easyJet H1 2025 Pre Recorded Earnings Report

easyJet EPS Results

• Actual EPS: -GBX 38.90
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

easyJet Revenue Results

• Actual Revenue: N/A
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

easyJet Announcement Details

• Quarter: H1 2025 Pre Recorded
• Date: 5/22/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 21, 2025
• Conference Call Time: 8:00PM ET

easyJet (LON:EZJ) is a UK-based low-cost air carrier founded in 1995. It is headquartered in Luton, the United Kingdom and based out of a terminal facility known as easyLand. The company was founded by Sir Stelios Haji-Ioannou with a loan from his father and has since been grown via expansion and acquisitions into the EUs 2nd largest low-cost air carrier. The company was floated on the London Stock Exchange in 2000.

Despite disagreements with current management, Sir Stelios and his holding company still control more than 15% of the company. It, EasyGroup Holdings, owns the Easy brand and operates an extensive network of services as well as licensing the brand to other businesses. One of easyJet’s more distinctive features and a common characteristic of the Easy brand is its bright orange color.

easyJet began as a paper airline, one that leased aircraft for its 2 routes, with less than 100 employees but it now employs more than 13,000 people to service its 308 planes flying from 29 bases primarily in the UK. The company, through a network of affiliates, flies 927 routes to 34 countries and served more than 15 million passengers per year prior to COVID-19.

easyJet operates on a business model pioneered by Southwest Airlines. The strategy aims to optimize plane utilization and revenue by limiting routes, connecting flights and itemizing upsells like luggage and carry-on allowances. Other low-cost features of the airline include no snacks, single-class high-density seating and minimized operating costs. Among the many benefits to investors is the company’s fleet which is among the youngest in the industry. Its fleet has an average age of under 8 years (as of 2022) compared to the industry average lifespan of 30 years.

The company’s fleet is entirely Airbus aircraft and includes A319, A320 and A321 models. Using one type of aircraft is fundamental to the low-cost model as it lowers maintenance costs and improves uptime. The company’s success is due in large part to the marketing slogan “making flying as affordable as a pair of jeans”. The company became a household name in 2007, however, when it became the center of a UK television show centered on the airline industry.

Originally, the company sold its seats via phone only and had its telephone number printed boldly on the side of all its aircraft. Today, easyJet sells seats through its website www.easyjet.com and its 'easyJet Worldwide' platform as well as through traditional channels.

 

easyJet H1 2025 Pre Recorded Earnings Call Transcript

Key Takeaways

• EasyJet improved its winter performance with a £65 million reduction in first-quarter losses and has more than halved H1 losses, targeting profitability in the current quarter.
• ASK capacity was up 14 % in Q1 thanks to crew productivity and aircraft utilization initiatives, though summer seat growth is constrained at around 1 % amid strong load factors year on year.
• Unit costs saw further improvement with total CASK down 5 %, CASK ex fuel down 4 % and fuel CASK down 8 %, driven by a 6 % rise in crew productivity and a 5 % increase in aircraft utilization.
• EasyJet Holidays continues its robust trajectory, achieving 42 % profit growth in H1 to £44 million and customer growth of 27 %, on track for roughly 25 % annual expansion with industry-leading margins.
• The balance sheet remains strong with net cash of £327 million (up from £146 million a year ago), liquidity of £5.3 billion (with £1.8 billion excess), and owned assets valued at £4.6 billion, set to grow over 60 % by 2028.

Presentation

[Kenton Jarvis, CEO & Director at easyjet]

Hello and welcome to EasyJet's Half Year Results Presentation for the period ending 03/31/2025. In H1, we delivered a slight improvement in winter losses once adjusted for the timing of Easter. We had a strong start to the year, delivering a £65,000,000 improvement year on year in the first quarter, demonstrating the progress we are making on reducing our losses with the ultimate goal of profitability in this quarter. During the March, which is challenging for all airlines, we took actions to structurally improve crew productivity and aircraft utilization, delivered by the important capacity investment we've made. This resulted in ASKs increasing by 14% in the quarter, with the revenue benefits from this investment expected to mature next winter and beyond.

[Kenton Jarvis, CEO & Director at easyjet]

Looking ahead to the summer, capacity is more constrained with seats growth expected to be circa 1%. We're seeing positive demand for our flights and holidays with sold load factors ahead in both Q3 and Q4 year on year, demonstrating that consumers continue to prioritize travel. And we expect attractive earnings growth, building on the record summer twenty twenty four performance. EasyJet Holidays is continuing its excellent trajectory and is on track to deliver circa 25% customer growth year on year, whilst maintaining our industry leading margins. This financial year, we've taken nine A320neo family aircraft into ownership.

[Kenton Jarvis, CEO & Director at easyjet]

The book value of our owned assets is now GBP 4,600,000,000.0, and we expect this value to grow more than 60% by full year 2028. EasyJet continues to be the number one ESG rated airline in Europe by Sustainalytics, CDP and MSCI. We also retained our position in FTSE4Good for a second year running. All of this together means we continue to be on track to deliver our medium term target of sustainably generating over £1,000,000,000 in profit before tax. I remain focused on the significant opportunities ahead of us and firmly believe that we are well positioned to capture these.

[Kenton Jarvis, CEO & Director at easyjet]

Our target to achieve group profit before tax of between £7 to £10 per seat will be delivered through four key areas: First, reducing winter losses. We're focused on making the December profitable, coupled with minimizing losses in the seasonally challenging March, which is always an important period of operational preparation ahead of the peak summer. Second, upgauging. We have a unique opportunity to increase the average number of seats per aircraft from 181 to 191 in full year 2028. This opportunity would deliver over GBP 3 per seat in savings, whilst increasing our owned asset value by more than 60%.

[Kenton Jarvis, CEO & Director at easyjet]

Third, easyJet Holidays. I'm very pleased with the continued growth of the Holidays business. And with a current attachment rate of 6.4% on easyJet seats, excluding domestic flights, Substantial growth opportunities still remain. And lastly, we're making continuous improvements across the business, but I'm particularly focused on three areas: enhancing customer loyalty by continuously improving our network, digital experience and customer service delivered by our fantastic people, both in the sky and on the ground optimizing revenue generation and continuing to drive efficiencies within our cost base. In addition, I remain absolutely focused on capital allocation with the aim to deliver high teen ROCE on the assets we deploy.

[Kenton Jarvis, CEO & Director at easyjet]

I will now hand over to Jan, who will take you through our financials.

[Jan De Raeymaeker, CFO & Director at easyjet]

Thanks, Kenton. I'm pleased to present the half year financial review for the first time since joining EasyJet as CFO in January. Let's start with the H1 twenty twenty five financial summary. The group's loss before tax was £394,000,000 a slight improvement year on year when adjusted for the timing of Easter. This winter capacity investment of 12% ASK growth, which includes growth into longer leisure alongside restoration of capacity on some city flows, has further enhanced productivity and utilization of our assets throughout the winter as well as driving an increase in total revenue.

[Jan De Raeymaeker, CFO & Director at easyjet]

In Q1, we more than halved losses, which was a £65,000,000 reduction, representing a £53,000,000 PBT improvement in the airline and a £12,000,000 PBT improvement in holidays. This is a positive step towards our goal to achieve profitability in the December. In Q2, underlying losses increased, driven by the more pronounced increase in ASKs of 13% into many new destinations, which have naturally required stimulation in the seasonally weaker Q2. The strategic capacity investment supported the strong cost performance, and we expect to see revenue benefits from route maturity this coming winter and beyond as capacity growth normalizes. On a reported basis, the group headline loss before tax increased year on year by £44,000,000 Following the closeout of April, we saw strong financial performance reflecting the shift in Easter this year, worth approximately £50,000,000 We continue to hold a strong balance sheet.

[Jan De Raeymaeker, CFO & Director at easyjet]

At the end of the first half, our net cash position was £327,000,000 This compares to £146,000,000 at the same moment last year. This movement includes circa £1,000,000,000 in CapEx, which encompasses final delivery payments of 15 new NEO aircraft over the last twelve months, of which eight were delivered in the last six months. Our owned assets have increased by over £500,000,000 to a book value of £4,600,000,000 Our bookings to date remain supportive of consensus, which would result in attractive year on year earnings growth. However, we remain mindful that there is still an important booking period for the peak summer to go. Our capacity guidance remains unchanged for the full year.

[Jan De Raeymaeker, CFO & Director at easyjet]

We expect full year seats to increase by approximately 3% year on year and ASKs by approximately 8%. Summer capacity growth is constrained across our network, and we expect approximately 1% increase in seats in half two, which is considerably lower than the growth in half one and especially the second quarter. From a cost control perspective, full year total CASK is projected to reduce low single digits year on year. Full year CASK ex fuel is targeted to be broadly flat year on year. Full year fuel CASK is expected to reduce 8% based on recent fuel trends and current hedge position.

[Jan De Raeymaeker, CFO & Director at easyjet]

Looking to this summer, we are now 80% sold for Q3, which is 0.5 percentage points ahead of this time last year. For Q4, we are 42% sold, 2.2 percentage points ahead year on year. While we continue to see an uncertain environment, EasyJet is currently benefiting from fuel and FX tailwinds. We remain happy with the load factor build for this summer. However, as always, at this point in the year, there is still a long way to go.

[Jan De Raeymaeker, CFO & Director at easyjet]

EasyJet Holidays continues to expect roughly 25% growth in customers, keeping us on track for early delivery of the medium term target of £250,000,000 profit before tax. We are currently 77% sold for the second half. Turning to the performance indicators. We have increased ASKs by 12% year on year as we focus on driving benefits through increased productivity and utilization. We have increased our fleet by 3% to three fifty five aircraft this winter, utilizing these aircraft on average nine hours per day, which is a 5% increase year on year.

[Jan De Raeymaeker, CFO & Director at easyjet]

Thanks to the fleet modernization program, the average number of seats on board of each aircraft increased by 1% to 181, which is expected to further grow to 191 by full year 'twenty eight. As we have increased capacity into longer leisure destinations, the sector length grew by 6%. Beach and non European routes now account for 49% of total ASKs, which is a five percent point increase year on year. While we have seen the biggest growth into longer leisure destinations on beach and non au, we have also continued to grow into city destinations, restoring capacity and developing our Christmas market proposition. Domestic capacity is slightly reduced, we saw route maturity on these domestics following prior winter capacity investments.

[Jan De Raeymaeker, CFO & Director at easyjet]

Moving on to airline revenue. Demand for our primary airport network has continued to grow. We carried 8% more passengers year on year with a load factor of 88%, improving by 1.2 percentage points year on year. Total airline revenue increased by 6%, in line with seat capacity. However, total RASK was 6% lower with yields impacted by Easter timing and important capacity investment, which naturally required some stimulation.

[Jan De Raeymaeker, CFO & Director at easyjet]

12% of the overall capacity in H1 was for routes that were launched less than two years ago. Historically, new routes take around three years to fully mature, so we have a significant proportion of the network that we would expect to benefit from revenue uplift in the coming winter as these new routes mature and capacity growth normalizes. Looking ahead to the next winter, we will return to normalized levels of growth, which will include year rounding operations at new base alongside target capacity growth, such as continued investment on non European flows. Now let's move on to the CASK bridge. We saw strong cost performance in the first half with total CASK producing 5% year on year.

[Jan De Raeymaeker, CFO & Director at easyjet]

Our CASK ex fuel has improved by 4% with all cost line items either improving year on year or remaining broadly flat. This performance has been driven by continued focus on efficiencies, particularly within asset utilization, which has increased by 5% and crew productivity, which saw a 6% improvement year on year. These efficiencies have more than offset the general inflationary pressures that all airlines are currently facing. Fuel CASK improved by 8%, thanks to fuel efficiencies from our continued fleet modernization and effective effective U. S.

[Jan De Raeymaeker, CFO & Director at easyjet]

Dollar and jet fuel prices. These positive factors more than mitigated the impact of ETS allowances being phased out and the introduction of SAF mandates. Looking to the full year, we are focused on keeping CASK ex fuel broadly flat. Our focus on performance generally and on realizing cost efficiency specifically will continue as it remains firmly in our low cost DNA. Included in the appendix is a slide which provides further detailed by line item on the drivers of cost development in the first half and our expectations for the second half of the final of this financial year.

[Jan De Raeymaeker, CFO & Director at easyjet]

Based on our current hedge positions and spot rates, H2 fuel CASK is expected to improve by approximately 8% year on year. I'm pleased to be inheriting the work that Kenton and the team have done over recent periods in controlling costs. Having been here now for four months, I firmly believe there are further opportunities to drive even greater efficiencies at EasyJet, building on our low cost DNA. Opportunities will mainly sit around further increasing asset productivity generally, continuing to optimize the capital allocation between bases and routes, leveraging our strong position in different markets with suppliers and benefiting from the digital investments we are making to increase efficiencies of Moving on to EasyJet Holidays. EasyJet Holidays has continued its profitable growth trajectory with profits increasing by 42% to GBP 44,000,000 in the first half of the year.

[Jan De Raeymaeker, CFO & Director at easyjet]

The number of customers has grown by 27%, improving the attachment rates to 6%, a one percentage point increase year on year. The average selling price for winter holidays has slightly increased to £578 offering great value. Notably, 75% of our customers opted to book four or five star hotel, demonstrating the quality and value of our offering. Looking ahead to the full year, we are on track to achieve a circa 25% increase in customers, which will expand our UK market share to approximately 9%. Moving on to the balance sheet.

[Jan De Raeymaeker, CFO & Director at easyjet]

EasyJet continues to maintain one of the best investment grade credit ratings in the industry. Standard and Poor's rates us a BBB with a positive outlook and Moody's rates us a Baa2 with a stable outlook, which is unchanged versus previous update. You can see the increase within property, plant and equipment to 4,600,000,000 driven by an increase in fleet size to three fifty five aircraft, up from three forty three aircraft this time last year. The net book value of owned assets is set to grow by more than 60% by 2028. Our cash position has strengthened by £290,000,000 taking our cash to £3,600,000,000 At the end of the half year, our net cash position includes lease including leases was £327,000,000 If you remove the IFRS 16 lease liabilities, our net cash position would stand at £1,500,000,000 Our current liquidity balance stands at £5,300,000,000 which is £1,800,000,000 in excess of our policy to hold liquidity to the value of unearned revenues plus £500,000,000 This excess derisks future capital expenditure, prefunding a significant portion of this.

[Jan De Raeymaeker, CFO & Director at easyjet]

We have seen an increase in our IFRS 16 lease liabilities. This reflects our actions taken to extend leases of aging aircraft to mitigate the delay in delivery of aircraft from Airbus. This is not only increasing lease liabilities, but also maintenance costs and allows us to further deliver our planned fleet growth. Our fleet is made up of Airbus three twenty family aircraft, all powered by CFM engines. We have an order book to 2,034, comprising an additional two ninety one A320neo family aircraft, plus a further 100 purchase rights.

[Jan De Raeymaeker, CFO & Director at easyjet]

These deliveries will drive our upgauging journey, enhancing cost efficiencies as we move from our current average gauge of 181 into the low 190s by 2028 and further to the low 200s by 02/1933. We have received all nine aircraft scheduled deliveries into the current financial year ahead of our summer operations. The future delivery schedule remains aligned with our guidance in November. We continue to work with Airbus to mitigate the impact of previously notified delays in deliveries due to the supply constraints seen at both OEMs. All aircraft scheduled for delivery in full year 2026 are expected to be taken directly into ownership.

[Jan De Raeymaeker, CFO & Director at easyjet]

This will take our neo ownership percentage to 87%. We expect a rise in our gross capital expenditure over the coming years, driven by increasing aircraft deliveries as we retire the A319 aircraft. The CapEx increase is also driven by step up in pre delivery payments in line with our delivery profile and increased investment into spares to ensure operational readiness as well as growing maintenance costs as our fleet expands. It's important to note that the gross CapEx doesn't account for any potential financing options available to us. Currently, 82% of our NIOs are owned and in line with our capital allocation framework, we aim to maintain NIO ownership at over 75%.

[Jan De Raeymaeker, CFO & Director at easyjet]

We currently expect elevated levels of deliveries over the coming years, thanks to the fleet modernization program. This will take us to a fleet of three ninety five aircraft in full year 2028. At this base level, we would need 17 aircraft a year at steady state to renew the fleet with an expected useful life of twenty three years. This would give a gross CapEx of circa £1,500,000,000 which is a cash we generated last year excluding CapEx. We also have flexibility in the financing to reduce our CapEx down.

[Jan De Raeymaeker, CFO & Director at easyjet]

It is noted that this is GBP 200,000,000.0 lower than full year 'twenty six, where we expect 17 aircraft deliveries as next year also includes elevated pre delivery payments. Alongside this, we are looking to drive increased earnings and cash generation, which we believe will deliver attractive true cycle free cash flows. Moving on to the unique opportunity ahead of us from upgauging freer the fleet modernization, a key component of our medium term target. By replacing our A319 sub fleet with a more efficient A320neo aircraft, we are set to structurally improve our returns. The majority of the margin enhancements from the upgauging lies ahead with material cost benefits expected to be realized from 2026 onwards.

[Jan De Raeymaeker, CFO & Director at easyjet]

Utilizing real data from our current fleet mix, we know that for every three nineteen that leaves the fleet, we will see circa GBP 10 cost per seat benefit if replaced by an A320neo. If replaced by an A321, the benefit increases to circa 16 pounds which is unchanged from the last update. At the group level, this will deliver greater than three pounds of unit cost savings and remains one of the critical pillars to achieving our medium term targets. This is a unique journey for EasyJet as we retired 82 remaining A319s, which have just 156 seats. Now I will hand back to Kenton.

[Kenton Jarvis, CEO & Director at easyjet]

I'm confident that we have the right strategy in place, and we're well positioned to deliver attractive shareholder returns. I want to reiterate our commitment to making low cost travel easy with our strategy built around four key pillars: building Europe's best network strengthening our revenue delivering ease and reliability and driving our low cost model. Everything we do is informed by this strategy, and executing against these four key pillars will enable us to achieve our medium term targets. But none of this can be delivered without the continued commitment of our people. Over the past six months, I've really enjoyed spending so much time with our dedicated, passionate and hardworking colleagues across the network.

[Kenton Jarvis, CEO & Director at easyjet]

I've been able to see for myself the extent to which our people are a key differentiator for EasyJet and consistently go above and beyond for our customers. They are central to the customer experience and are, therefore, essential to our success. Once again, both EasyJet and EasyJet Holidays have been recognized as Best Places to Work by Glassdoor and The Sunday Times respectively. This is a fantastic achievement and reflects our ongoing commitment to our people. We have again invested in performance shares for all of our people, allowing everyone to share in EasyJet's success.

[Kenton Jarvis, CEO & Director at easyjet]

Together, these measures help retain talent and ensure employees are invested in the success of EasyJet so we can all achieve our full potential together. Our primary focus is on generating the highest returns from the assets that we deploy, our aircraft. We achieved this by allocating aircraft to our highest performing bases and routes whilst maintaining an optimal network. I'm also focused on driving revenue generation from our existing assets. This is being achieved through leveraging the asset light model of EasyJet Holidays, enhancing revenue management in the airline and continually growing ancillaries.

[Kenton Jarvis, CEO & Director at easyjet]

In addition, we continue to invest in new aircraft over the coming years to deliver on our growth targets. This includes increasing frequencies and adding new network points, along with taking advantage of strategic opportunities as they come up, for example, the new slots in Rome and Milan Leonato. Upgauging also presents a unique opportunity for EasyJet, principally driven by the retirement of the A319 sub fleet, bringing cost and sustainability benefits through reduced fuel consumption and lower noise. With the introduction of new aircraft, our unit cost of ownership will remain broadly flat, thanks to favorable pricing agreements with Airbus and because new aircraft do not have their engine shop visits capitalized until they're incurred. The reduced OEM deliveries throughout Europe are leading to a more constrained capacity environment, which is seen in the seat growth we expect this summer.

[Kenton Jarvis, CEO & Director at easyjet]

We are, however, continuing to add targeted growth across our network, increasing capacity onto longer leisure, continuing to restore city flows and consolidating some domestics. I want to touch on some of the key developments across the network. Southend, which we opened for summer twenty five last month, is performing well, delivering load factors ahead of the network average, underpinned by strong demand for easyJet holidays, which currently accounts for 25% of bookings. And our new bases at Milan Leonate and Rome Flumicino not only mark a strategic milestone but a great growth opportunities. This summer will be the first time in EasyJet's history that we've based aircraft in Leonate.

[Kenton Jarvis, CEO & Director at easyjet]

This year, we've also added aircraft into high performing bases like Birmingham, Manchester, Bristol, Edinburgh, Paris Orly, Palmer and Basel, alongside launching over 200 new routes. Looking ahead, we're excited to announce the launch of a new base in Newcastle for summer twenty twenty six, offering consumers an even greater choice of flights and holidays. And when we're not getting the required returns, we have the flexibility to adapt and will act decisively as we did by reallocating capacity from underperforming bases in Toulouse and Venice. During the winter, we added meaningful volume to our network. ASKs grew by 12%, underpinned by 6% growth in seat capacity and a 6% increase in sector length.

[Kenton Jarvis, CEO & Director at easyjet]

This was driven by a deliberate investment in longer leisure markets, including North Africa, Canary Islands and Cape Verde. These investments are expected to deliver route maturity benefits this coming winter and beyond, which is consistent with what we've seen when launching new routes previously. In summary, we continue to focus on capital allocation, optimizing our network to ensure capacity is deployed in the markets where we see the strongest demand and returns. This slide spotlights the digital improvement program we have in place, which focuses on upgrading the products and services our customers want while also enhancing our algorithms for better performance. We're pleased to now have full ownership of our replatform industry leading app.

[Kenton Jarvis, CEO & Director at easyjet]

This provides us with complete control over its development so we can further enhance its capabilities at speed, and we adopt a more app centric approach to improve the customer journey. We continue to grow in flight retail, advancing towards our goal of generating £1 profit per seat from this area of the business. And moving on to EasyJet Holidays, which has a digitally delivered proposition and low overheads. Currently, 75% of our bookings are for four and five star hotels, and we have impressive customer satisfaction scores of 84% as a result of our strong focus on delivering an exceptional service. It's worth reiterating here that with only 6.4% attachment rate, there remains significant opportunity for further expansion.

[Kenton Jarvis, CEO & Director at easyjet]

In addition to naturally increasing the attachment rate on city and beach breaks, we're also expanding awareness of attracting new customers via other channels, such as our new partnership with Tesco's Clubcard, where we've become the exclusive large provider of package holidays to Clubcard members. This gives us exposure to 23,000,000 households across The UK. This winter, we also launched new destinations such as Cape Verde and Luxor, and we're confident about our continued growth on both beach and city flows. Our purpose is to make low cost travel easy, offering attractive fares to popular destinations delivered with a great customer experience. I'm pleased to say that we saw a further improvement in our customer satisfaction scores, which increased by 1.5 percentage points to 82%, with improvements across all touch points of the customer journey.

[Kenton Jarvis, CEO & Director at easyjet]

The most significant improvements were within airport scores, which is as a result of our renewed effort to provide targeted support on the ground at our airports. We pride ourselves on providing the warmest welcome in the sky and have recently extended this focus to include the on the ground experience for our customers. Initiatives such as increasing ground support staff have already been received positively by our customers, and we're looking forward to further positive feedback as we go into the peak summer season. In addition, we remain focused on controlling the controllables. Following challenges with air traffic control last summer, we've continued to invest in building resilience in our network.

[Kenton Jarvis, CEO & Director at easyjet]

This includes a core focus on our on time performance and ensuring aircraft turn times are met regardless of external delays in order to further reduce disruptive events. Benefits are already being seen with an OTP improvement of one percentage point in the half year despite the poor ATC performance continuing and a huge 13 improvement in the busiest four days over the Easter bank holiday. We're also continuously improving data, AI and automation to provide a better service to our customers. An example of this is through the use of SkySim, which allowed us to simulate and stress test our network before the peak season, identifying and proactively mitigating potential pinch points early as well as the on the day efficiencies. We're also using data and AI to support with crew planning, which is crucial for both flight reliability and providing our people with roster stability so they know where and when they'll be flying.

[Kenton Jarvis, CEO & Director at easyjet]

In addition, we're committed to enhancing customer communication, equipping our ground staff with real time information, which enables them to provide up to date and accurate information to our customers. Our new app also features a live activity function, including a home screen widget that provides passengers with real time updates on gate information and other relevant details for their journey. All of this together demonstrates our commitment to continually improving every aspect of the customer experience. Our 4% reduction in CASK ex fuel during the first half of the year was driven by a 6% improvement in crew productivity and a 5% increase in aircraft utilization from capacity investments into longer leisure. We expect CASK ex fuel to be broadly flat for the full year, resulting in a twenty four month period of stable unit costs.

[Kenton Jarvis, CEO & Director at easyjet]

Going forward, we continue to benefit from in sourcing all of our line maintenance across our network and the acquisition of our first MRO facility in Malta last year, which will allow us to insource up to 25% of EasyJet's heavy based maintenance requirements. However, it's important to note that there's still more to be done. Nearly all of the upgauging benefits lie ahead of us with circa GBP 3 per seat savings from upgauging yet to be realized. In addition, we're continuing to use data to drive efficiency as well as other productivity initiatives, which we look forward to talking about in due course. As you can see, our competitive advantage over flag carriers remains.

[Kenton Jarvis, CEO & Director at easyjet]

And while our costs have reduced in the first half, the same is not true for most other airlines. So in summary, the near term outlook for EasyJet is positive with our current book position supportive of consensus expectations, which would deliver another positive step forward towards our medium term profit target. However, I remain mindful that as always at this point in the year, there's an important booking period for the peak summer to go. We're focused on executing on our strategy, supported by a disciplined approach to capital allocation, focusing on deploying our capital where we can deliver a high teen ROCE. And we're doing all of this from a position of strength.

[Kenton Jarvis, CEO & Director at easyjet]

We have an investment grade balance sheet, one of the best in the industry. The percentage of neos in ownership is currently at 82%, and the book value of owned assets is GBP 4,600,000,000.0. We expect this to grow more than 60% by full year 2028. In addition, we paid our annual dividend of 20% of the full year profit after tax to shareholders in March. All of this means we're well positioned to deliver our medium term targets, providing us with the building blocks to achieve sustainable profit before tax of greater than £1,000,000,000 There is still so much more to go for, and I remain confident in EasyJet's prospects for this year and excited for the future.

[Kenton Jarvis, CEO & Director at easyjet]

Thank you for watching this presentation of EasyJet's half year twenty twenty five financial results.

Participants

Analysts

• Kenton Jarvis, CEO & Director at easyjet
• Jan De Raeymaeker, CFO & Director at easyjet