REG - easyJet PLC - Final Results
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RNS Number : 8248I easyJet PLC 25 November 2025
25 November 2025
easyJet plc
Results for the twelve months ended 30 September 2025
easyJet reports 9% earnings growth in FY25, with easyJet holidays
target achieved ahead of schedule and upgraded to £450m PBT by FY30.
· Third consecutive year of earnings growth
- FY25 headline EBIT of £703 million, +18% or £106 million YoY
(Airline +£50m, Holidays +£56m)
- FY25 headline PBT of £665 million, +9% or +£55 million YoY
(Reported PBT of £658 million)
o Airline delivered £415m headline PBT
§ ASKs: +9% YoY (Seats +4% YoY)
§ RASK: -3% YoY (H2'25: -1% YoY)
§ Headline CASK: improved 3% YoY (CASK ex fuel improved 1% & fuel CASK
improved 7% YoY)
o easyJet holidays delivered £250m PBT, achieving its medium term target
early
- ROCE of 18%, +2ppts YoY, in line with our objective of delivering
a high-teen ROCE
· Strong improvements in operational performance and customer
satisfaction
- OTP +3ppts YoY to 72%
- CSAT +4ppts YoY to 80%, record levels in over a decade
- Holidays CSAT of 83%, +1ppt YoY
· Progressing towards our medium term target of delivering >£1bn
PBT
- Strengthened balance sheet: net cash of £602m, +£421m YoY
- easyJet holidays met and upgrades target to £450m PBT by FY30
- Material upgauging remains ahead with 17 aircraft deliveries in
FY26 increasing to 30 in FY27 & 43 in FY28
- Structural winter capacity investments are being made to enhance
customer choice and drive productivity & utilisation improvements -
revenue maturity benefits are being seen although are taking longer than we
originally anticipated
- Opportunity to drive further efficiency and performance
improvements remain:
o Strong operational performance provides a platform for further improvement
· FY26 outlook
- Capacity:
o FY26 ASK capacity to grow by c.7% with an average sector length increase
of c.4%
o FY26 easyJet holidays customers planned to grow up to 15%, from a base of
3.1m customers
- Forward Bookings:
o Q1'26 is 81% sold, +2ppts YoY
o Q2'26 is 26% sold, +1ppt YoY
o easyJet holidays H1'26 80% sold
- Cost:
o FY26 total headline CASK is expected to see modest inflation as cost and
operational efficiencies alongside favourable fuel prices partially offset
market-wide cost inflation
· Proposed dividend: 20% of FY25 headline PAT payable in early 2026
Kenton Jarvis, easyJet's CEO, said:
"Since setting our medium-term targets in 2023 we have made significant
progress, delivering a 46% improvement in profit before tax, adding 9% this
year through the continued, successful execution of our strategy. easyJet
holidays is today launching an even more ambitious goal having achieved its
target early.
"Our focus on investing in operations and enhancing customer experience,
providing the warmest welcome in travel, has delivered improved punctuality,
enhanced customer satisfaction and cost efficiencies this year.
"Having recently celebrated our 30(th) birthday, I am proud of what easyJet
has achieved. Very few companies remain as close to their roots as easyJet -
making travel easy and affordable while contributing significantly to economic
growth through increased connectivity, consumer choice and jobs.
"We are well placed to seize the significant opportunities ahead, and we are
confident in achieving our medium-term goal of delivering over £1 billion in
profit before tax."
Overview
easyJet has delivered another year of good earnings growth as headline profit
before tax (PBT) rose 9% to £665 million. Operational performance, reflected
through headline earnings before interest and tax (EBIT), increased by 18% or
£106 million year on year (airline +£50 million, holidays +£56 million).
This year, we made important capacity investments into longer leisure and city
routes and opened strategic new bases at Milan Linate, Rome Fiumicino and
London Southend. Our focus on capital discipline resulted in the closing of
two underperforming bases, Toulouse and Venice, reallocating those aircraft,
and new aircraft deliveries to bases already delivering top quartile returns.
We focused on operational performance, implementing proactive resilience
measures before the peak summer season, resulting in on time performance
increasing three percentage points, despite the external ATC environment
(particularly across France) continuing to be challenging. This improvement in
punctuality, alongside targeted enhancements across all aspects of the
customer journey, drove a four percentage point improvement in customer
satisfaction scores to 80%, the highest in a decade.
easyJet has made further progress towards its target to sustainably generate
over £1 billion PBT in the medium term. easyJet holidays continues to perform
strongly, achieving a PBT of £250 million in FY25, meeting our target ahead
of schedule. As a result, we've set a new, upgraded target of achieving £450
million PBT by FY30.
The airline PBT performance, particularly over winter, has been more
challenging to improve at the rate we originally anticipated, due the pace of
route maturity and the wider geopolitical, macro-economic and competitive
environment in specific markets. We are convinced that our actions through
winter are the right ones to drive productivity and utilisation benefits while
ensuring that the airline is well prepared for the key summer season, which is
vital to overall profit growth. The Summer 2025 expansion into Milan Linate
and Rome Fiumicino (+8 aircraft) was a £20 million investment. A further £30
million investment is expected this winter, as we operate through our
inaugural winter season at these locations. We are confident that these
strategic investments will see revenue maturity over the coming years as they
embed themselves into our route network.
Visibility and confidence over our aircraft delivery profile is improving -
helping to firm up timelines for upgauging efficiencies to be realised.
Shareholder returns
The Board is recommending an ordinary dividend of 13.2 pence per share (2024:
12.1 pence), amounting to £100 million (2024: £91 million) subject to
shareholder approval at the upcoming Annual General Meeting. This will be paid
on 27 March 2026 to those shareholders on the register at the close of
business on 20 February 2026. This represents 20% of the headline profit after
tax.
The Board is committed to maintaining regular returns to shareholders through
this ordinary dividend. Future returns of excess capital will continue to be
assessed, taking into account market conditions, capex requirements and
progress towards the Group's medium-term targets. The Board remains focused on
delivering attractive returns on capital employed for shareholders.
Sustainability
Our net zero roadmap is key to helping us lower the environmental impact of
aviation and we are on track to meet our SBTi-validated 'interim' carbon
target of 35% intensity reduction by 2035. We remain focused on the
three-pronged approach to our net zero roadmap; reduce, replace and remove.
This year, Sustainalytics ranked easyJet as the top-rated airline globally out
of 69 airlines assessed with a score of 18.0. We are also one of the leading
European airlines across MSCI (AA) & CDP (B), and have retained our place
on the FTSE4Good index.
Balance Sheet
easyJet continues to have one of the strongest investment grade balance sheets
in European Aviation (Baa2, stable, by Moody's and BBB+ stable, upgraded by
Standard & Poor's at the end of September). As at 30 September 2025 our
net cash position was £602 million (30 September 2024: £181 million) with
access to £4.8 billion of liquidity (30 September 2024: £5.1 billion). This
is £2.3 billion above our liquidity policy of unearned revenue plus £500
million, prefunding a significant amount of future capex.
Over the course of the year, easyJet took delivery of 9 new A320 family
aircraft, all being taken into ownership through free cash generation. We were
also presented with the opportunity to repurchase eight leased A320 family
aircraft, taking them back into ownership, further strengthening our owned
assets position. This action will deliver structural cost efficiencies going
forward through reduced ownership costs. A non-cash accounting release of £54
million in FY25 was seen as a result. This one-off benefit is partially offset
in the year-on-year comparison when taking into account other one-off items
and balance sheet revaluations.
The strength of our balance sheet will support the future fleet modernisation
and growth which is planned to deliver upgauging, profit improvements and
attractive shareholder returns. The current net book value of owned assets is
£4.8 billion with 85% of Neos in ownership. We expect this to grow to over
£7.5 billion by FY28.
Outlook
· Forward Bookings
- Q1'26 is 81% sold, +2ppts year on year and we expect RASK to
continue the trend seen in H2'25.
- Q2'26 is 26% sold, +1ppt year on year with pricing showing
improvement as we see positive signs of route maturity benefits, partially
offset by further investments into longer leisure flows and the first winter
of operating Milan Linate and Rome Fiumicino remedy routes. As always, it
remains too early to draw any conclusions on this quarter.
· Cost outlook
- FY26 total headline CASK is expected to see modest inflation as
cost and operational efficiencies alongside favourable fuel prices partially
offset market-wide cost inflation from increasing environmental costs, wages,
maintenance, navigation and airport charges.
o Material upgauging benefit expected in FY27 and FY28 as A319 retirements
accelerate as aircraft deliveries ramp up
· Capacity
- Disciplined seat capacity growth slightly below FY25
H1'26 H2'26 FY26
Seat capacity growth YoY 4% 2% 3%
Sector length growth YoY 4% 4% 4%
ASK capacity growth YoY 8% 6% 7%
- 17 new A320 neo family aircraft to be delivered in FY26.
Visibility improving over the 30 and 43 deliveries expected in FY27 & FY28
o Aircraft retirements: FY26: 3, FY27: 19, FY28: 29
- 46% of H1'26 growth is from annualising new bases opened during
FY25
· easyJet holidays customers planned to grow by up to 15% in FY26, from
a base of 3.1m customers
- H1'26 is 80% sold, with average selling price up high single
digits
· New base openings:
- FY26: Newcastle (+3 aircraft) and Marrakech (+3 aircraft)
Fuel & FX Hedging
Jet Fuel H1'26 H2'26 H1'27 USD H1'26 H2'26 H1'27
Hedged position 80% 54% 31% Hedged position 77% 53% 31%
Average hedged rate ($/MT) 717 690 677 Average hedged rate (USD/GBP) 1.30 1.31 1.32
Current spot ($/MT) at 21.11.25 c.780 Current spot (USD/GBP) at 21.11.25 c.1.31
- Carbon obligation including free allowances
o 100% covered for CY25 at €45/MT
o 92% covered for CY26 at €64/MT
- USD Lease payments hedged for the next three years at 1.26
- Capex hedged for the next 12 months in EUR & USD
Capacity
During Q4 easyJet flew 30.4 million seats, a 1% increase on the same period
last year when easyJet flew 30.0 million seats. Load factor was 92.4% (Q4
FY24: 92.2%) up 0.2 percentage points year on year. Passenger numbers in the
quarter increased to 28.1 million (Q4 FY24: 27.7 million).
Capacity for the full year increased by 4% to 104.0 million seats. In the year
easyJet has flown 3.8 million more customers than in FY24, an increase of 4%
year on year.
July Aug Sept Q4 Q4
2025 2025 2025 FY25 FY24 FY25 FY24
Number of flights 56,415 57,631 54,860 168,906 166,987 575,691 558,960
Passengers (thousand) 9,471 9,702 8,909 28,082 27,679 93,436 89,684
Seats flown (thousand) 10,157 10,371 9,870 30,398 30,007 104,007 100,448
Load factor 93.2% 93.5% 90.3% 92.4% 92.2% 89.8% 89.3%
Q4'25 Q4'24 FY25 FY24 Change
favourable/(adverse)
Passenger revenue (£'m) 2,158 2,068 6,072 5,715 6%
Airline ancillary revenue (£'m) 884 851 2,594 2,457 6%
Holidays revenue(1) (£'m) 612 490 1,440 1,137 27%
Group revenue (£'m) 3,654 3,409 10,106 9,309 9%
Fuel costs (£'m) (677) (684) (2,253) (2,223) (1)%
Airline headline EBITDA costs ex fuel (£'m) (1,520) (1,385) (5,200) (4,754) (9)%
Holidays EBITDA costs(1) (£'m) (497) (411) (1,207) (965) (25)%
Group headline EBITDA costs (£'m) (2,694) (2,480) (8,660) (7,942) (9)%
Group headline EBITDA (£'m) 960 929 1,446 1,367 6%
Airline depreciation & amortisation (£'m) (176) (225) (730) (762) 4%
Holidays depreciation & amortisation (£'m) (5) (2) (13) (8) (63)%
Group headline EBIT (£'m) 779 702 703 597 18%
Airline financing costs excluding balance sheet revaluations (£'m) (11) 8 (57) (15) (280)%
Holidays financing costs (£'m) 10 9 30 26 15%
Airline balance sheet revaluations (£'m) (5) 5 (11) 2 (650)%
Group headline PBT (£'m) 773 724 665 610 9%
Airline passenger RASK (p) 5.26 5.39 4.52 4.65 (3)%
Airline ancillary RASK (p) 2.16 2.22 1.93 2.00 (4)%
Total airline RASK (p) 7.42 7.61 6.45 6.65 (3)%
Total airline revenue per seat (£) 100.07 97.29 83.33 81.35 2%
Airline headline CASK ex fuel (p) (4.18) (4.17) (4.46) (4.50) 1%
Fuel CASK (p) (1.65) (1.78) (1.68) (1.81) 7%
Airline headline total CASK (p) (5.83) (5.95) (6.14) (6.31) 3%
Airline headline total cost per seat (£) (78.60) (76.02) (79.34) (77.17) (3)%
41,4044144 6%
Available seat kilometres (ASK) (millions) 40,991 38,355 134,451 122,885 9%
Average sector length (km) 1,348 1,278 1,293 1,223 6%
Cash and money market deposits (£'bn) 3.5 3.5 -
Net cash (£'m) 602 181 233%
ROCE 18% 16% 2ppts
Headline earnings per share (p) 66.4 61.3 8%
Footnotes
1) easyJet holidays numbers include elimination of intercompany
airline transactions.
For further details please contact easyJet plc:
Institutional investors and analysts:
Adrian Talbot Investor Relations
+44 (0) 7971 592 373
Media:
Anna Knowles Corporate Communications
+44 (0) 7985 873 313
Harry Cameron Teneo
+44 (0) 20 7353 4200
Investor presentation and Conference call
A recording of easyJet's Investor presentation is available on the corporate
website - easyJet plc - Investors - Reports and presentations
(https://corporate.easyjet.com/investors/reports-and-presentations/default.aspx)
There will be an analyst Q&A session at 10:00am BST on 25 November 2025 at
Nomura, One Angel Lane, London, EC4R 3AB. A webcast of this will be available
both live and for replay (please register on the following link):
https://brrmedia.news/EZY_FY25 (https://brrmedia.news/EZY_FY25)
Alternatively dial-in details are as follows: +44 (0) 33 0551 0200 quoting
'easyJet FY25' when prompted
Balance Sheet
As at 30 September 2025 our net cash position was £602 million (30 September
2024: £181 million) with access to £4.8 billion of liquidity (30 September
2024: £5.1 billion). This is £2.3 billion above our liquidity policy of
unearned revenue plus £500 million, prefunding a significant amount of future
capex.
The strength of our balance sheet will support future fleet modernisation and
growth which is planned to deliver profitable growth, upgauging and attractive
shareholder returns. The net book value of owned assets is £4.8 billion with
85% of Neos in ownership. We expect this to grow to over £7.5 billion by
FY28.
During the year easyJet entered into a new Revolving Credit Facility for $1.7
billion, which remains undrawn. This replaces the previous $1.75 billion UKEF
facility and $400 million Revolving Credit Facility which were undrawn and
have now been terminated. The new facility provides easyJet with a more
efficient financing structure, reducing associated annual interest charges by
£8 million compared to the previous facilities and secures liquidity until at
least 2030. In addition, on 11 June 2025 we repaid a €500m Eurobond.
(£'m) FY25 FY24
Owned Property, plant and equipment 4,791 4,285
Unearned revenue (1,950) (1,741)
Other net assets/liabilities (excluding net cash/debt) 55 248
Capital employed 2,896 2,792
Cash and other cash investments 3,528 3,461
Debt (excluding lease liabilities) (1,881) (2,106)
Lease Liabilities (IFRS 16) (1,045) (1,174)
Net cash 602 181
Net assets 3,498 2,973
Airline Revenue
Airline revenue increased by 6%, reaching £8,666 million (£8,172 million in
2024). This was primarily due to an increase of 4% in capacity to 104.0
million seats (100.4 million in 2024).
This coupled with a 6% increase in average sector length meant that ASK
capacity increased 9% in the year. This investment in capacity growth
particularly in the first half resulted in airline revenue per available seat
kilometre (RASK) decreasing by 3% to 6.45p (FY24: 6.65p).
FY25 FY24 Variance favourable/ (adverse)
Airline Revenue (£'m) 8,666 8,172 6%
Total airline RASK (p) 6.45 6.65 (3)%
Total airline revenue per RPK (p) 7.10 7.32 (3)%
Total airline revenue per seat (£) 83.33 81.35 2%
Airline Costs
Headline airline cost per available seat kilometre (CASK) excluding fuel
decreased year on year by 1%. This was driven by better productivity and
utilisation over the winter, reduced disruption costs and benefits from the
increased average sector length.
Airline net financing charges increased due to reduced interest income from
lower market interest rates on our cash and an increase in interest charges
relating to borrowings. This is driven by the annualisation of interest
charges on the €850 million bond issued in March 2024 and the settlement of
a €500 million bond which had a lower interest rate payable than the cash
deposits used to repay it.
Fuel CASK decreased by 7% due to fuel efficiencies through some fleet
modernisation and favourable hedged fuel prices which more than mitigated the
impact of free ETS allowances being phased out as well as the introduction of
SAF mandates.
FY25 FY24 Variance favourable/ (adverse)
Headline airline EBIT costs ex fuel 5,930 5,516 (8)%
Headline airline financing costs 68 13 (423)%
Headline airline CASK ex Fuel (p) 4.46 4.50 1%
Fuel CASK (p) 1.68 1.81 7%
Total airline headline airline CASK (p) 6.14 6.31 3%
Total airline headline airline CPS (£) 79.34 77.17 (3)%
Holidays
easyJet holidays revenue increased by 27%, ahead of the 20% increase in
customers due to an increase in average selling price of 5% to £698 (FY24
£668). Total holidays costs increased by 26% primarily due to the 20%
increase in customers. The business continues to scale efficiently as well as
seeing a benefit from FX in the year.
easyJet holidays delivered £250 million of PBT, achieving its medium-term
target ahead of plan, resulting in a new upgraded target of £450 million PBT
by FY30.
FY25 FY24 Variance favourable/ (adverse)
Holidays customers (thousands) 3,090 2,575 20%
Direct 2,725 2,261 21%
Booking.com commission 365 314 16%
Total holidays revenue (£'m)- excl. flight revenue 1,440 1,137 27%
Total holidays revenue (£'m)- incl. flight revenue 1,917 1,521 26%
Profit before tax (£'m) 250 190 32%
PBT margin (incl. flight revenue) 13% 12% 1ppt
Non-Headline Items
Non-headline items are those where, in management's opinion, separate
reporting provides an additional understanding to users of the financial
statements of easyJet's underlying trading performance, and which are
significant by virtue of their size and/or nature. These costs are separately
disclosed, and further detail can be found in the notes to the financial
statements. This year saw a non-headline cost of £7 million (2024: £8
million cost) primarily due to restructuring costs for France and Italy offset
by a release of Germany severance costs previously recognised.
Fleet
easyJet's total fleet as at 30 September 2025 comprised 356 aircraft (30
September 2024: 347 aircraft). The increase was driven by the acquisition of 9
new A320neo family aircraft.
No aircraft exited the fleet during the year. In the coming years, easyJet
plans to retire older, less efficient aircraft, allowing the business to
benefit from the A320neo family aircraft which have superior fuel efficiency
and a greater number of seats, generating efficiency savings across many cost
line items.
easyJet already has 94 A320neo family aircraft within its fleet. It also has
an existing order book with Airbus to FY34 for a further 290 A320neo family
aircraft which are still to be delivered alongside 100 purchase rights. This
provides easyJet with the ability to complete its fleet replacement programme
of A319 aircraft and replace approximately half of the A320ceo aircraft,
alongside providing the foundation for disciplined growth.
The average age of the fleet increased to 10.9 years (30 September 2024: 10.2
years). The average gauge of the fleet is currently 181.3 seats per aircraft
(30 September 2024: 180.7 seats). Fleet as at 30 September 2025:
Owned Leased Total % of fleet Changes since Sep-24 Firm
Orders
A319 18 64 82 23% - -
A320 107 73 180 51% - -
A320neo 70 5 75 21% 6 125(a)
A321neo 10 9 19 5% 3 165(a)
205 151 356 9 290
Percentage of total fleet 58% 42%
Percentage of total NEO sub-fleet 85% 15%
a) easyJet retains the option to alter the aircraft type of future
deliveries, subject to providing sufficient notification to the OEM.
Our flexible fleet plan allows us to expand or contract the size of the fleet
depending on the demand outlook. easyJet retains the ability to utilise its
existing fleet of A319 aircraft to maintain its base fleet plan despite FY26 -
FY28 deliveries being reduced.
Number of aircraft FY25 FY26 FY27 FY28
Current fleet plan 356 370 381 395
New aircraft deliveries 9 17 30 43
Retirements - 3 19 29
Gross capital expenditure (£'m) c.1,300 c.1,700 c.2,300 c.3,300
FY25 excludes three wet lease aircraft from the Lufthansa Group. This
agreement is part of easyJet being the slot remedy taker at Milan Linate &
Rome Fiumicino.
Capex is comprised of new fleet delivery payments, maintenance related
expenditure, lease payments and other capital expenditure such as IT
development.
Strategy
easyJet's purpose is to make low-cost travel easy. Our strategy is built
around four key priorities that leverage our structural benefits in the
European aviation market. These strategic initiatives guide easyJet towards
its goal of becoming Europe's most loved airline, delivering value for our
customers, shareholders, and people. The details of our strategic priorities
are as follows:
· Building Europe's best network
· Strengthening revenue
· Delivering ease and reliability
· Driving our low-cost model
Building Europe's best network
easyJet has a strong network of leading number one and number two positions in
primary airports, which has proven to be the most appealing to customers and
therefore amongst the highest yielding in the market. This enables us to be
efficient with our network choices, with an emphasis on maximising returns.
easyJet continues to optimise its network to ensure capacity is deployed in
the markets where we see the strongest demand and returns. This year, we made
important capacity investments into longer leisure and city routes and opened
strategic new bases at Milan Linate, Rome Fiumicino and London Southend. Our
focus on capital discipline resulted in the closing of two underperforming
bases, Toulouse and Venice, reallocating those aircraft, and new aircraft
deliveries to bases already delivering top quartile returns.
As a result of this, easyJet saw FY25 ASK capacity increase by 9% with
increased capacity into longer leisure destinations, reflected through the
average sector length increase of 6%.
From our bases, we launched 206 new routes for the financial year, including
winter sun destinations such as Luxor and Cape Verde as well as continuing to
restore our city offering across Europe as demand builds for these routes. As
part of our continued focus on capital allocation, we also stopped 76 routes
in the year.
Our focused network strategy can be summarised as follows:
1. Lead in our Core Markets
easyJet prioritises slot-constrained airports as these are where customers
want to fly to and from and as a result have superior demand and yield
characteristics. In our core markets, we are able to achieve cost leadership
and preserve scale. We provide a balanced network portfolio across domestic,
city and beach destinations. Our scale enables us to provide a market leading
network and schedule.
2. Investment in Destination Leaders
We will build on our existing leading positions in Western Europe's top
leisure destinations to provide network breadth and flexibility. This will
also unlock cost benefits, enabling us to manage seasonality and support the
growth of easyJet holidays. It also ensures that easyJet remains top of mind
for customers and is seen as the 'local airline' for governments and
hoteliers.
3. Build our network in Focus Cities
easyJet is building a network of key cities, broadening our presence across
Europe. This is a low-risk way of serving large origin markets. We will base
assets in focus cities where it makes sense from a cost perspective.
Strengthening revenue
easyJet recognises that the continued evolution of our product portfolio
represents a significant opportunity to better meet our customers preferences
and build on spend per passenger, whilst delivering enhanced sustainable
returns.
Airline:
The airline has a program of continuous improvement to optimise ticket and
ancillary revenue. Our fully owned app allows easyJet to further enhance our
popular customer app at speed. Alongside this, easyJet's inflight retail
proposition has seen profit per seat increase by 7% compared to the equivalent
period in 2024.
easyJet holidays:
easyJet holidays continued its expansion with 20% customer growth in the year
and 32% profit growth to £250 million and has taken its UK market share from
7% to 10%. This strong performance has meant that the business has met the
medium-term target of over £250 million PBT and has therefore set a new
target of £450 million by FY30. This growth is being delivered alongside
strong customer satisfaction scores of 83%.
As the holidays business moves into the next phase of growth, targeted
investments will be made to strengthen the customer base as we increase the
attachment rate on both beach and city destinations. The business continues to
expand its brand awareness through accessing new customers via other channels
such as our partnership with Tesco Clubcard and the launch of the new luxury
proposition in October 2025.
Our multi-currency technology platform enables expansion into other source
markets, as demonstrated through the existing source markets of UK,
Switzerland, France and Germany.
Delivering ease and reliability
easyJet has a loyal customer base, with 71% of seats booked by returning
customers. Customer satisfaction of 80% improved by 4 percentage points YoY,
the highest score in a decade. There were improvements across all touch points
including "at airport" scores as a result of our re-launched customer service
training and the addition of targeted on the ground support at our largest
airports. Our focus is to provide our customers with the warmest welcome in
travel.
We have continued to invest in building resilience into our network. This
includes a core focus on our on-time performance, ensuring standard aircraft
turn times are met regardless of external delays, in order to further reduce
disruption events. As a result of recent investments, we have seen a 4 minute
improvement (+9% YoY) in our average turn time over peak summer operations. In
addition to this, we are using data and automation to provide a better service
to our customers. For example, we continue to use SkySYM to simulate the
network and pro-actively mitigate pinch points where there is a heightened
risk of delays. As a result of easyJet's targeted resilience actions, we have
seen OTP improve 3 percentage points year on year despite the poor ATC
performance, particularly across France.
easyJet aims to deliver a seamless and digitally enabled customer journey at
every stage and is continuously working to enhance the customer experience.
The focus areas to deliver ease in the customer experience are:
· Communications: providing helpful and timely information flows and
creating cohesion across the end-to-end experience. Use of technology and data
to provide real-time information via the app, improve levels of first-time
query resolution, productivity and customer satisfaction.
· Airport journey: improving the airport experience by optimising core
processes including boarding and bag drop, adding home and locked screen
notifications in the app as well as providing real-time information available
to ground staff.
· Inflight offering: creating a more personalised service through
product offerings and enhancing the current crew's engagement.
· Disruption management: focusing on resilience measures to minimise
disruption events alongside simplifying processes and a new automated service
recovery.
· Enabled front line staff: ensuring staff have timely operational
information to better serve customers.
Driving our low-cost model
easyJet has a cost advantage over its major competitors on the primary network
that it operates. Alongside cost actions, easyJet is focused on margin through
its network optimisation, effective pricing management and ancillaries driving
higher yields.
Our focus on increased winter productivity and utilisation alongside lower
disruption costs over the whole year more than offset market-wide inflationary
cost pressure in FY25. This alongside the natural efficiencies from our
increased average sector length, resulted in a 1% year on year reduction of
non-fuel unit costs.
Maintaining our cost discipline is a core focus, with cost benefits delivered
from many initiatives across the business, including:
· Insourcing a proportion of our line maintenance and c.25% of heavy
maintenance through our Malta facility enables easyJet to have greater control
over maintenance, reducing costs incurred and improving the efficiency and
quality of maintenance fulfilled.
· Operational performance delivery as demonstrated by our on-time
performance has resulted in significant disruption cost savings.
· Increasing automation of self-service management: increasing
digitalisation of customer flows and reducing the need for contact centre
support.
· Continued enhancement to our use of data and automation to drive
efficiencies across the business.
· Upgauging of the fleet: efficiency benefits will be unlocked as A319s
leave the fleet, being replaced by A320neo family aircraft. This will enable
us to unlock efficiency benefits, increasing the average gauge from 181 to the
low 190s by FY28 and the low 200s by FY34. The increased mix of NEO aircraft
will see additional fuel and airport incentive benefits as easyJet's remaining
order book of 290 A320neo family aircraft enter the fleet.
Our People
easyJet continues to have a market-leading reputation as an employer of
choice, as evidenced by both easyJet and easyJet holidays being named as a
'best place to work' by Glassdoor and The Sunday Times respectively. Our
people are a key source of differentiation, and this helps to deliver
excellent customer experience and loyalty. As we journey towards our
destination to be Europe's most loved airline, for our people this means being
in a place to work that is loved, where diversity can thrive, learning is
encouraged and you can perform at your best and grow your career.
This year we have awarded £15 million of performance shares to all employees
employed on or before 1 July 2024, helping to retain talent and ensuring
employees are invested in our future.
OUR FINANCIAL RESULTS
Strong earnings growth alongside a further strengthened balance sheet, with
further capacity investments driving increased asset utilisation and
productivity, mitigating the continued market wide cost inflationary
pressures.
Overview
Total headline earnings before interest and taxes (EBIT) amounted to £703
million, an improvement of £106 million year on year (+18%) with both the
airline (+£50 million) and easyJet holidays (+£56 million) going forward.
Total headline profit before tax for the year ended 30 September 2025 was
£665 million, an improvement of £55 million (9%) on the year ended 30
September 2024 equivalent profit of £610 million. Within the year the airline
delivered a headline profit before tax of £415 million (2024: £420 million),
broadly flat year on year as strategic investments will see revenue maturity
over the coming years as they embed themselves into our route network. easyJet
holidays contributed £250 million to the Group profit before tax, £60
million ahead of the previous year (2024: £190 million), delivering its
mid-term target ahead of schedule. Total revenue reached £10,106 million,
£797 million (9%) greater than the prior year (2024: £9,309 million).
2025 saw a further expansion in fleet size with the addition of nine new
A320neo aircraft which were deployed across our stronger performing bases as
well as to the opening of new bases in Milan Linate, Rome Fiumicino and London
Southend. Serving the 1,202 routes in the easyJet network, our aircraft
allocation enabled capacity growth of 4% to 104.0 million seats (2024: 100.4
million). With a load factor of 90% (2024: 89%), this translated into 93.4
million passengers carried (2024: 89.7 million), an increase of 4% on the
prior year. The additional capacity deployment was primarily focused on city,
beach and non-EU destinations, resulting in total available seat kilometres
(ASK) increasing by 9% to 134,451 million (2024: 122,885 million) and the
average sector length rising 6% to 1,293 kilometres (2024: 1,223 kilometres).
This strategic shift towards longer sectors naturally resulted in some revenue
dilution with the corresponding efficiencies seen within cost. Alongside the
investment into capacity growth through winter (H1 2025) where ASKs increased
by 12% and airline revenue per available seat kilometre (RASK) reduced 6% year
on year, this resulted in full year RASK seeing a 3% decline to 6.45 pence
(2024: 6.65 pence).
The entire industry continued to see inflationary pressures across the cost
base including the introduction of SAF mandates from January 2025, reduced
no-cost ETS allowances, and continued inflation across navigation costs, raw
materials, airport charges, maintenance and wages. Nonetheless, management
retained focus on improving operational efficiency and customer ease by
increasing punctuality, with on-time performance improving significantly
during the year. This was achieved through proactive resilience measures,
including increased crewing levels (especially in the busy summer period),
renewed focus on aircraft turnaround times and the use of simulation to
proactively adjust our schedule, resulting in a material reduction in
disruption compensation and welfare expenses. Combined with continued
attention to cost and fleet efficiency, easyJet's airline headline cost per
available seat kilometre (CASK) excluding fuel of 4.46 pence reduced by 1%
compared to the prior year (2024: 4.50 pence). Total CASK of 6.14 pence was a
reduction of 3% compared to the previous year (2024: 6.31 pence).
easyJet holidays had 3.1 million customers in the year, including agent
commission customers (2024: 2.6 million), a total increase of 20%, with an
expanded hotel range and growth in UK market share supporting a revenue
outcome of £1,440 million (2024: £1,137 million) and £250 million profit
before tax (2024: £190 million).
With the Group's headline profit before tax performance improving by £55
million compared to the previous year, and easyJet holidays seeing headline
profit before tax growth of £60 million, this has meant the airline's
headline profit before tax remained broadly flat (a marginal decline of £5
million) compared to the previous year. The airline profit before tax
performance, particularly over winter, has been more challenging to improve at
the rate we originally anticipated, due to the pace of route maturity and the
wider geopolitical, macroeconomic and competitive environment in specific
markets. Alongside this, the airline invested £20 million during the year due
to the launch of new base openings in Milan and Rome which are in the early
stages of maturity.
Looking at the first half of the financial year, easyJet saw a slight
improvement on prior year when adjusting for the timing of Easter. Reported
headline loss before tax reached £394 million for the six months ended 31
March 2025 against a loss of £350 million for the comparative period. easyJet
holidays H1 headline profit before tax of £44 million was an increase of £13
million compared to the previous year (H1 2024: £31 million).
The first half of the year was characterised by important capacity investments
into longer leisure destinations on top of additional city destinations. This
investment provides a starting point for crew and asset productivity increases
and a platform to structurally reduce winter losses in the medium term. ASKs
grew 12% to 55,570 million (H1 2024: 49,421 million) and led to first-half
revenue of £3,534 million (H1 2024: £3,268 million), an increase of 8%.
However, RASK of 5.64 pence was down 6% compared to the previous year (H1
2024: 5.98 pence) as a result of the timing of Easter, and the investment into
longer sectors. Fuel prices remained lower than H1 2024 and, aided by
easyJet's hedging policy, fuel costs on an ASK basis reduced by 8% to 1.71
pence (H1 2024: 1.85 pence). This was despite pressures from reducing ETS
no-cost credit allowances, the introduction of SAF mandates and a catch-up in
costs associated with an expansion of the scope of the EU-ETS scheme.
Increased crew and asset productivity, alongside the natural efficiencies from
an increased average sector length, saw CASK excluding fuel reduce by 4% to
4.72 pence (H1 2024: 4.90 pence).
The second half of the financial year delivered a headline profit before tax
of £1,059 million (H2 2024: £960 million). easyJet holidays headline profit
before tax of £206 million was an increase of £47 million (H2 2024: £159
million).
The second half period saw a more moderate capacity growth of 2%, with sector
length growing by 6%, resulting in ASK growth of 7%. Despite the continued
investment into longer sectors, H2 saw a limited RASK reduction of 1% to 7.01
pence (H2 2024: 7.10 pence), and airline revenue of £5,532 million was a 6%
improvement over the same period last year (H2 2024: £5,215 million).
Market-wide inflationary pressure across the airline cost base was a continual
challenge, but with efficiencies from improved operational performance and
falling fuel prices, this was largely mitigated. H2 CASK excluding fuel
increased by 1% to 4.28 pence compared to the prior period (H2 2024: 4.23
pence). H2 total CASK of 5.93 pence was a reduction of 1% compared to the
prior period (H2 2024: 6.01 pence).
Taken together, the full year saw a headline EBIT achievement of £703
million, an 18% improvement on the prior year (2024: £597 million),
representing a year-on-year uplift of £50 million for the airline and £56
million for easyJet holidays.
Airline net financing charges increased due to reduced interest income from
lower market interest rates on our cash and an increase in interest charges
relating to borrowings. This was driven by the annualisation of interest
charges on the €850 million Eurobond issued in March 2024, and the
settlement of the €500 million June 2019 Eurobond which had a lower interest
rate payable than the cash deposits used to repay it.
On a statutory level, profit before tax amounted to £658 million, £56
million higher than the previous year (2024: £602 million).
Building on this profit growth, easyJet continues to have one of the strongest
investment grade balance sheets in European Aviation (Baa2/stable from Moody's
and BBB+/stable from Standard & Poor's). In the year, easyJet repaid a
€500 million Eurobond, and secured a $1.7 billion revolving credit facility
(RCF) which is undrawn at 30 September 2025 (this new RCF replaced an existing
$400 million RCF and a $1,750 million UKEF backed facility which were both
cancelled at the same time the new facility commenced). At 30 September 2025,
easyJet had a net cash position of £602 million (2024: £181 million) and as
a result of our strong balance sheet position and EBIT performance, the
year-end headline ROCE of 18.0% (2024: 16.1%) achieved our target of
delivering high teen returns on capital employed.
Over the course of the year, easyJet took delivery of nine new A320 family
aircraft, all being taken into ownership through free cash generation. We were
also presented with the opportunity to repurchase eight leased A320 family
aircraft, taking them back into ownership, further strengthening our owned
assets position. This action will deliver structural cost efficiencies going
forwards through reduced ownership costs. A non-cash accounting release of net
£54 million in FY25 resulted from the lease repurchase. This one-off benefit
is partially offset in the year-on-year comparison when taking into account
other one-off items and balance sheet revaluations.
Where amounts are presented at constant currency these values are an
alternative performance measure (APM) and are not determined in accordance
with International Financial Reporting Standards (IFRS) but provide relevant
and comparative reporting for readers of these financial statements.
Definitions of APMs and reconciliations to IFRS measures are set out in the
Glossary on pages 191 and 192.
Performance summary
£ million (reported) 2025 2024
Total revenue 10,106 9,309
Headline costs excluding fuel, balance sheet FX and ownership costs(1) (6,407) (5,719)
Fuel (2,253) (2,223)
Headline EBITDA 1,446 1,367
Depreciation and amortisation (743) (770)
Headline EBIT 703 597
Net finance (charges)/income (26) 9
Foreign exchange (loss)/gain (12) 4
Total headline profit before tax 665 610
Being:
Airline headline profit before tax 415 420
easyJet holidays headline profit before tax 250 190
Total headline profit before tax per seat £6.39 £6.08
pence per ASK (available seat kilometre) - Airline only (2) 2025 2024
Airline revenue 6.45 6.65
Headline costs excluding fuel, balance sheet FX and ownership costs(1) (3.87) (3.87)
Fuel (1.68) (1.81)
Headline EBITDA 0.90 0.97
Depreciation and amortisation (0.54) (0.62)
Headline EBIT 0.36 0.35
Net finance charges (0.05) (0.01)
Foreign exchange (loss)/gain (0.00) 0.00
Airline headline profit before tax 0.31 0.34
1) Ownership costs are defined as depreciation and amortisation plus
net finance income/(charges).
2) per ASK metrics are for the airline business only and correlate to
the airline revenue and costs and the available seat kilometres flown by the
airline. Both airline and easyJet holidays profit is included in the total
headline loss per seat metric, and easyJet holidays' key metrics are included
in the key statistics section of this document.
Total revenue increased by 9% to £10,106 million (2024: £9,309 million),
however with a shift to longer sectors, airline RASK of 6.45 pence was a
decrease of 3% on the prior year (2024: 6.65 pence). The airline performance
was complemented by strong easyJet holidays delivery, with net revenue (i.e.
excluding flight revenue which is reported under airline revenue) of £1,440
million (2024: £1,137 million), an increase of 27%.
Total headline costs excluding fuel increased by 11% to £7,188 million (2024:
£6,476 million), driven by the volume of flying, an increase in sector
length, the growth of easyJet holidays and general market-wide cost pressures.
Costs were also impacted by the disruption seen throughout the year with £109
million of EU261 compensation and welfare costs incurred, although this was
lower than the previous year (2024: £187 million), noting that part of the
reduction is linked to the release of a customer liability of £24 million
(2024: £5 million). Additionally, depreciation and other costs benefit from a
net £54 million credit (2024: £nil) following the early exit of eight
aircraft leases and the subsequent purchase of the aircraft. On a CASK basis
total airline headline costs excluding fuel reduced by 1% to 4.46 pence (2024:
4.50 pence), with CASK benefiting from fixed operating costs being spread
across greater ASKs.
Total fuel costs increased by 1% to £2,253 million for the year (2024:
£2,223 million), which on an airline CASK basis represented a 7% decrease to
1.68 pence (2024: 1.81 pence). Jet fuel price was down on average across the
year by 18%, and this was particularly prevalent in H1 where fuel prices were
down on average 23% compared to the previous year.
Exchange rate movements stabilised in the year, and with the benefit of FX
hedging, resulted in a net credit impact of £54 million (2024: £18 million)
across costs and revenue, with an income statement debit of £12 million
(2024: £4 million credit) from the translation of foreign currency
denominated monetary assets and liabilities on the statement of financial
position. On a constant currency basis, the increase in headline profit before
tax compared to the prior year was £14 million, compared to the £55 million
increase in the reported figures.
easyJet's investments continued to benefit from relatively high interest
rates, although lower than FY24, and overall financing activity in the year
resulted in a net £26 million finance charge (2024: £9 million net credit).
easyJet holidays contributed £250 million of headline profit before tax
(2024: £190 million), an increase of 32%, reflecting the 20% increase in
total easyJet holidays customers and the strength of the business model.
A non-headline charge of £7 million (2024: £8 million) was recognised in the
year, with additional costs for the network restructuring activity in France
and Italy offset by a release of costs previously provided for severance cases
in Germany which were settled in the year.
Corporation tax has been recognised at an effective rate of 24.9% (2024:
24.9%), resulting in an overall tax charge of £164 million (2024: £150
million). This is a tax charge of £166 million on headline items offset by a
£2 million tax credit on the non-headline items.
Total headline profit before tax per seat was £6.39, 5% ahead of the previous
year (2024: £6.08).
Earnings per share
2025 2024
Pence per share Pence per share Change in pence per share
Basic headline earnings per share 66.4 61.3 5.1
Basic earnings per share 65.8 60.3 5.5
Basic headline earnings per share increased by 5.1 pence and basic earnings
per share increased by 5.5 pence over the prior financial year as a
consequence of the greater profit generated in the current financial year.
Return on capital employed (ROCE)
Reported £ million 2025 2024
Headline operating profit 703 597
UK corporation tax rate 25% 25%
Normalised headline operating profit after tax (NOPAT) 527 448
Average shareholders' equity (excluding the hedging and cost of hedging 3,322 2,897
reserves)
Average net cash (392) (111)
Average capital employed 2,930 2,786
Headline return on capital employed 18.0% 16.1%
Total return on capital employed 17.8% 15.9%
( )
ROCE is calculated by taking headline profit before interest, foreign exchange
(loss)/gain and tax, applying tax at the prevailing UK corporation tax rate at
the end of the financial year, and dividing by average capital employed.
Capital employed is defined as shareholders' equity excluding hedging and cost
of hedging reserves less net (cash)/debt.
Headline ROCE for the year of 18.0% is an improvement on the prior year (2024:
16.1%). This reflects the higher headline profit for the year combined with
the increase in the net cash position. Total ROCE of 17.8% (2024: 15.9%) is
reduced by the non-headline charge in the year, which is broadly aligned to
the 2024 non-headline charge.
Summary net cash reconciliation
The below table presents cash flows on a net cash basis. This presentation is
different to the presentation of the statement of cash flows in the
consolidated financial statements as it includes non-cash movements on debt
facilities.
2025 2024 Change
£ million £ million £ million
Operating profit 696 589 107
Net tax paid (12) (8) (4)
Net working capital movement excluding unearned revenue (34) (174) 140
Unearned revenue movement 209 240 (31)
Depreciation and amortisation 743 770 (27)
Net capital expenditure (1,001) (929) (72)
Acquisition of subsidiary, net of cash acquired - (22) 22
Net proceeds from sale and leaseback of aircraft - 114 (114)
Increase in lease liability (99) (497) 398
Purchase of own shares for employee share schemes (48) (18) (30)
Ordinary dividends paid (91) (34) (57)
Other (including the effect of exchange rate movements) 58 109 (51)
Net increase in net cash 421 140 281
Net cash at the beginning of the year 181 41 140
Net cash at the end of the year 602 181 421
Net cash as at 30 September 2025 was £602 million (30 September 2024: £181
million) and comprised cash, cash equivalents and other investments of £3,528
million (30 September 2024: £3,461 million), borrowings of £1,881 million
(30 September 2024: £2,106 million) and lease liabilities of £1,045 million
(30 September 2024: £1,174 million).
Net working capital outflow, excluding unearned revenue, moved £34 million in
the year (2024: £174 million) with a marginal increase in trade receivables
and a decrease in the derivative financial instruments liability, partially
offset by a reduced value of ETS allowances held at the year end.
The unearned revenue movement of £209 million (2024: £240 million) reflects
capacity on sale at the year end, including the benefit of the continued
growth of easyJet holidays which traditionally has a longer booking period
compared to the airline.
The decrease in depreciation and amortisation to £743 million (2024: £770
million) includes additional depreciation from the growth of the fleet and the
increase in leased aircraft maintenance costs, recognised through
depreciation, with the rise in flying volumes and changes in the profile of
leased aircraft assets through the year. Intangible asset amortisation has
also increased with additional investment in technology assets. This increase
has been offset by a £60 million release from the leased aircraft maintenance
provision following the early exit of eight aircraft leases (with the aircraft
being subsequently brought into ownership).
Net capital expenditure in the year of £1,001 million (2024: £929 million)
reflects the continued investment in fleet renewal and growth in the overall
size of the fleet, alongside pre-delivery payments against our future order
book. The expenditure is across nine new aircraft (2024: sixteen), eight
leased aircraft brought back into ownership (2024: nil), maintenance
additions, pre-delivery payments and capital expenditure on long life parts,
engines and aircraft spares. Additionally, spend on easyJet's digital
infrastructure and customer facing platforms continues with significant
intangible asset investment.
The net £58 million movement (2024: £109 million) in 'Other' is
predominantly made up by foreign exchange impacts, costs associated with
employee share schemes, and net losses on sale of property, plant and
equipment.
Exchange rates
The proportion of revenue and headline costs denominated in currencies other
than sterling is outlined below alongside the exchange rates in the year:
Revenue Headline costs
2025 2024 2025 2024
Sterling 56% 55% 32% 34%
Euro 34% 35% 39% 36%
US dollar(1) 1% 1% 24% 25%
Swiss franc 8% 8% 5% 4%
Other 1% 1% 0% 1%
Average headline exchange rates(2) 2025 2024
Euro - revenue €1.18 €1.16
Euro - costs €1.18 €1.17
US dollar $1.29 $1.24
Swiss franc CHF 1.10 CHF 1.10
Closing exchange rates 2025 2024
Euro €1.15 €1.20
US dollar $1.35 $1.34
Swiss franc CHF 1.07 CHF 1.13
1) Our customers have the option of paying for flights in US dollars.
2) Exchange rates quoted are post-hedging applied to revenue and
headline costs.
Headline exchange rate impact
Swiss franc
Euro US dollar Other Total
Favourable/(adverse) £ million £ million £ million £ million £ million
Total revenue (56) 6 (1) (1) (52)
Fuel 1 - 64 - 65
Headline costs excluding fuel 36 (5) 10 (0) 41
Headline total before tax(1) (19) 1 73 (1) 54
1) Excludes the impact of balance sheet translation.
easyJet's Foreign Currency Risk Management policy aims to reduce the impact of
fluctuations in exchange rates on future cash flows. Refer to the notes to the
financial statements for more details.
As a European carrier, easyJet recognises a significant element of revenue,
34%, across its network in euros. Therefore, the strengthening of sterling
against the euro on average over the year, when compared to the prior year,
has reduced the value of the revenue translated into sterling. The euro
exchange rate impact in revenue has been partially offset by the converse
impact on costs, with the stronger average sterling rate to euro compared to
the prior year reducing costs translated from euros. Along with the
strengthening of sterling against the US dollar, which has reduced translated
costs, particularly across fuel and maintenance, there is a favourable foreign
currency impact of £54 million across the consolidated income statement.
The impact on the income statement from the functional currency translation of
foreign currency monetary assets and liabilities was a £12 million loss in
the year (2024: £4 million gain).
FINANCIAL PERFORMANCE
Revenue
£ million 2025 2024
Passenger revenue 6,072 5,715
Ancillary revenue 2,594 2,457
easyJet holidays revenue (1) 1,440 1,137
Total revenue 10,106 9,309
1) easyJet holidays numbers are after the elimination of intercompany
airline transactions.
Total revenue increased by 9% to £10,106 million (2024: £9,309 million).
Revenue performance in the year was supported by ASK growth, through a
function of increased capacity and sector length, with a focus on growing
city, beach and non-EU routes. Whilst this delivered positive revenue growth,
natural sector length dilution in addition to a challenging competitive
environment on some routes through winter where easyJet, alongside other
carriers, simultaneously sought to reallocate capacity originally planned to
operate into Tel Aviv, resulted in a 3% decrease in airline RASK to 6.45 pence
(2024: 6.65 pence). Passenger RASK was 3% behind and ancillary RASK 4% behind
prior year. The total number of passengers carried in the year increased by 4%
to 93.4 million (2024: 89.7 million), supported by additional capacity with a
4% increase in seats flown to 104.0 million seats (2024: 100.4 million seats).
A focus on longer sectors, with average sector length increasing by 6% to
1,293 kilometres (2024: 1,223 kilometres), delivered an ASK growth of 9%.
Airline ancillary revenue of £2,594 million was 6% ahead of the previous
financial year (2024: £2,457 million) as a result of higher passenger
numbers. Whilst ancillary RASK was 4% back on prior year, ancillary revenue
per seat was ahead 2%. Our inflight retail offer continues to grow in
popularity as menu choices and product ranges evolve, resulting in an improved
profit per seat of 7% to £0.73 (2024: £0.68), delivering additional revenue
of £8 million.
Before adjusting for flight revenue, easyJet holidays customers generated
revenue of £1,917 million, a 26% growth on 2024 revenue of £1,521 million.
Net of flight revenue, easyJet holidays revenue of £1,440 million was an
increase of 27% (2024: £1,137 million), reflecting the growth in customer
volumes and the success in increasing our share of the UK package holiday
market, with an expanded hotel range and the promotion of new city
destinations.
As in the prior year, within revenue there was a £19 million credit (2024:
£47 million) arising from the release of aged contract liabilities within
other payables, with £12 million recognised in passenger revenue and £7
million in ancillary revenue.
Headline costs excluding fuel
2025 2024
Total Airline Total Airline
£ million pence per ASK £ million pence per ASK
Operating costs and income
Airports and ground handling 2,161 1.60 1,989 1.62
Crew 1,198 0.89 1,074 0.87
Navigation 533 0.40 463 0.38
Maintenance 451 0.34 390 0.32
easyJet holidays direct operating costs(1) 1,072 - 840 -
Selling and marketing 273 0.16 257 0.16
Other costs 754 0.51 758 0.56
Other income (35) (0.03) (52) (0.04)
6,407 3.87 5,719 3.87
Ownership costs
Depreciation 679 0.50 727 0.59
Amortisation 64 0.04 43 0.03
Net interest and other financing income and charges 26 0.05 (9) 0.01
769 0.59 761 0.63
Foreign exchange loss/(gain) 12 0.00 (4) 0.00
781 0.59 757 0.63
Headline costs excluding fuel 7,188 4.46 6,476 4.50
1) Excluding flight costs
Headline CASK excluding fuel for the airline decreased by 1% to 4.46 pence
(2024: 4.50p). Although many cost lines increased in absolute terms in the
year, the additional seat kilometres flown across the expanded network were
delivered at a proportionally lower cost, driving a unit CASK benefit.
Included within the total headline costs excluding fuel of £7,188 million is
£1,190 million (2024: £947 million) related to the easyJet holidays
business, the cost increase being due to the growth of the business.
Headline operating costs and income
Airports and ground handling operating costs increased by 9% to £2,161
million (2024: £1,989 million), a reduction of 1% to 1.60 pence (2024: 1.62
pence) on an airline CASK basis. With a network of largely slot-constrained
and regulated primary airports, easyJet is subject to regulatory price
increases with labour costs in the general market also contributing to overall
cost increases. However, on a CASK basis, these cost increases were offset by
an increase in available seat kilometres.
Crew costs increased by 12% to £1,198 million (2024: £1,074 million), an
increase of 2% to 0.89 pence (2024: 0.87 pence) on an airline CASK basis,
reflecting the allocation of the fixed element of crew costs over a higher ASK
base. Higher costs in the period reflect industry wide pressures on wages,
alongside the additional crew requirements for increased capacity and longer
sector lengths, and an investment in resilience measures to mitigate the
challenging operating environment across European airspace. Whilst crew
productivity improved over winter, the resilience measures in place to support
operational performance limited the ability to drive summer crew productivity,
although overall productivity improved by 3% over the full year.
Navigation costs increased by 15% to £533 million (2024: £463 million) as a
result of both Eurocontrol rate increases and longer sectors flown. This was a
rise of 5% to 0.40 pence (2024: 0.38 pence) on an airline CASK basis.
easyJet holidays direct operating costs (excluding flights) increased to
£1,072 million driven by the 27% growth in revenue during the year. The
business continues to scale efficiently and explore ways to maintain its low
fixed-cost base through digital initiatives and developments.
Maintenance costs increased by 16% to £451 million (2024: £390 million), an
airline CASK increase of 6% to 0.34 pence (2024: 0.32 pence). The overall cost
increase was the outcome of a higher number of aircraft maintenance events in
this reporting period, and an increased average cost due to an ageing fleet
combined with general cost pressures in the wider operating environment linked
to inflation and supply chain challenges.
Selling and marketing costs increased by 6% to £273 million (2024: £257
million). Whilst marketing costs saw an increase to support the growth of the
easyJet holidays business in the summer, airline marketing costs grew in line
with ASK growth, with CASK of 0.16 pence (2024: 0.16 pence), flat against the
prior year.
Total other costs decreased by 1% to £754 million (2024: £758 million),
which for the airline was a reduction of 9% to 0.51 pence (2024: 0.56 pence)
on a CASK basis. Other costs include the impact of the disruption experienced
in the year, with net £109 million disruption compensation and welfare costs
incurred (2024: £187 million). The operational focus in the year which
delivered an improved on-time performance has positively reduced delays and
cancellation events (for which easyJet is accountable) and as a result,
disruption compensation and welfare costs have reduced. The reduction in
compensation costs compared to the prior year includes a £24 million release
(2024: £5 million) of a liability held for prior years' disruption costs
where customer compensation claims were lower than our initial estimations.
The other cost line also includes central employee costs and benefits, with
headcount costs increasing as the business grows, and within this cost line
net £6 million additional costs (2024: £nil) were incurred from
extinguishing the leases for eight aircraft that were brought into ownership.
Additionally, IT costs increased year on year with easyJet's continued
investment in technology including infrastructure, data management and
customer-facing system enhancements. Increases in easyJet holidays' fixed
costs reflected growth in the segment.
Other income of £35 million was a decrease of £17 million from the prior
year (2024: £52 million) and comprised income from a variety of non-revenue
sources including dividend income and supplier compensation.
Headline ownership costs
Depreciation costs reduced by 7% to £679 million (2024: £727 million), a 15%
decrease to 0.50 pence (2024: 0.59 pence) on a CASK basis. Nine new aircraft
were delivered in the year and there were further lease extensions entered
into to mitigate Airbus delivery delays, increasing depreciation. This
increase was offset by a £60 million credit (2024: £nil) from the release of
maintenance provision reserves for eight previously leased aircraft which were
brought back into ownership in the year.
The increase in amortisation costs of 49% to £64 million (2024: £43 million)
reflects easyJet's investment in technology in recent years, with continued
enhancement to customer-facing platforms in addition to commercial
infrastructure and the evolution of data insight and digital security
technology. On an airline CASK basis, the 0.04 pence measure is a 33% increase
on the prior year (2024: 0.03 pence).
Net interest and other financing income and charges were a £26 million charge
(2024: £9 million net income) reflecting reducing interest income due to
reducing market interest rates, an increase in interest charges relating to
financing activity on Eurobonds, increasing interest payments of lease
liabilities, and the unwind of discounting on longer-term provisions.
Foreign exchange losses of £12 million in the year (2024: £4 million gain)
were minimal, being the output of the retranslation of foreign currency
denominated monetary assets and liabilities arising from currency movements in
the year, notably tempered by the benefits of FX hedging and natural hedging
across the statement of financial position.
Fuel
2025 2024
Airline Airline
Total pence per ASK Total pence per ASK
£ million £ million
Fuel 2,253 1.68 2,223 1.81
Fuel costs for the year increased by 1% to £2,253 million (2024: £2,223
million), a 7% reduction on a CASK basis to 1.68 pence (2024: 1.81 pence). The
spot price of jet fuel has fluctuated between $622 and $843 per metric tonne
over the financial year, and whilst overall jet fuel prices reduced in the
year, the absolute cost reflects the increased flying volume. On a per ASK
basis, alongside the reduced fuel prices, nine additional aircraft deliveries
in the year saw an increase of the more fuel-efficient NEO aircraft in the
fleet. These benefits were partially offset by a reduction in the allocation
of no-cost ETS allowances, as jurisdictions wind down the 'free' aspects of
the scheme, with easyJet therefore increasing the proportion of purchased
allowances utilised in the year, as well as the cost of responding to the
introduction of sustainable aviation fuel mandates in calendar year 2025.
Additionally within the year, a £15 million (2024: £nil) catch-up cost was
recognised for changes in ETS regulations, in particular the expansion of the
scope of flights covered by the scheme, and also to reflect an increase in
published growth factor estimates for the CORSIA (Carbon Offsetting and
Reduction Scheme for International Aviation) scheme.
easyJet uses jet fuel derivatives to hedge against increases in jet fuel
prices in order to mitigate cash and income statement volatility. To manage
the risk exposure, jet fuel derivative contracts are used in line with the
Board-approved policy to hedge up to 24 months of forecast exposures. During
the financial year, the average market price payable for jet fuel reduced by
18% to $709 per tonne from $864 per tonne in FY24. The overall post-hedge fuel
price in the year was $761 per tonne (2024: $842), a 10% reduction compared to
FY24. Approximately 79% of jet fuel was hedged in FY25.
Profit after tax
2025 2024
£ million (reported)
Headline profit before tax 665 610
Headline tax charge (166) (151)
Headline profit after tax 499 459
Non-headline items before tax (7) (8)
Non-headline tax credit 2 1
Total profit after tax 494 452
Non-headline items
A non-headline charge of £7 million (2024: £8 million) was recognised in the
year. This consists of a net £8 million additional costs of the network
restructuring exercise in Italy and France (announced in FY24), offset by a
£1 million release from the provision for the previously announced Germany
restructuring programmes following a number of settlements finalised in the
year.
Corporation tax
Corporation tax has been recognised at an effective rate of 24.9% (2024:
24.9%), resulting in an overall tax charge of £164 million (2024: £150
million). This splits into a tax charge of £166 million on the headline
profit and a tax credit of £2 million on the non-headline items.
Summary consolidated statement of financial position
2025 2024 Change
£ million £ million £ million
Goodwill and other non-current intangible assets 771 793 (22)
Property, plant and equipment 4,791 4,285 506
Right of use assets 1,015 1,190 (175)
Derivative financial instruments (46) (290) 244
Equity investment 64 51 13
Other assets (excluding cash and other investments) 1,226 1,224 2
Unearned revenue (1,950) (1,741) (209)
Trade and other payables (1,654) (1,656) 2
Other liabilities (excluding debt) (1,321) (1,064) (257)
Capital employed 2,896 2,792 104
Cash, cash equivalents and other investments(1) 3,528 3,461 67
Debt (excluding lease liabilities) (1,881) (2,106) 225
Lease liabilities (1,045) (1,174) 129
Net cash 602 181 421
Net assets 3,498 2,973 525
1) Other investments include term deposits, tri-party repos and
managed investments.
Since 30 September 2024 net assets have increased by £525 million.
The net book value of goodwill and other non-current intangible assets of
£771 million (2024: £793 million) has reduced in the year by £22 million.
This includes a reduction in non-current ETS assets of £44 million, now
recognised as current assets at 30 September 2025, offset by ongoing
investment in software development and applications of net £22 million, aimed
at enhancing digital safety and security, and optimising commercial platforms
and customer applications.
Property, plant and equipment net book value has increased by £506 million to
£4,791 million (2024: £4,285 million). The depreciation charge for the year
has been more than offset by the nine new owned aircraft brought into the
fleet in the year, alongside eight leased aircraft brought into ownership,
advanced payments on the Airbus order book and increased capitalised parts and
maintenance.
At 30 September 2025, right of use assets amounted to £1,015 million (2024:
£1,190 million) with lease liabilities of £1,045 million (2024: £1,174
million). The reduction in both the right of use asset and lease liability
balances is driven by the termination of the eight aircraft leases, as well as
a further year of depreciation and lease payments against these respective
balances with some offset from lease extensions in the year.
There has been a £244 million increase in the net asset value of derivative
financial instruments, reducing the net liability position in the year to £46
million (2024: £290 million). The movement is primarily due to an increase in
the price of jet fuel, leading to jet fuel hedges being in an asset position
compared to a liability position as at 30 September 2024. Similarly, there was
a decrease in the net liability value of currency hedges, largely driven by
sterling weakening against the euro. In addition, the settlement of the June
2019 Eurobond in the year led to the removal of a cross-currency swap
liability, contributing to cross-currency swaps being in an asset position
compared to a liability position in the prior year.
Unearned revenue increased by £209 million to £1,950 million (2024: £1,741
million), reflecting increased capacity on sale and the growth of easyJet
holidays.
Other liabilities (excluding debt) amounted to £1,321 million at 30 September
2025, an increase of £257 million (2024: £1,064 million). This movement was
primarily the result of an increase in easyJet's deferred tax liability from
profit generated in the year, along with a higher lease asset maintenance
provision linked to increased flying volumes.
Debt has reduced by a net £225 million to £1,881 million (2024: £2,106
million) with the repayment of a €500 million Eurobond in June 2025
partially offset by new borrowings from entering three aircraft into JOLCO
(Japanese Operating Lease with Call Option) financing arrangements.
Overall, easyJet's net cash position has improved to £602 million (2024:
£181 million).
KEY STATISTICS
OPERATING MEASURES
2025 2024 Increase/ (decrease)
Seats flown (millions) 104.0 100.4 4%
Passengers (millions) 93.4 89.7 4%
Load factor 89.8% 89.3% 0.5ppt
Available seat kilometres (ASK) (millions) 134,451 122,885 9%
Revenue passenger kilometres (RPK) (millions) 122,021 111,615 9%
Average sector length (kilometres) 1,293 1,223 6%
Sectors (thousands) 576 559 3%
Block hours (thousands) 1,268 1,182 7%
easyJet holidays customers (thousands) (1) 3,090 2,575 20%
Number of aircraft owned/leased at end of year 356 347 3%
Average number of aircraft owned/leased during year 354 342 4%
Average number of aircraft operated per day during year 305 291 5%
Number of routes operated in winter and summer season(2) 1,202 1,072 12%
Number of airports served in winter and summer season(2) 163 158 3%
2025 2024
FINANCIAL MEASURES
Favourable/ (adverse)
Return on capital employed 17.8% 15.9% 1.9ppt
Headline return on capital employed 18.0% 16.1% 1.9ppt
Profit before tax per ASK (pence) 0.49 0.49 0%
Profit before tax per seat (£) 6.33 6.00 6%
Headline profit before tax per ASK (pence) 0.49 0.50 (2%)
Headline profit before tax per seat (£) 6.39 6.08 5%
Airline profit before tax per ASK (pence) 0.30 0.34 (12%)
Airline profit before tax per seat (£) 3.92 4.10 (4%)
Airline headline profit before tax per ASK (pence) 0.31 0.34 (9%)
Airline headline profit before tax per seat (£) 3.99 4.18 (5%)
easyJet holidays profit before tax (£ millions) 250 190 32%
Revenue
Airline revenue per ASK (pence) 6.45 6.65 (3.0%)
Airline revenue per ASK at constant currency (pence) 6.48 6.65 (2.6%)
Airline revenue per seat (£) 83.33 81.35 2.4%
Airline revenue per seat at constant currency (£) 83.82 81.35 3.0%
Airline revenue per passenger (£) 92.75 91.11 1.8%
Airline revenue per passenger at constant currency (£) 93.31 91.11 2.4%
Costs
Per ASK measures
Airline headline cost per ASK (pence) 6.14 6.31 2.7%
Airline headline cost per ASK excluding fuel (pence) 4.46 4.50 0.9%
Airline headline cost per ASK excluding fuel at constant currency (pence) 4.47 4.50 0.7%
Per seat measures
Airline headline cost per seat (£) 79.34 77.17 (2.8%)
Airline headline cost per seat excluding fuel (£) 57.68 55.03 (4.8%)
Airline headline cost per seat excluding fuel at constant currency (£) 57.84 55.05 (5.1%)
(1) ) easyJet holidays' customer numbers excluding agency
commission customers are 2.7 million (2024: 2.3 million).
(2) ) These metrics are now presented based on the consolidated
IATA winter and summer seasons. Winter begins on the last Sunday of October
and ends on the last Saturday in March. Summer begins on the last Sunday in
March and ends on the last Saturday in October. 'Consolidated' winter plus
summer is the number of unique statistics in the combined winter and summer
season to provide an annualised view. Diversions and charter flights are
excluded. The FY2024 comparative has been restated accordingly for
comparability.
Glossary
· Airline cost per ASK (CASK) - Total airline costs divided by
available seat kilometres.
· Airline cost per seat (CPS) - Total airline costs divided by seats
flown.
· Airline cost per seat, excluding fuel (CPS ex fuel) - Total airline
costs adding back fuel costs, divided by seats flown.
· Airline revenue per ASK (RASK) - Airline revenue divided by
available seat kilometres.
· Airline revenue per RPK - Airline revenue divided by revenue
passenger kilometres.
· Airline revenue per seat (RPS) - Airline revenue divided by seats
flown.
· Attachment rate - Percentage of passengers, excluding domestics,
occupied by easyJet holidays customers.
· Available seat kilometres (ASK) - Seats flown multiplied by the
number of kilometres flown.
· EBIT- Earnings before interest and taxes.
· EBITDA - Earnings before interest, taxes, depreciation and
amortisation.
· Headline - measures of underlying performance which is not impacted
by non-headline items.
· Headline EBIT - Earnings before non-headline items, interest and
taxes.
· Load factor - Number of passengers as a percentage of number of
seats flown. The load factor is not weighted for the effect of varying sector
lengths.
· Net cash/(debt) - Total cash less borrowings and lease liabilities;
cash includes money market deposits and other cash investments but excludes
restricted cash.
· Non-headline items - Non-headline items are those where, in
management's opinion, their separate reporting provides an additional
understanding to users of the financial statements of easyJet's underlying
trading performance, and which are significant by virtue of their size/nature.
· Passengers - Number of earned seats flown. Earned seats comprises
seats sold to passengers (including no-shows), seats provided for promotional
purposes and seats provided to staff for business travel.
· Revenue - The sum of passenger revenue and ancillary revenue,
including package holiday revenue.
· Revenue passenger kilometres (RPK) - passengers flown multiplied by
the number of kilometres flown.
· Seats flown - Seats available for passengers.
· Sector - A one-way revenue flight.
This announcement may contain statements which constitute 'forward-looking
statements'. Although easyJet believes that the expectations reflected in
these forward-looking statements are reasonable, it can give no assurance that
these expectations will prove to have been correct. Because these statements
involve risks and uncertainties, actual results may differ materially from
those expressed or implied by these forward-looking statements.
Going Concern and Viability Statement
Assessment of Prospects
The strategic report in the annual report and accounts sets out easyJet's
activities and the factors likely to impact the Group's future development,
performance and position. The Finance Review in the annual report and accounts
sets out our financial position for the year ending 30 September 2025, cash
flows, liquidity position and borrowing activity. The notes to the financial
statements include the objectives, policies and procedures for managing
capital, financial risk management objectives, details of financial
instruments and hedging activities and exposure to credit risk and liquidity
risk.
In accordance with the requirements of the 2018 UK Corporate Governance Code,
the Directors have assessed easyJet's prospects over a three-year period,
taking into account its current position, the medium-term targets set out in
the strategic plan and a range of internal and external factors, including
principal risks.
The Directors have determined that a three-year period is an appropriate
timeframe for this viability assessment considering the reliability of
forecast information, the current macro-economic and market conditions and
longer-term management incentives. However, it is noted that the high-level
fleet plan used by easyJet necessarily forecasts over a longer time period to
enable the future planning of aircraft deliveries which underpin our plans for
fleet modernisation, future growth, cost efficiencies and sustainability
improvements. This longer-term planning is evidenced by the aircraft purchase
transaction, completed in FY24, which secured aircraft deliveries for the
period FY29-34.
The assessment of the prospects of the Group includes the following factors:
· The strategic plan - which takes into consideration growth expected
by way of creating value through the business model, market conditions, future
commitments, cash flow, expected impact of key risks, funding requirements and
the maturity of existing financing facilities (see table on the next page);
· The fleet plan - the plan retains some flexibility to adjust the size
of the fleet in response to opportunities or risks;
· Strength of the balance sheet and unencumbered assets - this
sustainable strength gives us access to capital markets; and
· Risk assessment - see detailed risk assessment in the annual report
and accounts.
Stress Testing
easyJet's corporate risk management framework facilitates the identification,
analysis and response to plausible risks, including emerging risks, as our
business evolves in an ever-changing environment. Through our corporate risk
management process, a robust assessment of the principal risks facing the
organisation has been performed and the controls and mitigations identified.
Both individually and combined these potential risks are unlikely to require
significant additional management actions to support the business to remain
viable; however, there could be actions that management would deem necessary
to reduce the impact of the risks. The stress testing scenarios identified in
the table below, show that there remains sufficient liquidity under all
scenarios. In the first four scenarios one of the assumptions is that new
Eurobonds are issued, whereas in the last scenario no issuance of new
Eurobonds is assumed.
Going Concern Statement
The financial statements have been prepared on a going concern basis. In
adopting the going concern basis the Directors have considered easyJet's
business activities, together with factors likely to affect its future
development and performance, as well as easyJet's principal risks and
uncertainties through to March 2027.
As at 30 September 2025, easyJet had a net cash position of £602 million
including cash, cash equivalents and other investments of £3.5 billion, and
58% of the total aircraft fleet are in ownership, three of which are
encumbered. easyJet also has access to a committed Revolving Credit Facility
(RCF) of $1.7 billion (£1.3 billion) resulting in total available liquidity
of £4.8 billion.
The Directors have reviewed the financial forecasts and funding requirements
with consideration given to the potential impact of severe but plausible
risks. easyJet has modelled a base case representing management's best
estimation of how the business plans to perform over the period. The future
impact of climate change on easyJet has been incorporated within the base case
cash flow projections to the extent these can be estimated. This includes
for example the cost of future fleet renewals, the future estimated price of
regulatory carbon schemes (including UK and EU ETS and CORSIA), the phasing
out of no-cost ETS allowances, the expected price and quantity of SAF
requirements, and the cost of carbon removal credits and other sustainability
initiatives.
The business is exposed to fluctuations in fuel prices and foreign exchange
rates. easyJet is currently c.80% hedged for fuel in H1 of FY26 at c.$717 per
metric tonne, c.54% hedged for H2 FY26 at c.$690 and c.31% hedged for H1 FY27
at c.$677.
In modelling the impact of severe but plausible downside risks, the Directors
have considered demand suppression leading to a reduction in ticket yield of
5% and a reduction in easyJet holidays contribution of 5%. The model also
includes the reoccurrence of additional disruption costs (at FY22 levels), an
additional $50 per metric tonne on the fuel price, 1.5% additional operating
cost inflation and an adverse movement on the US dollar rate. These impacts
have been modelled across the whole going concern period. In addition, this
downside model also includes a grounding of 25% of the fleet for the duration
of the peak trading month of August to cover the range of severe but plausible
risks that could result in significant operational disruption. The impact of
mitigating, controllable actions which the management team would be able to
take in response to such risks have then been factored-in, being actions which
do not require negotiation or other agreements to be obtained from third
parties. Examples include reducing capex spend and exercising our contractual
right to delay a certain number of aircraft deliveries. This downside
scenario resulted in a significant reduction in liquidity but still maintained
sufficient headroom on liquidity requirements.
After reviewing the current liquidity position, committed funding facilities,
the base case and the severe but plausible downside financial forecasts
incorporating the uncertainties described above, the Directors have a
reasonable expectation that the Group has sufficient resources to continue in
operation through to at least March 2027. For these reasons, the Directors
continue to adopt the going concern basis of accounting in preparing the
Group's and the Company's financial statements.
As at September 2025 Maturity date Funding (drawn and undrawn)
Eurobonds March 2028 €1,200m
March 2031 €850m
Revolving credit facility June 2030(1) $1,700m
1) Option to extend by up to two years at lender's consent.
Viability Statement
Based on the assessment performed, the Directors have a reasonable expectation
that the Company and the Group will be able to continue in operation and meet
all liabilities as they fall due up to September 2028. In making this
statement, the Directors have made the following key assumptions:
1. easyJet has access to a variety of funding options including capital
markets, aircraft financing and bank or government debt. The stress testing
demonstrates that the current funding with both the repayment and new issue of
Eurobonds would be sufficient to retain liquidity in both the base and
downside scenarios (noting that the new issue of Eurobonds is excluded from
the specific lack of funding scenario).
2. As with the going concern assessment, the impact of mitigating,
controllable actions which the management team would be able to take in the
downside scenarios have been factored-in, being actions which do not require
negotiation or other agreements to be obtained from third parties. Examples
include reducing capex spend and exercising our contractual right to delay a
certain number of aircraft deliveries.
3. In assessing viability, it is assumed that the detailed risk
management process as outlined in the annual report and accounts captures all
plausible risks, and that in the event that multiple risks occur, all
available actions to mitigate the impact to the Group would be taken on a
timely basis and have the intended impact.
4. There is no prolonged grounding of a substantial portion of the fleet
greater than that included in the downside and alternative downside scenarios.
This includes a grounding of 25% of the fleet for the duration of the peak
trading month of August, to cover the range of severe but plausible risks that
could result in significant operational disruption.
The key risks that are most likely to have a significant impact on easyJet's
viability have been considered in the stress testing across multiple scenarios
and are shown below. The assumptions applied to the models are based on the
plausible but severe impacts of the risks, as assessed by our review of the
current macroeconomic position and historical information across the airline
industry. The principal risks have continued to be assessed for any changes in
the risk environment. The actions in place to mitigate against these risks are
included in the Risk section in the annual report and accounts.
Scenario modelled Description Assumptions applied Corporate risk covered
Demand suppression and operational disruption Downside scenario covering multiple risks that may lead to a reduction in Across the whole period: · Significant safety or security event
demand, resulting in a prolonged yield reduction over the period. In addition,
this scenario combines risks that also would lead to operational disruption > reduction in ticket yield of 5% · Significant digital security event
and/or short-term grounding of the fleet.
> reduction in easyJet holidays contribution of 5% · Network, expansion and primary airports
> additional disruption costs (based on FY22 levels) · Critical technology failure
>mitigating controllable actions included · Significant operational disruption
One-off:
> a grounding of 25% of the fleet for the duration of the peak trading
month of August
Increase in costs and operational disruption Scenario covers multiple risks that would result in an increase in costs Across the whole period: · Significant safety or security event
across the period or a significant spike in costs. In addition, this scenario
combines risks that also would lead to operational disruption and/or > additional $100 per metric tonne on the fuel price · Significant operational disruption
short-term grounding of the fleet.
> increased costs (additional inflation assumed on all costs) · Significant digital security event
> additional disruption costs (based on FY22 levels) · Macroeconomic conditions and geopolitical events
> an adverse movement on the US dollar rate · Network, expansion and primary airports
One-off:
> a grounding of 25% of the fleet for the duration of the peak trading
month of August
Scenario modelled Description Assumptions applied Corporate risk covered
Climate change Scenario covers climate-based risks that would result in both a reduction in Across the whole period: · Climate change transition risks
demand and increased costs. This includes SAF and ETS costs, capex and
maintenance costs due to technology changes and additional costs for > reduction in demand - reduced yields or capacity
regulatory and legal challenge.
> increased fuel costs (SAF and ETS)
> increased maintenance costs
> new taxes
Failure to deliver on plans Scenario covers the risks that would result in easyJet being unable to deliver Across the whole period: · Network, expansion and primary airports
on its overall plans for the period.
> reduced initiatives income · Talent and critical skills acquisition
> increased costs
> reduction in ticket yield of 5%
> reduction in easyJet holidays contribution of 5%
>mitigating controllable actions included
Lack of funding Scenario covers the risk that would result in no further funding being Across the whole period: · Macroeconomic conditions and geopolitical events
available to easyJet during the period.
> uncommitted funding excluded
> mitigating controllable actions included
Consolidated income statement
Year ended 30 September
2025 2024
Headline Non-headline (note 2) Total Headline Non-headline (note 2) Total
Notes £ million £ million £ million £ million £ million £ million
Passenger revenue 6,072 - 6,072 5,715 - 5,715
Ancillary revenue
Airline ancillary revenue 2,594 - 2,594 2,457 - 2,457
easyJet holidays revenue(1) 1,440 - 1,440 1,137 - 1,137
Total ancillary revenue 4,034 - 4,034 3,594 - 3,594
Total revenue 5 10,106 - 10,106 9,309 - 9,309
Fuel (2,253) - (2,253) (2,223) - (2,223)
Airports and ground handling (2,161) - (2,161) (1,989) - (1,989)
Crew (1,198) - (1,198) (1,074) - (1,074)
Navigation (533) - (533) (463) - (463)
Maintenance (451) - (451) (390) - (390)
easyJet holidays direct operating costs(1) (1,072) - (1,072) (840) - (840)
Selling and marketing (273) - (273) (257) - (257)
Other costs (754) (7) (761) (758) (9) (767)
Other income 35 - 35 52 1 53
EBITDA 1,446 (7) 1,439 1,367 (8) 1,359
Depreciation (679) - (679) (727) - (727)
Amortisation of intangible assets (64) - (64) (43) - (43)
Operating profit 703 (7) 696 597 (8) 589
Interest receivable and other financing income 130 - 130 141 - 141
Interest payable and other financing charges (156) - (156) (132) - (132)
Foreign exchange (loss)/gain (12) - (12) 4 - 4
Net finance (charges)/income (38) - (38) 13 - 13
Profit before tax 665 (7) 658 610 (8) 602
Tax charge 3 (166) 2 (164) (151) 1 (150)
Profit for the year 499 (5) 494 459 (7) 452
Earnings per share, pence
Basic 4 65.8 60.3
Diluted 4 64.7 59.6
(1)easyJet holidays revenue and direct operating costs exclude the flight
element of holiday packages that is eliminated on consolidation.
Consolidated statement of comprehensive income
Year ended Year ended
30 September 30 September
2025 2024
Notes £ million £ million
Profit for the year 494 452
Other comprehensive income/(loss)
Items that may be reclassified to the income statement:
Retranslation of net assets of overseas subsidiaries 3 -
Cash flow hedges
Fair value gains/(losses)in the year 34 (358)
Losses transferred to the income statement 84 23
Hedge ineffectiveness/discontinuation (gains)/losses transferred to the income (1) 2
statement
Related deferred tax (charge)/credit 3 (30) 83
Cost of hedging 9 (8)
Related deferred tax (charge)/credit 3 (2) 2
Items that will not be reclassified to the income statement:
Cash flow hedges
Fair value gains in the year 28 -
Related deferred tax charge 3 (7) -
Remeasurement loss of post-employment benefit obligations (3) (11)
Related deferred tax credit 3 1 3
Fair value gain on equity investment 13 20
129 (244)
Total comprehensive income for the year 623 208
Consolidated statement of financial position
As at 30 September 2025 As at 30 September 2024
Notes £ million £ million
Non-current assets
Goodwill 387 387
Other intangible assets 384 406
Property, plant and equipment(1) 7 4,791 4,285
Right of use assets 9 1,015 1,190
Derivative financial instruments 63 2
Equity investment 64 51
Other non-current assets 178 169
6,882 6,490
Current assets
Trade and other receivables 530 483
Current intangible assets 518 572
Derivative financial instruments 49 29
Other investments 2,024 2,118
Cash and cash equivalents 1,504 1,343
4,625 4,545
Current liabilities
Trade and other payables (1,654) (1,656)
Unearned revenue (1,945) (1,737)
Borrowings 8 (6) (416)
Lease liabilities 9 (251) (227)
Derivative financial instruments (100) (270)
Current tax liabilities (11) (9)
Provisions for liabilities and charges 10 (185) (156)
(4,152) (4,471)
Net current assets 473 74
Non-current liabilities
Unearned revenue (5) (4)
Borrowings 8 (1,875) (1,690)
Lease liabilities 9 (794) (947)
Derivative financial instruments (58) (51)
Other liabilities (18) (6)
Post-employment benefit obligations (20) (17)
Provisions for liabilities and charges 10 (829) (806)
Deferred tax liabilities 3 (258) (70)
(3,857) (3,591)
Net assets 3,498 2,973
Shareholders' equity
Share capital 207 207
Share premium 2,166 2,166
Hedging reserve (26) (137)
Cost of hedging reserve (1) (8)
Translation reserve 75 72
Retained earnings 1,077 673
Total equity 3,498 2,973
(1)Property, plant and equipment in the prior year has been re-presented to
separately present right of use assets in the consolidated statement of
financial position.
Consolidated statement of changes in equity
Share capital Share premium Hedging reserve Cost of hedging reserve Translation reserve Retained earnings Total equity
£ million £ million £ million £ million £ million £ million £ million
At 1 October 2024 207 2,166 (137) (8) 72 673 2,973
Profit for the year - - - - - 494 494
Other comprehensive income - - 108 7 3 11 129
Total comprehensive income - - 108 7 3 505 623
Fair value loss transferred to property, plant and equipment - - 3 - - - 3
Dividends paid (note 6) - - - - - (91) (91)
Share incentive schemes
Employee share schemes - - - - - - 38 38
value of employee services
Purchase of own shares - - - - - (48) (48)
At 30 September 2025 207 2,166 (26) (1) 75 1,077 3,498
( )
Share Share premium Hedging reserve Cost of hedging reserve Translation reserve Retained earnings Total equity
capital
£ million £ million £ million £ million £ million £ million £ million
At 1 October 2023 207 2,166 113 (2) 72 231 2,787
Profit for the year - - - - - 452 452
Other comprehensive (loss)/income - - (250) (6) - 12 (244)
Total comprehensive (loss)/income - - (250) (6) - 464 208
Dividends paid (note 6) - - - - - (34) (34)
Share incentive schemes
Employee share schemes - - - - - - 30 30
value of employee services
Purchase of own shares - - - - - (18) (18)
At 30 September 2024 207 2,166 (137) (8) 72 673 2,973
( )
The hedging reserve comprises the effective portion of the cumulative net
change in the fair value of cash flow hedging instruments relating to highly
probable transactions that are forecast to occur after the year end.
At 30 September 2025, amounts in the cost of hedging reserve comprised a £1
million loss related to the time value of options (2024: £9 million loss) and
£nil related to cross-currency basis (2024: £1 million loss).
Consolidated statement of cash flows
Year ended Year ended
30 September 2025 30 September 2024
Notes £ million £ million
Cash flows from operating activities
Cash generated from operations 11 1,875 1,483
Dividends paid 6 (91) (34)
Interest and other financing charges paid (140) (101)
Interest and other financing income received 138 124
Settlement of derivatives (145) 1
Tax paid 3 (12) (8)
Net cash generated from operating activities 1,625 1,465
Cash flows from investing activities
Purchase of property, plant and equipment (912) (811)
Proceeds from sale of property, plant and equipment 4 9
Acquisition of subsidiary, net of cash acquired - (22)
Purchase of non-current other intangible assets (89) (118)
Settlement of derivatives (26) -
Decrease/(increase) in other investments 12 151 (2,118)
Proceeds from sale and leaseback of aircraft - 114
Net cash used in investing activities (872) (2,946)
Cash flows from financing activities
Purchase of own shares for employee share schemes (48) (18)
Proceeds from debt financing and other borrowings 12 104 718
Repayment of bank loans and other borrowings 12 (423) (434)
Settlement of derivatives (21) (11)
Repayment of capital element of leases 12 (226) (222)
Decrease in restricted cash - 2
Net cash (used in)/generated from financing activities (614) 35
Effect of exchange rate movements 22 (136)
Net increase/(decrease) in cash and cash equivalents 161 (1,582)
Cash and cash equivalents at beginning of year 1,343 2,925
Cash and cash equivalents at end of year 1,504 1,343
Notes to the financial statements
1. Material accounting policies, judgements and estimates
Statement of compliance
easyJet plc (the 'Company') and its subsidiaries ('easyJet' or the 'Group' as
applicable) is a low-cost airline carrier operating principally in Europe. The
Company is a public limited company (company number 03959649), incorporated
and domiciled in the United Kingdom, whose shares are listed on the London
Stock Exchange under the ticker symbol EZJ. The address of its registered
office is Hangar 89, London Luton Airport, Luton, Bedfordshire, LU2 9PF,
England.
The consolidated financial statements of easyJet plc have been prepared in
accordance with UK-adopted International Accounting Standards and with the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards.
Basis of preparation
This consolidated financial information has been prepared in accordance with
the Listing Rules of the Financial Conduct Authority.
The financial information set out in this document does not constitute
statutory financial statements for easyJet plc for the two years ended 30
September 2025 but is extracted from the 2025 Annual Report and Financial
statements.
The financial statements have been prepared on a going concern basis. In
adopting the going concern basis the Directors have considered easyJet's
business activities, together with factors likely to affect its future
development and performance, as well as easyJet's principal risks and
uncertainties through to March 2027.
As at 30 September 2025, easyJet had a net cash position of £602 million
including cash, cash equivalents and other investments of £3.5 billion, and
access to an undrawn Revolving Credit Facility (RCF) of £1.3 billion. easyJet
therefore has access to £4.8 billion of liquidity and 58% of the total
aircraft fleet are in ownership, three of which are encumbered.
The Directors have reviewed the financial forecasts and funding requirements
with consideration given to the potential impact of severe but plausible
risks. easyJet has modelled a base case representing management's best
estimation of how the business plans to perform over the period. The future
impact of climate change on the business has been incorporated into strategic
plans, for example the cost of future fleet renewals, the future estimated
price of regulatory carbon schemes (including UK and EU Emissions Trading
Scheme (ETS) and Carbon Offsetting and Reduction Scheme for International
Aviation (CORSIA)), the phasing out of no-cost ETS allowances, the expected
price and quantity of Sustainable Aviation Fuel (SAF) requirements, and the
cost of carbon removal credits and other sustainability initiatives.
The business is exposed to fluctuations in fuel prices and foreign exchange
rates. easyJet is currently c.80% hedged for fuel in H1 of FY26 at c.$717 per
metric tonne, c.54% hedged for H2 FY26 at c.$690 and c.31% hedged for H1 FY27
at c.$677.
In modelling the impact of severe but plausible downside risks, the Directors
have considered demand suppression leading to a reduction in ticket yield of
5% and a reduction in easyJet holidays contribution of 5%. The model also
includes the reoccurrence of additional disruption costs (comparable with the
significant levels experienced in FY22), an additional $50 per metric tonne on
the fuel price, 1.5% additional operating cost inflation and an adverse
movement on the US dollar rate. These impacts have been modelled across the
whole going concern period. In addition, this downside model also includes a
grounding of 25% of the fleet for the duration of the peak trading month of
August to cover the range of severe but plausible risks that could result in
significant operational disruption. The impact of mitigating, controllable
actions which the management team would be able to take in this instance have
then been factored-in, being actions which do not require negotiation or other
agreements to be obtained from third parties. Examples include reducing capex
spend and exercising our contractual right to delay a certain number of
aircraft deliveries. This downside scenario resulted in a significant
reduction in liquidity but still maintained sufficient headroom on liquidity
requirements.
After reviewing the current liquidity position, committed funding facilities,
the base case and the severe but plausible downside financial forecasts
incorporating the uncertainties described above, the Directors have a
reasonable expectation that the Group has sufficient resources to continue in
operation for the foreseeable future. For these reasons, the Directors
continue to adopt the going concern basis of accounting in preparing the
Group's financial statements.
The Annual Report and Financial statements for 2024 has been delivered to the
Registrar of Companies.
The Annual Report and Financial statements for 2025 will be delivered to the
Registrar of Companies in due course. The auditors' report on those financial
statements was unqualified and neither drew attention to any matters by way of
emphasis nor contained a statement under either section 498(2) of Companies
Act 2006 (accounting records or returns inadequate or financial statements not
agreeing with records and returns), or section 498(3) of Companies Act 2006
(failure to obtain necessary information and explanations).
Material accounting policies
The accounting policies adopted are consistent with those described in the
Annual report and financial statements for the year ended 30 September 2025.
Accounting judgements and estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make judgements as to
the application of accounting standards to the recognition and presentation of
material transactions, assets and liabilities within the Group, and the use of
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements, and the reported amounts
of income and expenses during the reporting period. Estimations are based on
management's best evaluation of a range of assumptions, however, events or
actions may mean that actual results ultimately differ from those estimates,
and these differences may be material. The estimates and the underlying
assumptions are reviewed regularly.
Critical accounting judgements
The following are the critical judgements, apart from those involving
estimation (which are dealt with separately below), that the Directors have
made in the process of applying the Group's accounting policies and that have
the most significant effect on the amounts recognised and presented in the
financial statements.
Classification of income or expenses between headline and non-headline items
(note 2)
Non-headline items are those where, in management's opinion, their separate
reporting provides an additional understanding to users of the financial
statements of easyJet's underlying trading performance, and which are
significant by virtue of their size and/or nature. In considering the
categorisation of an item as non-headline, management's judgement includes,
but is not limited to, a consideration of:
· whether the item is outside of the principal activities of the
easyJet Group (being to provide point-to-point airline services and package
holidays);
· the specific circumstances which have led to the item arising,
including, if extinguishing an item from the statement of financial position,
whether that item was first generated via headline or non-headline activity.
The rebuttable presumption being that when subsequently extinguishing an item
from the statement of financial position, any impact on the income statement
should be reflected in the same way as that which was used in the initial
creation of the item;
· if the item is irregular in nature; and
· whether the item is unusual by virtue of its size.
In accordance with Group policy, non-headline items include expenditure on
major restructuring programmes and the gain or loss resulting from the initial
recognition of sale and leaseback transactions. They may also include
impairments and amounts relating to corporate acquisitions and disposals,
depending on the assessment of the above criteria.
Recoverability of deferred tax assets (note 3)
The deferred tax asset balances include £439 million (2024: £440 million)
arising on full recognition of the UK trading tax losses accumulated at the
statement of financial position date. The Group has concluded that these
deferred tax assets will be fully recoverable against the unwind of taxable
temporary differences and future taxable income based on the long-term
strategic plans of the Group. Where applicable the financial projections used
in assessing future taxable income are consistent with those used elsewhere
across the business, for example in the assessment of going concern. These
assessments include the expected impact of climate change on easyJet, and the
future financial impact within cash flow projections, such as the cost of
future fleet renewals, the future estimated price of ETS allowances, the
phasing out of the no-cost ETS allowances, the expected price and quantity
required of SAF, and the cost of carbon removal credits and other
sustainability initiatives.
The tax losses for which a deferred tax asset has been recognised are expected
to be utilised within the next nine years, assessed by considering probable
forecast future taxable income. The probable forecast future taxable income
includes the impact of the expected unwind of taxable temporary differences as
well as the effect of Full Expensing Relief for qualifying capital
expenditure. Probable forecast future taxable income includes an incremental
and increasing risk weighting to represent higher levels of uncertainty in
future periods.
The tax losses can be carried forward indefinitely and have no expiry date.
Consolidation of easyJet Switzerland S.A.
Judgement has been applied in consolidating easyJet Switzerland S.A. as a
subsidiary on the basis that the Company exercises control over the
undertaking. A non-controlling interest has not been reflected in the
consolidated financial statements on the basis that the holders of the
remaining 51% of the shares have no entitlement to any dividends from that
holding and the Company has an option to acquire those shares for a
predetermined minimal consideration.
Critical accounting estimates
The following critical accounting estimates include judgements or complexity
and are the major sources of estimation uncertainty that have a significant
risk of resulting in a material adjustment to the carrying amounts of assets
and liabilities within the next year.
Aircraft maintenance provisions - £939 million (2024: £894 million) (note
10)
easyJet incurs liabilities for maintenance costs arising during the lease term
of leased aircraft. These costs arise from legal contractual obligations
relating to the condition of the aircraft when it is returned to the lessor.
To discharge these obligations, it is usual for easyJet to carry out at least
one heavy maintenance check on each of the engines and the airframe of the
aircraft during the lease term. A material provision representing the
estimated cost of this obligation is built up over the course of the lease.
The estimates and assumptions used in the calculation of the provision are
reviewed at least annually, and when information becomes available that is
capable of causing a material change to an estimate, such as the renegotiation
of end of lease return conditions, increased or decreased aircraft
utilisation, or changes in the cost of heavy maintenance services and the
expected uplift in future prices.
A significant portion of the future maintenance costs and cost increases are
under contract and provide certainty to the provision. Where cost increases
are not under contract, an estimation of the likely future increases are made
in the calculation of the provision. Given the significant value of the
provision, the provision is sensitive to changes in the future increase of
uncontracted costs including the impact of inflationary factors. Additionally,
with many maintenance costs incurred in US dollars, the provision remains
sensitive to changes in the GBP/USD exchange rate. The rates used to discount
the provision to arrive at a present value are based on observable market
rates as an estimate of the relevant risk-free rate.
The provision can also be materially influenced by the maintenance status of
aircraft when they enter the easyJet fleet. To give flexibility within the
fleet plan easyJet may lease 'mid-life' aircraft. When mid-life aircraft enter
the fleet, a 'catch-up' maintenance provision is created to reflect the
maintenance obligation for the flying cycles undertaken before the aircraft
entered the easyJet fleet. The trigger for the recognition of this addition to
the provision is the signing of the lease contract. It is of note that where
contractually agreed a mid-life delivery asset is also created when the
mid-life leased aircraft enter the fleet, creating a separate related asset on
the statement of financial position. A sensitivity analysis is included in
note 10.
Impairment assessment of goodwill and landing rights - £542 million (2024:
£542 million)
It is management's judgement that there are two separate CGUs which generate
largely independent cash flows, these being easyJet's Airline route network
and its Holidays business. The recoverable amount of goodwill and landing
rights has been determined based on value in use calculations for the airline
route network CGU as they are wholly attributable to it. The value in use is
determined by discounting future cash flows to their present value. When
applying this method, easyJet relies on a number of key estimates including
the ability to meet its strategic plans, future fuel prices and exchange
rates, long-term economic growth rates for the principal countries in which it
operates, and its pre-tax weighted average cost of capital. Strategic plans
include assessments of the future impact of climate change on easyJet to the
extent these can be estimated. This includes for example, the cost of future
fleet renewals, the future estimated price of regulatory carbon schemes
(including UK and EU ETS and CORSIA), the phasing out of no-cost ETS
allowances, the expected price and quantity of SAF requirements, and the cost
of carbon removal credits and other sustainability initiatives. The possible
impact of longer-term climate change risks that are not part of the strategic
plans have been considered as part of the sensitivity analysis.
Fuel prices and exchange rates continue to be volatile in nature and the
ability to pass these changes on to the customer is a critical judgement that
requires estimation. In addition, assumptions over customer demand levels
could have a significant effect on the impairment assessment performed. Any
future events that would lead to extended travel restrictions or fleet
grounding may impact future impairment or useful economic life assessments.
The sensitivity analysis considered as part of the overall impairment
assessment takes into account different assumptions for these key estimates.
Other areas of judgement and accounting estimates
The following are other areas of judgement and accounting estimates that do
not meet the definition under IAS 1 of significant accounting estimates or
critical accounting judgements. The recognition and measurement of the
following material assets and liabilities of note in that they are based on
assumptions and/or are subject to longer term uncertainties.
Owned aircraft carrying values - £4,685 million (2024: £4,192 million) (note
7)
The key estimates used in arriving at aircraft carrying values are the UELs
and residual values of the owned aircraft.
Aircraft are depreciated over their UEL to their residual values in line with
the property, plant and equipment accounting policy. The UEL is based on
easyJet's long-term fleet plan and intended utilisation of the current fleet,
which include long-term assumptions of market conditions and customer demands,
which by their nature are inherently uncertain.
Residual value estimates for aircraft are reviewed annually based on
independent aircraft valuations. The valuations are based on an assessment of
the current state of the global marketplace for specific aircraft assets.
Residual values have continued to increase, with ongoing delivery delays from
aircraft original equipment manufacturers, together with the recovery in
demand for air travel post the covid pandemic, resulting in strong demand for
the previous generation narrowbody aircraft, including the A320ceo. Changes to
residual value estimates are applied prospectively, and the review performed
on 30 September 2025 resulted in a c.£500 million increase to the residual
value of assets that continue to be depreciated. This will result in a c.£60
million reduction in the depreciation charge for the year ended 30 September
2026, which will reduce in subsequent years as the Group disposes its older
aircraft. Should the marketplace for an asset class deteriorate unpredictably,
there could be a risk that the recoverable amount for some aircraft assets
would fall below their current carrying value or that residual values are
subject to downward adjustment.
Owned and leased aircraft asset recoverable amounts are included in the
Airline CGU and are therefore subject to review for impairment annually or
when there is an indication of impairment within the Airline CGU.
Defined benefit pension assumptions - £201 million gross obligation (2024:
£175 million gross obligation)
The pension scheme for employees in Switzerland meets the requirements under
IAS 19 to be recognised as a defined benefit pension scheme and the net
pension obligation is recognised on the consolidated statement of financial
position. The measurement of scheme assets and obligations are calculated by
an independent actuary in line with IAS 19. The financial and demographic
assumptions used in the calculation are determined by management following
consultation with the independent actuary with consideration of external
market movements and inputs. The calculation is most sensitive to movements in
the discount rate applied, which has been subject to significant volatility.
Liability for compensation payments - £32 million (2024: £50 million)
easyJet incurs liabilities for amounts payable to customers who make
compensation claims in respect of flight delays and cancellations, for which
claims could be made up to six years after the event, and for reimbursement of
reasonable expenses incurred as a result of flight delays and cancellations.
The key estimation in the liability is the passenger claim rate for the
payments. The estimation carries a level of uncertainty as it is based on
customer behaviour. The basis of the estimates included in the liability are
reviewed at least annually and when information becomes available that may
result in a change to the estimate.
Fair value of leased aircraft purchases
Where easyJet enters into agreements to purchase aircraft that were previously
leased to the Group, and the original lease contract did not contain a
purchase option, the newly acquired aircraft are recognised within property,
plant and equipment at their fair value at the acquisition date when the fair
value can be reliably measured. Management exercises judgement when
determining the fair value of the aircraft at the acquisition date, with the
difference between the fair value of the aircraft and the consideration paid
being recognised in the income statement.
New and revised standards and interpretations
A number of amended standards became applicable during the current reporting
period. The Group did not have to change its accounting policies or make
retrospective adjustments as a result of adopting these standards. The
amendments that became applicable for annual reporting periods commencing on
or after 1 January 2024, and did not have a material impact were:
· Classification of liabilities as current or non-current and
non-current liabilities with covenants - Amendments to IAS 1
· Lease liability in a sale and leaseback - Amendments to IFRS 16
· Supplier finance arrangements - Amendments to IAS 7 and IFRS 7
In addition, IFRS 18 - presentation and disclosure in financial statements was
issued in April 2024 and becomes effective for periods beginning on or after 1
January 2027. This replaces IAS 1 - presentation of financial statements. The
Group is currently assessing the detailed implications of applying the new
standard on the Group's consolidated financial statements. There are no other
standards that are issued but not yet effective that would be expected to have
a material impact on the entity in the current or future reporting periods and
on foreseeable future transactions.
2. Non-headline items
An analysis of the amounts presented as non-headline is given below:
Year ended Year ended
30 September 2025 30 September 2024
£ million £ million
Sale and leaseback gain - (1)
Restructuring charge 7 9
Total non-headline charge before tax 7 8
Tax credit on non-headline items (2) (1)
Total non-headline charge after tax 5 7
Sale and leaseback gain
No sale and leaseback transactions were entered into in the current reporting
year. In the prior year, easyJet completed the sale and leaseback of 11 A319
aircraft resulting in a £1 million profit on disposal.
Restructuring
During the year, the estimated costs of the base restructuring programme in
France and Italy (announced in September 2024) were revised resulting in an
additional provision and an income statement cost of £8 million (2024: £12
million cost). This was offset by a £1 million release (2024: £3 million
release) of the final provision held for the previously announced
restructuring programmes in
Germany.
As at 30 September 2025, there were unpaid amounts of £10 million (2024: £12
million) representing remaining redundancy cases which have not been finalised
and settled at the end of the financial
year.
Tax on non-headline items
A non-headline tax credit of £2 million (2024: £1 million) was recognised
for the year with respect to the restructuring transactions.
3. Tax charge
Tax on profit on ordinary activities
Year ended Year ended
30 September 2025 30 September 2024
£ million £ million
Current tax
Foreign tax 14 13
Total current tax charge 14 13
Deferred tax
Temporary differences relating to property, plant and equipment 153 145
Other temporary differences (1) (4)
Adjustments in respect of prior years (2) (4)
Total deferred tax charge 150 137
Total tax charge 164 150
Effective tax rate 24.9% 24.9%
Reconciliation of the total tax charge
The tax for the year is lower than (2024: lower than) the standard rate of
corporation tax in the UK as set out below:
Year ended 30 September 2025 Year ended 30 September 2024
£ million £ million
Profit before tax 658 602
Total tax charge at 25.0% (2024: 25.0%) 165 151
Income not chargeable for tax purposes:
Expenses not deductible for tax purposes 15 10
Share-based payments (10) (5)
Adjustments in respect of prior years - overseas current tax - (1)
Adjustments in respect of prior years - deferred tax (2) (4)
Attributable to rates other than standard UK rate (3) (2)
Movement in provisions (1) 1
Total tax charge 164 150
Current tax payable at 30 September 2025 amounted to £11 million (2024: £9
million) which is solely related to tax payable in other European
jurisdictions.
During the year ended 30 September 2025, net cash tax paid amounted to £12
million (2024: £8 million).
The Group monitors income tax developments in all jurisdictions in which it
operates, including the OECD Base Erosion and Profit Shifting (BEPS)
initiative (Pillar 2), which may impact the Group's future tax liabilities.
The UK has introduced a global minimum corporation tax in line with the OECD
Inclusive Framework on BEPS, which requires a minimum corporation tax rate of
15% in each jurisdiction in which the Group operates.
As indicated above, the current tax charge includes the impact of the Global
Minimum Tax legislation implemented in the UK, specifically a multinational
top-up tax in respect of Malta of £1m for the year ended 30 September 2025.
Tax on items recognised directly in other comprehensive income or
shareholders' equity:
Year ended Year ended
30 September 2025 30 September 2024
£ million £ million
Credit/(charge) to other comprehensive income
Deferred tax on change in fair value of cash flow hedges (39) 85
Deferred tax on post-employment benefit 1 3
(38) 88
Credit/(charge) directly to equity
Deferred tax on share-based payments - 1
Total (charge)/credit to other comprehensive income (38) 89
Deferred tax
The net deferred tax (asset)/liability in the statement of financial position
is as follows:
Accelerated capital allowances Short-term timing differences Fair value (gains)/losses Share-based payments Post-employment benefit obligation Trading loss Total
£ million £ million £ million £ million £ million £ million £ million
At 1 October 2024 555 - (31) (10) (4) (440) 70
Charged/(credited) to income statement 151 - - (2) - 1 150
Charged/(credited) to other comprehensive income - - 39 - (1) - 38
At 30 September 2025 706 - 8 (12) (5) (439) 258
Deferred tax liabilities expected to be settled:
£ million
Within 12 months -
After more than 12 months 258
At 30 September 2025 258
It is estimated that deferred tax assets of approximately £10 million (2024:
£45 million) will reverse during the next financial year.
Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax
liabilities and it is the intention to settle these on a net basis.
Accelerated capital allowances Short-term timing differences Fair value losses/(gains) Share-based payments Post-employment benefit obligation Trading loss Total
£ million £ million £ million £ million £ million £ million £ million
At 1 October 2023 414 1 54 (4) (1) (442) 22
Charged/(credited) to income statement 141 (1) - (5) - 2 137
Credited to other comprehensive loss - - (85) - (3) - (88)
Credited directly to equity - - - (1) - - (1)
At 30 September 2024 555 - (31) (10) (4) (440) 70
4. Earnings per share
Basic earnings per share has been calculated by dividing the total profit for
the year by the weighted average number of ordinary shares in issue during the
year after adjusting for ordinary shares held in employee benefit trusts.
To calculate diluted earnings per share, the weighted average number of
ordinary shares in issue has been adjusted to assume conversion of all
dilutive potential shares. Share options granted to employees where the
exercise price is less than the average market price of the Company's ordinary
shares during the year are considered to be dilutive potential shares. Where
share options are exercisable based on performance criteria and those
performance criteria have been met during the year, these options are included
in the calculation of dilutive potential shares.
Headline basic and diluted earnings per share are also presented, based on
headline profit for the year.
Earnings per share is based on:
Year ended Year ended
30 September 2025 30 September 2024
£ million £ million
Total profit for the year 494 452
Headline profit for the year 499 459
2025 2024
million million
Weighted average number of ordinary shares used to calculate basic earnings 751 749
per share
Weighted average number of ordinary shares used to calculate diluted earnings 764 759
per share
2025 2024
Earnings per share pence pence
Basic 65.8 60.3
Diluted 64.7 59.6
2025 2024
Headline earnings per share pence pence
Basic 66.4 61.3
Diluted 65.3 60.5
5. Segmental and geographical revenue reporting
Segmental analysis:
Year ended 30 September 2025
easyJet holidays Intergroup transactions
Airline Group
£ million £ million £ million £ million
Passenger revenue 6,072 - - 6,072
Ancillary revenue 2,594 1,917 (477) 4,034
Total revenue 8,666 1,917 (477) 10,106
Airline operating costs including fuel (6,596) - - (6,596)
easyJet holidays direct operating costs - (1,538) 466 (1,072)
Selling and marketing (208) (65) - (273)
Other costs and other income (649) (81) 11 (719)
Amortisation and depreciation (730) (13) - (743)
Net interest (payable)/receivable and other financing (charges)/income (57) 31 - (26)
Foreign exchange loss (11) (1) - (12)
Headline profit before tax 415 250 - 665
Non-headline items (7) - - (7)
Total profit before tax 408 250 - 658
Year ended 30 September 2024
easyJet holidays Intergroup transactions
Airline Group
£ million £ million £ million £ million
Passenger revenue 5,715 - - 5,715
Ancillary revenue 2,457 1,521 (384) 3,594
Total revenue 8,172 1,521 (384) 9,309
Airline operating costs including fuel (6,139) - - (6,139)
easyJet holidays direct operating costs - (1,214) 374 (840)
Selling and marketing (195) (62) - (257)
Other costs and other income (643) (73) 10 (706)
Amortisation and depreciation (762) (8) - (770)
Net interest (payable)/receivable and other financing (charges)/income (15) 24 - 9
Foreign exchange gain 2 2 - 4
Headline profit before tax 420 190 - 610
Non-headline items (8) - - (8)
Total profit before tax 412 190 - 602
Airline operating costs including fuel comprises operating costs that relate
solely to the Airline segment, and similarly easyJet holidays direct operating
costs are costs specific to the easyJet holidays segment. All other costs are
incurred by both the Airline and easyJet holidays segments.
Airline revenue is recognised at a point in time (when the flight takes
place). The easyJet holidays revenue detailed in this note includes both
flight revenue, recognised at the time the flight takes place, and remaining
ancillary revenue which is recognised over time, aligned to the duration of
the holiday. The easyJet holidays flight revenue is included in this note
within ancillary revenue (with the associated intergroup transaction) aligned
to the presentation of revenue to the CODM and plc Board.
The intergroup transactions column represents revenue and cost transactions
between Airline and easyJet holidays for the flight element of easyJet
holidays' packages and Group recharges. These intercompany transactions are
eliminated on consolidation.
Assets and liabilities are not allocated to individual segments and are not
separately reported to, or reviewed by, the CODM, and therefore have not been
disclosed.
Geographical revenue:
Year ended 30 September 2025 Year ended 30 September 2024
£ million £ million
United Kingdom 5,525 5,077
France 991 941
Switzerland 961 877
Northern Europe (excluding Switzerland) 711 641
Southern Europe (excluding France) 1,793 1,670
Other 125 103
10,106 9,309
easyJet has assessed the materiality of geographical revenues and has
disclosed revenues by country of origin where such revenues are in excess of
10% of total revenue.
Geographical revenue is allocated according to the location of the first
departure airport on each booking.
Southern Europe comprises countries lying wholly or mainly south of the border
between Italy and Switzerland.
easyJet holidays' revenue is predominantly from the United Kingdom with
additional revenues generated in Europe that are not material for separate
disclosure.
easyJet's non-current assets principally comprise its fleet of 205 (2024: 188)
owned and 151 (2024: 159) leased aircraft, giving a total fleet of 356 at 30
September 2025 (2024: 347). 31 aircraft (2024: 30) are registered in
Switzerland, 135 (2024: 134) are registered in Austria, and the remaining 190
(2024: 183) are registered in the United Kingdom.
6. Dividends
The Company paid an ordinary dividend of 12.1 pence per share (2024: 4.5 pence
per share), or £91 million (2024: £34 million) in respect of the year ended
30 September 2024. The dividend was paid on 21 March 2025, with a record date
of 21 February 2025.
An ordinary dividend in respect of the year ended 30 September 2025 of 13.2
pence per share, or £100 million, based on 20% headline profit after tax, is
to be proposed at the forthcoming Annual General Meeting. These financial
statements do not reflect this proposed dividend.
7. Property, plant and equipment
Aircraft and spares Land Other Total
£ million £ million £ million £ million
Cost
At 1 October 2024 5,845 44 65 5,954
Additions(1) 809 - 23 832
Disposals (31) - - (31)
At 30 September 2025 6,623 44 88 6,755
Accumulated depreciation
At 1 October 2024 1,653 - 16 1,669
Charge for the year 293 - 10 303
Disposals (8) - - (8)
At 30 September 2025 1,938 - 26 1,964
Net book value
At 30 September 2025 4,685 44 62 4,791
At 1 October 2024 4,192 44 49 4,285
Aircraft and spares Land Other Total
£ million £ million £ million £ million
Cost
At 1 October 2023 5,396 44 78 5,518
Additions 752 - 14 766
Aircraft sold and leased back (248) - - (248)
Disposals (55) - (27) (82)
At 30 September 2024 5,845 44 65 5,954
Accumulated depreciation
At 1 October 2023 1,550 - 32 1,582
Charge for the year 269 - 8 277
Aircraft sold and leased back (135) - - (135)
Disposals (31) - (24) (55)
At 30 September 2024 1,653 - 16 1,669
Net book value
At 30 September 2024 4,192 44 49 4,285
At 1 October 2023 3,846 44 46 3,936
The right of use assets have been re-presented from property, plant and
equipment to a separate statement of financial position line.
The net book value of aircraft includes £569 million (2024: £519 million)
relating to advance payments for future deliveries and life limited parts
(LLPs) not yet in use. This amount is not depreciated.
The net book value of aircraft spares is £211 million (2024: £157 million).
The 'Other' category is principally comprised of leasehold improvements,
computer hardware, fixtures, fittings and equipment, and work in progress in
respect of property, plant and equipment projects. The work in progress as at
30 September 2025 was £27 million (2024: £15 million).
As at 30 September 2025, easyJet was contractually committed to the
acquisition of 12 CFM LEAP engines (2024: one), five used CFM56 engines (2024:
Nil) and 290 (2024: 299) Airbus A320 family aircraft, with a total estimated
list price(2) of $35.2 billion (2024: $36.2 billion) before escalations and
discounts, for delivery in financial years 2026 (17 aircraft), 2027 and 2028
(73 aircraft) and 2029 to 2034 (200 aircraft). Additionally, easyJet maintains
purchase rights for a further 100 aircraft.
(1)Right of use asset disposals in note 9 includes £73 million (2024: £nil)
relating to the purchase of eight aircraft that were previously leased, with a
corresponding £237 million (2024: £nil) of additions to aircraft owned
assets. The early exit of the leases and subsequent purchase of the aircraft
resulted in a £54 million (2024: £nil) credit to the income statement. Three
of the purchased aircraft were subsequently subject to financing under a
Japanese operating lease with call option ('JOLCO'), with the proceeds
received classified as other borrowings and secured against the associated
owned aircraft with a net book value of £103 million (2024: £nil).
(2)As Airbus no longer publishes list prices, the last available list price
published in January 2018 has been used for the estimated list price.
8. Borrowings
Current Non-current Total
£ million £ million £ million
At 30 September 2025
Eurobonds - 1,778 1,778
Other borrowings 6 97 103
6 1,875 1,881
Current Non-current Total
£ million £ million £ million
At 30 September 2024
Eurobonds 416 1,690 2,106
416 1,690 2,106
Other borrowings relate to aircraft that are subject to JOLCO agreements and
are held at amortised cost. Refer to notes 7 and 9 for further details.
Eurobonds above are shown net of issue costs and/or discounted amounts which
are amortised at the effective interest rate over the life of the debt
instruments.
The June 2019 €500 million Eurobond with a carrying value of £422 million
was repaid in June 2025.
9. Leases
easyJet holds aircraft under leasing arrangements that are recognised as right
of use assets and lease liabilities, with remaining lease terms ranging up to
ten years. easyJet is contractually obliged to carry out maintenance on these
aircraft, and the cost of this is provided based on the number of flying
hours, days and cycles operated and the estimated cost of the maintenance
events.
Right of use assets
Information in respect of right of use assets, including the carrying amount,
additions and depreciation, is set out below. The right of use assets have
been re-presented from property, plant and equipment in note 7.
Aircraft Other Total
£ million £ million £ million
Net book value
At 1 October 2024 1,116 74 1,190
Additions 199 75 274
Depreciation charge for the year (364) (12) (376)
Disposals(1) (73) - (73)
At 30 September 2025 878 137 1,015
Aircraft Other Total
£ million £ million £ million
Net book value
At 1 October 2023 905 23 928
Additions 605 62 667
Aircraft sold and leased back 46 - 46
Depreciation charge for the year (440) (10) (450)
Disposals - (1) (1)
At 30 September 2024 1,116 74 1,190
(1)Right of use asset disposals includes £73 million (2024: £nil) relating
to the purchase of eight aircraft that were previously leased, with a
corresponding £237 million (2024: £nil) of additions to aircraft owned
assets in note 7.
Lease liabilities
A maturity analysis of lease liabilities is set out below.
Year ended 30 September 2025 Year ended 30 September 2024
Amounts recognised in the statement of cash flows £ million £ million
Capital repayments (226) (222)
Interest payments (58) (50)
(284) (272)
2025 2024
Lease liabilities £ million £ million
Maturity analysis - contractual undiscounted cash flows
Less than one year (299) (269)
One to five years (727) (852)
More than five years (186) (226)
(1,212) (1,347)
2025 2024
Lease liabilities included in the statement of financial position £ million £ million
Current (251) (227)
Non-current (794) (947)
Total (1,045) (1,174)
easyJet also enters into short-term leases and low-value leases which are not
recognised as right of use assets and lease liabilities. The expense
recognised in the year in relation to these leases is disclosed below.
Year ended 30 September 2025 Year ended 30 September 2024
Amounts recognised in income statement £ million £ million
Interest on lease liabilities 58 50
Expenses relating to low-value leases 6 5
Expenses relating to short-term wet leases 15 -
79 55
10. Provisions for liabilities and charges
Maintenance provisions Restructuring Other provisions Total provisions
£ million £ million £ million £ million
At 1 October 2024 894 12 56 962
Exchange adjustments 1 1 1 3
Release of provisions (61) (1) (11) (73)
Additional provisions recognised 197 6 25 228
Updated discount rates net of unwind of discount 16 - - 16
Utilised (108) (8) (6) (122)
At 30 September 2025 939 10 65 1,014
Maintenance provisions Restructuring Other provisions Total provisions
£ million £ million £ million £ million
At 1 October 2023 753 6 42 801
Exchange adjustments (67) (1) (1) (69)
Release of provisions (2) (3) (10) (15)
Additional provisions recognised 315 12 28 355
Updated discount rates net of unwind of discount (12) - - (12)
Utilised (93) (2) (3) (98)
At 30 September 2024 894 12 56 962
The maintenance provisions provide for maintenance costs arising from legal
and constructive obligations relating to the condition of the aircraft when
returned to the lessor. As a result of the early exit of eight aircraft
leases, with the aircraft subsequently being purchased, £61 million (2024:
£nil) of the maintenance provision has been released. The early exit of the
leases and subsequent purchase of the aircraft resulted in a £54 million
(2024: £nil) credit to the income statement. Restructuring and other
provisions include amounts in respect of potential liabilities for
employee-related matters and litigation which arose in the normal course of
business.
2025 2024
£ million £ million
Current 185 156
Non-current 829 806
1,014 962
The split of the current/non-current maintenance provision is based on the
expected maintenance event timings. If actual aircraft usage varies from
expectation the timing of the utilisation of the maintenance provision could
result in a material change in the classification between current and
non-current. Maintenance provisions are expected to be utilised within seven
years.
As detailed in note 1, the aircraft maintenance provision is sensitive to
changes in uncontracted costs including the impact of inflationary factors in
future years, discount rates and the GBP/USD exchange rate. The following
table provides an estimate of the impact on the aircraft maintenance provision
of reasonably possible changes to these assumptions.
Key assumptions Reasonably possible change Impact on maintenance provision 2025
£ million
Discount rate Increase of 1ppt Decrease (24)
Decrease of 1ppt Increase 26
Uncontracted costs in future years Increase by 4ppts Increase 32
Decrease by 4ppts Decrease (34)
GBP/USD exchange rate +10% change Decrease (68)
-10% change Increase 83
Within other provisions are provisions for litigation matters. The split of
these provisions between current and non-current is based on the dates of
expected court judgements. Provisions for restructuring could be fully
utilised within one year from 30 September 2025 and therefore are classified
as current.
11. Reconciliation of operating profit to cash generated from operations
Year ended 30 September 2025 Year ended 30 September 2024
£ million £ million
Operating profit 696 589
Adjustments for non-cash items:
Depreciation 679 727
Loss on disposal of property, plant and equipment 19 18
Loss on lease terminations 6 -
Gain on sale and leaseback - (1)
Amortisation of intangible assets 64 43
Share-based payments 38 30
Impairment of intangible assets 6 1
Changes in working capital and other items of an operating nature:
Increase in trade and other receivables (53) (130)
Decrease/(increase) in intangible assets 88 (8)
Decrease in trade and other payables (18) (45)
Increase in unearned revenue 209 240
Post employment benefit contributions (5) (12)
Increase in provisions 8 31
Decrease in other non-current assets 5 10
Increase/(decrease) in derivative financial instruments 133 (10)
Cash generated from operations 1,875 1,483
12. Reconciliation of net cash flow to movement in net cash/(debt)
1 October 2024 Foreign exchange New debt raised in the year Repayment of capital Other Cash, cash equivalents and other investments movement 30 September 2025
£ million £ million £ million £ million £ million £ million £ million
Cash and cash equivalents 1,343 22 - - - 139 1,504
Other investments 2,118 57 - - - (151) 2,024
3,461 79 - - - (12) 3,528
Borrowings (2,106) (91) (104) 423 (3) - (1,881)
Lease liabilities (1,174) 2 (79) 226 (20) - (1,045)
(3,280) (89) (183) 649 (23) - (2,926)
Net cash/(debt) 181 (10) (183) 649 (23) (12) 602
Other includes deferred fees, lease extensions, disposals and rate changes.
Other investments include term deposits, tri-party repos and managed
investments where the original duration of the investment was more than three
months.
13. Contingent liabilities and commitments
Contingent liabilities
easyJet previously disclosed an ICO investigation into a cyberattack and data
breach that took place in 2020. Whilst the ICO investigation is now closed,
associated group actions by law firms representing classes of customers
affected by the data breach arising from the cyber-attack remain in place, and
other claims have been commenced or threatened in certain other courts and
jurisdictions. The merit, likely outcome, and potential impact of the actions
is subject to significant uncertainties and therefore the Group is unable to
assess the likely outcome or quantum of the claims and as such a provision is
not included in these financial statements.
In 2024 the Spanish Ministerio de Consumo (Ministry of Consumer Affairs)
issued easyJet with a €29 million fine for its hand luggage policy and the
charges applied to cabin bags. easyJet has appealed the fine and believes its
policy is entirely lawful. This is supported by a recent communication by the
European Commission who have opened an infringement procedure against Spain on
the basis that this contravenes European law. easyJet does not consider it
appropriate to recognise a provision for the charge. It is of note that a bank
guarantee covering the value of the fine (€29 million) has been put in place
during the year at the request of the Spanish authorities whilst easyJet's
appeal is in the court process. This does not change easyJet's position that
it believes its policy is entirely lawful.
In addition to the above, there are ongoing litigation matters in Italy and
the possibility of claims being made by interested parties in the UK and
France. These matters have the potential to result in material recoveries.
Management has assessed the basis and likelihood of each case being brought,
easyJet's response, and the potential of a successful resolution. At this
stage, having taken external legal advice, easyJet does not consider it
appropriate to provide for these matters.
Through the normal course of business, easyJet is involved in a number of
other disputes and litigation cases. The potential outcome of these disputes
and litigations can cover a range of scenarios, and in complex cases reliable
estimates of any potential obligation may not be possible.
Contingent commitments
Letters of credit and performance bonds
At 30 September 2025, easyJet had outstanding letters of credit and
performance bonds totalling £72 million (2024: £47 million), of which £2
million (2024: £9 million) expires within one year. The fair value of these
instruments at each year end was negligible.
No amount is recognised on the statement of financial position in respect of
any of these financial instruments as it is not probable that there will be an
outflow of resources and the fair value has been assessed to be £nil.
Pathway to net zero
The airline industry has a responsibility to respond effectively to
climate-based challenges. 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. This roadmap references several partnerships with other
commercial companies to explore certain technologies which may assist with the
overall goal to decarbonise the aviation industry. The majority of these
partnerships are in fact agreements to work together on the areas identified
and do not involve a financial commitment from easyJet other than the time and
effort involved in the collaboration over an agreed period. Where there is a
signed agreement requiring a financial commitment from easyJet in the future,
any future payments are contingent on project progress or product/service
delivery and are therefore not certain, hence no liability has been recognised
for these payments.
14. Government grants and assistance
In June 2023 easyJet Airline Company Limited entered into a five-year term
loan facility of $1.75 billion (with easyJet plc as guarantor), underwritten
by a syndicate of banks and supported by a partial guarantee from UK Export
Finance under their Export Development Guarantee scheme. This term loan
facility was cancelled in June 2025.
15. Related party transactions
The Company licences the easyJet brand from easyGroup Limited ('easyGroup'), a
wholly owned subsidiary of easyGroup Holdings Limited, an entity in which
easyJet's founder, Sir Stelios Haji-Ioannou, holds a beneficial controlling
interest. The Haji-Ioannou family concert party shareholding (being easyGroup
Holdings Limited and Polys Holding Limited) holds, in total, approximately
15.27% of the issued share capital of easyJet plc as at 30 September 2025
(2024: 15.27%).
Under the Amended Brand Licence signed in October 2010 and approved by the
shareholders of easyJet plc in December 2010, an annual royalty of 0.25% of
total revenue is payable by easyJet to easyGroup. The full term of the
agreement is 50 years.
easyJet and easyGroup established a fund to meet the annual costs of
protecting the 'easy' (and related marks) and the 'easyJet' brands. easyJet
contributes up to £1 million per annum to this fund and easyGroup contributes
£100,000 per annum. If easyJet contributes more than £1 million per annum,
easyGroup will match its contribution in the ratio of 1:10 up to a limit of
£5 million contributed by easyJet and £500,000 contributed by easyGroup.
Three side letters have been entered into: (i) a letter dated 29 September
2016 in which easyGroup consented to easyJet acquiring a portion of the equity
share capital in Founders Factory Limited; (ii) a letter dated 26 June 2017 in
which easyJet's permitted usage of the brand was slightly extended; and (iii)
a letter dated 2 February 2018 in which easyGroup agreed that certain
affiliates of easyJet have the right to use the brand.
Year ended 30 September 2025 Year ended 30 September 2024
£ million £ million
Annual royalty 25 23
Brand protection (legal fees paid through easyGroup to third parties) 1 1
26 24
The amounts included in the income statement, within other costs, for these
items are as follows:
At 30 September 2025, £2 million (2024: £3 million) was payable to
easyGroup.
16. Events after the statement of financial position date
There were no events to report after the statement of financial position date.
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