easyJet H1 2026 Pre Recorded Earnings Report

easyJet EPS Results

• Actual EPS: -GBX 50.10
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

easyJet Revenue Results

• Actual Revenue: $3.95 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

easyJet Announcement Details

• Quarter: H1 2026 Pre Recorded
• Date: 5/21/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, May 21, 2026
• Conference Call Time: 2:00AM 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 2026 Pre Recorded Earnings Call Transcript

Key Takeaways

• Neutral Sentiment: easyJet posted a H1 2026 loss before tax of GBP 552 million, which was in line with guidance, but management said winter losses remain higher than planned and will be an important focus going forward.
• Positive Sentiment: easyJet Holidays was a standout performer, with EBIT up 50% to GBP 48 million and profit before tax up 39% to GBP 61 million, driven by 22% customer growth and margin improvement.
• Neutral Sentiment: The airline benefited from stronger demand and utilization, with load factors up 2 points to 90% and aircraft utilization up 6% to 9.1 hours per day, but revenue was partially offset by competitive beach-market oversupply and higher costs.
• Positive Sentiment: The balance sheet remains a major strength, with liquidity of GBP 4.7 billion, net cash of GBP 434 million, and no bond maturities due until FY 2028, giving the company flexibility in a volatile environment.
• Positive Sentiment: Management outlined a significant medium-term margin opportunity from fleet upgauging and modernization, including accelerated A319 retirements and expected cost efficiencies of about GBP 250 million across FY 2027 and FY 2028.

Presentation

[Kenton Jarvis, CEO at easyJet]

Hello, and welcome to easyJet's half year results presentation for the period ending 31st of March 2026. Let me start with our performance in the first half. Operationally, on-time performance was further improved to 78%, with both the airline and easyJet Holidays continuing to deliver strong customer satisfaction scores. Underlying H1 2026 results were consistent with our expectations in line with the trading statement in April. However, we recognize that winter losses remain above where we planned when setting out our medium-term targets. Our focus is on delivering sustainable improvement in winter performance over the coming years as capacity investment matures and growth normalizes. Jan will take you through the detail of our first half financial performance shortly. The Middle East conflict has introduced near-term volatility for the business, particularly around fuel prices and the short-term demand environment. Importantly, we're managing this volatility from a position of strength.

[Kenton Jarvis, CEO at easyJet]

Our investment-grade balance sheet provides us with the resilience to enable a rational and disciplined response, and our fuel hedge position allows us to protect customers from the near-term price volatility this summer. While we navigate this uncertainty, we remain focused on our clear strategy to deliver medium-term margin improvement. We believe the actions we are taking now will drive tangible performance improvements as we return to a more normalized operating environment. Today, I'll provide a strategy update, including how we're accelerating upgauging, driving cost efficiencies, and continuing to grow easyJet Holidays alongside other asset-light margin enhancing initiatives. Turning to the detail on how we're managing the current near-term uncertainty. From a demand perspective, as you'd expect, we have seen softness in forward bookings. However, March saw a strong late booking environment for in-month departures, a trend that has continued through April and into May.

[Kenton Jarvis, CEO at easyJet]

For the summer, forward load factors for both Q3 and Q4 are currently below prior year levels, having been ahead year on year prior to the start of the conflict. Strong late booking trends have improved Q3 load factors by 1 percentage point since the April trading statement. From a jet fuel perspective, we currently have 72% of our fuel requirements hedged at USD 726 a metric ton. That said, there remains volatility around the unhedged proportion, which we'll need to purchase at prevailing spot rates. Our investment-grade balance sheet provides both financial and operational flexibility. We have strong liquidity of nearly GBP 4.7 billion and a net cash position of GBP 434 million. Following the start of the Middle East conflict, we temporarily suspended regular short-term hedging.

[Kenton Jarvis, CEO at easyJet]

We've been actively managing forward hedging, where we continue to layer in hedges for the outer months where the forward curve has remained in backwardation. In response to this uncertainty, in March, we also reviewed our summer network and redeployed around 400,000 seats away from countries adjacent to the conflict into domestic and city routes across the wider easyJet network. In addition, we trimmed some thick flows in the shoulder season of April and May as a result of the elevated fuel prices. This resulted in a net reduction in seats of 0.3%. No further changes are anticipated, and it's our intention to operate the full summer schedule on sale. We see no fuel supply impact and continue to operate our schedule as planned. We remain in close contact with our fuel suppliers and airport partners to manage supply.

[Kenton Jarvis, CEO at easyJet]

Overall, we continue to respond to the current environment in a disciplined manner and actively review all areas of the business. We have a clear strategy to deliver medium-term margin improvement and deliver more than GBP 1 billion of group PBT. At the core is a disciplined execution of our low-cost airline. We're allocating capital where returns are highest with a hurdle rate of GBP 2.5 million of PBT per aircraft, deploying growth into proven bases alongside the opening of new bases. As we look ahead, capacity growth moderates from winter 2027, while fleet upgauging will drive around GBP 250 million of cost efficiencies across the next two years. Alongside this, we're focused on capital-light growth. easyJet Holidays continues to scale, reinforced by retail expansion in Germany and a new flight plus hotel book flow. We'll also launch a new loyalty program for the group in 2027, creating value enhancement.

[Kenton Jarvis, CEO at easyJet]

Our aim is to leverage the group more effectively, continuing to build on the strength of our brand while delivering a consistent, seamless customer experience. We're moving to being a leaner, more digital organization with current investments in automation, data, and AI driving simplification. I'll hand over to Jan.

[Jan De Raeymaeker, CFO at easyJet]

Thanks, Kenton. Let me start with a summary of our H1 2026 financial performance. H1 loss before tax amounted to GBP 552 million, in the middle of the range we guided to in the April trading update and a deterioration of GBP 158 million versus prior year. Headline losses before interest and taxes amounted to GBP 533 million, a deterioration of GBP 164 million versus prior year. The result was in line with our expectations if we exclude the GBP 25 million impact from the unexpected high fuel prices in March following the start of the Middle East conflict, alongside the net increase of GBP 32 million in legal provisions relating to a number of historic cases.

[Jan De Raeymaeker, CFO at easyJet]

The airline losses before interest and taxes reflected the first year of winter operations of our new bases in Milan Linate and Rome Fiumicino, which negatively impacted the results by GBP30 million as previously communicated, alongside our continued strategic capacity investments in the rest of the network during winter to drive asset utilization in that period. The airline financial performance was additionally impacted by competitive overcapacity in certain beach markets and market-wide cost inflation, which was weighted towards the first half, on top of the previously mentioned additional fuel costs and legal provisions. As a partial offset, we did see encouraging demand with load factors being up two percentage points year-on-year. As a result, airline losses before interest and taxes reached GBP581 million, an increase of GBP180 million year-on-year. easyJet holidays performed strongly with earnings before interest and taxes increasing 50% to GBP 48 million.

[Jan De Raeymaeker, CFO at easyJet]

This was driven by both customer growth and margin improvements. From a financial position perspective, we continue to strengthen our balance sheet position. Liquidity remains strong at GBP 4.7 billion. Net cash increased to GBP 434 million. Even though underlying H1 2026 results were in line with our expectations, we're obviously not happy with such level of winter losses, as this increases the reliance on a strong summer to make our full year results. The focus to gradually reduce these winter losses in the coming years after three years of investments is hence high on our agenda. Moving on to our key performance indicators. In H1 2026, we flew 8% more ASKs and grew seats by 4%, with our destination mix further evolving, resulting in average sector lengths increasing by 4%.

[Jan De Raeymaeker, CFO at easyJet]

This ASK growth firstly resulted from a moderated increase of our fleet by one aircraft to 356 aircraft as we have retired three A319 aircraft and taken delivery of new A320neo family aircraft since H1 2025. This also led to a gauge increase of 1% to 182 seats. More importantly, and in line with our strategy to increase asset utilization and productivity during winter, we flew more with the assets at hand, leading to an overall 6% increase aircraft utilization. This means our aircraft operated an average of 9.1 h/d through the winter, which is a 20% increase over the past three years. This is now broadly back in line with pre-pandemic utilization levels. Our balanced and attractive network continued to develop with non-European destinations seeing ASK growth of 27% year-on-year, now accounting for 18% of the total network ASKs.

[Jan De Raeymaeker, CFO at easyJet]

Only 8% of the seats reflecting the longer sector lengths. Beach and city ASKs grew slightly below the network average at 7% and 5% respectively, resulting in a modest reduction in their overall share of network capacity. Domestic ASKs declined by 4%, driven primarily by reductions in French and Italian domestic routes. Turning to airline revenue. Total airline revenue increased by 10%. This reflects on one side a continued strong demand at our primary airports as passengers grew by 6% ahead of the seat growth, with load factors increasing by 2 percentage points to 90%. This was also realized through higher yields, primarily due to the increased sector length, flying more further afield leisure destinations.

[Jan De Raeymaeker, CFO at easyJet]

As a result, total RASK for the half was up 1.3%, despite a 2% natural dilution from increased sector length, as well as an adverse impact from the one-offs releases of aged ticket liabilities in the prior year. Foreign exchange provided a favorable impact of approximately 2%, while the earlier timing of Easter this year also supported RASK. Aside from that, we saw evidence of underlying revenue improvement from the first modest benefits of route maturity, particularly in the second quarter, although this was partially offset by continued oversupply in specific beach markets through the winter. Looking ahead, as operating environment normalizes, we expect to see continued revenue benefits as our capacity investments mature over the coming years. Turning now to the CASK bridge. Headline CASK increased by 5% year-on-year, with CASK excluding fuel up 8%.

[Jan De Raeymaeker, CFO at easyJet]

Fuel CASK improved by 5%, slightly supported by fleet modernization and a year-on-year more favorable fuel price. This more than offset the phaseout of free ETS allowances, higher SAF mandates in the U.K., and the fuel price spike experienced in March. It's important to highlight that the increase in CASK excluding fuel in 2026 is skewed towards H1 2026. We expect cost performance to moderate in the second half, with 2026 headline CASK excluding fuel increasing by low single digits. In H1, we achieved a 6% benefit to CASK ex-fuel from increased aircraft utilization. This was offset by inflation and foreign exchange headwinds, which together drove around a 6% increase in CASK excluding fuel. Higher passenger load factors also increased certain per passenger costs, primarily in airport and ground handling, reflecting the impact of per passenger charges.

[Jan De Raeymaeker, CFO at easyJet]

CASK also increased due to strategic investments, including the annualization of resilience measures implemented to support summer 2025, the investments in digitalization and marketing, as well as the wet lease costs associated with our new Italian bases, which will end next year. The remaining increase contains one-off items, including GBP 32 million of net increased legal provisions and a GBP 10 million adverse impact from the absence of prior year lease buyback gains. Turning now to easyJet holidays. easyJet holidays delivered a further strong profit growth in H1 2026, with profit before tax increasing by 39% to GBP 61 million, supported by customer growth of 22%, alongside a 1 percentage point improvement in margins to 9%. The modest margin benefit primarily reflects lower selling and distribution costs in March due to the summer demand impact following the start of the conflict in the Middle East.

[Jan De Raeymaeker, CFO at easyJet]

The attachment rate increased to 6.3% across beach and city flights, and customer numbers grew to 1.3 million. Our European customer base increased by 66% year-on-year, albeit from a relatively small base, highlighting increasing brand awareness in our European source markets and a significant opportunity ahead. Looking forward, easyJet Holidays remains on track to deliver low double-digit customer growth in full year 2026, although second half growth will be impacted relative to original expectations due to the current demand environment. Turning to the balance sheet. Over the past years, easyJet has successfully built strong balance sheet to be able to support future CapEx, but also to navigate through turbulent times if they would occur. We're happy in this uncertain context to benefit from an investment-grade balance sheet, which is critical in providing both operational and financial flexibility.

[Jan De Raeymaeker, CFO at easyJet]

The net book value of owned assets increased to GBP 5 billion, reflecting the addition of four aircraft into ownership compared to last year, alongside nine new engines. We now have 86% of our A320neo fleet in ownership, well above our 75% target, providing flexibility for the upcoming fleet renewals. We remain on track for the net book value of owned assets to exceed GBP 7.5 billion by full year 2028. Our net cash position increased by GBP 107 million year-on-year to GBP 434 million as at 31st of March 2026. The value of our derivative financial instruments increased by GBP 932 million during the year, driven by higher fuel prices. The fair value of our hedge position now stands at GBP 799 million. Unearned revenue remained broadly flat year-on-year, despite planned capacity growth of 2% in H2 and continued growth in easyJet Holidays, reflecting the recent later booking trends.

[Jan De Raeymaeker, CFO at easyJet]

Total liquidity stood at GBP 4.7 billion, representing GBP 1.1 billion excess of our policy requirement to hold liquidity equivalent to unearned revenues plus GBP 500 million. Finally, our financing position remains strong with no bond maturities due until full year 2028. Our delivery profile remains consistent with what we've previously set out with the remaining 14 aircraft due for delivery this year, all of which are planned to be taken directly into ownership. This will increase our A320neo-ownership to 87%. These deliveries, alongside the accelerated retirement of our A319 sub-fleet, will drive our upgauging journey over the coming years. The end of year base fleet plan differs to the peak line of flying, as shown on the slide, due to having 14 standby aircraft as well as the timing of deliveries.

[Jan De Raeymaeker, CFO at easyJet]

In full year 2027 and full year 2028, in-year delivery delays from Airbus will result in some deliveries being expected past the peak summer season. We're still working with Airbus to finalize aircraft deliveries for full year 2029, but I expect that all the remaining A319s will be retired by the end of 2029. The increase in gross capital expenditure over the coming years reflects the high level of aircraft deliveries. It's important to note that gross CapEx does not reflect the potential financing options available to us through sale and leasebacks, JOLCO structures and access to debt markets. Elevated aircraft deliveries over the coming years will expand the fleet to 389 aircraft by full year 2028. At a steady-state level, maintaining the fleet would require deliveries of around 17 aircraft per year, equating to a true cycle gross annual CapEx of approximately GBP 1.6 billion.

[Jan De Raeymaeker, CFO at easyJet]

We remain focused on driving stronger earnings and cash generation over the coming years, which will support sustainable true cycle free cash flow generation. Moving on to the unique fleet upgauging and modernization opportunity, which is ahead of us, which will drive material cost efficiencies over the coming years. By replacing our A319 sub-fleet with more efficient A320 and A320neo family aircraft, we are structurally improving return across the business. We are bringing these benefits forward by accelerating the retirement of the A319 fleet. All A319 aircraft will now exit the fleet by the end of 2029, with an additional 6 aircraft leaving in FY 2028, compared with the schedule we previously outlined. The fuel economics are compelling, particularly in the context of elevated fuel prices. An A320neo delivers a 24% reduction in fuel burn per seat compared to an A319, increasing to around 30% from an A321.

[Jan De Raeymaeker, CFO at easyJet]

Beyond fuel, upgauging also delivers unit cost savings across the income statement. Across 2027 and 2028, we expect to realize just under GBP 3 of unit cost efficiencies, including benefits of fixed cost scaling, translating into around GBP 250 million of incremental annual operational and fuel cost efficiencies across the two years. This is based on a normalized fuel price. We already operate multiple aircraft types on a number of routes. Where those operate in similar commercial conditions, same time of day, and same days of week, we see limited revenue dilution. That gives us confidence that the majority of these benefits will flow directly into margin improvement. Over this period, the average number of seats per aircraft will increase from 182-192. Capital discipline remains central to our strategy. We remain fully focused on maximizing returns on our invested capital.

[Jan De Raeymaeker, CFO at easyJet]

We allocate capacity selectively using detailed financial data, prioritizing bases where we can generate the highest return or where there is a clear line of sight to do so. In full year 2026, all aircraft were allocated to existing bases, delivering returns above our profitability threshold of GBP 2.5 million per aircraft, equating to circa GBP 8.5 per seat, as illustrated in the chart with the green bars highlighting where new capital has been deployed. New bases such as Milan Linate and Rome Fiumicino are currently our most significant underperformers, reflecting around GBP 20 million of losses in the first summer season and additional GBP 30 million of losses in their first winter season. We have clear improvement plans in place across all underperforming bases, we will continue to take action on capacity allocation where return thresholds are not met or where the pathway to improvement is insufficiently clear.

[Jan De Raeymaeker, CFO at easyJet]

Looking ahead, as fleet modernization accelerates and fleet growth moderates, we expect the majority of capacity growth in full year 2027 and full year 2028 to come from upgauging. Alongside this, we continue to invest selectively in strategic capabilities that we believe are critical for the future, including the investment in our heavy base maintenance facility in Malta, where we are expanding the capacity from 4.5 bays-6 bays. Finally, we continue to invest in our digital capabilities, supporting the digitalization of key commercial, operational, and enterprise processes. Turning to the outlook, there remains significant uncertainty on the full-year results due to the current macroeconomic environment, with fuel prices remaining volatile as well as the lower visibility of future bookings. For H2 2026, every USD 100 per metric ton movement in fuel prices equates to GBP 35 million.

[Jan De Raeymaeker, CFO at easyJet]

The full-year result is also highly sensitive to the year-on-year RASK differential, with every percentage point worth GBP26 million for Q3 and GBP 33 million for Q4. easyJet remains well-positioned with our investment-grade balance sheet to navigate the current environment. We are focused on executing our self-help initiatives, which will enable easyJet to better monetize its strong position over the coming years as we progress towards delivering our financial ambitions. Thank you for your attention, I will now hand back to Kenton.

[Kenton Jarvis, CEO at easyJet]

Thanks, Jan. We remain committed to our strategy, which you'll be familiar with. Our purpose remains the same, making low-cost travel easy, and is underpinned by four strategic pillars. Ultimately, progress on these strategic priorities will drive the delivery of improved financial performance and help us navigate the current environment. I spoke earlier about how we're focused on executing and delivering against our strategy, which will support us in making further progress towards achieving our medium-term targets when the operating environment normalizes. We set out the key building blocks for these targets in full year 2023, and these remain the same, albeit with evolving timelines for delivery and contribution levels from each of the key levers. Firstly, easyJet Holidays has outperformed against our initial expectations and met the target of GBP 250 million PBT within two years.

[Kenton Jarvis, CEO at easyJet]

We therefore upgraded the target to GBP 450 million PBT by FY 2030, with further growth initiatives progressing well. The timeline for upgauging was moved to the right as a result of Airbus delays. These benefits are now becoming near-term opportunities as we accelerate A319 retirements and step up A320neo deliveries over the coming two years, with GBP 250 million of incremental annual cost efficiencies expected across FY 2027 and FY 2028. As I've said, we recognize that winter losses remain above where we planned when setting our medium-term targets. Capacity investments over the past three years have driven a 20% increase in aircraft utilization, and we're now broadly back on historic levels. Route maturity and sequential improvement of Rome Fiumicino and Milan Linate are now expected in the coming years.

[Kenton Jarvis, CEO at easyJet]

Fourthly, within other, we remain focused on being a lean digital organization to enhance merchandising capabilities and the customer experience while simplifying and automating processes to improve fixed cost efficiency. Finally, all of this is underpinned by disciplined capital allocation and the GBP 2.5 million PBT per aircraft target, which is equivalent to the middle of the GBP 7-GBP 10 per seat range. Delivering up to 1,900 flights a day simply wouldn't be possible without our people, whose professionalism and commitment continue to set easyJet apart. I'd like to thank all my colleagues for their hard work and the passion they bring every day. I'm fortunate to see this firsthand as I travel across the network. Once again, we've been recognized by Glassdoor as a Best Place to Work, and we're the only airline to feature in the top 50.

[Kenton Jarvis, CEO at easyJet]

We continue to retain and engage great talent across the group, supported by high levels of colleague engagement with our latest score at 74%, trending positively and ahead of the global benchmark. For our customers, our people-led service strategy enabled by technology is delivering clear results. In the first half, airline customer satisfaction increased by 2 percentage points to 84%, with easyJet Holidays increasing 1 percent point to 85%. We've continued to invest in frontline delivery, launching the next stage of our enhanced training program for ground staff, while further rolling out our internal app, which provides real-time information to ground staff, customer service teams, and crew. At the same time, we're simplifying and digitalizing the customer journey. Since last summer, we've made significant enhancements to our mobile app, including proactive flight notifications, automated disruption handling, and the introduction of passport scanning for faster online check-in.

[Kenton Jarvis, CEO at easyJet]

Our sustained focus on operational delivery and customer experience over recent years continues to differentiate our brand. We benefit from a loyal customer base with 71% of bookings coming from returning customers and a growing membership of our easyJet Plus subscription product. To complement this, we'll be launching a new loyalty program in full year 2027. We'll host a seminar on the new rewards proposition early next year, which will leverage the strength of our brand and further enhance our differentiated customer offering. Our focus continues to be on disciplined, targeted growth deployed where returns are strongest. Ahead of the summer, we opened two new bases in Newcastle and Marrakech, each with three aircraft, and added a further seven aircraft to bases performing above our 2.5 million per aircraft target.

[Kenton Jarvis, CEO at easyJet]

We continue to deploy additional capacity only where we expect to deliver superior returns. Newcastle is performing in line with expectations, with particularly strong demand for easyJet Holidays, which already accounts for 38% of total beach bookings from the base. The launch of our Marrakech base, our first outside Europe, represents an important strategic milestone. It allows us to broaden our market reach for this popular destination while continuing to serve our established European customer base. We're now entering the second season for our new bases at Milan Linate and Rome Fiumicino. Prior to the impact from the conflict in the Middle East, we saw early signs of route maturity, including year-on-year improvements in forward bookings and stronger contributions. We expect sequential improvements as these routes continue to mature.

[Kenton Jarvis, CEO at easyJet]

As the graph shows, we have a proven track record of improving returns following strategic capacity investments that include the award of remedy slots. In this example, while returns were initially diluted, they improved meaningfully as routes matured over the subsequent two years. We have seen this pattern repeated consistently across the network as capacity investments mature. Starting with easyJet holidays, our digitally delivered proposition continues to perform strongly. It's delivering performance that is outpacing peers as we continue to gain market share profitably in a competitive market with a number of growth initiatives still to come. Later this year, we plan to launch a new flight plus hotel proposition ready for the upcoming winter season. This will allow customers to book city breaks without leaving the airline book flow, improving conversion, and enhancing the overall city break booking experience.

[Kenton Jarvis, CEO at easyJet]

As part of this, we're also expanding our hotel inventory across European city destinations to provide our customers with a fantastic choice of city hotels alongside our existing range of beach hotels. Beyond the U.K., we continue to make progress in other European source markets. In Germany, this will be further supported through launching 500 high street travel agents in the Berlin catchment area who will begin selling easyJet holidays in H1 2027. Building these relationships is an important step, given around 70% of package holiday sales in Germany are made offline. Turning to the airline, we remain focused on continuous improvement across both the customer proposition and our digital capabilities, particularly through our fully owned app. We've launched the new Smart Bundles, which combine bag, seat selection, and speedy boarding, and these have been well received, with attachment rates increasing since launch.

[Kenton Jarvis, CEO at easyJet]

This summer also marks the first time we're offering customers a Flex Pass, allowing ticket changes without a fee. Demand has been strong, the product is generating incremental returns for the airline. In-flight retail continues to grow, with profit per seat up 9% in the first half. We've introduced a new summer range, which we expect to further enhance the customer proposition. Finally, our app remains a key differentiator. We've seen a 5% increase in customers citing the app as a reason to book easyJet, alongside a significant 10 percentage point improvement in app booking experience scores. This is driving higher conversion and greater brand loyalty with the app now our fastest-growing booking channel, accounting for 38% of direct airline bookings and 31% of direct holiday bookings. Delivering ease and reliability remains critical for easyJet.

[Kenton Jarvis, CEO at easyJet]

We're increasingly leveraging data and technology to drive efficiency across the business, resulting in a smoother and more reliable end-to-end journey for our customers. Over the past two years, we've made significant progress in transforming how customers interact with our contact center. generative AI has played a key role, enabling us to shift the primary channel from voice to live chat while automating emails and claim processing. This has led to a faster, more efficient service for our customers, and the journey is ongoing as we continue to unlock further efficiencies and cost savings. We've also expanded our automated service recovery tool, which is now available to nearly all passengers experiencing disruption, including on the day of travel. Customers can view their best option within minutes and action it in just two clicks.

[Kenton Jarvis, CEO at easyJet]

As a result, 87% of customers now self-serve, a 15 percentage point increase year-on-year, with around a third using the two-click resolution option. I'd like to highlight a few practical examples where technology is delivering operational efficiencies. At Gatwick, we're reducing turnaround times through the use of remote smart stands, which also improve safety and protect assets and enable more accurate prediction of pushback times. By combining real-time stand monitoring with remote coordination of key arrival activities, we anticipate improved operational resilience and reduced delays, particularly during busy summer periods. Smart stands represent a major modernization of ground handling processes that have remained largely unchanged for decades. On board, our crew are using new digital tools, including electronic cabin logs and reports, alongside an advanced weather app that helps predict and avoid turbulence, improving both efficiency and the customer experience.

[Kenton Jarvis, CEO at easyJet]

Looking ahead, next year's schedule is being built using SkyMAX, which now incorporates profit and operational optimization, further strengthening our ability to deploy capacity effectively and unlock further productivity gains. We'll continue to develop tools that automate processes across the business, allowing us to respond more quickly and make both cost and customer optimal decisions. Together, these examples demonstrate how our targeted technology investments are starting to deliver tangible efficiency benefits. While we're still at an early stage, we expect these benefits to continue to build over the coming years. As you know, we remain fully committed to delivering low-cost travel, and this is even more important in the current operating climate. Over the past two years, we've actively embedded a number of resilience measures which have helped to substantially reduce disruption-related costs and improve operational stability.

[Kenton Jarvis, CEO at easyJet]

The additional capacity added over the last two winters has enabled annual aircraft utilization levels to return to above 10 h/d. Following these investments, growth over the coming winter periods will return to normalized levels. As I mentioned earlier, we've also been driving efficiencies across the business through greater use of technology, integration, and automation. These initiatives are already delivering benefits, and we expect a step up in efficiency and cost savings in future years. That said, we recognize there is still more to do, and further cost actions are now underway as I outlined in the margin initiatives at the start. In summary, we are navigating a period of near-term volatility due to the current macroeconomic environment, which we continue to actively manage from a position of strength. Our investment-grade balance sheet provides both operational and financial flexibility.

[Kenton Jarvis, CEO at easyJet]

Our longer-term focus remains firmly on executing against our strategy, supported by a disciplined approach to capital allocation. We remain focused on actions that will drive tangible performance improvement as we return to a more normalized operating environment. Our medium-term financial ambition remains unchanged, with a target to generate over GBP 1 billion of profit for tax, delivering attractive shareholder returns over the medium term. Thank you for listening to this presentation of easyJet's half year 2026 results.

Participants

Executives

• Jan De Raeymaeker, CFO
• Kenton Jarvis, CEO