EasyJet : 2024 Annual Report and Accounts

ANNUAL REPORT AND ACCOUNTS 2024

01	easyJet plc	Strategic report	Governance	Financials	Contents
Annual Report and Accounts 2024

CONTENTS

WELCOME TO OUR ANNUAL REPORT 2024

Our purpose framework

10

GOVERNANCE

Chair's statement	80
Governance highlights	81
Board activities in the year	82
Understanding the	86
business and culture
Ensuring effective	89
governance
Engaging with	100
stakeholders
Committee reports	104
Directors' Remuneration	120
Report
Other disclosures	143
Statement of Directors'	147
responsibilities

FINANCIALS

Independent auditors'	148
report to the members of
easyJet plc
Consolidated financial	154
statements
Notes to the financial	159
statements
Company financial	199
statements
Notes to the Company	201
financial statements
Five-year summary	204

GO PAPERLESS

You can help us reduce our impact on the environment by signing up to receive your Annual Report and other shareholder communications digitally rather than in print.

Read more on page 208

CEO review

08

STRATEGIC REPORT
At a glance	02			Financial review	27
Chair's statement	03			Sustainability	36
	05
Highlights			People	56
Q&A with Johan Lundgren	06			Task Force on Climate-	61
and Kenton Jarvis				related Financial
CEO review	08			Disclosures
		Sustainability Accounting	66
Our purpose framework	10
		Standards Board (SASB)
Winning for our	11
		Index
customers, our
			Risk management	67
shareholders and our
				75
people				Going concern and
				viability statement
Our strategy in action	14
	Non-financial and	77
Our business model	22
		sustainability information
Market review	23
		statement and S172 statement
Key performance	25
indicators

Sustainability

36

ADDITIONAL

INFORMATION

Glossary - Alternative
performance measures	205
Glossary - Other	207
Shareholder information	208

Further reading

For more information, visit our corporate website: corporate.easyJet.com

02	easyJet plc	Strategic report	Governance	Financials	Contents
Annual Report and Accounts 2024
AT A GLANCE
OUR PURPOSE						Bases

MAKING LOW-COST TRAVEL EASY

WHAT WE DO

Destinations

Potential bases for FY25

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.

KEY FACTS

Countries1	Core market positions2
35	1OR 2
Routes1	Airports3
1,099160
Number of aircraft	Aircraft in the fleet at 30 September 2024
1)347As		Total	Owned	Leased
	A319	82	18	64
	A320	180	103	77
	A320neo	69	62	7
	A321neo	16	5	11
	TOTAL	347	188	159
served over the financial year ending 30 September 2024.			Network for Winter/Summer 2025

1. Number one low-cost carrier in the core markets of the UK, France and Switzerland, where a carrier has >10% of market share.
2. Number of airports served at 30 September 2024.

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CHAIR'S STATEMENT

2024: A YEAR OF PROGRESS AND DELIVERY

Sir Stephen Hester Chair

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.

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.

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CHAIR'S STATEMENT (CONTINUED)

Strategic report	Governance	Financials	Contents

34%

INCREASE IN THE GROUP'S HEADLINE PROFIT BEFORE TAX COMPARED TO THE PRIOR FINANCIAL YEAR

2024 610

2023 455

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.

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.

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.

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

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.

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HIGHLIGHTS

Strategic report	Governance	Financials	Contents

CONSISTENT STRATEGIC EXECUTION

The Board intends to pay an increased dividend of 20% of FY24's headline profit after tax.

Sir Stephen Hester

Chair

Read more on pages 27 to 35

FINANCIAL HIGHLIGHTS

Profit before tax

£602M

2024 602

2023 432

Revenue

£9.3BN

2024 9.3

2023 8.2

Headline EBIT

£597M

2024 597

2023 476

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.

Headline profit before tax

£610M

2024 610

2023 455

Net cash

£181M

2024 181

2023 41

Headline EBITDA margin

14.7%

2024 14.7

2023 13.8

NON-FINANCIAL HIGHLIGHTS

Load factor

89.3%

2024 89.3

2023 89.3

Seats flown

100.4M

2024 100.4

2023 92.6

OTP (On-time performance)

69%

2024 69

2023 66

CO2 emissions per passenger kilometre

66.6g

2024 66.6

2023 67.2

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Q&A WITH JOHAN LUNDGREN AND KENTON JARVIS

Governance

Financials

Contents

HANDING OVER THE CONTROLS 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.

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.

The legacy I want to leave behind is a strong easyJet.

Johan Lundgren

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.

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

Strategic report	Governance	Financials	Contents

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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CEO REVIEW

MAKING
LOW-COST
TRAVEL	EASY

Johan Lundgren Chief Executive Officer

We have a clear strategy and purpose to make low-cost travel easy, winning for our customers, our shareholders and our people.

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.

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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.

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 page 13

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 CO2 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 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.

100.4M

INCREASED CAPACITY TO 100.4 MILLION SEATS FROM 92.6 MILLION IN 2023

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.

Johan Lundgren

Chief Executive Officer