security obligations payable in connection with the grant of the share options are an integral

part of the grant itself and the charge is treated as a cash-settled transaction. A deferred tax balance is

recognised based on the intrinsic value of the outstanding options.

FINANCIAL INSTRUMENTS

Financial instruments are recognised when easyJet becomes a party to the contractual provisions of the

relevant instrument and derecognised when it ceases to be a party to such provisions. Financial assets

are also derecognised (written-off) when the Group has no reasonable expectation of recovering the

financial asset.

With the exception of trade receivables that do not contain a significant financing component, financial

instruments are initially measured at fair value plus or minus (in the case of a financial asset or financial

liability not at fair value through the income statement) directly attributable transaction costs. Trade

receivables that do not contain a significant financing component are initially measured at the

transaction price.

Where market values are not available, the fair value of financial instruments is calculated by discounting

expected cash flows at prevailing interest rates and by applying period end exchange rates.

The equity investment in The Airline Group Limited is measured at fair value. Movements in fair value are

assessed at each reporting period and recorded in other comprehensive income. The fair value is

measured using a dividend income model in accordance with IFRS 13 requirements. See note 26 for

further details.

NON-DERIVATIVE FINANCIAL ASSETS

Non-derivative financial assets are classified and measured according to easyJet’s business model for

managing a specified group of financial assets, and the nature of the contractual cash flows arising from

that group of financial assets.

FINANCIAL ASSETS MEASURED AT AMORTISED COST

Subsequent to initial recognition, this classification of financial asset is measured at amortised cost using

the effective interest rate method.

Financial assets are measured at amortised cost when both of the following criteria are met:

> the financial asset is held within a business model whose objective is to hold financial assets in order

to collect contractual cash flows; and

> the contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amounts outstanding.

Financial assets measured at amortised cost include refundable lease deposits and other refundable

lease contributions, restricted cash, trade and other receivables, other investments, and cash and cash

equivalents (excluding money market funds).

Restricted cash comprises cash deposits which have restrictions governing their use and is classified as

a current or non-current asset based on the estimated remaining length of the restriction. Movements in

restricted cash are shown within financing activities in the consolidated statement of cash flows as the

movements arise from cash held relating to guarantees.

Cash and cash equivalents comprise cash held in bank accounts with no access restrictions and bank

term deposits and tri-party repos repayable on demand or maturing within three months of inception.

Money market funds (also part of Cash and cash equivalents) are measured at fair value through income

statement (below).

Other investments comprise bank term deposits and tri-party repos maturing greater than three months

from inception. Managed investments (also part of Other investments) are measured at fair value

through income statement (below).

FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

On initial recognition, equity investments, excluding interests in associates, are irrevocably designated as

measured at fair value through other comprehensive income. Subsequently they are measured at fair

value with changes recognised in other comprehensive income with no recycling of these gains and

losses.

FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH THE INCOME STATEMENT

Financial assets are measured at fair value through the income statement when they do not meet the

criteria to be measured at amortised cost or at fair value through other comprehensive income.

Subsequent to initial recognition, this classification of financial assets is measured at fair value through

the income statement.

Financial assets measured at fair value through the income statement compromised money market

funds and managed investments as at 30 September 2024.

IMPAIRMENT OF FINANCIAL ASSETS

At each reporting date easyJet recognises a loss allowance for expected credit losses on financial assets

measured at amortised cost.

In establishing the appropriate amount of loss allowance to be recognised, easyJet applies either the

general approach or the simplified approach, depending on the nature of the underlying group of

financial assets.

General approach – impairment assessment

The general approach is applied to the impairment assessment of refundable lease deposits and other

refundable lease contributions, restricted cash, other investments and cash and cash equivalents.

Under the general approach easyJet recognises a loss allowance for a financial asset at an amount

equal to the 12-month expected credit losses calculated using expected future default probabilities,

unless the credit risk on the financial asset has increased significantly since initial recognition, in which

case a loss allowance is recognised at an amount equal to the lifetime expected credit losses.

Simplified approach – impairment assessment

The simplified approach is applied to the impairment assessment of trade and other receivables.

Under the simplified approach easyJet recognises a loss allowance for a financial asset at an amount

equal to the lifetime expected credit losses using a historical loss probability method.

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NON-DERIVATIVE FINANCIAL LIABILITIES

Non-derivative financial liabilities are initially recorded at fair value less directly attributable transaction

costs, and subsequently at amortised cost, and include trade and other payables and borrowings.

Interest expense on borrowings is recognised using the effective interest method.

Borrowings are classified as current liabilities unless there is an unconditional right to defer settlement of

the liability for at least 12 months after the reporting period date.

FINANCIAL LIABILITIES MEASURED AT AMORTISED COST

Subsequent to initial recognition at cost, this classification of financial liability is measured at amortised cost.

Financial liabilities measured at amortised cost include trade and other payables, lease liabilities and

borrowings.

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

Derivative financial instruments are measured at fair value through the income statement with the

exception of derivative financial instruments that are designated as a hedging instrument in a cash flow

hedge relationship.

easyJet uses foreign currency forward exchange contracts to hedge foreign currency risks on

transactions denominated in US dollars, euros and Swiss francs. These transactions primarily affect

revenue, fuel, lease costs, holiday accommodation costs, pre-delivery payments, and the initial carrying

value of owned aircraft. easyJet also uses cross-currency interest rate swaps to hedge currency and

interest rate risk on certain borrowings, and jet fuel swap and option contracts to hedge fuel price risks.

easyJet has a small number of euro-denominated lease contracts which result in a committed schedule

of euro lease rental payments; these are matched against forecasted euro revenue cash flows to provide

a cash flow hedge against the sterling/euro exchange rate. Hedge accounting is applied to those

financial instruments that are designated as cash flow hedges or fair value hedges.

CASH FLOW HEDGES

Gains and losses arising from changes in the fair value of foreign exchange forwards, jet fuel forward

swaps, jet fuel options and cross-currency interest rate swap contracts designated as cash flow hedges

are recognised in other comprehensive income and deferred in the hedging reserve to the extent that

the hedges are determined to be effective.

All foreign exchange contracts in a cash flow hedge relationship are designated on a forward basis with

the full fair value as the hedge instrument. Jet fuel option contracts in a cash flow hedge relationship are

designated using the intrinsic value of the derivative as the hedge instrument only. The time value

element of the full fair value for these derivatives is recognised through other comprehensive income as

a cost of hedging and recycled to the income statement at the same time as the hedge item also

impacts the income statement.

Fair value changes in a foreign currency derivative instrument attributable to the currency basis are not

designated as part of the hedged instrument. Such fair value changes are recognised through other

comprehensive income as a cost of hedging, and are recycled to the income statement on maturity or

in the event of hedge discontinuation, according to the nature of the underlying hedged item.

When the hedged forecast transaction relates to an item of property, plant and equipment, the relevant

accumulated gains and losses are transferred from the hedging reserve and included in the initial carrying

amount of that purchased asset. Otherwise they are recognised in the income statement in the same period

in which the hedged transaction affects the income statement and against the same line item.

In the event that a hedged forecast transaction is no longer expected to occur, any related gains and

losses are immediately transferred from the hedging reserve and recognised in the income statement.

Derivative instruments that have been derecognised from hedge relationships are classified as fair value

through the income statement thereafter with subsequent fair valuation movements being recognised

in the income statement.

Hedge accounting is discontinued when a hedging instrument is derecognised (e.g. through expiry,

disposal or termination of a derivative), or no longer qualifies for hedge accounting. Where the hedged

item continues to be expected to occur, the related gains and losses remain deferred in the hedging

reserve until the transaction takes place.

HEDGE RELATIONSHIP

The Group determines that the criteria for each hedge accounting relationship are met where:

> all relationships demonstrate a strong economic correlation;

> the effects of credit do not dominate the change in value of the associated hedged risk; and

> all Group hedge relationships have a hedge ratio of one to one, aligning to the Group’s risk

management strategy.

REVENUE RECOGNITION

easyJet categorises total revenue earned on the face of the income statement between passenger and

ancillary revenue, with ancillary revenue further categorised into airline ancillary revenue and holidays

incremental revenue.

Passenger revenue

Passenger revenue arises from the sale of flight seats and is recognised when the performance

obligation has been completed, which is when the flight takes place. Revenue recognised is the price

paid by the customer for the flight excluding air passenger tax; this includes amounts paid by ‘no-show’

customers, as such customers are not generally entitled to change flights or seek refunds once a flight

has departed.

Compensation payments made to customers (in respect of flight delays and cancellations) are offset

against revenues recognised up to the amount of the flight, with the excess compensation being

recorded within other costs. The liability for compensation payments not yet paid is measured based on

known eligible events, the number of passengers impacted, and the best estimate of claim rates which

is informed by historical claim rates.

Airline flights are paid for at the point of booking. Unearned revenue from flights not yet flown is held in

the statement of financial position until it is realised in the income statement when the flight takes place.

If easyJet cancels a flight, unless a customer immediately rebooks on an alternative flight, at the point of

the cancellation the amount paid for the flight is derecognised from unearned revenue and a contract

liability is recognised within trade and other payables to refund the customer or provide a voucher or

flight transfer if requested. Vouchers issued by easyJet in lieu of refunds are held on the statement of

financial position in other payables as a contract liability (see note 17) until they are redeemed against a

new booking, at which point they are recognised as unearned revenue. Once vouchers expire or are

deemed to have a remote probability of being redeemed for a future booking they will be recognised as

revenue. For vouchers issued to customers in countries where regulations stipulate unused vouchers

should be refunded to the customer before the expiry of the statutory period, the required refunds are

made.

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Where customers do not request either a voucher, refund or flight transfer the liability continues to be

recognised in other payables, and breakage is applied when the likelihood of the customer exercising

their remaining rights to be compensated is considered remote.

Airline ancillary revenue

Sale of checked baggage, allocated seating, change fees and other

Revenue is measured as the price paid by the customer for the service booked and is recognised at a

point in time, which is when the flight takes place. Unearned revenue includes the amount paid for these

services and is treated in line with unearned revenue for the sale of flight seats.

Partner revenue and in-flight sales

Revenue is measured at the value of the commission earned as easyJet is deemed to be the agent and

does not control the related services or goods. The key consideration to reach this conclusion is that the

partner is deemed to be responsible for inventory risk and fulfilment of the goods and services. The

revenue is recognised at a point in time which is when the service takes place. The exception is

commission earned from travel insurance, where revenue is recognised at the time of booking as

easyJet acts solely as the appointed representative of the insurance company.

Cancellation fees

Revenue is measured at the amount paid for the cancellation and is recognised at a point in time, when

the cancellation requested by the customer is processed.

easyJet plus

Revenue is measured at the amount paid for the annual membership and is recognised evenly over the

membership period.

Holidays incremental revenue

Holidays incremental revenue as referenced in the income statement is net of flight revenue and

comprises package holiday revenue which is measured as the price paid by the customer for the service

booked. The performance obligation is satisfied over time with the revenue recognised evenly across

the length of the holiday. This includes amounts paid by ‘no-show’ customers.

Package holiday deposits are paid for at the point of booking. Unearned revenue from the non-flight

elements of package holidays for which the customer has paid but the service has not yet taken place,

is held in the statement of financial position until it is realised in the income statement when the

performance obligation is complete. Package holiday balances are due from customers 28 days before

departure.

If easyJet cancels a holiday, and the customer does not elect to rebook or receive a voucher, the price

of the holiday (including flights) is refunded to the customer. If the customer elects to receive a voucher,

the voucher is held on the statement of financial position in other payables as a contract liability (see

note 17) until it is redeemed against a new booking, at which point it is recognised as unearned revenue.

Vouchers that expire or are deemed to have a remote probability of being redeemed for a future

booking are recognised as revenue.

OPERATIONAL COSTS AND INCOME

Costs and income are presented in the income statement based on the nature of the cost/income as

this is most relevant to enable users of the financial statements to understand easyJet’s financial

performance. Costs are expensed as incurred either at the point the goods or service is transferred, or

over time to reflect when the benefits are received (for example holiday accommodation costs

recognised over the period the holiday is taken). Separate financial statement line items are shown for

material income and expenses; the other costs and other income lines include items not reported in the

separate material line items. Other income includes insurance receipts, supplier compensation

payments, rental income, income from sale of excess aircraft spare parts, and gains on sale of intangible

assets. Other costs are expensed as incurred and include disruption costs, IT costs, cost of third-party

providers, employee costs for sales, marketing and administration teams and insurance costs. Gains/

losses on sale and leaseback transactions are recognised as non-headline in other income/other costs

as applicable.

FINANCE CHARGE/INCOME

Interest payable/receivable and other financing charges/income includes interest expense/income on

cash and borrowings which is recognised using the effective interest method, interest on lease liabilities

which is recognised using the interest rate implicit in the lease, and fair value movements of derivative

financial instruments that are not designated hedging instruments in a cash flow hedge arrangement.

Net foreign exchange gains/losses on statement of financial position monetary assets and liabilities are

presented as a separate financial statement line item.

Within the statement of cash flows, interest paid on bank borrowings and leases is included within net

cash generated from/used in operating activities as allowable by IAS 7, and this includes the settlement

of the derivatives used to hedge borrowings. In addition, the settlement of derivatives relating to cash

flows for ineffective and fair value derivatives through the income statement are also shown within

operating activities as they relate to transactions that primarily affect revenue, fuel and lease costs. The

amount recognised in settlement of derivatives includes cash flows arising from the maturity of

cross-currency interest rate swaps in the period. The settlement of operational hedged derivatives that

have already been recycled through the income statement are included in the operating result.

SEGMENTAL REPORTING

easyJet has two operating segments, being its Airline business, which operates easyJet’s route network,

and the Holidays business, which sells package holidays. The Chief Operating Decision Maker (CODM)

has been assessed as being the easyJet plc Board, which receives regular reporting on the Airline and

Holidays’ results in order to make resource allocation decisions. Presentation of separate segmental

reporting is included in note 8.

Geographic revenue is allocated on the following basis:

> revenue earned from customers is allocated according to the location of the first departure airport on

each booking; and

> commission revenue earned from partners is allocated according to the domicile of each partner.

Revenue by country of origin has been provided where revenues from external customers attributed to

an individual foreign country are material.

Passenger revenue recognised within the Airline segment includes intra-segment sales of flights to the

Holidays segment. Sales of seats are made between Airline and Holidays on a commercial basis whereas

the pricing of hold bags is based on historical average pricing to direct airline customers. Passenger

revenue is recognised in the Airline segment when the flight takes place.

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1A. MATERIAL ACCOUNTING POLICIES (CONTINUED)

GOVERNMENT GRANTS

Government grants are recognised where there is reasonable assurance that the grant will be received.

Loans provided and/or guaranteed by governments that represent market rates of interest are recorded

at the amount of the proceeds received and recognised within borrowings. All existing loans are

considered to be at market value. Grants that compensate the Group for expenses incurred are

recognised in the income statement in the relevant financial statement line on a systematic basis in the

periods in which the expenses are recognised to present the net expense to the Group.

ALTERNATIVE PERFORMANCE MEASURES (APMS)

A number of APMs are disclosed within the financial statements on pages 154 to 198. In the Directors’

opinion, these APMs provide additional understanding to users of the financial statements in their

assessment of underlying performance. Refer to the glossary for a list of APMs disclosed in the financial

statements, including definitions and reconciliations to IFRS measures.

Included in the income statement is the sub-total EBITDA which is a measure of earnings before interest,

taxes, depreciation and amortisation.

NEW AND REVISED STANDARDS AND INTERPRETATIONS

A number of amended standards became applicable during the current reporting period. The Group did

not have to change its accounting policies or make retrospective adjustments as a result of adopting

these standards. The amendments that became applicable for annual reporting periods commencing

on or after 1 January 2023, and did not have a material impact were:

> IFRS 17 Insurance Contracts

> Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2

> Definition of Accounting Estimates – Amendments to IAS 8

> Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

> International Tax Reform — Pillar Two Model Rules – Amendments to IAS 12

There are no standards that are issued but not yet effective that would be expected to have a material

impact on the entity in the current or future reporting periods and on foreseeable future transactions.

1B. ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of the financial statements in conformity with generally accepted accounting principles

requires management to make judgements as to the application of accounting standards to the

recognition and presentation of material transactions, assets and liabilities within the Group, and the use

of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of

the financial statements, and the reported amounts of income and expenses during the reporting

period. Estimations are based on management’s best evaluation of a range of assumptions, however,

events or actions may mean that actual results ultimately differ from those estimates, and these

differences may be material. The estimates and the underlying assumptions are reviewed regularly.

1B.(I) CRITICAL ACCOUNTING JUDGEMENTS

The following are the critical judgements, apart from those involving estimation (which are dealt with separately

below), that the Directors have made in the process of applying the Group’s accounting policies and that have

the most significant effect on the amounts recognised and presented in the financial statements.

CLASSIFICATION OF INCOME OR EXPENSES BETWEEN HEADLINE AND NON-HEADLINE ITEMS (NOTE 5)

Non-headline items are those where, in management’s opinion, their separate reporting provides an

additional understanding to users of the financial statements of easyJet’s underlying trading

performance, and which are significant by virtue of their size and/or nature. In considering the

categorisation of an item as non-headline, management’s judgement includes, but is not limited to, a

consideration of:

> whether the item is outside of the principal activities of the easyJet Group (being to provide point-to-

point airline services and package holidays);

> the specific circumstances which have led to the item arising, including, if extinguishing an item from

the statement of financial position, whether that item was first generated via headline or non-headline

activity. The rebuttable presumption being that when subsequently extinguishing an item from the

statement of financial position, any impact on the income statement should be reflected in the same

way as that which was used in the initial creation of the item;

> if the item is irregular in nature; and

> whether the item is unusual by virtue of its size.

In accordance with Group policy, non-headline items include expenditure on major restructuring

programmes and the gain or loss resulting from the initial recognition of sale and leaseback transactions.

They may also include impairments and amounts relating to corporate acquisitions and disposals,

depending on the assessment of the above criteria.

RECOVERABILITY OF DEFERRED TAX ASSETS (NOTE 6)

The deferred tax asset balances include £440 million (2023: £442 million) arising on full recognition of

the UK trading tax losses accumulated at the statement of financial position date. The Group has

concluded that these deferred tax assets will be fully recoverable against the unwind of taxable

temporary differences and future taxable income based on the long-term strategic plans of the Group.

Where applicable the financial projections used in assessing future taxable income are consistent with

those used elsewhere across the business, for example in the assessment of going concern. These

assessments include the expected impact of climate change on easyJet, and the future financial impact

within cash flow projections, such as the cost of future fleet renewals, the future estimated price of ETS

allowances, the phasing out of the free ETS allowances, the expected price and quantity required of

SAF, and the cost of carbon removal credits and other sustainability initiatives.

The tax losses for which a deferred tax asset has been recognised are expected to be utilised within the

next six years, assessed by considering probable forecast future taxable income. The probable forecast

future taxable income includes the impact of the expected unwind of taxable temporary differences as

well as the effect of Full Expensing Relief for qualifying capital expenditure. Probable forecast future

taxable income includes an incremental and increasing risk weighting to represent higher levels of

uncertainty in future periods.

The tax losses can be carried forward indefinitely and have no expiry date.

CONSOLIDATION OF EASYJET SWITZERLAND S.A.

Judgement has been applied in consolidating easyJet Switzerland S.A. as a subsidiary on the basis that

the Company exercises control over the undertaking. A non-controlling interest has not been reflected in

the consolidated financial statements on the basis that the holders of the remaining 51% of the shares

have no entitlement to any dividends from that holding and the Company has an option to acquire

those shares for a predetermined minimal consideration.

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1B.(II) CRITICAL ACCOUNTING ESTIMATES

The following critical accounting estimates include judgements or complexity and are the major sources

of estimation uncertainty that have a significant risk of resulting in a material adjustment to the carrying

amounts of assets and liabilities within the next year.

AIRCRAFT MAINTENANCE PROVISIONS – £894 MILLION (2023: £753 MILLION) (NOTE 20)

easyJet incurs liabilities for maintenance costs arising during the lease term of leased aircraft. These

costs arise from legal and constructive contractual obligations relating to the condition of the aircraft

when it is returned to the lessor. To discharge these obligations, it is usual for easyJet to carry out at

least one heavy maintenance check on each of the engines and the airframe of the aircraft during the

lease term. A material provision representing the estimated cost of this obligation is built up over the

course of the lease. The estimates and assumptions used in the calculation of the provision are reviewed

at least annually, and when information becomes available that is capable of causing a material change

to an estimate, such as the renegotiation of end of lease return conditions, increased or decreased

aircraft utilisation, or changes in the cost of heavy maintenance services and the expected uplift in

future prices.

A significant portion of the future maintenance costs and cost increases are under contract and provide

certainty to the provision. Where cost increases are not under contract, an estimation of the likely future

increases are made in the calculation of the provision. Given the significant value of the provision, the

provision is sensitive to changes in the future increase of uncontracted costs. An additional 4% cost

uplift on uncontracted costs over the future years used in the provision would result in a £32 million

increase in the provision. Additionally, with many maintenance costs incurred in US dollars, the provision

remains sensitive to changes in the GBP/USD exchange rate. A significant +/- 10 cent change in the

GBP/USD exchange rate would impact the provision by -£50 million/+£58 million respectively.

The rates used to discount the provision to arrive at a present value are based on observable market

rates as an estimate of the relevant risk-free rate.

The provision can also be materially influenced by the maintenance status of aircraft when they enter

the easyJet fleet. To give flexibility to the fleet plan easyJet may lease ‘mid-life’ aircraft. When mid-life

aircraft enter the fleet, a ‘catch-up’ maintenance provision is created to reflect the maintenance

obligation for the flying cycles undertaken before the aircraft entered the easyJet fleet. The trigger for

the recognition of this addition to the provision is the signing of the lease contract. It is of note that

where contractually agreed a mid-life delivery asset is also created when the mid-life leased aircraft

enter the fleet, creating a separate related asset on the statement of financial position.

GOODWILL AND LANDING RIGHTS – £542 MILLION (2023: £520 MILLION) (NOTE 11)

It is management’s judgement that there are two separate CGUs which generate largely independent

cash flows, these being easyJet’s Airline route network and its Holidays business. The recoverable

amount of goodwill and landing rights has been determined based on value in use calculations for the

airline route network CGU as they are wholly attributable to it. The value in use is determined by

discounting future cash flows to their present value. When applying this method, easyJet relies on a

number of key estimates including the ability to meet its strategic plans, future fuel prices and exchange

rates, long-term economic growth rates for the principal countries in which it operates, and its pre-tax

weighted average cost of capital. Strategic plans include assessments of the future impact of climate

change on easyJet to the extent these can be estimated. This includes for example, the cost of future

fleet renewals, the future estimated price of ETS allowances, the phasing out of the free ETS allowances,

the expected price and quantity required of SAF and the cost of carbon removal credits and other

sustainability initiatives. The possible impact of longer-term climate change risks that are not part of the

strategic plans have been considered as part of the sensitivity analysis.

Fuel prices and exchange rates continue to be volatile in nature and the ability to pass these changes on

to the customer is a critical judgement that requires estimation. In addition, assumptions over customer

demand levels could have a significant effect on the impairment assessment performed. Any future

events that would lead to extended travel restrictions or fleet grounding may impact future impairment

or useful economic life assessments. The sensitivity analysis considered as part of the overall impairment

assessment takes into account different assumptions for these key estimates, see note 11 for details.

1B.(III) OTHER AREAS OF JUDGEMENT AND ACCOUNTING ESTIMATES

The following are other areas of judgement and accounting estimates that do not meet the definition

under IAS 1 of significant accounting estimates or critical accounting judgements. The recognition and

measurement of the following material assets and liabilities are of note in that they are based on

assumptions and/or are subject to longer term uncertainties.

OWNED AIRCRAFT CARRYING VALUES – £4,192 MILLION (2023: £3,846 MILLION) (NOTE 12)

The key estimates used in arriving at aircraft carrying values are the UELs and residual values of the

owned aircraft.

Aircraft are depreciated over their UEL to their residual values in line with the Property, Plant and

Equipment Accounting Policy. The UEL is based on easyJet’s long-term fleet plan and intended

utilisation of the current fleet, which include long-term assumptions of market conditions and customer

demands, which by their nature are inherently uncertain.

Residual value estimates for aircraft are based on independent aircraft valuations. The valuations are

based on an assessment of the current state of the global marketplace for specific aircraft assets.

Should the marketplace for an asset class deteriorate unpredictably, there could be a risk that the

recoverable amount for some aircraft assets would fall below their current carrying value or that residual

values are subject to downward adjustment.

Owned and leased aircraft asset recoverable amounts are included in the Airline CGU and are therefore

subject to review for impairment annually or when there is an indication of impairment within the Airline

CGU. Further details of the impairment testing applied are included in note 11.

DEFINED BENEFIT PENSION ASSUMPTIONS – £175 MILLION GROSS OBLIGATION (2023: £152 MILLION GROSS OBLIGATION) (NOTE 21)

The Swiss pension scheme meets the requirements under IAS 19 to be recognised as a defined benefit

pension scheme and the net pension obligation is recognised on the consolidated statement of financial

position. The measurement of scheme assets and obligations are calculated by an independent actuary

in line with IAS 19. The financial and demographic assumptions used in the calculation are determined by

management following consultation with the independent actuary with consideration of external market

movements and inputs. The calculation is most sensitive to movements in the discount rate applied,

which has been subject to significant volatility. A sensitivity analysis is included in note 21.

LIABILITY FOR COMPENSATION PAYMENTS – £50 MILLION (2023: £62 MILLION) (NOTE 16)

easyJet incurs liabilities for amounts payable to customers who make claims in respect of flight delays

and cancellations, for which claims could be made up to six years after the event, and for

reimbursement of reasonable expenses incurred as a result of flight delays and cancellations. The key

estimation in the liability is the passenger claim rate for compensation payments. The estimation carries

a level of uncertainty as it is based on customer behaviour. The basis of the estimates included in the

liability are reviewed at least annually and when information becomes available that may result in a

change to the estimate.

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2. NET FINANCE (INCOME)/CHARGES

	2024	2023
	£ million	£ million
Interest receivable and other financing income
Interest income	(141)	(132)
Interest payable and other financing charges
Hedge discontinuation and ineffectiveness 1	2	1
Interest payable on bank and other borrowings	80	132
Interest payable on lease liabilities	50	46
Other interest payable	–	1
	132	180
Net exchange gain on monetary assets and liabilities 2	(4)	(27)
Net finance (income)/charges	(13)	21

1) See note 27 for details.

2) Included within net exchange gain on monetary assets and liabilities is an £80 million loss (2023: £84 million loss) relating

to the fair value loss on US dollar foreign exchange derivatives designated as fair value through profit or loss.

3. PROFIT BEFORE TAX

The following have been included in arriving at profit before tax:

	2024	2023
	£ million	£ million
Depreciation of property, plant and equipment
Owned assets	277	271
Right of use assets	450	373
Loss on disposal of intangible assets	1	3
Loss on disposal of property, plant and equipment	18	10
Impairment/(reversal of impairment) of trade receivables	2	(3)
Sale and leaseback gain	(1)	–

AUDITORS’ REMUNERATION

During the year the Company obtained the following services from the Company’s auditors:

	2024	2023
	£ million	£ million
Company audit fee	0.2	0.1
Fees for audit of the Company’s subsidiaries and their associates
(including foreign partners)	1.5	1.4
	1.7	1.5

In addition, easyJet incurred audit-related non-audit services fees of £0.2 million (2023: £0.2 million)

from its auditors. This includes the fee of £0.1 million (2023: £0.1 million) in respect of the half-year review

performed.

During the year, other assurance related non-audit services fees totalling £0.4 million (2023: £0.3 million)

were also incurred, primarily in relation to our EMTN Programme, the Airbus order and ESG assurance

(2023: primarily in relation to our Airbus Proposed Purchase).

4. EMPLOYEES

The average monthly number of people employed by easyJet was:

	2024	2023
	Number	Number
Flight and ground operations	16,049	14,598
Sales, marketing and administration	1,590	1,339
	17,639	15,937

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4. EMPLOYEES (CONTINUED)

Employee costs for easyJet were:

		2023
	2024	£ million
	£ million	(re-presented)
Wages and salaries 1	1,065	922
Social security costs	152	129
Pension costs 1	72	63
Share-based payments	30	18
	1,319	1,132

1) The employee portion of defined pension contributions for the prior year of £34 million has been re-presented from

pension costs to wages and salaries.

Included in the pension costs is £6 million (2023: £6 million) related to pension schemes treated as a

defined benefit scheme under IAS 19. Refer to note 21.

Included in employee costs is a net debit of £9 million (2023: £2 million net debit) from redundancy and

restructuring costs. These costs predominantly reflect the non-headline costs arising from the

announced restructuring programmes in Germany, France and Italy (see note 5 for further detail).

The amounts received under government furlough schemes are offset against employee costs in the

income statement. Refer to note 29 for further details.

Key management compensation was as follows:

	2024	2023
	£ million	£ million
Short-term employee benefits	13	14
Share-based payments	4	2
	17	16

The Directors of easyJet plc and the other members of the Airline Management Board are easyJet’s key

management as they have collective authority and responsibility for planning, directing and controlling

the business.

Emoluments paid or payable to the Directors of easyJet plc were:

	2024	2023
	£ million	£ million
Remuneration	5	5
	5	5

For details of Directors’ remuneration refer to the audited sections of the Directors’ Remuneration Report on

pages 133 to 138.

5. NON-HEADLINE ITEMS

An analysis of the amounts presented as non-headline is given below:

	Year ended	Year ended
	30 September	30 September
	2024	2023
	£ million	£ million
Sale and leaseback gain	(1)	–
Restructuring charge	9	1
Loss on disposal of landing rights	–	3
Correction of prior year error	–	19
Total non-headline charge before tax	8	23
Tax credit on non-headline items	(1)	(6)
Total non-headline charge after tax	7	17

SALE AND LEASEBACK GAIN

During the year, easyJet completed the sale and leaseback of 11 A319 aircraft (2023: eight). The income

statement impact of the 11 sale and leasebacks was a £1 million profit on disposal (2023: £nil million

profit) recognised in other income.

RESTRUCTURING

Following a network review in the financial year, restructuring programmes impacting bases in France

and Italy were announced in September 2024. A provision of £12 million has been recognised in the

financial statements as a best estimate of the potential costs of the restructuring exercise. This cost has

been recognised as non-headline in accordance with our non-headline accounting policy. The cost has

been offset by a £3 million release from the provision for the previously announced restructuring

programmes in Germany, following a number of settlements finalised in the year. The release has been

credited to other costs where the initial expense was recognised.

In the prior year the restructuring charge included a £3 million loss on disposal of landing right ‘slots’

surrendered at Berlin Brandenburg Airport as a result of the downsizing of operations at the airport, and

£1 million representing additional estimated costs arising from the restructuring programmes in

Germany.

As at 30 September 2024, there were unpaid amounts of £12 million (2023: £6 million) representing

remaining redundancy cases which have not been finalised and settled at the end of the financial year.

CORRECTION OF PRIOR YEAR ERROR

In the previous financial year, a £19 million cost was recognised as non-headline for the correction of an

error identified in a third-party system. The error related to aircraft lease modifications which occurred in

FY21, and impacted the depreciation recognised on a number of right of use assets.

TAX ON NON-HEADLINE ITEMS

After the necessary tax adjustments, which principally relate to the sale and leaseback transactions and

restructuring provisions, there is a non-headline tax credit of £1 million (2023: £6 million) for the year.

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6. TAX CHARGE

Tax on profit on ordinary activities

	Year ended	Year ended
	30 September	30 September
	2024	2023
	£ million	£ million
Current tax
Foreign tax	13	11
Total current tax charge	13	11
Deferred tax
Temporary differences relating to property, plant and equipment	145	76
Other temporary differences	(4)	24
Adjustments in respect of prior years	(4)	(3)
Total deferred tax charge	137	97
Total tax charge	150	108
Effective tax rate	24.9%	25.1%

Reconciliation of the total tax charge

The tax for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK as

set out below:

	2024	2023
	£ million	£ million
Profit before tax	602	432
Total tax charge at 25.0% (2023: 22.0%)	151	95
Income not chargeable for tax purposes:
Expenses not deductible for tax purposes	10	8
Share-based payments	(5)	(3)
Adjustments in respect of prior years – overseas current tax	(1)	–
Adjustments in respect of prior years – deferred tax	(4)	(3)
Difference in applicable rates for current and deferred tax	–	12
Attributable to rates other than standard UK rate	(2)	(1)
Movement in provisions	1	–
Total tax charge	150	108

Current tax payable at 30 September 2024 amounted to £9 million (2023: £3 million) which is solely

related to tax payable in other European jurisdictions.

During the year ended 30 September 2024, net cash tax paid amounted to £8 million (2023: £12 million).

The Group monitors income tax developments in all jurisdictions in which it operates, including the

OECD Base Erosion and Profit Shifting (BEPS) initiative (Pillar 2), which may impact the Group’s future

tax liabilities. The UK has introduced a global minimum corporation tax in line with the OECD Inclusive

Framework on BEPS, which requires a minimum corporation tax rate of 15% in each jurisdiction in which

the Group operates. The first accounting period to which the new rules will apply to the Group in the UK

will be the year ended 30 September 2025.

The Group does not expect its tax liabilities to be materially increased as a result of the UK’s

implementation of the Pillar 2 rules. The Group is currently assessing their detailed impact and Malta is

the only jurisdiction that is likely to be affected. The impact on the Group’s total tax charge based on the

profits earned in the year ended 30 September 2024 would be less than 1%.

Tax on items recognised directly in other comprehensive income or shareholders’ equity:

	Year ended	Year ended
	30 September	30 September
	2024	2023
	£ million	£ million
Credit/(charge) to other comprehensive income
Deferred tax on change in fair value of cash flow hedges	85	14
Deferred tax on post-employment benefit	3	(1)
	88	13
Credit/(charge) directly to equity
Deferred tax on share-based payments	1	–
Total credit to other comprehensive income	89	13

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6. TAX CHARGE (CONTINUED)

Deferred tax

The net deferred tax (asset)/liability in the statement of financial position is as follows:

					Post-
	Accelerated	Short-term			employment
	capital	timing	Fair value losses/	Share-based	benefit
	allowances	differences	(gains)	payments	obligation	Trading loss	Total
	£ million	£ million	£ million	£ million	£ million	£ million	£ million
At 1 October 2023	414	1	54	(4)	(1)	(442)	22
Charged/(credited) to income statement	141	(1)	–	(5)	–	2	137
Credited to other comprehensive loss	–	–	(85)		(3)	–	(88)
Credited directly to equity	–	–	–	(1)	–	–	(1)
At 30 September 2024	555	–	(31)	(10)	(4)	(440)	70

Deferred tax liabilities expected to be settled:

	£ million
Within 12 months	–
After more than 12 months	70
At 30 September 2024	70

It is estimated that deferred tax assets of approximately £45 million (2023: £ nil million) will reverse during the next financial year.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and it is the

intention to settle these on a net basis.

	Accelerated	Short-term timing	Fair value (gains)/	Share-based	Post-employment
	capital allowances	differences	losses	payments	benefit obligation	Trading loss	Total
	£ million	£ million	£ million	£ million	£ million	£ million	£ million
At 1 October 2022	341	(26)	68	(1)	(1)	(443)	(62)
Charged/(credited) to income statement	73	27	–	(3)	(1)	1	97
Charged/(credited) to other comprehensive loss	–	–	(14)	–	1	–	(13)
At 30 September 2023	414	1	54	(4)	(1)	(442)	22

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7. EARNINGS PER SHARE

Basic earnings per share has been calculated by dividing the total profit for the year by the weighted

average number of shares in issue during the year after adjusting for shares held in employee benefit

trusts.

To calculate diluted earnings per share, the weighted average number of ordinary shares in issue has

been adjusted to assume conversion of all dilutive potential shares. Share options granted to employees

where the exercise price is less than the average market price of the Company’s ordinary shares during

the year are considered to be dilutive potential shares. Where share options are exercisable based on

performance criteria and those performance criteria have been met during the year, these options are

included in the calculation of dilutive potential shares.

Headline basic and diluted earnings per share are also presented, based on headline profit for the year.

Earnings per share is based on:

	Year ended	Year ended
	30 September	30 September
	2024	2023
	£ million	£ million
Headline profit for the year	459	341
Total profit for the year	452	324

	2024	2023
	million	million
Weighted average number of ordinary shares used to calculate basic
earnings per share	749	751
Weighted average number of ordinary shares used to calculate diluted
earnings per share	759	758

	2024	2023
Earnings per share	pence	pence
Basic	60.3	43.1
Diluted	59.6	42.7

	2024	2023
Headline earnings per share	pence	pence
Basic	61.3	45.4
Diluted	60.5	45.0

8. SEGMENTAL AND GEOGRAPHICAL REVENUE REPORTING

Segmental analysis:

			Year ended 30 September 2024
			Intergroup
	Airline	Holidays	transactions	Group
	£ million	£ million	£ million	£ million
Passenger revenue	5,715	–	–	5,715
Ancillary revenue	2,457	1,521	(384)	3,594
Total revenue	8,172	1,521	(384)	9,309
Airline operating costs including fuel	(6,139)	–	–	(6,139)
Holidays direct operating costs	–	(1,214)	374	(840)
Selling and marketing	(195)	(62)	–	(257)
Other costs and other income	(643)	(73)	10	(706)
Amortisation and depreciation	(762)	(8)	–	(770)
Net interest (payable)/receivable and other financing income/(charges)	(15)	24	–	9
Foreign exchange gain	2	2	–	4
Headline profit before tax	420	190	–	610
Non-headline items	(8)	–	–	(8)
Total profit before tax	412	190	–	602

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8. SEGMENTAL AND GEOGRAPHICAL REVENUE REPORTING (CONTINUED)

			Year ended 30 September 2023
			Intergroup
	Airline	Holidays	transactions	Group
	£ million	£ million	£ million	£ million
Passenger revenue	5,221	–	–	5,221
Ancillary revenue	2,174	1,047	(271)	2,950
Tota l revenue	7,395	1,047	(271)	8,171
Airline operating costs including fuel	(5,537)	–	–	(5,537)
Holidays direct operating costs	–	(842)	260	(582)
Selling and marketing	(189)	(43)	–	(232)
Other costs and other income	(654)	(47)	11	(690)
Amortisation and depreciation	(649)	(5)	–	(654)
Net interest (payable)/receivable and other financing income/(charges)	(59)	11	–	(48)
Foreign exchange gain	26	1	–	27
Headline profit before tax	333	122	–	455
Non-headline items	(23)	–	–	(23)
Total profit before tax	310	122	–	432

Note that airline operating costs including fuel comprises operating costs that relate solely to the Airline

segment, and similarly holidays direct operating costs are costs specific to the Holidays segment. All

other costs are incurred by both the Airline and Holidays segments.

As described in note 1, airline revenue is recognised at a point in time (when the flight takes place). The

Holidays revenue detailed in this note includes both flight revenue, recognised at the time the flight

takes place, and remaining ancillary revenue which is recognised over time, aligned to the duration of

the holiday. The holidays flight revenue is included in this note within ancillary revenue (with the

associated intergroup transaction) aligned to the presentation of revenue to the CODM and plc Board.

The intergroup transactions column represents revenue and cost transactions between Airline and

Holidays for the flight element of package holidays and Group recharges. These intercompany

transactions are eliminated on consolidation.

Assets and liabilities are not allocated to individual segments and are not separately reported to, or

reviewed by, the CODM, and therefore have not been disclosed.

Geographical revenue:

	2024	2023
	£ million	£ million
United Kingdom	5,077	4,345
France	941	852
Switzerland	877	791
Northern Europe (excluding Switzerland)	641	610
Southern Europe (excluding France)	1,670	1,434
Other	103	139
	9,309	8,171

easyJet has assessed the materiality of geographical revenues and has disclosed revenues by country of

origin where such revenues are in excess of 10% of total revenue.

Geographical revenue is allocated according to the location of the first departure airport on each

booking.

Southern Europe comprises countries lying wholly or mainly south of the border between Italy and

Switzerland.

easyJet holidays’ revenue is predominantly from the United Kingdom with additional revenues generated

in Europe that are not material for separate disclosure.

easyJet’s non-current assets principally comprise its fleet of 188 (2023: 183) owned and 159 (2023: 153)

leased aircraft, giving a total fleet of 347 at 30 September 2024 (2023: 336). 30 aircraft (2023: 27) are

registered in Switzerland, 134 (2023: 128) are registered in Austria, and the remaining 183 (2023: 181) are

registered in the United Kingdom.

9. DIVIDENDS

The Company paid an ordinary dividend of 4.5 pence per share, or £34 million (2023: nil) in respect of

the year ended 30 September 2023. The dividend was paid on 22 March 2024, with a record date of

23 February 2024.

An ordinary dividend in respect of the year ended 30 September 2024 of 12. 1 pence per share, or £92

million, based on 20% headline profit after tax, is to be proposed at the forthcoming Annual General

Meeting. These financial statements do not reflect this proposed dividend.

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10. BUSINESS COMBINATION

On 31 May 2024 easyJet acquired 100% of the issued share capital of SR Technics Malta Limited, a heavy

base maintenance facility in Malta. The acquisition will provide supply certainty and unlock future cost

benefits. Since acquisition, the entity has been renamed to easyJet engineering Malta Limited.

Details of the purchase consideration, the net assets acquired and goodwill are as follows:

	£ million
Purchase consideration 1 :
Cash paid	26
Contingent consideration	4
Total purchase consideration	30

The assets and liabilities recognised as a result of the acquisition are as follows:

	£ million
Cash and cash equivalents	4
Trade and other receivables	17
Property, plant and equipment	9
Trade and other payables	(16)
Lease liabilities	(6)
Add: goodwill	22
Net assets acquired	30

1) Purchase consideration – cash outflow:

	£ million
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration	26
Less: balances acquired	(4)
Net outflow of cash – investing activities	22

The goodwill is attributable to the high potential of the acquired business and competitive advantage of

securing the maintenance and repair capacity for the easyJet group. The goodwill is not deductible for

tax purposes.

There were no acquisitions in the year ending 30 September 2023.

11. GOODWILL AND OTHER INTANGIBLE ASSETS

			Other intangible assets
		Landing	Computer	Carbon
	Goodwill	rights	software	allowances	Total
	£ million	£ million	£ million	£ million	£ million
Cost
At 1 October 2023	365	155	215	-	370
Additions	–	–	104	70	174
Acquisition of business
(note 10)	22	–	–	–	–
Disposals	–	–	(45)	–	(45)
At 30 September 2024	387	155	274	70	499
Accumulated amortisation
At 1 October 2023	–	–	94	–	94
Charge for the year	–	–	43	–	43
Disposals	–	–	(44)	–	(44)
At 30 September 2024	–	–	93	–	93
Net book value
At 30 September 2024	387	155	181	70	406
At 1 October 2023	365	155	121	–	276

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11. GOODWILL AND OTHER INTANGIBLE ASSETS (CONTINUED)

			 Other intangible assets
		Landing	Computer	Carbon
	Goodwill	rights	software	allowances	Total
	£ million	£ million	£ million	£ million	£ million
Cost
At 1 October 2022	365	158	135	–	293
Additions	–	–	91	–	91
Disposals	–	(3)	(11)	–	(14)
At 30 September 2023	365	155	215	–	370
Accumulated amortisation
1 October 2022	–	–	76	–	76
Charge for the year	–	–	29	–	29
Disposals	–	–	(11)	–	(11)
At 30 September 2023	–	–	94	–	94
Net book value
At 30 September 2023	365	155	121	–	276
At 1 October 2022	365	158	59	–	217

Included within computer software are internally generated intangible assets of £99 million (2023: £49

million) and work in progress of £77 million (2023: £62 million). The accumulated depreciation of

internally generated intangible assets as at 30 September 2024 was £89 million (2023: £88 million).

VALUE IN USE CALCULATION

The recoverable amount of goodwill and other assets with indefinite expected useful lives has been

determined based on value in use calculations for the airline route network CGU, which holds these assets.

Pre-tax cash flow projections have been derived from the strategic plan approved by the plc Board for

the period up to 2029, using the following key assumptions:

	2024	2023
Pre-tax discount rate (derived from weighted average cost of capital, WACC)	10.0%	11.4%
Fuel price (US dollars per metric tonne, MT)	838	751
Long-term economic growth rate	2.0%	2.0%
Exchange rates:
US dollar	1.26	1.27
Euro	1.18	1.16

The discount rate has been calculated based on the capital asset pricing model using external inputs

where relevant and the current cost of debt to the Group. The methodology is unchanged from the

prior year. The decrease in the discount rate has been driven primarily by a decrease in the cost of debt

since the prior year end. Exchange rates and fuel price are based on spot rates as at 30 June 2024, the

date on which the annual impairment review is performed.

Cash flow projections for the period up to 2029 incorporate the long-term prospects of the Group, taking

into account growth expected by way of creating value through the business model. Cash flow projections

beyond the forecast period have been extrapolated using an estimated average of long-term economic

growth rates for the principal countries in which easyJet operates. The future impact of climate change on

the business has been incorporated into strategic plans, including the estimated financial impact within the

base case cash flow projections of the cost of future fleet renewals, the future estimated price of ETS

allowances, the phasing out of the free ETS allowances, the expected price and quantity required of SAF,

and the cost of carbon removal credits and other sustainability initiatives.

The headroom of the value in use calculation over the carrying value of the relevant assets has

decreased compared to 30 June 2023. This is primarily due to increased fleet capex combined with an

increase in fuel and crew costs, partially offset by a decrease in the discount rate.

Stress testing has been performed on key inputs to the value in use calculation, including the

assumptions listed above and the strategic plan used as the base for the calculation. The impairment

model is sensitive to a sustained and significant adverse movement in foreign currency exchange rates

(other than movements that are included in the fuel pass-through assumption) and forecast operating

profits to the extent that no other compensating action is taken. It has been assumed that any

significant future fuel price increase would be recovered through revenue pass through. Individual

scenarios that have been deemed reasonably probable, in particular in relation to the current

macroeconomic environment, do not give rise to an impairment. These scenarios include +/-10% on euro

and US dollar rates, +100 bps increase in WACC, reduced capacity of 5%, increased operating costs

(excluding fuel) of 3%, a fuel price increase of $100 per metric tonne and a flat growth rate.

Additional risks associated with climate change have also been stress tested, including sensitivities of

SAF usage and ETS costs, additional legal and technology costs, reduced demand and increased cost of

maintenance and replacement aircraft. These scenarios, both individually and in reasonably probable

combinations, do not give rise to an impairment.

INTANGIBLE ASSETS

	2024	2023
	£ million	£ million
Non-current assets
EU ETS, CH ETS and UK ETS carbon allowances	70	–
	70	–
Current assets
Carbon offsetting VER	8	7
EU ETS, CH ETS and UK ETS carbon allowances	564	669
	572	676
	642	676

ETS allowances are required to offset the carbon emitted by flights. The scheme is settled on an annual

basis. The allowances required for annual settlement are held as intangible assets, with the associated

liability included within accruals in trade and other payables (note 16). Non-current assets represent

allowances purchased in advance for future settlement in over 12 months.

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12. PROPERTY, PLANT AND EQUIPMENT

		Owned assets		Right of use assets
	Aircraft and	Land and
	spares	buildings	Other	Aircraft	Other	Total
	£ million	£ million	£ million	£ million	£ million	£ million
Cost
At 1 October 2023	5,396	44	78	2,652	48	8,218
Additions	752	–	14	605	62	1,433
Aircraft sold and leased back	(248)	–	–	46	–	(202)
Disposals 1	(55)	–	(27)	(326)	(7)	(415)
At 30 September 2024	5,845	44	65	2,977	103	9,034
Accumulated depreciation
At 1 October 2023	1,550	–	32	1,747	25	3,354
Charge for the year	269	–	8	440	10	727
Aircraft sold and leased back	(135)	–	–	–	–	(135)
Disposals 1	(31)	–	(24)	(326)	(6)	(387)
At 30 September 2024	1,653	–	16	1,861	29	3,559
Net book value
At 30 September 2024	4,192	44	49	1,116	74	5,475
At 1 October 2023	3,846	44	46	905	23	4,864

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12. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

		Owned assets		Right of use assets
	Aircraft and	Land and
	spares	buildings	Other	Aircraft	Other	Total
	£ million	£ million	£ million	£ million	£ million	£ million
Cost
At 1 October 2022	4,988	44	68	2,416	45	7,561
Additions	604	–	14	292	18	928
Aircraft sold and leased back	(165)	–	–	44	–	(121)
Disposals	(31)	–	(4)	(100)	(15)	(150)
At 30 September 2023	5,396	44	78	2,652	48	8,218
Accumulated depreciation
1 October 2022	1,390	–	28	1,479	35	2,932
Charge for the year	263	–	8	368	5	644
Aircraft sold and leased back	(86)	–	–	–	–	(86)
Disposals	(17)	–	(4)	(100)	(15)	(136)
At 30 September 2023	1,550	–	32	1,747	25	3,354
Net book value
At 30 September 2023	3,846	44	46	905	23	4,864
At 1 October 2022	3,598	44	40	937	10	4,629

The net book value of aircraft includes £519 million (2023: £569 million) relating to advance payments for future deliveries and life limited parts not yet in use.

This amount is not depreciated.

The net book value of aircraft spares is £157 million (2023: £112 million).

The ‘Other’ categories are principally comprised of leasehold improvements, computer hardware, leasehold property, fixtures, fittings and equipment, and

work in progress in respect of property, plant and equipment projects. The work in progress as at 30 September 2024 was £15 million (2023: £14 million).

As at 30 September 2024, easyJet was contractually committed to the acquisition of one CFM LEAP engine (2023: two), and 299 (2023: 158) Airbus A320

family aircraft with a total estimated list price

of $36.2 billion (2023: $18.1 billion) before escalations and discounts, for delivery in financial years 2025 (9

aircraft), 2026 and 2027 (59 aircraft) and 2028 to 2034 (231 aircraft). Additionally, easyJet maintains purchase rights for a further 100 aircraft.

At the year-end date easyJet had no commitment (2023: six) for aircraft lease contracts, where the aircraft had not been delivered.

1) Right of use asset disposals includes the transactions to remove the fully depreciated assets from the statement of financial position when the leased assets are returned.

2) As Airbus no longer publishes list prices, the last available list price published in January 2018 has been used for the estimated list price.

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13. OTHER NON-CURRENT ASSETS

	2024	2023
	£ million	£ million
Mid-life aircraft delivery assets	156	115
Deposits held by aircraft lessors	13	23
	169	138

Mid-life aircraft delivery assets arise from maintenance obligations incurred on mid-life leased aircraft

before easyJet acquired the aircraft. Some of these obligations occur where a lessor has agreed to

make a contribution to easyJet’s maintenance costs to reflect the cycles already flown by the aircraft at

the point it is delivered to easyJet, plus or minus any maintenance utilised by easyJet that will not be

paid for via a maintenance shop visit. Depending on the contract terms, payment will be made either at

the maintenance event date or at the lease return date, the timing of which determines the current and

non-current split of the asset. Other mid-life aircraft delivery assets are recognised as an offset to

comparable lease maintenance obligations in respect of cycles flown at the point the leased aircraft

enters the fleet and for which easyJet carries the cost burden. The timing of the utilisation of these

assets matches the estimated timing of the maintenance obligation assumed in the maintenance

provision. The recoverability of this asset has been assessed by management, and the asset is

considered to be fully recoverable.

14. TRADE AND OTHER RECEIVABLES

	2024	2023
	£ million	£ million
Trade receivables	142	115
Less provision for loss allowance	(7)	(5)
	135	110
Prepayments	57	44
Accrued income	162	110
Other receivables	129	79
	483	343

Within the provision for loss allowance, £5 million has been credited to the income statement (2023:

£3 million credited), with £nil million (2023: £nil million) being utilised in the year ended 30 September

2024.

Information about the impairment of trade receivables and the Group’s exposure to credit risk can be

found in note 27.

Other receivables comprises current mid-life aircraft delivery assets, supplier receivables, VAT and trade

deposits.

15. CASH, CASH EQUIVALENTS AND OTHER INVESTMENTS

	2024	2023
	£ million	£ million
Cash and cash equivalents (original maturity less than three months)	1,343	2,925
Other investments (original maturity more than three months)	2,118	–
Non-current restricted cash	–	2
	3,461	2,927

Other investments include term deposits, tri-party repos and managed investments where the original

duration of the investment was more than three months.

Restricted cash comprises:

	2024	2023
	£ million	£ million
Cash held as bank guarantee collateral	–	2
	–	2

16. TRADE AND OTHER PAYABLES

	2024	2023
	£ million	£ million
Trade payables	357	402
Accruals	1,097	1,096
Taxes and social security	38	52
Other payables	164	214
	1,656	1,764

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17. LIABILITIES RELATING TO CONTRACTS WITH CUSTOMERS

	2024		2023
	Unearned		Unearned
	revenue	Other	revenue	Other
	£ million	£ million	£ million	£ million
Opening contract liabilities	1,501	79	1,043	158
Revenue deferred during the year	10,170	–	9,233	–
Revenue recognised during the year	(9,930)	(47)	(8,775)	(47)
Additional contract liability during the year	–	187	–	147
Reduction in contract liability during the year	–	(184)	–	(177)
FX impact during the year	–	–	–	(2)
Closing contract liabilities	1,741	35	1,501	79

Revenue deferred and recognised during the year is inclusive of airline passenger duty (APD) and other

charges, but net of intercompany eliminations.

	2024			2023
	Unearned		Unearned
	revenue	Other	revenue	Other
	£ million	£ million	£ million	£ million
Revenue recognised that was included in the contract liability balance at the beginning of the year	1,399	47	1,006	47

Other customer contract liabilities consist of amounts transferred from unearned revenue to other

payables due to the cancellation of flights and is made up of customer vouchers outstanding and

amounts where customers have not yet requested a refund, voucher or flight transfer. The movements

in ‘additional contract liability’ and ‘reduction in contract liability’ arise as flights are cancelled, as

vouchers are awarded or exercised, and as customers advise on the exercise of their options following

flight cancellations. The breakage applied to the contract liability in the year is included in revenue

recognised during the year.

18. BORROWINGS

	Current	Non-current	Total
	£ million	£ million	£ million
At 30 September 2024
Eurobonds	416	1,690	2,106
	416	1,690	2,106

	Current	Non-current	Total
	£ million	£ million	£ million
At 30 September 2023
Eurobonds	433	1,462	1,895
	433	1,462	1,895

Amounts above are shown net of issue costs or discounted amounts which are amortised at the

effective interest rate over the life of the debt instruments.

The October 2016 €500 million Eurobond with a carrying value of £433 million was repaid in October

2023. In addition, in March 2024, a €850 million Eurobond was issued with a value of £718 million (net of

issue costs). See note 27 for further information on borrowings.

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19. LEASE LIABILITIES

easyJet holds aircraft under leasing arrangements that are recognised as right of use assets and lease

liabilities, with remaining lease terms ranging up to seven years. easyJet is contractually obliged to carry

out maintenance on these aircraft, and the cost of this is provided based on the number of flying hours,

days and cycles operated and the estimated cost of the maintenance events. Further details are given in

note 1.

Information in respect of right of use assets, including the carrying amount, additions and depreciation,

is set out in note 12. Information in respect of the carrying value and interest arising on lease liabilities is

set out in note 26 and note 2 respectively. A maturity analysis of lease liabilities is set out below.

	2024	2023
Amounts recognised in the statement of cash flows	£ million	£ million
Capital repayments	(222)	(218)
Interest payments	(50)	(46)
	(272)	(264)

	2024	2023
Lease liabilities	£ million	£ million
Maturity analysis – contractual undiscounted cash flows
Less than one year	(269)	(254)
One to five years	(852)	(690)
More than five years	(226)	(139)
	(1,347)	(1,083)

	2024	2023
Lease liabilities included in the statement of financial position	£ million	£ million
Current	(227)	(217)
Non-current	(947)	(772)
Tota l	(1,174)	(989)

easyJet also enters into short-term leases and low-value leases which are not recognised as right of use

assets and lease liabilities. The expense recognised in the year in relation to these leases is disclosed

below.

	2024	2023
Amounts recognised in income statement	£ million	£ million
Interest on lease liabilities	50	46
Expenses relating to low-value leases	5	8
Expenses relating to short-term wet leases	–	15
	55	69

20. PROVISIONS FOR LIABILITIES AND CHARGES

	Maintenance
	provisions	Restructuring	Other provisions	Total provisions
	£ million	£ million	£ million	£ million
At 1 October 2023	753	6	42	801
Exchange adjustments	(67)	(1)	(1)	(69)
Release of provisions	(2)	(3)	(10)	(15)
Additional provisions recognised	315	12	28	355
Updated discount rates net of unwind of discount	(12)	–	–	(12)
Utilised	(93)	(2)	(3)	(98)
At 30 September 2024	894	12	56	962

	Maintenance
	provisions	Restructuring	Other provisions	Total provisions
	£ million	£ million	£ million	£ million
At 1 October 2022	636	15	40	691
Exchange adjustments	(44)	–	–	(44)
Release of provisions	–	(5)	(6)	(11)
Additional provisions recognised	257	6	17	280
Updated discount rates net of unwind of discount	(30)	–	–	(30)
Utilised	(66)	(10)	(9)	(85)
At 30 September 2023	753	6	42	801

The maintenance provisions provide for maintenance costs arising from legal and constructive

obligations relating to the condition of the aircraft when returned to the lessor. Restructuring and other

provisions include amounts in respect of potential liabilities for employee-related matters and litigation

which arose in the normal course of business.

	2024	2023
	£ million	£ million
Current	156	175
Non-current	806	626
	962	801

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20. PROVISIONS FOR LIABILITIES AND CHARGES (CONTINUED)

The split of the current/non-current maintenance provision is based on the expected maintenance event

timings. If actual aircraft usage varies from expectation the timing of the utilisation of the maintenance

provision could result in a material change in the classification between current and non-current.

Maintenance provisions are expected to be utilised within seven years.

Within other provisions are provisions for litigation matters. The split of these provisions between

current/non-current is based on the dates of expected court judgements. Provisions for restructuring

could be fully utilised within one year from 30 September 2024 and therefore are classified as current.

21. PENSIONS

Total pension costs of £72 million (2023: £63 million) are recognised in employee costs (note 4) and

comprise £66 million (2023: £57 million) related to defined contribution plans and £6 million (2023: £6

million) related to defined benefit plans in Switzerland, including administration expenses of £nil million

(2023: £nil million).

The contributions payable to the relevant plans by the Group are at the rates specified in the rules of the

plans. The assets of the plans are held separately from those of the Group in funds under the control of

trustees.

Due to the minimum guarantees in place under Swiss law, the Swiss pension plan meets IAS 19

requirements to be treated as a defined benefit plan under IAS 19 despite the scheme having many

attributes akin to a defined contribution scheme. The Swiss Federal Council requires that a guaranteed

minimum interest rate must be achieved (currently 1.25%) on the mandatory part of the benefits. When

an employee retires, the accumulated pension on retirement is converted into a life annuity using a

conversion rate. The statutory minimum conversion rate to be applied is currently 6.8%. Swiss plans do

not meet the definition of a defined contribution (DC) scheme under IFRS as, due to the guarantees, the

obligation of the employer does not stop with the payment of the pre-defined regular contributions.

Further contributions may be required by the employer and the employee if the plan becomes

underfunded under local Swiss GAAP. This results in the Swiss plans being accounted for as defined

benefit plans. The scheme remains open to new employees.

The easyJet portion of the current service costs and the net interest cost are charged to the

consolidated income statement in the year to which they relate. Net interest is determined by

multiplying the net defined benefit liability by the discount rate at the start of the annual reporting

period, adjusted for any contributions and benefit payments in the period. Actuarial gains and losses are

recognised in the consolidated statement of comprehensive income and the consolidated balance

reflects the net surplus or deficit at the statement of financial position date.

The defined benefit obligation is calculated using the projected unit credit method. This reflects service

rendered by employees to the dates of valuation and incorporates actuarial assumptions including

discount rates used in determining the present value of benefits, projected rates of remuneration growth

and mortality rates. The present value of the defined benefit obligation is determined by discounting the

estimated future cash outflows using yields of high-quality corporate bonds. Management bases the

discount rate on the bond yield in the Swiss bond market over 10 to 20 years, reflecting the currency in

which the benefits will be paid, and maturity terms approximating to the terms of the related pension

obligation.

The key financial assumptions used to calculate the Swiss scheme liabilities under IAS 19 as at

30 September were:

	2024	2023
Discount rate	1.10%	1.90%
Interest rate in savings	1.10%	1.90%
Salary increase	1.50%	1.50%
Mortality assumptions	70% BVG 2020 GT	70% BVG 2020 GT

DEMOGRAPHIC ASSUMPTIONS

The demographic assumptions, including mortality assumptions used for the liability calculation, are

based on the most recent BVG 2020 tables (2023: BVG 2020 tables). These tables are based on the

experience during the period 2015 to 2019 of 14 of the largest autonomous Swiss pension plans, and

management consider these to be the best estimate available.

SENSITIVITIES

The scheme asset values are sensitive to market conditions. The scheme liabilities are sensitive to

actuarial assumptions used to determine the scheme obligations. Significant changes in these

assumptions could potentially have a material impact on the consolidated statement of financial

position. The main assumptions are the discount rate, the rate of salary increase and the life expectancy

rate. The following table provides an estimate of the potential impact on the pension scheme of

changing these assumptions. The sensitivity analysis was performed by recalculating the defined benefit

obligation with the following parameters (all other parameters were not modified):

		Increase/(decrease) in
		defined benefit obligation
		2024	2023
Discount rate	+0.5%	(6.1%)	(5.6%)
	-0.5%	6.9%	6.3%
Salary increase	+0.5%	0.9%	0.9%
	-0.5%	(0.9%)	(0.9%)
Life expectancy	+1 year	0.8%	0.6%
	-1 year	(0.8%)	(0.6%)

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21. PENSIONS (CONTINUED)

easyJet has an affiliation contract with Swiss Life Collective BVG Foundation. The assets of all affiliated

companies are pooled which diversifies the associated risk, and the scheme assets represent the share

in this Foundation. The Collective controls the asset management, is exposed to the risk, and guarantees

the savings capital under the contract in place which is valid until 31 December 2027. The Board of

Trustees with the elected employees and employer’s representatives decide the investment strategy.

The current agreement is known as ‘fully insured’ by Swiss Life, which means that all underfunding,

investment and longevity risks are transferred from easyJet to Swiss Life over the term of the policy.

After the expiry date the benefits are no longer insured and all payments are the liability of the pension

scheme, unless the provider renegotiates the terms of the contract.

Amounts recognised in the consolidated income statement are as follows:

	2024	2023
	£ million	£ million
Current service costs defined benefit	7	6
Interest cost on net defined benefit obligation	3	3
Interest income on defined benefit asset	(3)	(3)
Past service costs (plan amendment)	(1)	–
Net defined benefit cost recognised in the income statement	6	6

Amounts recognised in other comprehensive income:

	2024	2023
	£ million	£ million
Loss from change in financial assumptions	9	5
Experience loss	2	3
Recognised in the statement of other comprehensive income	11	8

Movement in net deficit in the year:

	2024	2023
	£ million	£ million
Net deficit of the plan at 1 October	7	1
Net defined benefit cost recognised in the income statement	6	6
Net defined benefit loss recognised in other comprehensive income	11	8
Company contributions	(9)	(8)
Foreign exchange loss	2	–
Statement of financial position net deficit as at 30 September	17	7

A £3 million (2023: £3 million) prepayment representing cash paid over to Swiss Life in advance and not

yet utilised in the pension scheme is offset against the net deficit.

The employer cash contribution from the Group in the 2025 financial year is expected to be CHF 9

million (2024: CHF 9 million).

Changes in the present value of the defined benefit obligation are as follows:

	2024	2023
	£ million	£ million
Present value of obligation at 1 October	152	140
Current service cost	7	6
Contributions paid by employees	5	5
Interest costs on defined benefit obligation	3	3
Contributions paid by plan participants	3	2
Benefit payments from scheme assets	(7)	(9)
Past service cost	(1)	–
Actuarial loss arising from changes in financial assumptions	9	5
Actuarial loss arising from experience adjustments	2	3
Foreign exchange loss/(gain)	2	(3)
Present value of obligation as at 30 September	175	152

Changes in the fair value of the scheme assets are as follows:

	2024	2023
	£ million	£ million
Fair value of the scheme asset as at 1 October	145	139
Interest income on the defined benefit plan assets	3	3
Contributions paid by Company	9	8
Contributions paid by employees	5	5
Contributions paid by plan participants	3	2
Benefit payments from scheme assets	(7)	(9)
Foreign exchange (loss)/gain	–	(3)
Fair value of the pension assets as at 30 September	158	145

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21. PENSIONS (CONTINUED)

	 2024	2023
Number of active participants	1,152	1,031
Average age of active insured members in years	40	41
Average time remaining before active employees reach final age in years	9	9
Average active life expectancy in years	52	52
Average years of service in years	9	10

The assets held do not have a quoted market price as they are within the affiliation contract with Swiss

Life Collective BVG Foundation. All assets are within the one class which takes the form of an insurance

contract.

The weighted average duration of the defined benefit obligation of the Swiss pension scheme is 13 years

(2023: 13 years).

MATURITY PROFILE OF DEFINED BENEFIT OBLIGATION

	2024	2023
Expected benefit payments during fiscal year ending 30 September:	£ million	£ million
One year	11	10
Two ye ars	17	13
Three years	14	16
Four years	14	15
Five years	16	13
Six up to ten years	75	70

22. SHARE CAPITAL

	Number		Nominal value
	2024	2023	2024	2023
	million	million	£ million	£ million
Allotted, called up and fully paid
At 30 September
Ordinary shares of par 27 2/7 pence each	758	758	207	207

easyJet’s employee benefit trusts hold the following shares. The cost of these shares has been

deducted from retained earnings:

	2024	2023
Number of shares (million)	7	5
Cost (£ million)	42	21
Market value at year end (£ million)	38	21

23. SHARE INCENTIVE SCHEMES

easyJet operates the following share incentive schemes, all of which are equity settled. The change in

the number of awards outstanding, weighted average exercise prices during the year, and the number

exercisable at each year end were as follows:

	1 October		Forfeited/		30 September
	2023	Granted	cancellations	Exercised	2024
	million	million	million	million	million
Long Term Incentive Plan	0.3	–	(0.3)	–	–
Restricted Stock Unit	5.0	–	(0.4)	(0.8)	3.8
Restricted Share Plan	0.8	2.4	(0.2)	–	3.0
Save As You Earn scheme	19.1	9.4	(6.1)	–	22.4
Individual Incentive Plan	0.2	–	–	(0.1)	0.1
Share Incentive Plan	3.0	4.0	(0.2)	(0.4)	6.4
Deferred Annual Bonus Plan	0.3	0.3	–	–	0.6
	28.7	16.1	(7.2)	(1.3)	36.3

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23. SHARE INCENTIVE SCHEMES (CONTINUED)

	1 October		Forfeited/		30 September
	2022	Granted	cancellations	Exercised	2023
	million	million	million	million	million
Long Term Incentive Plan	1.1	–	(0.8)	–	0.3
Restricted Stock Unit	2.7	2.7	(0.3)	(0.1)	5.0
Restricted Share Plan	0.5	0.4	(0.1)	–	0.8
Save As You Earn scheme	16.3	6.3	(3.5)	–	19.1
Individual Incentive Plan	–	0.2	–	–	0.2
Share Incentive Plan	3.3	–	(0.1)	(0.2)	3.0
Deferred Annual Bonus Plan	–	0.3	–	–	0.3
	23.9	9.9	(4.8)	(0.3)	28.7

LONG TERM INCENTIVE PLAN

The plan was open, by invitation, to Executive Directors and senior management, and provided for

annual awards of Performance Shares worth up to 250% of salary each year. The vesting of these

shares was dependent on TSR targets compared to FTSE-ranked companies at the start of the

performance period. All awards have a three-year vesting period. The last awards were made in

December 2020 and were assessed on performance conditions measured over the three financial years

ended 30 September 2023.

RESTRICTED STOCK UNIT

The plan was awarded to the Airline Management Board, senior managers and some middle

management, and provided annual awards of Performance Shares worth up to 75% of salary each year.

All awards have a two or three-year vesting period, of which the vesting conditions are continued

employment. These plans are no longer awarded.

RESTRICTED SHARE PLAN

The plan is open, by invitation, to Executive Directors, the Airline Management Board and senior and

some middle management, and provides for annual awards of Performance Shares worth from 20% to

125% of salary, depending on role. All awards have either a two or three-year vesting period. For the

Executive Directors a three-year performance period plus two-year post-vesting holding period will

apply. The awards are subject to the following underpins: that easyJet does not fall below its minimum

liquidity target (such that a credit risk is triggered) through the vesting period and that there is

satisfactory governance performance including no ESG issues that result in material reputational

damage to the Company (as determined by the Board). The vesting of these shares is also dependent

on continued employment and assessment against performance underpins, as outlined in the Directors’

Remuneration Report, measured over the vesting period.

INDIVIDUAL INCENTIVE PLAN

These cash-settled plans may be made available, by invitation, to members of the Airline Management

Board. Based on specific individual performance related measures and requiring continued employment,

awards are payable over multiple years based on the achievement of agreed targets. All awards are

approved by the Remuneration Committee.

SAVE AS YOU EARN SCHEME

The scheme is open to all employees on the UK payroll. Participants may elect to save up to £500 per

month under a three-year savings contract. An option is granted by the Company to buy shares at a

discount of 20% from the market price on the day immediately preceding the date on which invitations

are sent; however the 2022 scheme was granted at a discount of 10% from the market price, and the

2020 scheme did not have a discount. At the end of the savings period, the option becomes exercisable

for a period of six months. Employees who are not paid through the UK payroll may participate in the

scheme under similar terms and conditions, albeit without the same tax benefits.

SHARE INCENTIVE PLAN

The plan is open to all employees on the UK payroll. Participants may invest up to £1,800 of their pre-tax

salary each year to purchase Partnership Shares in easyJet and up until 1 April 2020 easyJet also

contributed matching shares. Employees must remain with easyJet for three years from the date of

purchase of each Partnership Share in order to qualify for the Matching Share, and for five years for the

shares to be transferred to them tax free. The employee is entitled to dividends on shares purchased,

and to vote at shareholder meetings.

Subject to Company performance, easyJet also issues performance-related shares to UK employees (at

no cost to the employees) under an approved share incentive plan of up to £3,000 per annum in value.

There is a similar unapproved share scheme for international employees.

DEFERRED ANNUAL BONUS PLAN

This plan represents the compulsory deferral of one-third of the annual bonus in shares for the Executive

Directors and one-fifth of the annual bonus for the Airline Management Board. All awards have a

three-year vesting period of which the vesting conditions are continued employment.

Weighted average exercise prices are as follows:

					30 September
	1 October 2023	Granted	Forfeited	Exercised	2024
	£	£	£	£	£
Save As You Earn scheme	4.22	3.61	4.43	-	3.91

The exercise price of all awards except those disclosed in the above table is £nil.

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23. SHARE INCENTIVE SCHEMES (CONTINUED)

The number of awards exercisable at each year end and their weighted average exercise price is as

follows:

	Price		Number
	£		million
	2024	2023	2024	2023
Long Term Incentive Plan	–	–	–	–
Restricted Stock Unit	–	–	0.6	0.2
Restricted Share Plan	–	–	0.2	–
Save As You Earn scheme	6.39	5.62	0.6	1.3
Individual Incentive Plan	–	–	–	–
Share Incentive Plan	–	–	–	–
Deferred Annual Bonus Plan	–	–	–	–
			1.4	1.5

The weighted average remaining contractual life for each class of share award at 30 September 2024

and 30 September 2023 are as follows:

	Years
	2024	2023
Long Term Incentive Plan	5.2	7.3
Restricted Stock Unit	7.8	8.5
Restricted Share Plan	8.9	8.9
Save As You Earn scheme	2.4	2.5
Individual Incentive Plan	0.7	1.1
Share Incentive Plan (free shares)	9.5	–
Deferred Annual Bonus Plan	8.7	9.2

The fair value of grants under the Save As You Earn scheme are calculated by applying the Binomial

Lattice option pricing model. The fair value of grants under the TSR based Long Term Incentive Plan is

estimated under the Stochastic model (also known as the Monte Carlo model). The fair value of grants

under all other schemes is the share price on the date of grant. The following assumptions are used for

share schemes in this financial year:

					Risk-free	Dividend
	Share	Exercise	Expected	Option	interest	yield	Fair
	price	price	volatility	life	rate	assumption	value
Grant date	£	£	%	years	%	%	£
Restricted Share Plan
12 December 2023	5.02	–	0%	–	0%	–	5.02
21 June 2024	4.50	–	0%	–	0%	–	4.50
Save As You Earn scheme
18 July 2024	4.51	3.61	42%	3.50	4%	2.5%	1.70
Deferred Annual Bonus Plan
13 December 2023	4.91	–	0%	–	0%	–	4.91

Share price for the Restricted Share plans is the closing share price from the last working day prior to

the date of grant.

Expected volatility is based on historical volatility over a period comparable to the expected life of each

type of option.

The total share-based payment expense recognised for the year was £30 million (2023: £18 million). The

share-based payment liability, representing the national insurance payments due, as at 30 September

2024, was £5 million (2023: £2 million).

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24. RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS

		2023
	2024	(re-presented)
	£ million	£ million
Operating profit	589	453
Adjustments for non-cash items:
Depreciation	727	644
Loss on disposal of property, plant and equipment	18	14
(Gain)/loss on sale and leaseback	(1)	–
Amortisation of intangible assets	43	29
Share-based payments	30	18
Loss on disposal of other intangible assets	1	3
Changes in working capital and other items of an operating nature:
Increase in trade and other receivables	(130)	(16)
Increase in intangible assets	(8)	(179)
(Decrease)/increase in trade and other payables	(45)	120
Increase in unearned revenue	240	458
Post employment benefit contributions	(12)	(2)
Increase/(decrease) in provisions 1	31	(94)
Decrease in other non-current assets 1	10	47
(Decrease)/increase in derivative financial instruments	(10)	14
Cash generated from operations	1,483	1,509

1) The non-cash element of £87 million within lessor maintenance contributions has been re-presented between provisions

and other non-current assets.

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25. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH/(DEBT)

						Cash, cash
						equivalents and
						other
	1 October	Foreign	New debt raised	Repayment of		investments	30 September
	2023	exchange	in the year	capital	Other 1	movement	2024
	£ million	£ million	£ million	£ million	£ million	£ million	£ million
Cash and cash equivalents	2,925	(136)	—	—	—	(1,446)	1,343
Other investments	–					2,118	2,118
	2,925	(136)	–	—	–	672	3,461
Eurobond	(1,895)	77	(718)	434	(4)	—	(2,106)
Lease liabilities	(989)	91	(228)	222	(270)	—	(1,174)
	(2,884)	168	(946)	656	(274)	—	(3,280)
Net cash/(debt)	41	32	(946)	656	(274)	672	181

1) Other includes deferred fees, lease extensions and rate changes.

Other investments include term deposits, tri-party repos and managed investments where the original duration of the investment was more than three

months.

26. FINANCIAL INSTRUMENTS

The fair values of financial assets and liabilities, together with the carrying value at each reporting date, are as follows:

	Amortised cost			Held at fair value
	Financial	Financial	Fair value	Cash flow	Other financial		Carrying	Fair
	assets	liabilities	hedges	hedges	instruments	Other 1	value	value
At 30 September 2024	£ million	£ million	£ million	£ million	£ million	£ million	£ million	£ million
Other non-current assets	169	–	–	–	–	–	169	169
Trade and other receivables	327	–	–	–	–	156	483	483
Trade and other payables	–	(1,134)	–	–	–	(522)	(1,656)	(1,656)
Derivative financial instruments	–	–	–	(240)	(50)	–	(290)	(290)
Restricted cash	–	–	–	–	–	–	–	–
Other investments	1,968	–	–		150		2,118	2,118
Cash and cash equivalents	671				672		1,343	1,343
Eurobonds 2	–	(2,106)	–	–	–	–	(2,106)	(2,083)
Lease liabilities 3	–	(1,174)	–	–	–	–	(1,174)	n/a
Equity investments 4	–	–	–	–	51	–	51	51

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26. FINANCIAL INSTRUMENTS (CONTINUED)

	Amortised cost			Held at fair value
	Financial	Financial	Fair value	Cash flow	Other financial		Carrying	Fair
	assets	liabilities	hedges	hedges	instruments	Other 1	value	value
At 30 September 2023	£ million	£ million	£ million	£ million	£ million	£ million	£ million	£ million
Other non-current assets	138	–	–	–	–	–	138	138
Trade and other receivables	237	–	–	–	–	106	343	343
Trade and other payables	–	(1,102)	–	–	–	(662)	(1,764)	(1,764)
Derivative financial instruments	–	–	–	142	11	–	153	153
Restricted cash	2	–	–	–	–	–	2	2
Other investments	–	–	–	–	–	–	–	–
Cash and cash equivalents	1,968	–	–	–	957	–	2,925	2,925
Eurobonds 2	–	(1,895)	–	–	–	–	(1,895)	(1,756)
Lease liabilities 3	–	(989)	–	–	–	–	(989)	n/a
Equity investments 4	–	–	–	–	31	–	31	31

1) Amounts disclosed in the ‘Other’ column are items that do not meet the definition of a financial instrument. They are disclosed to facilitate reconciliation of the carrying values of

financial instruments to line items presented in the statement of financial position.

2) For further information see capital, financing and interest risk management section below in note 27.

3) Lease liabilities are valued in accordance with IFRS 16 and a fair value determination is not applicable.

4) The equity investment of £51 million (2023: £31 million) represents a 13.2% shareholding in a non‐listed entity, The Airline Group Limited. Valuation movements are designated as being

fair valued through other comprehensive income due to the nature of the investment being held for strategic purposes. No dividend was received during the year (2023: £nil).

FAIR VALUE CALCULATION METHODOLOGY

Where available the fair values of financial instruments have been determined by

reference to observable market prices where the instruments are traded. Where

market prices are not available, the fair value has been estimated by discounting

expected future cash flows at prevailing interest rates and by applying year-end

exchange rates (excluding The Airline Group Limited equity investment).

The fair values of the remaining three Eurobonds are classified as level 1 of

the IFRS 13 ‘Fair Value Measurement’ fair value hierarchy (valuations taken as

the closing market trade price for each respective Eurobond as of

30 September 2024). Apart from the equity investment, the remaining

financial instruments for which fair value is disclosed in the table above, and

derivative financial instruments, are classified as level 2.

The fair values of derivatives are calculated using observable market forward

curves (e.g. forward foreign exchange rates, forward interest rates or forward

jet fuel prices) and discounted to present value using risk-free rates. The

impacts of counterparty credit, cross-currency basis and market volatility are

also included where appropriate as part of the fair valuation.

The equity investment is classified as level 3 due to the use of forecast

dividends which are discounted to present value. Though there are other

level 2 inputs to the valuation, the discounted cash flow is a significant input

which is not based on observable market data. The fair value is assessed at

each reporting date based on the discounted cash flows with a secondary

validation through a comparison to two other valuations calculated using a

market approach and level 2 inputs. The fair value is being held at £51 million

(2023: £31 million) based on a valuation report using this method by an

external valuation firm with the material increase in valuation arising during

the year as a result of improvements in the forecast of future cash flows. If

the level 3 forecast cash flows were 10% higher or lower the fair value would

not increase/decrease by a material amount.

The fair value measurement hierarchy levels have been defined as follows:

> Level 1, fair value of financial instruments based on quoted prices

(unadjusted) in active markets for identical assets or liabilities.

> Level 2, fair value of financial instruments in an active market (for example,

over the counter derivatives) which are determined using valuation

techniques which maximise the use of observable market data and rely as

little as possible on entity specific estimates.

> Level 3, fair value of financial instruments that are not based on observable

market data (i.e. unobservable inputs).

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26. FINANCIAL INSTRUMENTS (CONTINUED)

FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS

		Non-current	Current	Current	Non-current
	Quantity	assets	assets	liabilities	liabilities	Total
At 30 September 2024	million	£ million	£ million	£ million	£ million	£ million
Designated as cash flow hedges
US dollar	1,899	–	–	(64)	(12)	(76)
Euro	2,065	1	18	(45)	(2)	(28)
Swiss franc	275	–	7	–	–	7
Jet fuel	2	1	2	(107)	(4)	(108)
Cross-currency interest rate swaps	1,100	–	–	(26)	(9)	(35)
Designated as fair value through profit or loss
US dollar	982	–	1	(19)	(24)	(42)
Euro	197	–	–	(8)	–	(8)
Jet fuel	–	–	1	(1)	–	–
		2	29	(270)	(51)	(290)

		Non-current	Current	Current	Non-current
	Quantity	assets	assets	liabilities	liabilities	Total
At 30 September 2023	million	£ million	£ million	£ million	£ million	£ million
Designated as cash flow hedges
US dollar	1,820	5	22	(11)	–	16
Euro	1,446	–	11	(3)	(2)	6
Swiss franc	241	–	2	(1)	–	1
Jet fuel	2	7	123	(1)	–	129
Cross-currency interest rate swaps	1,406	10	–	(12)	(8)	(10)
Designated as fair value through profit or loss
US dollar	1,195	13	28	(14)	(4)	23
Euro	619	–	–	(12)	–	(12)
		35	186	(54)	(14)	153

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26. FINANCIAL INSTRUMENTS (CONTINUED)

For foreign currency forward exchange contracts, quantity represents the absolute gross nominal value

of currency contracts held, disclosed in the contract foreign currency. The cross-currency interest rate

swap contracts are presented at the sterling notional amount. For jet fuel derivative contracts, the

quantity represents absolute contracted metric tonnes.

The majority of foreign exchange and jet fuel transactions designated as a cash flow hedge are expected

to occur within the next 18 months. Accumulated gains and losses resulting from these transactions are

deferred in the hedging reserve. The gains and losses will be recognised in the income statement in the

periods when the hedged transactions impact the income statement. Where the gain or loss is included in

the initial amount recognised following the purchase of an aircraft, recognition in the income statement is

over a period of up to 23 years in the form of depreciation of the purchased asset.

Amounts related to US dollar and euro foreign exchange derivatives held at fair value through profit or

loss (e.g. not held in a hedge accounting relationship) form part of the Group’s statement of financial

position retranslation risk management strategy. Fair value movements on these derivatives are

recognised in the income statement and offset foreign exchange movements on the corresponding

notional amount of the statement of financial position monetary liabilities held in US dollar and euro.

These trades are all expected to occur within the next 36 months.

The Group maintains cross-currency interest rate swap contracts on a proportion of fixed rate debt

issuance as part of the approach to currency and interest rate risk management. These cross-currency

interest rate swap contracts are designated and qualify as cash flow hedges to minimise volatility in the

income statement.

The following derivative financial instruments are subject to offsetting, enforceable master netting

arrangements.

	Gross	Amount	Net
	amount	not set off	amount
At 30 September 2024	£ million	£ million	£ million
Derivative financial instruments
Assets	31	(31)	–
Liabilities	(321)	31	(290)
	(290)	–	(290)

	Gross	Amount	Net
	amount	not set off	amount
At 30 September 2023	£ million	£ million	£ million
Derivative financial instruments
Assets	221	(66)	155
Liabilities	(68)	66	(2)
	153	–	153

All financial assets and liabilities are presented gross on the face of the statement of financial position as

the conditions for netting specified in IAS 32 ‘Financial Instruments Presentation’ are not met.

27. FINANCIAL RISK AND CAPITAL MANAGEMENT

easyJet is exposed to financial risks including fluctuations in exchange rates, jet fuel prices and interest

rates. Financial risk management aims to limit these market risks with selected derivative hedging

instruments being used for this purpose. easyJet’s policy is not to speculatively trade derivatives but use

the instruments to hedge anticipated exposure and gain cash flow certainty. easyJet reduces its

exposure to market risk by using derivatives as any gains and losses arising are offset by the outcome of

the underlying exposure being hedged.

The Board is responsible for setting financial risk and capital management policies and objectives which

are implemented by the treasury function on a day-to-day basis. The policy outlines the approach to risk

management and also states the instruments and time periods which the treasury function is authorised

to use in managing financial risks. The policy is regularly reviewed to ensure best practice.

Capital employed comprises shareholders’ equity (excluding hedging and cost of hedging reserves),

borrowings (including amounts related to IFRS 16 lease liability), cash and cash equivalents and other

investments (excluding restricted cash).

In addition, easyJet also maintains committed access to capital through its undrawn credit facilities. This

amounted to £1.6 billion at 30 September 2024 (2023: £1.8 billion) and contributed to easyJet’s total

liquidity. There were no plans to draw from undrawn facilities as at 30 September 2024.

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27. FINANCIAL RISK AND CAPITAL MANAGEMENT (CONTINUED)

Consequently, the capital employed at the end of the current and prior year and the return earned during those years was as follows:

		2024			2023
	Headline	Non-headline	Total	Headline	Non-headline	Total
	£ million	£ million	£ million	£ million	£ million	£ million
Opening capital employed
Shareholders’ equity (excluding hedging & cost of hedging
reserves)	2,676	–	2,676	2,358	–	2,358
Borrowings	1,895	–	1,895	3,197	–	3,197
Lease liabilities	989	–	989	1,113	–	1,113
Cash, cash equivalents and other investments (excluding
restricted cash)	(2,925)	–	(2,925)	(3,640)	–	(3,640)
Reported capital employed	2,635	–	2,635	3,028	–	3,028
Closing capital employed
Shareholders’ equity (excluding hedging & cost of hedging
reserves)	3,118	–	3,118	2,676	–	2,676
Borrowings	2,106	–	2,106	1,895	–	1,895
Lease liabilities	1,174	–	1,174	989	–	989
Cash, cash equivalents and other investments (excluding
restricted cash)	(3,461)	–	(3,461)	(2,925)	–	(2,925)
Reported capital employed	2,937	–	2,937	2,635	–	2,635
Average capital employed	2,786	–	2,786	2,832	–	2,832
Reported operating profit/(loss)	597	(8)	589	476	(23)	453
UK corporation tax rate			25%			25%
Normalised operating profit/(loss) after tax	448	(6)	442	357	(17)	340
Return on capital employed	16.1%		15.9%	12.6%		12.0%

Return on capital employed is calculated by dividing the normalised operating profit/(loss) after tax by the average of the opening and closing capital

employed.

Normalised operating profit is reported operating profit, less tax at the prevailing UK corporation tax rate at the end of the financial year.

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Liquidity risk management

The objective of easyJet’s liquidity risk management is to ensure sufficient cash is available to meet

future liabilities as they fall due and ensure access to cost-effective funding in various markets.

Liquidity raised in the year was primarily through the issue of a €850 million bond under the EMTN

Programme in March 2024, and from sale and leaseback transactions, which were conducted on 11

aircraft generating gross cash proceeds of £114 million. Repayments in the year included the €500

million repayment of the Oct-16 Eurobond in October 2023.

easyJet’s policy has consistently been to hold significant liquidity to mitigate the impact of potential

business disruption events. Throughout the year, easyJet’s target minimum liquidity requirement was to

cover unearned revenue plus £500 million. In assessing this liquidity metric any undrawn credit facilities

need to be taken into consideration. Total cash and cash equivalents and other investments at

30 September 2024 was £3,461 million (30 September 2023: £2,925 million) with total liquidity at £5,065

million. Surplus funds are invested in high-quality short-term liquid instruments, mainly money market

funds, term deposits, tri-party repos and managed investments.

The maturity profile of financial liabilities and derivatives based on undiscounted cash flows and

contractual maturities is as follows:

	Within one year	One-two years	Two-five years	Over five years
At 30 September 2024	£ million	£ million	£ million	£ million
Borrowings principal and interest	465	45	1,115	760
Trade and other payables	1,656	–	–	–
Lease liabilities	269	257	595	226
FX & jet derivative contracts – receipts	(4,303)	(787)	(199)	–
FX & jet derivative contracts – payments	4,538	828	210	–
Cross-currency swap contracts – receipts	(429)	(9)	(518)	–
Cross-currency swap contracts – payments	469	15	540	–

	Within one year	One-two years	Two-five years	Over five years
At 30 September 2023	£ million	£ million	£ million	£ million
Borrowings principal and interest	458	457	1,087	–
Trade and other payables	1,764	–	–	–
Lease liabilities	254	412	278	139
FX & jet derivative contracts – receipts	(4,543)	(961)	(223)	–
FX & jet derivative contracts – payments	4,334	938	222	–
Cross-currency swap contracts – receipts	(452)	(447)	(544)	–
Cross-currency swap contracts – payments	476	469	556	–

The maturity profile has been calculated based on spot rates for the US dollar, euro, Swiss franc and jet

fuel at close of business on 30 September each year.

Credit risk management

easyJet is exposed to credit risk arising from cash and other investments, derivative financial

instruments and trade and other receivables. Credit risk management aims to reduce the risk of default

by setting limits on credit exposure to counterparties based on their respective credit ratings. Credit

ratings also determine the maximum period of investment when placing funds on deposit. The

maximum exposure to credit risk at the reporting date is equal to the carrying value of its financial

assets, excluding tri-party repos, which are securitised by high-quality, investment-grade financial assets.

Counterparties for cash investments and derivatives contracts are required to have a long-term credit

rating of A- or better at contract inception from either Moody’s, Standard & Poor’s or Fitch (except

where there is a specific regulatory, contractual requirement or a bank guarantee from an A- rated

entity). Exposures to these counterparties are regularly reviewed and, if the long-term credit rating falls

below A-, management will make a decision on remedial action to be taken.

The credit ratings of counterparties that easyJet holds financial assets with are as follows:

			Unrated/
	A- and above	Below A-	other	Total
At 30 September 2024	£ million	£ million	£ million	£ million
Financial assets
Trade receivables	–	–	483	483
Other non-current assets	–	–	169	169
Derivative financial instruments	(290)	–	–	(290)
Other investments	2,118	–	–	2,118
Cash and cash equivalents	1,340	3	–	1,343
Tota l	3,168	3	652	3,823

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

			Unrated/
	A- and above	Below A-	other	Total
At 30 September 2023	£ million	£ million	£ million	£ million
Financial assets
Trade receivables	–	–	343	343
Other non-current assets	–	–	138	138
Derivative financial instruments	153	–	–	153
Restricted cash	2	–	–	2
Cash and cash equivalents	2,922	3	–	2,925
Tota l	3,077	3	481	3,561

At the end of each reporting date easyJet recognises a loss allowance for expected credit losses on

financial assets measured at amortised cost. In establishing the appropriate amount of loss allowance to

be recognised, easyJet applies either the general approach or the simplified approach, depending on

the nature of the underlying group of financial assets. See note 1a for further detail.

The general approach is applied to the impairment assessment of refundable lease deposits and other

refundable lease contributions, restricted cash, other investments and cash and cash equivalents

(excluding money market funds held at fair value through profit or loss). At 30 September 2024, the

expected credit loss was considered immaterial. This is due to easyJet’s strict policy of investing only

with counterparties who hold a high, investment-grade credit standing (except in specific circumstances)

as detailed in the tables above.

The simplified approach is applied to the impairment assessment of trade and other receivables.

At 30 September 2024, trade receivables had a total loss allowance of £7 million (2023: £5 million).

The exposure to individual customer’s credit risk is reduced as no individual customer accounts for a

substantial amount of the total revenue and most payments for flight tickets are collected in advance

of the service being provided.

Foreign currency risk management

The majority of easyJet’s exposure to currency arises from fluctuations in the US dollar, euro and Swiss

franc exchange rates which can significantly impact easyJet’s financial results and cash flows. The aim of

easyJet’s foreign currency risk management is to reduce the impact of these exchange rate fluctuations.

easyJet has maintained hedging in line with policy throughout the year.

Significant currency exposures in the income statement are managed through the use of foreign currency

forward contracts entered into cash flow hedge relationships in line with the Board approved policy.

Throughout the year easyJet hedged operational US dollar, euro, and Swiss franc exposures to an 18-month

hedging policy with the aim of maintaining average cover of c.60% over a rolling 12-month period.

Of note, the Group separately manages foreign exchange risk related to forecast cash outflows

associated with package holiday costs. Significant currency exposures relating to the acquisition cost of

aircraft are managed through the use of FX forward contracts where up to 36 months of forecasted

cash flows may be hedged.

easyJet has monetary liabilities denominated in US dollars and euros, which are largely offset by holding

US dollar and euro cash, and other investments. easyJet also uses FX forward contracts to manage foreign

exchange translation risk. These are classified as fair value through profit or loss (e.g. not designated in a

hedge relationship) and provide a natural offset to the translation of foreign currency liabilities. During the

year, easyJet used euro lease liabilities to hedge a proportion of its euro revenue receipts in a cash flow

hedge relationship. Translation gains and losses from these euro liabilities are held in reserves and released

on a straight-line basis over the term of the lease agreement through profit or loss.

Management may take action to hedge other currency exposures as deemed appropriate.

The gross notional value of transactions in a hedge relationship that matured during the financial year to

manage the foreign currency risk and the resulting gains and losses were as follows:

	2024		2023
	Notional	Gain/(loss)	Notional	Gain/(loss)
	£ million	£ million	£ million	£ million
USD	1,571	(46)	1,634	14
EUR	1,392	7	1,091	(8)
CHF	296	5	192	(2)

Notional value reflects the sterling contractual leg amount.

Capital financing and interest rate risk management

The objective of capital management is to ensure that easyJet is able to continue as a going concern

whilst delivering shareholder expectations of a strong capital base as well as returning benefits for other

stakeholders.

On 30 September 2024, easyJet held long-term corporate credit ratings from both Standard & Poor’s

(BBB) and Moody’s (Baa2).

easyJet plc established a £3,000 million Euro Medium Term Note (EMTN) Programme on 7 January

2016. Subsequently easyJet plc has issued four bonds under this programme and easyJet FinCo B.V. has

issued one bond. Two bonds have since been repaid. The three remaining bonds under this scheme are

guaranteed by easyJet Airline Company Limited, easyJet plc and easyJet FinCo B.V. On 11 February 2022

the EMTN Programme increased in size to £4,000 million.

In February 2016, easyJet plc issued a €500 million bond under the EMTN Programme guaranteed by

easyJet Airline Company Limited. The Eurobond had a seven-year term and paid an annual fixed coupon

of 1.750%. At the same time the Group entered into three cross-currency interest rate swaps to convert

the entire €500 million fixed rate Eurobond to a sterling floating rate exposure. In February 2023, this

bond reached maturity and was settled.

In October 2016, easyJet plc issued a €500 million bond under the EMTN Programme guaranteed by

easyJet Airline Company Limited. The Eurobond had a seven-year term and paid an annual fixed coupon

of 1.125%. Shortly after the issuance of the €500 million bond the Group entered into three cross-

currency interest rate swaps to convert the entire €500 million fixed rate Eurobond to a sterling fixed

rate exposure. In October 2023, this bond reached maturity and was settled.

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I n June 2019, easyJet plc issued a €500 million bond under the EMTN Programme guaranteed by

easyJet Airline Company Limited. The Eurobond is for a six-year term and pays an annual fixed coupon

of 0.875%. At the same time the Group entered into three cross-currency interest rate swaps to convert

the entire €500 million fixed rate Eurobond to a sterling fixed rate exposure. All three swaps pay fixed

interest semi-annually, receive fixed interest annually, and have maturities matching the Eurobond. The

Group designated all three cross-currency interest rate swaps as a cash flow hedge of the currency risk

on the €500 million Eurobond. The cross-currency interest rate swaps are measured at fair value with

the effective portion taken through the statement of comprehensive income. The element of the fair

value generated by the change in the spot rate is recycled to the income statement from the statement

of comprehensive income to offset the foreign currency translation of the Eurobond. The carrying value

of the fixed rate Eurobond net of cross-currency interest rate swaps at 30 September 2024 was £390

million. This value does not include capitalised set-up costs incurred in the issuing of the bond.

In March 2021, easyJet FinCo B.V. issued a €1,200 million bond under the EMTN Programme guaranteed

by easyJet Airline Company Limited and easyJet plc. The Eurobond has a seven-year term and pays an

annual fixed coupon of 1.875%. easyJet subsequently entered into four cross-currency interest rate

swaps to convert €600 million of the fixed rate Eurobond to a sterling fixed rate exposure. All four

swaps pay fixed interest semi-annually, receive fixed interest annually, and have maturities matching the

Eurobond. The Group designated these cross-currency interest rate swaps as a cash flow hedge of the

currency risk on the €1,200 million Eurobond. The cross-currency interest rate swaps are measured at

fair value with the effective portion taken through the statement of comprehensive income. The

element of the fair value generated by the change in the spot rate is recycled to the income statement

from the statement of comprehensive income to offset the foreign currency translation of the

Eurobond. The carrying value of the fixed rate Eurobond net of cross-currency interest rate swaps at

30 September 2024 was £989 million. This value does not include capitalised set-up costs incurred in

the issuing of the bond.

In March 2024, easyJet plc issued a €850 million bond under the EMTN Programme guaranteed by

easyJet Airline Company Limited and easyJet FinCo B.V. The Eurobond has a seven-year term and pays

an annual fixed coupon of 3.75%. The carrying value of the fixed rate Eurobond at 30 September 2024

was £707 million. This value does not include capitalised set-up costs incurred in the issuing of the bond.

The weighted average sterling interest rate hedged for the three bonds was 2.66% with a weighted

average GBP/EUR foreign exchange hedge rate of 1.15.

Interest rate cash flow risk arises on floating rate borrowings and cash investments.

Interest Rate Risk Management Policy aims to provide certainty in a proportion of financing while

retaining the opportunity to benefit from interest rate reductions. Borrowings are issued at either fixed

or floating interest rates, repricing every three to six months. Operating leases are a mix of fixed and

floating rates. Of the 159 aircraft operating leases in place at 30 September 2024 (2023: 153), 98% were

based on fixed interest rates and 2% were based on floating interest rates (2023: 95% fixed, 5% floating).

In addition, easyJet has access to facilities which are fully undrawn at 30 September 2024; a $400

million revolving credit facility due to mature in September 2025 (with potential extension to September

2026), and a $1,750 million UKEF backed facility maturing in June 2028.

Commodity price risk management

The Group is exposed to commodity risk in the form of jet fuel requirements and Carbon Emissions

Trading schemes (EU ETS, CH ETS and UK ETS) price risk. easyJet has maintained risk management

activities throughout the year in line with policy.

The objective of the fuel price risk management policy is to provide protection against sudden and

significant increases in jet fuel prices, thus mitigating volatility in the income statement in the short term.

In the year, easyJet hedged in line with its 18-month hedging policy with the aim of maintaining average

cover of c.60% over a rolling 12-month period. Jet fuel derivatives are entered into a cash flow hedge

relationship against the future forecasted jet fuel usage. Treasury strategies and actions will be driven by

the need to meet treasury, financial and corporate objectives.

The volume of effective hedge transactions that matured during the financial year to manage the jet

commodity price risk was 2 million metric tonnes. This resulted in a £41 million gain (2023: £68 million

gain) in the fuel line within the income statement.

The Group has a requirement to comply with EU ETS, CH ETS and UK ETS regulations and report on an

annual basis to the relevant environmental agencies. In addition to being in receipt of free allowances,

easyJet is required to purchase carbon allowances on the open market to fulfil this requirement and is

exposed to price movements that can introduce cash flow volatility. To mitigate this exposure, easyJet

purchases its requirements on a spot or forward basis up to 24 months in advance. easyJet holds

allowances for 100% of all estimated ETS obligations for calendar year 2024.

ETS allowance spot and forward contracts maturing in the year were not classified as financial

instruments as they fell within the own use provision under IFRS 9.

Market risk sensitivity analysis

Financial assets and liabilities affected by market risk include borrowings, deposits, trade and other

receivables, trade and other payables, and derivative financial instruments. The following analysis

illustrates the sensitivity of changes in relevant foreign exchange rates, interest rates and fuel prices. It

should be noted that the analysis reflects the impact on profit or loss after tax for the year and other

comprehensive income on financial instruments in a cash flow hedge relationship held at the reporting

date. The sensitivities are calculated based on all other variables remaining constant. The analysis is

considered representative of easyJet’s exposure over the next 12-month period.

The sensitivity analysis is based on easyJet’s financial assets and liabilities and financial instruments held

as at 30 September 2024.

The currency exchange rate analysis assumes a +/-10% change in both US dollar and euro exchange

rates.

The interest rate analysis assumes a 1% increase in interest rates over the next 12 months.

The fuel price analysis assumes a 10% increase in the fuel price forward curve over the next 12 months.

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			Euro	Euro	Interest rates	Fuel price 10%
	US dollar +10% 1	US dollar -10% 2	+10% 1	-10% 2	1% increase	increase
At 30 September 2024	£ million	£ million	£ million	£ million	£ million	£ million
Income statement impact: gain/(loss)	1	(1)	(1)	–	26	–
Impact on other comprehensive income: increase/(decrease)	109	(89)	49	(40)	–	63

			Euro	Euro	Interest rates	Fuel price 10%
	US dollar +10% 1	US dollar -10% 2	+10% 1	-10% 2	1% increase	increase
At 30 September 2023	£ million	£ million	£ million	£ million	£ million	£ million
Income statement impact: gain/(loss)	(6)	5	7	(6)	21	–
Impact on other comprehensive income: increase/(decrease)	135	(110)	3	(2)	–	93

1) GBP weakened.

2) GBP strengthened.

The market risk sensitivity analysis has been calculated on spot rates for the US dollar, euro and jet fuel at close of business on 30 September each year .

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IMPACT ON THE FINANCIAL STATEMENTS DURING THE YEAR ENDED 30 SEPTEMBER 2024

Details of major hedging arrangements at the reporting date are set out below, broken down by the

cash maturity of hedge instruments, notional and average rates.

	Within	Greater than
Hedge instrument (notional in millions)	one year	one year
Jet fuel hedged notional	2	–
Average hedge rate	796	773
USD foreign exchange hedged notional	1,182	170
Average hedge rate	1.27	1.29
EUR foreign exchange hedged notional	541	50
Average hedge rate	1.15	1.15
CHF foreign exchange hedged notional	228	27
Average hedge rate	1.08	1.07

Notional expressed in the sterling contractual leg for currencies and metric tonnes for jet fuel.

HEDGE DISCONTINUATION AND INEFFECTIVENESS

Hedge effectiveness testing on all relationships is performed at each reporting date. Whilst the critical

terms matching of the Group’s hedge relationships means that any ineffectiveness should be minimal, it

can be driven by factors such as material changes in credit risk, price fixing basis (in the case of jet fuel)

or changes in the timings of the hedged cash flows.

In the year ended 30 September 2024, easyJet discontinued three Jet Swaps, due to hedges exceeding

forecasted exposures and one FX forward where the FX hedge position exceeded forecasted exposures.

Total impact was a cost of £nil million.

All hedge relationships where the underlying exposure is still anticipated to occur continue to exhibit a

strong economic hedge relationship as the changes in fair value of hypothetical hedged items is

materially offset by the changes in the fair value of hedging instruments.

Additionally, fair value adjustments of £1 million loss (2023: £1 million loss) were recorded during the year

related to hedge ineffectiveness on hedges of foreign currency denominated borrowings that continue

to be effective hedge relationships.

28. CONTINGENT LIABILITIES AND COMMITMENTS

CONTINGENT LIABILITIES

easyJet previously disclosed an ICO investigation into a cyberattack and data breach that took place in

2020. Whilst the ICO investigation is now closed, an associated group action by a law firm representing

a class of customers affected by the data breach arising from the cyberattack remains in place and, as

previously highlighted, other claims have been commenced or threatened in certain other courts and

jurisdictions. The merit, likely outcome, and potential impact of these actions are subject to significant

uncertainties and therefore the Group is unable to assess the likely outcome or quantum of the claims

and as such a provision is not included in these financial statements.

The Spanish Ministerio de Consumo (Ministry of Consumer Affairs) has issued easyJet with a €29 million

fine for its hand luggage policy and the charges applied to cabin bags. easyJet is appealing this and

believes its policy is entirely lawful. On this basis, easyJet does not consider it appropriate to recognise a

provision for the charge.

Additionally, there is an ongoing litigation matter in Italy, and a possibility of a claim being made by a

third-party supplier, for what would be material recoveries. Management has assessed the likelihood of

each case being brought, easyJet’s response and likelihood of a successful defence, and at this stage,

having taken external legal advice, does not consider it appropriate to provide for either matter.

easyJet is involved in a number of other disputes and litigation cases which arose in the normal course

of business. The potential outcome of these disputes and litigations can cover a range of scenarios, and

in complex cases reliable estimates of any potential obligation may not be possible.

CONTINGENT COMMITMENTS

Letters of credit and performance bonds

At 30 September 2024, easyJet had outstanding letters of credit and performance bonds totalling £47

million (2023: £45 million), of which £9 million (2023: £12 million) expires within one year. The fair value of

these instruments at each year end was negligible.

No amount is recognised on the statement of financial position in respect of any of these financial

instruments as it is not probable that there will be an outflow of resources and the fair value has been

assessed to be £nil.

Pathway to net zero

On 26 September 2022, easyJet announced its pathway to net zero. This roadmap references several

partnerships with other commercial companies to explore certain technologies which may assist with

the overall goal to decarbonise the aviation industry. The majority of these partnerships are in fact

agreements to work together on the areas identified and do not involve a financial commitment from

easyJet other than the time and effort involved in the collaboration over an agreed period. Where there

is a signed agreement requiring a financial commitment from easyJet in the future, any future payments

are contingent on project progress or product/service delivery and are therefore not certain, hence no

liability has been recognised for these payments.

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29. GOVERNMENT GRANTS AND ASSISTANCE

During the year ended 30 September 2024, easyJet Airline Company Limited claimed ‘activité partielle

longue durée’, long-term partial activity (APLD), a scheme implemented by the French Government

under which, subject to agreement with trade unions, it is possible to reduce the activity of employees,

within the limit of 50% of their legal working time, while maintaining a compensation funded by the

Government. The total amount claimed by easyJet companies in the year ended 30 September 2024

amounted to £2 million (2023: £3 million) and is offset within employee costs in the income statement.

There are no unfulfilled conditions or contingencies relating to this scheme and easyJet stopped claims

at the end of February 2024 under this scheme.

In June 2023 easyJet Airline Company Limited entered into a five-year term loan facility of $1.75 billion

(with easyJet plc as guarantor), underwritten by a syndicate of banks and supported by a partial

guarantee from UK Export Finance under their Export Development Guarantee scheme. The Export

Development Guarantee scheme for commercial loans is available to qualifying UK companies, does not

carry preferential rates or require state aid approval, but does contain some restrictive covenants

including dividend payments. However, these restrictive covenants are compatible with easyJet’s

existing policies. Embedded within the facility is a sustainability key performance indicator linked to a

reduction in carbon emission intensity in line with easyJet’s SBTi validated target, with a margin

adjustment mechanism (upward or downward) conditional on the achievement of specific milestones.

This term loan facility remains undrawn at 30 September 2024.

30. RELATED PARTY TRANSACTIONS

The Company licences the easyJet brand from easyGroup Limited (‘easyGroup’), a wholly owned

subsidiary of easyGroup Holdings Limited, an entity in which easyJet’s founder, Sir Stelios Haji-Ioannou,

holds a beneficial controlling interest. The Haji-Ioannou family concert party shareholding (being

easyGroup Holdings Limited and Polys Holding Limited) holds, in total, approximately 15.27% of the

issued share capital of easyJet plc as at 30 September 2024 (2023: 15.27%).

Under the Amended Brand Licence signed in October 2010 and approved by the shareholders of

easyJet plc in December 2010, an annual royalty of 0.25% of total revenue is payable by easyJet to

easyGroup. The full term of the agreement is 50 years.

easyJet and easyGroup established a fund to meet the annual costs of protecting the ‘easy’ (and related

marks) and the ‘easyJet’ brands. easyJet contributes up to £1 million per annum to this fund and

easyGroup contributes £100,000 per annum. If easyJet contributes more than £1 million per annum,

easyGroup will match its contribution in the ratio of 1:10 up to a limit of £5 million contributed by easyJet

and £500,000 contributed by easyGroup.

Three side letters have been entered into: (i) a letter dated 29 September 2016 in which easyGroup

consented to easyJet acquiring a portion of the equity share capital in Founders Factory Limited; (ii) a

letter dated 26 June 2017 in which easyJet’s permitted usage of the brand was slightly extended; and (iii)

a letter dated 2 February 2018 in which easyGroup agreed that certain affiliates of easyJet have the right

to use the brand.

The amounts included in the income statement, within other costs, for these items are as follows:

	2024	2023
	£ million	£ million
Annual royalty	23	20
Brand protection (legal fees paid through easyGroup to third parties)	1	1
	24	21

At 30 September 2024, £3 million (2023: £6 million) was payable to easyGroup.

31. EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE

After the statement of financial position date of 30 September 2024,

> in October 2024, three A321NEO and one A320NEO aircraft were delivered by Airbus to easyJet.

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COMPANY STATEMENT OF FINANCIAL POSITION



Notes

30 September

2024

£ million

30 September

2023

£ million

Non-current assets   

Investments in subsidiary undertakings c 1,093 1,042

Amounts due from subsidiary undertakings f 3,634 3,138

  4,727 4,180

Current assets   

Amounts due from subsidiary undertakings f 434 438

  434 438

Current liabilities   

Borrowings d (416) (433)

Other payables  (20) (6)

Derivative financial instruments with subsidiary

undertakings  (26) (12)

  (462) (451)

Net current liabilities  (28) (13)



Notes

30 September

2024

£ million

30 September

2023

£ million

Non-current liabilities   

Borrowings d (710) (431)

Derivative financial instruments with subsidiary

undertakings  – (8)

  (710) (439)

Net assets  3,989 3,728

Shareholders’ equity   

Share capital  207 207

Share premium  2,166 2,166

Hedging reserve  1 1

Retained earnings  1,615 1,354

Total equity  3,989 3,728

The financial statements on pages 199 to 203 were approved by the Board of Directors and authorised

for issue on 27 November 2024 and signed on behalf of the Board.

In accordance with Section 408 of the Companies Act 2006, the Company is exempt from the

requirement to present its own income statement and statement of comprehensive income. The

Company’s profit for the year was £266 million (2023: £532 million). Included in this amount are

dividends received of £125 million (2023: £436 million), which are recognised when the right to receive

payment is established.

Johan Lundgren Kenton Jarvis

Director Director

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COMPANY STATEMENT OF CHANGES IN EQUITY



capital

£ million

premium

£ million

Hedging

reserve

£ million

Cost of hedging

reserve

£ million

Retained

earnings

£ million

Total

equity

£ million

At 1 October 2023 207 2,166 1 – 1,354 3,728

Profit for the year – – – – 266 266

Other comprehensive loss – – – – – –

Total comprehensive income – – – – 266 266

Dividends paid – – – – (34) (34)

Share incentive schemes      

Movement in reserves for employee share schemes – – – – 29 29

At 30 September 2024 207 2,166 1 – 1,615 3,989



capital

£ million

premium

£ million

Hedging

reserve

£ million

Cost of hedging

reserve

£ million

Retained

earnings

£ million

Total

equity

£ million

At 1 October 2022 207 2,166 13 3 805 3,194

Profit for the year – – – – 532 532

Other comprehensive loss – – (12) (3) – (15)

Total comprehensive (loss)/income – – (12) (3) 532 517

Share incentive schemes      

Movement in reserves for employee share schemes – – – – 17 17

At 30 September 2023 207 2,166 1 – 1,354 3,728

An ordinary dividend in respect of the year ended 30 September 2024 of 12.1 pence per share, or £92 million, based on headline profit after tax, is to be

proposed at the forthcoming Annual General Meeting. These financial statements do not reflect this proposed dividend.

The disclosures required in respect of share capital are shown in note 22 to the consolidated financial statements.

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NOTES TO THE COMPANY FINANCIAL STATEMENTS

A) MATERIAL ACCOUNTING POLICIES

STATEMENT OF COMPLIANCE

The financial statements of easyJet plc (the ‘Company’) have been prepared in accordance with

Financial Reporting Standard 101, ‘Reduced Disclosure Framework’ (FRS 101) and the applicable legal

requirements of the Companies Act 2006 as applicable to companies using FRS 101. The financial

statements are prepared based on the historical cost convention except for certain financial assets and

liabilities, including derivative financial instruments, financial guarantees and certain contingent liabilities

and commitments, which are measured at fair value.

easyJet plc is a holding company for a group of companies engaged in providing low-cost flights and

package holidays, principally in Europe. The Company is a public limited company (company number

03959649), incorporated and domiciled in the United Kingdom, whose shares are listed on the London

Stock Exchange under the ticker symbol EZJ. The address of its registered office is Hangar 89, London

Luton Airport, Luton, Bedfordshire, LU2 9PF, England.

STATEMENT OF PREPARATION

The financial statements have been prepared on a going concern basis; details of the going concern and

viability statement on pages 75 to 76.

The following exemptions from the requirements of IFRS have been applied in the preparation of these

financial statements, in accordance with FRS 101:

> IFRS 7, Financial instruments: Disclosures.

> The requirements of paragraphs 45(b) and 46–52 of IFRS 2, Share-based payment.

> The requirement in paragraph 38 of IAS 1, Presentation of financial statements to present comparative

information in respect of: paragraph 79(a)(iv) of IAS 1.

> The requirements of paragraphs 10(f), 40A, 40B, 40C, 40D, of IAS 1, presentation of financial

statements.

> The following paragraphs of IAS 1, Presentation of financial statements:

– 10(d) (statement of cash flows);

– 16 (statement of compliance with all IFRS);

– 38A (requirement for minimum of two primary statements, including statement of cash flows);

– 38B-D (additional comparative information);

– 111 (statement of cash flows information); and

– 134-136 (capital management disclosures).

> IAS 7, Statement of cash flows and related notes.

> Paragraphs 91 to 99 of IFRS 13, Fair value measurement (disclosure of valuation techniques and inputs

used for fair value measurement of assets and liabilities).

> Paragraphs 30 and 31 of IAS 8, Accounting policies, changes in accounting estimates and errors

(requirement for the disclosure of information when an entity has not applied a new IFRS that has

been issued but is not yet effective).

> Paragraph 17 of IAS 24, Related party disclosures (key management compensation).

> The requirements in IAS 24, Related party disclosures, to disclose related party transactions entered

into between two or more members of a group.

The material accounting policies applied in the preparation of these Company financial statements are

the same as those set out in note 1 to the consolidated financial statements with the addition of the

following:

INVESTMENTS

Investments in subsidiaries are stated at cost, less any provision for impairment. Where subsidiary

undertakings incur charges for share-based payments in respect of share options and awards granted

by the Company (see note 23 of the consolidated financial statements), a capital contribution for the

same amount is recognised as an investment in subsidiary undertakings with a corresponding credit to

shareholders’ equity.

The recoverable amount of the investment balance has been assessed for impairment. This assessment

represents a critical accounting estimate for the Company. The cash flow projections, assumptions and

sensitivity analysis are based on those disclosed in note 11 to the consolidated financial statements.

Individual risks in reasonably probable combinations, including those associated with climate change and

the current macroeconomic environment, do not give rise to an impairment. A further review as at

30 September using up to date key inputs (fuel price and exchange rates) and latest cash flow

projections also did not give rise to an impairment.

AMOUNTS DUE FROM/TO SUBSIDIARY UNDERTAKINGS

Amounts due from/to subsidiary undertakings are recognised initially at fair value, and subsequently at

amortised cost using the effective interest rate method.

At each reporting date the Company recognises a loss allowance for expected credit losses on amounts

due from subsidiaries using the simplified approach. Under the simplified approach the Company

recognises a loss allowance at an amount equal to the lifetime expected credit losses.

DIVIDEND INCOME

Dividends received from investments in subsidiaries are recognised in the income statement when the

right to receive payment is established.

DERIVATIVE FINANCIAL INSTRUMENTS WITH SUBSIDIARY UNDERTAKINGS

For the year ended 30 September 2024, this related to the Oct-16, Jun-19 and Mar-24 Eurobonds as

detailed in the consolidated financial statements.

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NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)

B) INCOME STATEMENT AND STATEMENT OF TOTAL COMPREHENSIVE INCOME

In accordance with Section 408 of the Companies Act 2006, the Company is exempt from the

requirement to present its own income statement and statement of comprehensive income. The

Company’s profit for the year was £266 million (2023: £532 million). Included in this amount are

dividends received of £125 million (2023: £436 million), which are recognised when the right to receive

payment is established.

The eight Non-Executive Directors of easyJet plc (2023: nine) are paid for their services by easyJet

Airline Company Limited.The Executive Directors of easyJet plcare employed and paid by easyJet

Airline Company Limited.Details of Directors’ remuneration are disclosed in note 4 to the

consolidatedfinancial statementsand in the audited sections of the Directors’ Remuneration Report on

pages133 to 138.

C) INVESTMENTS IN SUBSIDIARY UNDERTAKINGS

Investments in subsidiary undertakings were as follows:

2024

£ million

2023

£ million

At 1 October 1,042 1,025

Capital contributions to subsidiaries 29 17

Acquisition of subsidiary 22 –

At 30 September 1,093 1,042

During the year, £29 million (2023: £17 million) capital contributions of share awards (as explained in note

a) above) were provided to Group companies. No other contributions were made during the year (2023:

£nil million).

The recoverable amount of the investment balance has been assessed for impairment. The cash flow

projections, assumptions and sensitivity analysis used in this exercise are based on those disclosed in

note 11 to the consolidated financial statements. Individual risks, and risks in reasonably probable

combinations, including those associated with climate change and the current macro-economic

environment, do not give rise to an impairment.

A full list of Group companies is detailed below.

Country of incorporation Principal activity

Percentage of

ordinary

shares held

easyJet Airline Company

Limited

England and Wales Airline operator 100

easyJet Switzerland S.A.

Switzerland Airline operator 49*

easyJet Sterling Limited

3, 4

Cayman Islands Aircraft trading and leasing –

easyJet Leasing Limited

3, 4

Cayman Islands Aircraft trading and leasing –

easyJet UK Limited

England and Wales Airline operator 100

easyJet Europe Airline GmbH

Austria Airline operator 100

easyJet FinCo B.V.

Netherlands Financing company 100

easyJet MT Limited

Malta Insurance 100

easyJet HQ Holdings Limited

1, 8

England and Wales Holding company 100

easyJet HQ Limited

1, 8

England and Wales Development of building projects 100

easyJet HQ Development

Limited

1, 8

England and Wales Development of building projects 100

easyJet Holidays Holdings

Limited

England and Wales Holding company 100

easyJet Holidays Limited

England and Wales Tour operator 100

easyJet Holidays Transport

Limited

England and Wales Air transport 100

easyJet Engineering Malta

Limited

Malta Heavy base maintenance 100

1) Hangar 89, London Luton Airport, Luton, Bedfordshire, LU2 9PF, England.

2) 5 Route de l’Aeroport, Meyrin, CH-1215 Geneve 15, Switzerland.

3) Governor’s Square, West Bay Road, Lime Tree Bay Road, UNIT # 2-105 , PO Box 1982, Grand Cayman KY1-1104, Cayman

Islands.

4) Dissolved on 6 February 2024. It is of note that whilst these companies were Cayman Islands incorporated they were

always UK tax resident.

5) Wagramer Stasse 19, 11.Stock IZD Tower, 1220 Wien, Austria.

6) Westerdoksdijk 423, 1013BX Amsterdam, Netherlands.

7) 188, 21st September Avenue, Naxxar, NXR 1012, Malta.

8) As dormant subsidiaries, the following UK entities, all of which are 100% owned by the Group, are exempt from the

requirement to prepare individual financial statements by virtue of section 394A of the Companies Act 2006 and from

filing individual accounts under section 448A of the Companies Act 2006: easyJet HQ Limited, (12367394), easyJet HQ

Development Limited (12367361) and easyJet HQ Holdings Limited (12366723).

9) Triq Hal Farrug, Hal Farrug, LUQA LQA 3079, Malta. This entity was previously known as SR Technics Malta Limited but

the name has been changed subsequent to acquisition.

* The Company has a 49% interest in easyJet Switzerland S.A. with an option to acquire the remaining 51%. The option is

automatically extended for a further year on a rolling basis, unless the option is terminated by written agreement prior to

the automatic renewal date. easyJet Switzerland S.A. is a subsidiary on the basis that the Company exercises control over

the undertaking. A non-controlling interest has not been reflected in the consolidated financial statements on the basis

that holders of the remaining 51% of the shares have no entitlement to any dividends from that holding and the Company

has an option to acquire those shares for a predetermined minimal consideration. The Company has 100% of voting

rights for all other subsidiaries.

There have been no changes to the percentage of ordinary shares held during the year.

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NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED)

D) BORROWINGS



Current

£ million

Non-current

£ million

Total

£ million

At 30 September 2024   

Eurobonds 416 710 1,126

 416 710 1,126



Current

£ million

Non-current

£ million

Total

£ million

At 30 September 2023   

Eurobonds 433 431 864

 433 431 864

easyJet plc uses cross-currency interest rate swaps with subsidiary undertakings to hedge currency and

interest rate risk on borrowings and these are held at a fair value, resulting in a £26 million liability as at

30 September 2024 (2023: £20 million liability). The fair value of the swaps is determined as described

in note 26 to the consolidated financial statements.

For full details on the borrowings and financial instruments see note 18 and 26 respectively of the

consolidated financial statements.

E) GUARANTEES AND CONTINGENT LIABILITIES

The Company has given formal undertakings to the Civil Aviation Authority to guarantee the payment

and discharge of all liabilities of easyJet Airline Company Limited, a subsidiary of the Company. The

guarantees are required for that company to maintain its operating licence under Regulation 3 of the

Licensing of Air Carriers Regulations 1992, and to maintain its ATOL licence under The Civil Aviation (Air

Travel Organisers’ Licensing) Regulations 2012.

The Company has issued a guarantee in favour of easyJet Airline Company Limited, a subsidiary

undertaking, in relation to the processing of credit card transactions, and also in respect of hedging

transactions carried out in accordance with treasury policy.

The Company has guaranteed the contractual obligations of easyJet Airline Company Limited to Airbus

SAS in respect of the supply of Airbus 320 family aircraft. Details of aircraft orders are disclosed in note

12 to the consolidated financial statements.

The Company has guaranteed jointly and severally the contractual obligations with easyJet Airline

Company Limited, a subsidiary undertaking, in respect of a $400 million revolving credit facility. The

revolving credit facility was agreed on 9 September 2021, for a minimum of four and a maximum of six

years. In FY23 easyJet did not exercise the first extension option, therefore this facility now has a

minimum duration of four and maximum of five years.

In June 2023 easyJet Airline Company Limited entered into a five-year undrawn term loan facility of $1.75

billion (with easyJet plc as guarantor), underwritten by a syndicate of banks and supported by a partial

guarantee from UK Export Finance under their Export Development Guarantee scheme. The Export

Development Guarantee scheme for commercial loans is available to qualifying UK companies, does not

carry preferential rates or require state aid approval, but does contain some restrictive covenants

including dividend payments. However, these restrictive covenants are compatible with easyJet’s

existing policies. Embedded within the facility is a sustainability key performance indicator linked to a

reduction in carbon emission intensity in line with easyJet’s SBTi validated target, with a margin

adjustment mechanism (upward or downward) conditional on the achievement of specific milestones.

The Company jointly and severally with easyJet Airline Company Limited has guaranteed the repayment

of borrowings that financed the acquisition of aircraft by subsidiary undertakings. This includes the

contractual obligations of the €1,200 million bond that was issued on 3 March 2021 by easyJet FinCo

B.V. under the Euro Medium Term Note (EMTN) Programme. The bond has a coupon of 1.875% and

matures in March 2028. The Company has also guaranteed the payment obligations for the lease of

aircraft by subsidiary undertakings.

easyJet plc has given a formal undertaking to the Civil Aviation Authority to guarantee the payment and

discharge of all liabilities of easyJet Holidays Limited and easyJet Holidays Transport Limited. The

guarantees are required for easyJet Holidays Limited and easyJet Holidays Transport Limited to maintain

ATOL licences under The Civil Aviation (Air Travel Organisers’ Licensing) Regulations 2012. easyJet plc has

also issued guarantees in favour of easyJet Holdings Limited relating to the processing of credit card

transactions and the brand licence agreement with easyGroup Limited.

The Company has guaranteed certain letters of credit issued on behalf of subsidiary undertakings.

No amount is recognised on the Company statement of financial position with respect to any of these

guarantees as the fair value is deemed to be £nil per measurement under IFRS 9. The calculated loss

allowance on these financial guarantee contracts is immaterial.

F) RELATED PARTY TRANSACTIONS

Transactions with subsidiary undertakings principally relate to the provision of funding within the Group.

Apart from those relating to loans associated with the issuance of the Eurobonds, the outstanding

balances are placed on intercompany accounts with no specified credit period, are unsecured, and bear

market rates of interest.It is expected that balances will be settled when the associated funding is

repaid or via distribution of a dividend. The portion of the ‘Amounts due from subsidiary undertakings’

balance that is expected to be settled within 12 months is classified as current.

The intercompany loan agreements associated with the issuance of the Eurobonds in October 2016,

June 2019 and March 2024 are on the same terms as the bonds themselves (see note 27 in the

consolidated financial statements).

For full details of the Company’s relationships with easyGroup Holdings Limited, see note 30 of the

consolidated financial statements.

G) EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE

The were no events to report after the statement of financial position date.

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FIVE-YEAR SUMMARY (UNAUDITED)

2024



£ million

2023

(as reported)

£ million

2022

(as reported)

£ million

2021

(as reported)

£ million

2020

(as reported)

£ million

Income statement     

Revenue 9,309 8,171 5,769 1,458 3,009

Tota l EBITDA

1,359 1,126 537 (430) (359)

Headline EBITDA

1,367 1,130 567 (556) (273)

Total operating profit/(loss) 589 453 (27) (910) (899)

Headline operating profit/

(loss) 597 476 3 (1,036) (777)

Total profit/(loss) before

tax 602 432 (208) (1,036) (1,273)

Headline profit/(loss)

before tax 610 455 (178) (1,136) (835)

Total profit/(loss) after tax 452 324 (169) (858) (1,079)

Headline profit/(loss)

after tax 459 341 (147) (900) (725)

     

Basic total earnings/(loss)

per share – pence 60.3 43.1 (22.4) (159.0) (222.9)

Basic headline earnings/

(loss) per share – pence 61.3 45.4 (19.6) (166.9) (149.7)

Diluted total earnings/(loss)

per share – pence 59.6 42.7 (22.4) (159.0) (222.9)

Diluted headline earnings/

(loss) per share – pence 60.5 45.0 (19.6) (166.9) (149.7)

Ordinary dividend per share

– pence

12.1 4.5 – – –

     

Statement of financial

position     

Non-current assets 6,490 5,711 5,525 5,608 5,910

Current assets 4,545 4,130 4,929 4,165 2,563

Current liabilities (4,471) (4,144) (3,678) (2,677) (3,826)

Non-current liabilities (3,591) (2,910) (4,243) (4,457) (2,748)

Net assets 2,973 2,787 2,533 2,639 1,899

     

2024



£ million

2023

(as reported)

£ million

2022

(as reported)

£ million

2021

(as reported)

£ million

2020

(as reported)

£ million

Other performance

indicators     

Headline return on capital

employed 16.1% 12.6% 0.1% (25.2)% (19.2)%

Net cash/(debt) (£m) 181 41 (670) (910) (1,125)

Group total profit/(loss)

before tax per seat (£) 6.00 4.67 (2.55) (36.75) (23.09)

Group headline profit/(loss)

before tax per seat (£) 6.08 4.91 (2.19) (40.29) (15.16)

Airline total profit/(loss)

before tax per seat (£) 4.10 3.35 (3.01) (36.33) (22.66)

Airline headline profit/(loss)

before tax per seat (£) 4.18 3.59 (2.65) (39.87) (14.68)

Airline revenue per seat (£) 81.35 79.84 66.23 50.54 54.35

Airline headline cost per

seat (£) (77.17) (76.25) (68.88) (90.41) (69.03)

Airline headline cost per

seat excluding fuel (£) (55.03) (54.30) (53.20) (77.25) (55.94)

Seats flown (millions) 100.4 92.6 81.5 28.2 55.1

1) EBITDAR has been re-presented as EBITDA in all periods presented which, in the Directors’ opinion provides better

understanding to users of the financial statements.

2) The 2024 amount is based on the proposed dividend subject to approval at the AGM.

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GLOSSARY – ALTERNATIVE PERFORMANCE MEASURES (APM) (UNAUDITED)

Non-headline items

Non-headline items are those where, in management’s opinion, their separate

reporting provides an additional understanding to users of the financial

statements of easyJet’s underlying trading performance, and which are

significant by virtue of their size/nature (see note 5).

Headline profit before

tax

A measure of underlying performance which is not impacted by non-headline

items.

Year ended

30 September

2024

£ million

Year ended

30 September

2023

£ million

Statutory profit before tax 602 432

Total non-headline charge before tax (see note 5) 8 23

Headline profit before tax 610 455

EBITDA

Earnings before interest, taxes, depreciation and amortisation.

Headline EBITDA

Earnings before non-headline items, interest, taxes, depreciation and

amortisation.

Year ended

30 September

2024

£ million

Year ended

30 September

2023

£ million

Statutory operating profit 589 453

Add back:  

Depreciation 727 644

Amortisation of intangible assets 43 29

EBITDA 1,359 1,126

Non-headline charge within EBITDA (see note 5) 8 4

Headline EBITDA 1,367 1,130

Net cash

Total cash less borrowings and lease liabilities; cash includes cash equivalents

and other investments but excludes restricted cash.

Year ended

30 September

2024

£ million

Year ended

30 September

2023

£ million

Borrowings (2,106) (1,895)

Lease liabilities (1,174) (989)

Cash, cash equivalents and other investments (excluding restricted cash) 3,461 2,925

Net cash 181 41

Return on capital

employed (ROCE)

Profit/loss before interest, exchange gain/(loss) and tax applying tax at the

prevailing UK corporation tax rate at the end of the financial year, and dividing

by the average capital employed. Capital employed is shareholders’ equity,

excluding the hedging and cost of hedging reserves, plus net cash/debt.

Headline return on

capital employed

(ROCE)

Headline profit/loss before interest, exchange gain/(loss) and tax, applying tax at

the prevailing UK corporation tax rate at the end of the financial year, and

dividing by the average capital employed. Capital employed is shareholders’

equity, excluding the hedging and cost of hedging reserves, plus net cash/debt.

Year ended

30 September

2024

£ million

Year ended

30 September

2023

£ million

Average shareholders’ equity excluding hedging and cost of hedging reserves 2,897 2,517

Average net debt (111) 315

Average capital employed 2,786 2,832

Reported operating profit 589 453

Tax rate 25% 25%

Adjusted operating profit after tax 442 340

Return on capital employed 15.9% 12.0%

Reported operating profit 589 453

Non-headline charge within operating profit (see note 5) 8 23

Headline reported operating profit 597 476

Tax rate 25% 25%

Adjusted headline operating profit after tax 448 357

Headline returned on capital employed 16.1% 12.6%

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GLOSSARY – ALTERNATIVE PERFORMANCE MEASURES (APM) (UNAUDITED) (CONTINUED)

Basic headline earnings

per share – pence

Total headline profit for the year divided by the weighted average number of

shares in issue during the year after adjusting for shares held in employee

benefit trusts.

Diluted headline

earnings per share –

pence

Total headline profit for the year divided by the weighted average number of

ordinary shares in issue adjusted to assume conversion of all dilutive potential

shares.

Year ended

30 September

2024

£ million

Year ended

30 September

2023

£ million

Total profit after tax for the year 452 324

Total non-headline charge before tax (see note 5) 8 23

Tax impact of non-headline items (1) (6)

Headline profit after tax 459 341

Weighted average number of ordinary shares used to calculate basic

earnings per share 749 751

Weighted average number of ordinary shares used to calculate diluted

earnings per share 759 758

2024

pence

2023

pence

Headline earnings per share

Basic 61.3 45.4

Diluted 60.5 45.0

Constant currency

measures

These performance measures are calculated by translating the year ended 30

September 2024 income statement at the average exchange rate for year

ended 30 September 2023, excluding any income statement impact in either

financial year from foreign currency exchange gains and losses arising from the

foreign currency translation of the statement of financial position. The purpose

of this APM is to provide a like for like comparison of underlying operating

performance by excluding the impact of exchange rate movements.

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GLOSSARY – OTHER (UNAUDITED)

Aircraft dry/wet leasing

Dry leasing arrangements relate solely to the provision of an

aircraft. Wet leasing arrangements relate to the provision of

aircraft, crew, maintenance and insurance.

Aircraft owned/leased at end of year

Number of aircraft owned or on lease arrangements of over

one month’s duration at the end of the period.

Available seat kilometres (ASK)

Seats flown multiplied by the number of kilometres flown.

Block hours

Hours of service for an aircraft, measured from the time that

the aircraft leaves the terminal at the departure airport to the

time that it arrives at the terminal at the destination airport.

Capital employed

Shareholders’ equity excluding the hedging and cost of hedging

reserves, plus net cash/debt.

Airline cost per ASK (CASK)

Total airline costs divided by available seat kilometres.

Airline cost per seat (CPS)

Total airline costs divided by seats flown.

Airline cost per seat, excluding fuel

(CPS ex fuel)

Total airline costs adding back fuel costs, divided by seats

flown.

Airline CSAT (Customer Satisfaction

Score)

Customer satisfaction index, based on the results of a customer

satisfaction survey which measures how satisfied the customer

was with their most recent flight, and includes results from

customers who are completely, very and quite satisfied.

Load factor

Number of passengers as a percentage of number of seats

flown. The load factor is not weighted for the effect of varying

sector lengths.

Normalised operating profit/loss after

tax

Reported operating profit/loss, less tax at the prevailing UK

corporation tax rate at the end of the financial year.

Operating costs excluding fuel

Includes costs relating to airports and ground handling, crew,

navigation, maintenance, Holidays direct operating costs, selling

and marketing, and other costs/income.

Other costs

Administrative and operational costs not reported elsewhere,

including disruption costs, IT costs, costs of third-party

providers, some employee costs, wet lease costs and insurance.

Additionally, some non-headline costs, such as loss on sale and

leaseback transactions, and restructuring costs, are included in

other costs.

Other income

Includes insurance receipts, supplier compensation payments,

rental income, gains on sale of intangible assets, income from

sale of excess aircraft spare parts, and gains on sale and

leaseback transactions.

Passengers

Number of earned seats flown. Earned seats comprises seats

sold to passengers (including no-shows), seats provided for

promotional purposes and seats provided to staff for business

travel.

Profit before tax per seat

Profit before tax divided by seats flown.

Revenue

The sum of passenger revenue and ancillary revenue, including

package holiday revenue.

Revenue passenger kilometres (RPK)

Number of passengers multiplied by the number of kilometres

those passengers were flown.

Revenue per ASK (RASK)

Revenue divided by available seat kilometres.

Revenue per seat

Revenue divided by seats flown.

Seats flown

Seats available for passengers.

Sector

A one-way revenue flight.

HOW TO REGISTER FOR SHAREVIEW

Getting started with Shareview is simple. It

takes just a few steps to set up and you can

start using it straight away.

Please log onto the website of our Registrar,

Equiniti, at www.shareview.co.uk/info/

code.

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SHAREHOLDER INFORMATION

GO PAPERLESS

We want our shareholders to receive information

quickly and easily, but we also want to reduce our

impact on the environment, and as a low-cost

airline, be as efficient as possible. You can help us

achieve this in two easy ways:

> By signing up to receive electronic

communications by adding an email to your

Shareview account at shareview.co.uk.

> By adding your bank details to the same

account to receive dividends securely directly

into your bank account instead of being sent by

cheque.

Registering for a Shareview account is free and

provides a number of benefits:

> Update your details online including your email

address and postal address.

> Submit your voting instructions for shareholder

meetings.

> Add bank details so that you receive dividend

payments directly

> Add a range of shareholding and investments

you have (including those with other registrars)

to monitor their value all in one place.

> Buy and sell shares easily.

MANAGING YOUR SHARES

If you have further queries relating to your

shareholding, you should contact Equiniti, the

Company’s registrars, by visiting help.shareview.

co.uk.

ANNUAL GENERAL MEETING

The Board currently intends to hold the AGM on

13 February 2025. The arrangements for the

Company’s 2025 AGM and details of the

resolutions to be proposed, together with

explanatory notes, will be set out in the Notice of

AGM to be published on the Company’s website.

INDEPENDENT AUDITOR

PRICEWATERHOUSECOOPERS LLP

40 Clarendon Road

Watford, Hertfordshire

WD17 1JJ

REGISTERED OFFICE

Hangar 89

London Luton Airport

Luton

Bedfordshire

LU2 9PF

Telephone: 01582 525019

Registered in England & Wales under number

03959649

SHARE PRICE INFORMATION

Details of our share price data and other share

price tools are available at corporate.easyJet.

com.

SHAREGIFT

Shareholders who only have a small number of

shares whose value makes it uneconomic to sell

them may wish to consider donating them to

charity through ShareGift, the independent charity

share donation scheme (registered charity no.

1052686).

Further information may be obtained from ShareGift

on 020 7930 3737 or at sharegift.org.

SHAREHOLDER FRAUD

Fraud is on the increase and many shareholders

are targeted every year. If you have any reason to

believe that you may have been the target of a

fraud, or attempted fraud in relation to your

shareholding, please contact Equiniti immediately.

WEBSITE

You can access the corporate website at

corporate.easyJet.com. The corporate website

provides useful information including annual

reports, results announcements and share price

data, as well as background information about the

Company and current issues. Shareholders are

encouraged to sign up to receive email

notifications of results and press announcements

as they are released by registering on the website.

Governance

209

easyJet plc

Annual Report and Accounts 2024

Strategic report

Financials

Contents

CBP00019082504183028

Printed by a CarbonNeutral® Company certified to

ISO 14001 environmental management system.

Printed on material from well-managed, FSC®

certified forests and other controlled sources.

100% of the inks used are HP Indigo ElectroInk

which complies with RoHS legislation and meets

the chemical requirements of the Nordic Ecolabel

(Nordic Swan) for printing companies, 95% of

press chemicals are recycled for further use and,

on average 99% of any waste associated with this

production will be recycled and the remaining 1%

used to generate energy.

The paper is Carbon Balanced with World Land

Trust, an international conservation charity, who

offset carbon emissions through the purchase and

preservation of high conservation value land.

Through protecting standing forests, under threat

of clearance, carbon is locked-in, that would

otherwise be released.

HANGAR 89

London Luton Airport

Luton

Bedfordshire

LU2 9PF

easyJet.com