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resilient
focused
data driven
ANNUAL REPORT AND ACCOUNTS 2019
Who we are
easyJet makes travel easy, enjoyable
and affordable for customers, whether
it is for leisure or business.
We use our cost advantage and leading
positions in primary airports to deliver
low fares and operational efficiency,
seamlessly connecting Europe with
the warmest welcome in the sky.
Our well-established business model
provides a strong foundation to drive
profitable growth and long-term
shareholder returns.
We are proud to have been awarded
Best Low-Cost Airline in Europe at the
Skytrax World Airlines Awards 2019.
‘Our Promise’ is that we will be:
SAFE AND ON OUR IN IT ALWAYS FORWARD

RESPONSIBLE CUSTOMERS’ TOGETHER EFFICIENT THINKING
SIDE

our value PAGE
CONTENTS
STRATEGIC REPORT
2
2 At a glance
creation 3 Chairman’s letter
framework 10
12
14
Highlights
Business model
Market review
The foundation 15 Stakeholder engagement
for who we are 16 Chief Executive’s review
and what we do and Our Strategy
26 Key performance indicators
28 Financial review
35 Viability statement
36 Summary statistics
37 Risk
our PAGE 48

Sustainability

performance
10

CORPORATE GOVERNANCE
Key highlights 66 Chairman’s statement
on corporate governance
of the year’s 68 Board of Directors
performance 72 Airline Management Board
75 Corporate governance report
96 Directors’ remuneration report
116 Directors’ report
120 Statement of Directors’
responsibilities

our pLAN PAGE ACCOUNTS

121 Independent auditors’ report
16
to the members of easyJet plc
The strategic plan which 128 Consolidated accounts
we announced last year 133 Notes to the accounts
is now fully embedded 174 Company accounts
across easyJet 176 Notes to the Company accounts
179 Five-year summary
180 Glossary
181 Shareholder information
PAGE
our commitment
Sustainability is a key part
of Our Promise
48
VISIT OUR WEBSITE FOR MORE
INVESTOR INFORMATION
corporate.easyJet.com/investors
www.easyJet.com 1
AT A GLANCE
our value creation

framework
easyJet’s value creation framework is the foundation for who we are and
what we do. This provides context for how our wider purpose drives our
business model and strategic plan, both of which are underpinned by our
responsible and sustainable way of doing business and our core values.
OUR PURPOSE
Our purpose defines who
SEAMLESSLY CONNECTING EUROPE WITH THE WARMEST
we are and guides our WELCOME IN THE SKY
actions and decisions. easyJet makes travel easy, enjoyable and affordable, whether it is
for leisure or business
DETAILS CAN BE FOUND ON PAGE 12
OUR BUSINESS PURPOSE-DRIVEN,

MODEL
Our well-established business
VALUE CREATION BUSINESS MODEL
model provides a strong
foundation for delivering
long-term value to all of
our stakeholders.
OUR STRATEGY OUR PLAN

Our strategic priorities are a
plan of action designed to Number one
move us closer to fulfilling or number Winning our
our purpose. Value by The right Innovating
two in customers’
efficiency people with data
primary loyalty
airports
OUR SUSTAINABILITY OUR SUSTAINABILITY STRATEGY

FRAMEWORK
Our sustainable growth is Safety is our number one priority A responsible and responsive employer
supported by a responsible
way of doing business. Honest and fair with our A guardian for future generations
customers and suppliers
A good citizen
OUR PROMISE
We have a set of values On our
which support and Safe and Always Forward
customers’ In it together
guide Our Strategy. responsible efficient thinking
side
2 easyJet plc Annual Report and Accounts 2019

CHAIRMAN’S LETTER
focused on
STRATEGIC REPORT CHAIRMAN’S LETTER

delivering
long-term value
2019 has been a challenging year for easyJet with a tough start in to the Board on 1 January 2019. Both bring different perspectives
the first half. This was followed by success from our self-help on technology and data and in-depth knowledge of a range of
initiatives over the summer, with decisive management actions businesses. Adèle Anderson stepped down from the board on
ensuring a record summer profit performance. The strength of our 7 February 2019 and I would like to reiterate my thanks to Adèle
offering has ensured that customer demand has remained strong for her important contribution. Further details of these changes
in spite of uncertain times for consumer confidence and continued are included in the Governance report on page 66.
disruption at airports. In 2019 the Group increased the number
of passengers flown by 8.6% to 96.1 million passengers OUR PEOPLE
(2018: 88.5 million). Our strong business model and robust balance I would like to extend my thanks to all of easyJet’s employees,
sheet mean we are well positioned to succeed in the years ahead. but especially to the wonderful crew, who continue to provide the
warmest welcome in the sky. The inclusive culture and people at
RESULTS easyJet are vital to our success.
easyJet has faced a challenging year, with consumer confidence
There have been a number of changes to the Airline Management
having been impacted by the ongoing uncertainty around the UK’s
Board over the course of the year which are detailed in the
exit from the EU. This uncertain demand environment and the
Governance report on page 72.
annualisation of some one-off benefits we experienced last year
were the main factors behind the significant reduction in our Details of how we engage with our stakeholders can be found
profits this year. However, the measures we have taken to on page 15.
increase late yields and manage costs have enabled us to meet
revised stock market expectations and to stabilise and reposition SUSTAINABILITY
our business for this new environment. A discussion of the current In the past year we have seen increased debate about climate
dynamics influencing our industry can be found in the Market change. As an airline this is our most significant sustainability
Review on page 14. impact and challenge. This is why we announced in November
2019 that we would become the world’s first major airline to
Revenue for the full year increased by 8.3% to £6,385 million
operate net-zero carbon flights across its whole network. We are
(2018: £5,898 million). Despite a difficult disruption environment,
doing this by offsetting the carbon emissions from the fuel used
our Operational Resilience programme ensured that costs
for all of our flights.
remained under control.
We recognise that this is an interim measure, but at the moment
This resulted in headline profit before tax of £427 million
we believe it’s the best way we have to remove carbon from the
(2018: £578 million) and basic headline earnings per share of
atmosphere. At the same time, we will continue to support the
88.7 pence (2018: 118.3 pence). Total profit before tax of
development of new technologies to decarbonise aviation for the
£430 million (2018: £445 million) and non-headline items of
longer-term, on top of all the other initiatives we are taking to
a £3 million gain (2018: £133 million cost) led to basic total
reduce carbon.
earnings per share of 88.6 pence (2018: 90.9 pence).
THE FUTURE
DIVIDENDS
As ever there will be challenges to face during the coming year.
easyJet’s dividend policy is to pay shareholders 50% of
We continue to believe that easyJet’s well-established business
headline earnings after tax, reflecting the Board’s confidence
model and solid financials provide a strong foundation to weather
in the long-term prospects of the business. I am pleased to
these challenges, and to drive profitable growth and long-term
recommend to shareholders a dividend of 43.9 pence per
shareholder returns.
share for the 2019 financial year (2018: 58.6 pence per share).
HOLIDAYS
Last year easyJet identified a significant opportunity to develop
a financially meaningful holidays business, to better serve the
easyJet generation. Around 20 million customers per year fly with
easyJet to Europe’s largest leisure destinations, but only 0.5 million
JOHN BARTON
Non-Executive Chairman
book accommodation with us. We will launch in the UK before
Christmas, selling holidays for winter 2019 and summer 2020.
OUR BOARD
easyJet’s Board has been further strengthened this year by the
appointment of two new Independent Non-Executive Directors.
Dr Anastassia Lauterbach and Nick Leeder were both appointed
www.easyJet.com 3
resilient
As we were planning for summer 2019, we faced
increasing airport and airspace congestion, with
Eurocontrol predicting 15% more air traffic delays
year on year.
The skies are busier than ever, and our own fleet
capacity is growing, so we took action to evolve the
way we planned for and managed disruption on the
day, and recover faster when disruptive events occur.
This involved a co-ordinated, airline-wide effort to
identify improvements across the business, including:
• Re-designing our flying schedules and rosters,
making over 50,000 updates to the schedule to
help us avoid disruption where possible and to be
better positioned to manage where we cannot
• Increasing investment in standby aircraft
• Optimising our maintenance planning
• Communicating with and supporting our
customers during disruption
• Using data and analytics to make the best
network-wide decisions
24% 25%
FEWER DISRUPTION EVENTS
WITHIN OUR CONTROL
FEWER
CUSTOMERS
73%
REDUCTION IN
DELAYED >3
HOURS TIME TO PAY CLAIMS

99.4% 46%
FLIGHT FEWER
COMPLETION RATE CANCELLATIONS
www.easyJet.com 5
focused
Our growth is targeted in the areas where we see long
term returns, within our core business as a low-cost
European point-to-point airline.
• Our network strategy of focusing our capacity on
slot-constrained primary airports is improving
resilience through the cycle and driving revenue per
seat and profitability, as we take market share from
legacy carriers.
• Our new Holidays initiative is focusing initially on the
19.5 million leisure customers who flew easyJet last
year but booked accommodation elsewhere. The
Holidays team is targeting the needs of the easyJet
generation with an all-new offering and website.
We have identified that this represents a significant
growth opportunity with low capital requirements.
• Our late yield initiative has enabled us to optimise
pricing for super late bookings, in instances where
we saw a wide pricing gap relative to our
competitors, whilst still maintaining our
commitment to offer great value.
OUR CEO REVIEW CONTAINS FURTHER INFORMATION

ON OUR CUSTOMER-FOCUSED STRATEGY
– PAGE 21
“WE HAVE THE

61m
FLOWN BY LEGACY
CARRIERS FROM OUR
AMBITION, EXISTING TARGET
AIRPORTS – A MAJOR
EXPERIENCE AND
DIVERSITY NEEDED
seats GROWTH
OPPORTUNITY
TO BECOME A
MAJOR PLAYER IN
THE HOLIDAY
MARKET” 19.5m Customers
WHO FLEW WITH EASYJET FOR
Garry Wilson, Chief Executive Officer LEISURE BUT BOOKED
of easyJet Holidays ACCOMMODATION ELSEWHERE

1-2
weeks
before
departure
WINDOW TO
IMPROVE YIELDS
www.easyJet.com 7
data driven
At easyJet, we put data to work for the benefit
of our customers and employees.
We have designed prediction models which allow our operations
team to intervene early when crew duty hour limits are likely to
disrupt our schedule, enabling us to create highly resilient rosters and
schedules. This is critical to crew wellbeing, reducing out-of-hours
travel to cover duties while also enabling greater roster stability and
minimising customer disruption.
We are equipping all of our aircraft with ‘big data’ servers, which allows
us to capture, store and interrogate the aircraft data after every flight.
Looking for patterns in this data enables us to intervene early, before
an aircraft potentially develops a technical fault and impacts upon
our operation.
Data from our maintenance systems is also being used to predict
when we are most likely to find faults and need extended maintenance
downtimes. This allows us to ensure we have the right spare parts and
personnel available, and have standby aircraft ready if necessary.
Congestion in European airspace has had a huge impact on our
operations, especially during summer 2018 and 2019. We have
developed data tools allowing us to predict which flights are most likely
to experience delays and impact upon our flying programme. These
data tools recommend where to intervene to reduce these delays and
help to shape how we build our future schedules in a more resilient way.
The use of data has been fundamental to our success in reducing the
impact of disruption. These are early successes in building a data driven
operation and we have a full pipeline of data projects for the future.
FURTHER INFORMATION ON OUR

FOCUS ON DATA CAN BE FOUND
– CEO REVIEW PAGE 25 – RISK MANAGEMENT 37 – SUSTAINABILITY 48
631 21
NEW
DATA
TOOLS
AIRCRAFT
TECHNICAL
900
FAULTS DETECTED CREW
BEFORE THEY PAIRINGS
INTERRUPTED PROACTIVELY
OPERATIONS SPLIT

www.easyJet.com 9
HIGHLIGHTS
Our performance
TOTAL PROFIT BEFORE TAX HEADLINE PROFIT BEFORE

(£M) TAX1 (£M) TOTAL REVENUE (£M)
2019 430 2019 427 2019 6,385

2018 445 2018 578 2018 5,898
2017 385 2017 408 2017 5,047
2016 507 2016 494 2016 4,669
2015 686 2015 4,686
TOTAL ANCILLARY BASIC TOTAL EARNINGS PER BASIC HEADLINE EARNINGS

REVENUE2 (£M) SHARE (PENCE) PER SHARE1 (PENCE)
2019 1,376 2019 88.6 2019 88.7

2018 1,210 2018 90.9 2018 118.3
2017 77.4 2017 82.5
2016 110.9 2016 108.4
2015 139.1
LOAD FACTOR SEATS FLOWN DIVIDEND PER SHARE
91.5%
2018: 92.9%
105.0m
2018: 95.2M
43.9p
2018: 58.6p
1. Headline performance measures were implemented from 2016 onwards

2. Ancillary revenue reporting was implemented from 2018 onwards

focusing on our strengths
STRATEGIC REPORT HIGHLIGHTS

FINANCIAL REVIEW
We continue to invest in the core strengths of our network,
operational efficiency and customer service.
unparalleled low-cost strong

network model balance
NUMBER ONE
OR TWO IN PRIMARY
NEW GENERATION
AIRCRAFT REDUCE
sheet
AIRPORTS1 EMISSIONS AND FUEL NET (DEBT)/CASH4
CONSUMPTION3
56
2018: 51
15% £(326)m
2018: 396M
ROUTES OPERATED 2 COST SAVINGS
12018:,051
979
£139m
2018: £107m
customer value by driving

loyalty efficiency revenue
NUMBER ONE AIRLINE
BRAND IN THE UK,
FRANCE & SWITZERLAND 2,5
HEADLINE ROCE 8 growth
11.4%
PASSENGERS 6
no.1 or 2 2018: 14.6%

RETURNING CUSTOMERS 6, 7
96.1m
2018: 88.5M
68%
2018: 66%
1. As at 30 September 2019 – airports where easyJet is the number 5. Millward Brown brand tracker
one or number two carrier based on short-haul capacity 6. In the year ended 30 September 2019
2. As at 30 September 2019 7. Percentage of seats booked by customers who made a booking
3. A320neo vs previous generation A320 in the preceding 24 months
4. Includes lease liabilities upon adoption of IFRS 16 in FY 2019 8. 2019 post IFRS 16, 2018 using adjusted capital employed and restated
www.easyJet.com 11
BUSINESS MODEL
our business model

Our robust business model makes it easy, affordable and sustainable
to travel, which drives growth and returns for our shareholders.
OUR PURPOSE: OUR RESOURCES:
FINANCIAL CAPITAL CREDIT RATING

SEAMLESSLY
CONNECTING
EUROPE WITH
easyJet has a strong capital base, with a market capitalisation
of £4.6 billion1 and very low net debt position of £326 million bbb+
THE WARMEST
at 30 September 20192 (2018: £396 million net cash).
easyJet’s credit ratings are amongst the strongest in the
world for an airline.
/Baa1
WELCOME IN
THE SKY.
WE MAKE TRAVEL
EASY, ENJOYABLE
AIRCRAFT
easyJet operates a modern fleet of Airbus A320 family 331
aircraft, of which 70% are owned outright. We are investing AIRCRAFT5
AND AFFORDABLE in new generation aircraft which are more fuel efficient3 and
FOR CUSTOMERS, environmentally friendly,4 leading to lower operating costs 2018: 315
and lower carbon emissions over time.
WHETHER IT
IS FOR LEISURE
OR BUSINESS, PEOPLE OVER
THROUGH OUR
UNIQUE AND
easyJet has a highly skilled workforce of over 15,000 people,
including nearly 4,000 pilots and over 9,000 cabin crew members.5 15,000
SUSTAINABLE The employee engagement score of 8 out of 10 on our EMPLOYEES5
employee listening platform Peakon reflects our strong culture,
BUSINESS MODEL. which is unique in the airline industry. 2018: 14,000
SUPPLIERS
easyJet partners with key suppliers to deliver many of its 85%
operational and commercial activities. Our partners are carefully SUPPLIER
selected and significant emphasis is placed on managing these PAYMENTS ON TIME
relationships, with the aim of extracting incremental innovation
and performance. Currently, our top 300 suppliers are 2018: 87%
responsible for around 97% of our spend.
SLOTS AND BRAND

easyJet has a valuable portfolio of slot pairs at slot-constrained 88%
primary airports, as well as flying rights across Europe and AOCs6 CAPACITY AT SLOT-
in the UK, Switzerland and Austria. CONSTRAINED AIRPORTS7
easyJet has a strong brand and has been named the best low-cost
airline in Europe at the Skytrax World Airlines Awards 2019.
2018: 89%
TECHNOLOGY AND DATA

easyJet is aiming to become the world’s most data-driven 700M
airline. We are seeing significant benefits already from VISITS TO ALL DIGITAL
operational resilience processes and predictive maintenance. PLATFORMS
Our revenues are benefiting from data projects in late yield
initiatives and differential seat pricing. 2018: 615m
1. Based on share price of £11.50 at 30 September 2019

2. With the adoption of IFRS 16, leases are now on the balance sheet
3. 15% fuel saving A320neo vs previous generation A320
4. Around 50% quieter on takeoff and landing than previous generation aircraft
5. As at 30 September 2019
6. Air operator certificates
7. Based on level 2 and level 3 airports as updated by IATA on 10 November 2018 and defined within IATA Worldwide Slot Guidelines as at 1 August 2019

STRATEGIC REPORT BUSINESS MODEL
easyJet continues to go from strength to strength
across Europe, adding more top destinations to
our market-leading network and increasing our
presence at slot-constrained primary airports.
BUSINESS ACTIVITIES:
AIRPORTS ROUTES
WHAT WE DO
We are a low-cost European
159 1,051
point-to-point airline. We use
our cost advantage, operational
efficiency and leading positions
in primary airports to deliver low
fares, seamlessly connecting
Europe with the warmest
2018: 156 2018: 979
welcome in the sky. INCREASING NO 1 POSITIONS
easyJet is the seventh1 ACROSS THE NETWORK
largest airline in the world,
with 331 aircraft and 96 million 2019 27
customers across 34 countries
and 159 airports. 2018 25
In time for the 2020 summer 2017 18
season we are launching a new
easyJet Holidays business, in
2016 17
order to capture additional 2015 17
revenues from the 97% of our
leisure customers who book
accommodation elsewhere.
HOW WE DO IT
• Our leading position at
slot-constrained airports
with high customer demand
allows us to deliver profitable
growth and resilient returns Destinations
over the long term
• We continually evaluate
opportunities to extend
our network profitably
• Our cost efficiency is
achieved through long-term
strategic partnerships with
key airports and ground
handling operators
• easyJet has a focus on
providing services which
our customers value
• The new easyJet Holidays
offering has been tailored
to the needs of the easyJet
generation
1. Based on sectors flown, as reported by OAG as at September 2019
www.easyJet.com 13
MARKET REVIEW
Market dynamics
The key factors which influence easyJet and all operators
within the European airline industry
DEMAND HOW WE ARE RESPONDING

Our dense, Europe-focused network
The airline industry is a cyclical one, with demand for flights driven by
enables economies of scale and allows
economic growth.
us some flexibility, to move capacity in
Low-cost carriers such as easyJet continue to take market share from response to local demand.
legacy carriers.
easyJet’s Brexit preparations are extensive
The aviation industry has been affected by a number of geopolitical and have addressed both operational and
events in recent years, such as terror attacks and extreme weather financial issues. Further details can be
events. These have both short-term and long-term consequences for found on page 18.
demand and the structure of the industry.
The UK’s decision to leave the EU has led to considerable uncertainty
for people booking flights, as well as operational challenges for airlines.
The outcome of the Brexit process may continue to affect GDP and
the propensity to travel.
FUEL HOW WE ARE RESPONDING

easyJet continues to hedge fuel costs in
Fuel is one of the biggest costs which airlines face and one of the
order to mitigate against the risk of major
most volatile. Fuel represented 24% of easyJet’s cost base for the
volatility in fuel prices.
2019 financial year. During the year the average price of Brent crude
oil fell by 6% from $70 to $66. The price of jet fuel is strongly
correlated to the price of crude oil.
ENVIRONMENTAL AND SOCIAL HOW WE ARE RESPONDING

easyJet is now the world’s first major
Environmental factors are a major issue for the airline industry,
airline to operate net-zero carbon flights.
affecting both passenger demand and operating parameters.
Our first comprehensive Sustainability
Customers are increasingly aware of their carbon footprint and are Report begins on page 68 and contains
considering alternatives to air travel, which accounts for around 3% further details of this and all of our
of global carbon emissions. Sustainability initiatives.
SUPPLY AND AIRSPACE MANAGEMENT HOW WE ARE RESPONDING

easyJet is taking steps to address the
European short-haul capacity increased by 3.6% in total and by 5.3% in
difficult ATC environment and the rising
easyJet’s markets during 2019.
costs of disruption. Our Operational
The Air Traffic Control environment in Europe has continued to worsen, Resilience programme is proving very
with delay minutes rising from 14.1 million in 2015 to 24.5 million by 2019, successful and further details can be found
according to Eurocontrol data. on page 23.
FOREIGN EXCHANGE HOW WE ARE RESPONDING

We hedge foreign exchange exposures in
easyJet is exposed to foreign exchange rate movements, particularly
order to mitigate against volatility.
Sterling against the US dollar and the Euro.
Sterling has fallen in value since the UK voted to leave the EU in the 2016
referendum. Sterling’s depreciation continues to impact negatively upon
easyJet’s costs and capital expenditure. A strong US dollar increases the
price of fuel, one of easyJet’s biggest costs. A strong Euro typically has a
net benefit for easyJet’s European operations. See page 30 for details of
the impact from foreign exchange on our results for the 2019 financial year.

STAKEHOLD ER ENGAGEMENT
our stakeholders
STRATEGIC REPORT STAKEHOLDER

Our stakeholders are an important part of our operations and are
referenced throughout this report. Details of our key stakeholders
FINANCIAL REVIEW
and how we engage with them are set out below.
WHO THEY ARE HOW WE ENGAGE
CUSTOMERS
ENGAGEMENT
• Our crew interact with customers on a daily basis,
providing the warmest welcome in the sky.
We flew 96 million passengers in 2019. They
include individuals who book flight-only trips • When customers need extra support, our customer
with us for leisure or business, as well as those services teams help with special assistance requests
who also book holidays. or arrangements when their travel is disrupted.
• We also regularly survey our customers to find out
about their experiences.
SUPPLIERS • We aim to have an open, constructive and effective

relationship with all suppliers, as we believe they are
Our current fleet of 331 aircraft is supplied by Airbus.
integral to the Group’s success.
The fleet is maintained by specialist suppliers.
• We have an established supplier relationship
Ground handling agents manage the logistics
management framework, which provides a toolkit and guidance
operations at airports, such as baggage handling
for easyJet managers who lead relationships with key partners.
and aircraft loading and unloading. We have a
strategic partnership with DHL to provide these • Our IT supplier relationship management process is designed
services at Gatwick, Bristol and Manchester. to ensure that third-party services and associated risks are
regularly reviewed and assessed.
We have a number of critical technology suppliers.
EMPLOYEES • In addition to Peakon, our employee engagement

platform, we have country and base teams which manage
We have 15,000 employees across eight countries
and interact with staff on a daily basis.
in Europe, including 4,000 pilots and 9,000
cabin crew. • We have a number of employee representative groups
across Europe. We also engage with 20 trade unions
across eight countries.
• Moya Greene engages with employees through her
role as the Employee Representative Director.
COMMUNITIES • Community engagement is typically coordinated by

local management teams. In the community around
We operate out of 30 bases across Europe and
our head office, we support Luton Town Football Club’s
fly from 159 airports. Our head office is based at
community sport programme and the ‘Love Luton’
London Luton Airport, where we have a training
economic development campaign.
academy for crew.
We opened our first European pilot training
centre near Milan in 2019.
SHAREHOLDERS • We have an active engagement programme with institutional

investors through our Investor Relations department.
As a company listed on the London Stock
Shareholders can also attend our AGM and ask questions.
Exchange, our shares are publicly traded.
• We engage with our major shareholders on a regular basis
Our major shareholders are set out on page 117.
around specific issues.
REGULATORS AND GOVERNMENTS • Our regulatory affairs team engages with regulators on
a regular basis. We also engage with governments in all markets
Our three pan-European airlines are regulated by
where we have bases, at both a national and regional level.
Austrocontrol (Austria), the Civil Aviation Authority
(UK) and the Federal Office of Civil Aviation • Our operations team engage with Air Traffic Control
(Switzerland). operators and airline associations. We also work with
business and tourism bodies across our network.
We engage with governments, policy makers,
Air Traffic Control operators, airline associations
and tourism bodies.
www.easyJet.com 15
CHIEF EXECUTIVE’S REVIEW
our plan for

the future
JOHan lundgren
Chief Executive Officer
OVERVIEW decreased by 1.8% to £60.81 (2018: £61.94), reflecting economic

uncertainty across our markets, weakness in the second quarter
easyJet delivered a resilient performance in the 2019 financial year.
and subsequent recovery in the second half. Revenue per seat
Our financial results reflect the underlying strength of easyJet’s
at constant currency 2 decreased by 2.7%.
network and brand. We continue to see easyJet as a structural
winner in the European short-haul airline market, across the Passenger revenue grew by 6.9%. The drivers of this
economic cycle. performance were:
easyJet is reinforcing its competitive advantage by building • The self-help initiatives delivered in the second half, mainly
leading positions at the primary airports which our customers focusing on optimising late yield, whilst maintaining our
want to fly to. This customer-focused strategy is driving profitable commitment to offer great value
growth and delivering resilient returns for the long term. We have • Strength in the UK regions and in France
made significant progress with the Berlin operations which we
• A full year’s contribution from our Tegel base in Berlin
acquired last year and they have been successfully integrated
into our network. • Positive impact from strikes at British Airways and Ryanair
We believe that it is the strength of this network, combined with Offset by:
our welcoming people and all-round value, which are enabling
• A tougher comparison as the previous year had benefited
easyJet to deliver robust bookings and continue to take market
from the collapse of Monarch, cancellations at Ryanair and
share from the legacy carriers.
industrial action in France
Our revenues on a per seat basis were negatively impacted by
• Economic uncertainty in core markets
uncertainty around the original March 2019 Brexit date, although
have since recovered well, supported by a number of self-help • Weakness in the second quarter, as customers’ propensity
initiatives, such as our late yield pricing programme. to book flights was impacted by uncertainty surrounding the
original date of 29 March 2019 proposed for the UK to leave
Operational performance has remained strong as we have the European Union
invested in operational resilience initiatives to reduce the impact
• Softer London market
of industry disruption for our customers.
• Drone sightings at London Gatwick
Cost control continues to be a core focus and our underlying
cost per seat has remained broadly stable this year, despite Ancillary revenue grew 13.7% to £1,376 million (2018: £1,210 million).
some industry-wide issues in the fourth quarter such as summer This reflected our continued focus on a data-driven programme
storms and disruption at London Gatwick. of products and services which our customers value, including:
Our all-new easyJet Holidays platform will launch in the UK market • Seasonal pricing on allocated seating
before Christmas, taking bookings for the winter 2019 and summer • Introduction of the fourth band of seat pricing
2020 seasons. Our new holidays website and mobile app will offer
a simple-to-use, streamlined search and booking process with • Loss of revenue from changes to admin fees more than
inspiring content. We are excited about the opportunity to build offset by strong performance of ancillary revenues generally
a financially meaningful holidays business for a low upfront
investment and limited risk. We expect easyJet Holidays to be at COST
least breakeven in the financial year to 30 September 2020. easyJet’s underlying cost performance has been strong in the
2019 financial year. Headline cost per seat including fuel increased
REVENUE by 1.5% to £56.74 (2018: £55.87). Headline cost per seat at
Total revenue increased by 8.3% to £6,385 million (2018: £5,898 constant currency 2 increased by 0.4% to £56.08 (2018: £55.87).
million) due to our increase in capacity 1. Total revenue per seat
1. Capacity represents the number of earned seats flown. Earned seats include seats which are flown whether or not the passenger turns up, as easyJet is a
no-refund airline and once a flight has departed, a no-show customer is generally not entitled to change flights or seek a refund. Earned seats also include
seats provided for promotional purposes and to staff for business travel.
2. Constant currency is calculated by comparing performance for the 2019 financial year, translated at the effective exchange rate for the 2018 financial
year, with the 2018 financial year reported performance, excluding foreign exchange gains and losses on balance sheet revaluations.

Headline cost per seat excluding fuel decreased by 0.8% at There were no non-headline charges relating to Tegel, which is
STRATEGIC REPORT CHIEF EXECUTIVE’S REVIEW

constant currency2 to £43.11 (2018: £43.43). This cost now fully integrated into the underlying business (2018: charge
performance was driven by: of £40 million).
• Investment in operational resilience, which drove decreases in TOTAL PROFIT
cancellations and delays over three hours despite experiencing
the drone issue at Gatwick as well as summer thunderstorms Total profit before tax fell to £430 million (2018: £445 million),
across many markets including a £3 million positive impact (2018: £133 million adverse)
from non-headline items.
• Lower navigation costs due to reduction in Eurocontrol rates
Headline profit before tax fell to £427 million (2018: £578 million).
• Favourable impact of IFRS 16 in relation to maintenance costs
offset by increased underlying costs of maintenance Headline profit per seat fell to £4.07 (2018: £6.07). The tax
• Fleet up-gauging from A319ceo to A320neo and A321neo albeit charge for the year was £81 million (2018: £87 million). The
this has been somewhat lower than planned due to Airbus effective tax rate for the period was 18.9% (2018: 19.7%).
delivery delays Basic earnings per share fell to 88.6 pence (2018: 90.9 pence) after
• Established strategic relationships with key suppliers, particular the impact of non-headline items. Basic headline earnings per
airports and ground handling agents, to drive long-term cost share fell by 25% to 88.7 pence (2018: 118.3 pence). Subject to
efficiencies approval by shareholders, the Board is recommending that the
dividend per share decreases by 25% to 43.9 pence (2018: 58.6
• Lower de-icing costs due to relatively benign weather
pence), in line with the Company’s stated dividend policy of a
Partially offset by: payout ratio of 50% of headline profit after tax.
• Annualisation of previously agreed crew pay deals FLEET

• Price increases from both regulated and non-regulated airports easyJet’s fleet is a major component of its business model and a
• Ownership costs reflecting new aircraft year on year and competitive advantage. easyJet’s total fleet as at 30 September
the impact of IFRS 16 accounting changes. The net impact of 2019 comprised 331 aircraft (2018: 315 aircraft) with the increase
IFRS 16 is an £8 million decrease in headline costs driven by the addition of new aircraft from the A320 family.
The average gauge of the fleet is now 175 seats per aircraft, an
• The cost impact of the drones at Gatwick relating to customer
increase from 172 seats at 30 September 2018. The average age
welfare costs. The incident affected around 82,000 customers
of the fleet increased slightly to 7.4 years (2018: 7.0 years). During
and led to over 400 flights being cancelled.
the year easyJet’s asset utilisation across the network decreased
Fuel cost per seat increased by 8.4% to £13.48 (2018: £12.44) and slightly to an average 10.9 block hours per day (2018: 11.1 hours).
by 4.3% at constant currency2, driven by a higher hedged fuel easyJet is pleased to announce that it has reached an
price compared to the prior year, partially offset by a continued agreement with Airbus which ensures continued delivery of
investment into more fuel efficient aircraft. aircraft from 2024 and executes some fleet flexibility.
Specifically, the agreement includes:
NON-HEADLINE ITEMS
easyJet incurred a net benefit of £3 million in non-headline • The exercise of 12 purchase options resulting in 12 firm orders
items during the 2019 financial year (2018: £133 million cost). of A320neo aircraft for delivery in 2024 under the existing
Non-headline items are material non-recurring items or items 2013 agreement
which do not reflect the trading performance of the business. • The deferral of delivery dates of nine A320neo aircraft and three
These costs are separately disclosed and further detail can be A321neo aircraft resulting in 2021 deliveries reducing by 12 aircraft,
found in the notes to the accounts. These include: and being deferred to delivery dates starting from 2023
• £2 million gain as a result of the sale and leaseback of ten A319 The agreement secures valuable delivery slots in 2024 at a list
aircraft in the period (2018: charge of £19 million) price of $1,368.4m for the 12 new firm orders of A320neo aircraft.
• £2 million gain from the retranslation of balance sheet Under the terms of the 2013 agreement between easyJet and
monetary assets and liabilities (2018: nil) Airbus, the actual cost of the aircraft is subject to a substantial
• £2 million credit related to the commercial IT platform discount from the list price. Following this agreement, easyJet
programme (2018: £65 million charge) have 13 purchase options and 58 purchase rights remaining.
• £4 million charge for ongoing organisational and legal The agreement also allows the fleet to meet the planned fleet
costs associated with easyJet’s Brexit-mitigation size for 2021 and is a key demonstration of easyJet’s fleet
programme (2018: £7 million) flexibility which means the airline is able to either increase or
decrease the fleet growth programme as well as increase or
• £1 million credit related to fair value adjustments
decrease deployed capital.
(2018: £1 million charge)
FLEET AS AT 30 SEPTEMBER 2019:

Changes Unexercised
since Sept Future Purchase purchase
Owned Leased Total % of fleet 2018 deliveries options rights
A319 69 56 125 38% (7) – – –
A320 180 seat 17 23 40 12% (35) – – –
A320 186 seat 109 20 129 39% 36 – – –
A320 neo 31 – 31 9% 18 79 25 58
A321 neo 6 – 6 2% 4 24 – –
232 99 331 16 103 25 58
Percentage of total fleet 70% 30%
www.easyJet.com 17
CHIEF EXECUTIVE’S REVIEW CONTINUED
BALANCE SHEET which allow for suspension of rights to attend and vote at shareholder
meetings and/or sale of shares by non-qualifying nationals to
easyJet’s business model and strategy are underpinned by
qualifying nationals. Similar powers exist in the articles of association
sector-leading balance sheet strength. easyJet is committed to its
of other airlines, as well as in the articles of companies in other
investment grade rating, with a BBB+ (stable) rating from
sectors which have national share ownership requirements. Whilst
Standard & Poor’s and a Baa1 (stable) rating from Moody’s.
easyJet has no current intention of exercising these powers, the
Of easyJet’s 331 aircraft on the balance sheet at 30 September position will be kept under review pending the outcome of Brexit
2019, the 232 owned aircraft are unencumbered, representing negotiations between the UK and the EU, along with other options.
70% of the total fleet (unchanged year-on-year).
easyJet continues to closely monitor demand on all of our routes,
Over the next four years easyJet’s gross capital expenditure, in the event that political events may affect our customers’
including the impact of new IFRS accounting standards is propensity to travel.
expected to be as follows:
Having started our Brexit preparations early and with contingency
Year 2020 2021 2022 2023 plans in place, we are confident that easyJet will keep flying and
Gross capital expenditure (£ million) 1,350 950 1,200 1,100 that our operations will not be materially affected, whatever the
outcome of the current political situation.
easyJet’s funding position is strong with net debt at 30 September
2019 of £326 million, which comprised cash and money market OUTLOOK
deposits of £1,576 million (2018: £1,373 million) and borrowings of
easyJet continues to see the current market environment as
£1,902 million (2018: £977 million).
an opportunity to build and strengthen its network, operational
Borrowings as at 30 September 2019 include £578 million of resilience and customer experience for the long term.
lease liabilities, with the majority added as a result of the
For the 2020 financial year easyJet plans to grow capacity at
adoption of IFRS 16.
the lower end of our medium-term 3-8% guidance. Scheduled
After allowing for the impact of aircraft operating leases, as capacity growth in Q1 is currently around 2% and is expected to
previously adjusted (seven times operating lease costs incurred be less than 2% for the first half.
in the 12 months ending 30 September 2018), adjusted net debt as
Forward bookings for the first half of the 2020 financial year are
at 30 September 2018 was £738 million.
reassuring. Bookings are slightly ahead of last year (recognising
Liquidity per 100 seats was £3.6 million (2018: £3.9m), which represents that the second quarter is a weak comparative).
comfortable headroom compared to our target of a liquidity buffer
Revenue per seat for the first half of the 2020 financial year
of £2.6 million per 100 seats, defined as cash plus undrawn
is expected to be up low to mid single digits year-on-year.
revolving credit facilities and business interruption insurance.
This excludes the incremental revenues associated with
Headline return on capital employed (ROCE) fell to 11.4% (2018: easyJet Holidays.
14.6%), driven by the weaker performance in Q2. Total ROCE fell
Disruption costs are expected to continue improving next year,
to 11.4% (2018: 11.7%). On a like-for-like accounting basis, total
driven by our Operational Resilience programme. A lower rate
ROCE decreased to 10.0%.
of capacity growth will make it more challenging to deliver lower
BREXIT costs per seat on an underlying basis. Headline cost per seat
excluding fuel at constant currency for the 2020 financial year is
easyJet is well prepared for the UK’s departure from the European
expected to increase by low single digits, assuming normal levels
Union and has been operating in a ‘No-Deal Brexit’ environment
of disruption. This guidance excludes the incremental costs
since March 2019.
associated with easyJet Holidays, which is expected to be at least
Since March easyJet has been structured as a pan-European airline breakeven for the financial year ending 30 September 2020.
group with three airlines based in Austria, Switzerland and the UK.
Capital expenditure for the 2020 financial year is expected to be
This ensures that easyJet will continue to be able to operate flights
c.£1.35 billion (including the effect of new IFRS accounting standards).
both across the EU and domestically within EU countries after the
UK has left the EU, regardless of the Brexit outcome. Based on today’s fuel prices, unit fuel costs1 for the year to 30
September 2020 are expected to result in a headwind of between
easyJet has made good progress in meeting the European
£70 million and £140 million, due to easyJet’s advantaged hedging
ownership requirements and our equity capital is currently around
position. Total fuel bill is expected to be around £1.62 billion
the 50% threshold of qualifying nationals (EU member states plus
(includes £10 million of the headline foreign exchange impact) and
Switzerland, Norway, Iceland, Liechtenstein, but excluding the UK).
this figure includes c.£25 million investment in carbon offsetting.
In the event that the UK were to leave the EU without a deal and if
the European ownership of easyJet were to fall below 50% then The total expected headline foreign exchange impact2 for the year
easyJet could invoke the provisions within its Articles of Association to 30 September 2020 is expected to be a positive movement of
around £40 million.
HEDGING
Details of hedging arrangements as at 30 September 2019 are set out below:
Fuel requirement US Dollar requirement Euro surplus CHF Surplus
Six months to 31 March 2020
Percentage of anticipated requirement hedged 74% 70% 68% 76%
Average rate $632 / metric tonne $1.36 €1.11 CHF 1.27
Full year ending 30 September 2020
Full year ending 30 September 2021
1. Unit fuel calculated as the difference between latest estimate of 2020 fuel costs less 2019 fuel cost per seat multiplied by 2020 seat capacity
2. Based on rates as at 30 September 2019 of US$ to £ Sterling 1.28, Euro to £ Sterling 1.15. Currency, capital expenditure and fuel increases are shown
net of hedging impact
our plan
STRATEGIC REPORT OUR STRATEGY

The strategic plan which we announced last year is now fully
embedded across easyJet, to help build on our strengths and
chart our path into an even more successful future.
OUR PRIORITIES:
NUMBER ONE WINNING VALUE THE INNOVATING

OR NUMBER OUR BY RIGHT WITH DATA
TWO IN CUSTOMERS’ EFFICIENCY PEOPLE
PRIMARY LOYALTY
AIRPORTS
Giving customers Making it easy, We control our Creating an Using data to
the leading offer in enjoyable and costs and focus our inclusive and make smart
the airports they affordable to travel investments where energising decisions and
want to fly to again and again for it matters most to environment that shape the future of
business our customers attracts the right travel, to become
and holidays and our people people and inspires the world’s leading
everyone to learn data-driven airline
and grow
Customers do not Customers have We continue to drive People are at the Our team has
just want a great increasing choice a number of cost heart of everything identified a rich
deal on price – they and their and efficiency which easyJet does. pipeline of data
want to fly from the expectations programmes in order Our customer-facing projects. The early
airports which work are rising. to mitigate the employees are the results have been
best for them. effects of inflation very best in the extremely positive,
We will give
and to build further industry and provide improving
We will continue to customers reasons
resilience into our the warmest scheduling, seat
target being the to choose to spend
business model. welcome in the sky. band pricing, late
market share leader more with us,
The positive yield pricing and
at our primary including growing Our improved
experience which operational
airports, offering the our end-to-end operational resilience
they provide for resilience.
most compelling holiday offer, procedures and
customers leads to
network of expanding efficient new aircraft
increased loyalty and
destinations and our business travel not only reduce cost
repeat business.
driving greater and offering a but also reduce the
returns and compelling customer impact on the
frequencies from loyalty programme. environment.
these markets.
FOR MORE DETAILS FOR MORE DETAILS FOR MORE DETAILS FOR MORE DETAILS FOR MORE DETAILS
PLEASE SEE PAGE 20 PLEASE SEE PAGE 21 PLEASE SEE PAGE 22 PLEASE SEE PAGE 24 PLEASE SEE PAGE 25
www.easyJet.com 19
OUR STRATEGY CONTINUED
Number one or 99% of easyJet’s seat capacity touches these key, primary
airports, positioning the airline strongly against its competitors.
During the year easyJet established a number one position at
number two in two more airports, taking the total to 27.

Looking forward, easyJet has identified a number of potential
primary airports target airports for the coming years where GDP and passenger
volumes are high, and where there is a weak incumbent or
fragmented competition. By being number one in key airports,
with the strongest brand and delivering the best value, we can
become the first choice airline for our customers. easyJet
estimates that within its existing target airports there are
61 million head-to-head seats being flown with legacy airlines.
This represents a significant opportunity for growth.
easyJet regularly reviews its route network in order to maximise
returns and exploit demand opportunities in the market. During
the 2019 financial year easyJet added 112 routes to the network.
Reflecting the airline’s discipline, it also discontinued 40 routes
which either did not meet expected return criteria or became
secondary to a more attractive route elsewhere. We will continue
to monitor any additional opportunities for growth which may
become available in our target airports.
easyJet’s network decisions are not driven solely by cost but
by the desire to secure long-term, sustainable and profitable
positions in our customers’ favourite airports, which in turn will
drive long-term, sustainable competitive advantage and returns
easyJet aims to provide customers for shareholders, throughout the cycle.
with the leading, best value offer for easyJet’s strategy is a winning one and customers continue to
choose to fly with us. This is due to our fantastic staff, our
the destinations they want to fly to. efficiency and our all-round value proposition in short-haul
easyJet’s strategy is driving both European flights.
leisure and business travel by focusing easyJet continues to target growth in regional France, leveraging
on the key airports which serve its long-established brand and network presence. In April easyJet
opened a new base in Nantes, which brings its number one
valuable catchment areas and positions in France to six, including Nice, Lyon, Bordeaux, Lille
represent Europe’s largest markets by and Grenoble as well as a number two position in Paris-Charles
de Gaulle and Toulouse.
GDP. easyJet has a portfolio of slots
easyJet also consolidated its position as the UK’s leading airline
at customer-friendly times in these in the domestic market, with growth at Manchester, Edinburgh,
capacity-constrained airports, which Glasgow, Belfast, Liverpool, Southend and Bristol, as well as
reinforces its competitive advantage continuing to strengthen its number one positions in Italy at
Milan Malpensa, Venice and Naples.
against airlines which cannot match
During the 2019 financial year, easyJet grew capacity by 9.8m
its breadth of destinations and seats (+10.3%). This was a faster rate of growth than our markets,
frequencies. which grew capacity by 5.3%.
Our growth came predominantly from the UK, French, Spanish
and Italian operations, as well as from Germany where we
benefited from a full year of operations at our Tegel base. 25%
of easyJet’s capacity growth during 2019 was from domestic
#1 POSITIONS flights, in markets we already knew very well.
Shortly after the end of the financial year easyJet acquired
27
2018: 25
Thomas Cook’s slots at Gatwick Airport (12 summer slot pairs and
8 winter slot pairs) and Bristol Airport (6 summer slot pairs and
one winter slot pair) for £36 million. We are in the process of
finalising the schedules and will be flying these routes as early
as February 2020.
INCREASE IN #1 & #2
POSITIONS
66%
since 2012
Winning our easyJet will offset carbon emissions from the fuel used for every

flight across its whole network. Through carbon offsetting easyJet
will invest in projects to reduce carbon and carbon equivalents
customers’ from the atmosphere. easyJet will compensate for every tonne
of CO2 emitted from fuel used for its flights, by ensuring there is
loyalty one tonne less in the atmosphere – whether by reducing CO2 by

physically removing it from the air (for example by planting more
trees) or by avoiding the release of additional CO2.
easyJet has undertaken a rigorous process in selecting its carbon
offset programmes. Only programmes which meet either the Gold
Standard or Verified Carbon Standard (VCS) accreditation, which
are globally recognised and respected for their standards of
offsetting, will be used.
These accreditors ensure that the carbon reductions claimed by
individual programmes would not have happened without that
project, or that by reducing carbon emissions in one place they
do not inadvertently increase them elsewhere.
easyJet has partnered with Climate Focus to help with the
appointment of the projects. Climate Focus is an international
advisory company committed to the development of policies
and programmes that mitigate and adapt to the impacts of
climate change.
This action on easyJet’s carbon emissions is an interim measure,
and will be in place until new carbon-reducing technologies
become available and commercially viable. The airline will continue
easyJet makes travel easy, enjoyable to support innovative technology, including the development of
and affordable for customers whether hybrid and electric planes, working with others across the industry
to reinvest aviation over the long-term so that European aviation
it is for business or leisure – seamlessly can become net-zero carbon. The aim will be for easyJet to
connecting Europe with the warmest reduce the amount of carbon offsetting it does as new
welcome in the sky. technologies emerge.
As part of this work, the easyJet and Airbus partnership has been
We are making great progress in strengthening our brand across established, to jointly research the opportunities and challenges of
Europe, with record brand scores across many markets and more introducing hybrid and electric aircraft for short haul flying in Europe.
consumers now saying that we are their first choice airline in the easyJet has been supporting Wright Electric over the last two
markets where we operate. Consumers are choosing us because years, which is aiming to produce an all-electric commercial
they want to fly easyJet, and not just because of our great prices aircraft which could be used for short haul flights. The airline is also
and strong network. working with Rolls Royce and Safran on new technologies to
reduce the carbon footprint of flying.
SUSTAINABILITY
From 19 November 2019 easyJet will offset the carbon emissions easyJet’s focus on operational efficiency also continues to deliver
from the fuel used for all its flights on behalf of customers. In fuel and carbon emissions savings. The airline is transitioning its
doing so easyJet will become the world’s first major airline to have fleet to increasingly more modern, fuel efficient aircraft; operating
net-zero carbon emissions from all its flights. The airline will also the aircraft in ways which avoid the unnecessary use of fuel; and
continue its long-term work to support the development of new maximising passenger load factor as much as possible. Since
technology, including electric planes, so that European aviation 2000 easyJet has reduced its carbon emissions per passenger
can move towards becoming net-zero carbon. At this stage the kilometre by over one third. Its carbon dioxide emissions per
expected cost will be c.£25m for 2020. passenger kilometre in the 2019 financial year were 77.07 grams,
down from 78.46 grams in the 2018 financial year.
RETURNING CUSTOMERS HOLIDAYS

Last year easyJet identified a significant opportunity to develop
a financially meaningful holidays business. We have built a brand
68%
2017: 66%
new organisation from the ground up to replace the previously
outsourced commission-based model, so we can directly sell to
customers and grow our business quickly and at scale.
Around 20 million customers per year fly with easyJet to
Europe’s largest leisure destinations, but only 0.5 million book
accommodation with us. These 19.5 million leisure customers are
our initial target market. The total European package holidays
CUSTOMER SATISFACTION market is worth around £61 billion per year. The UK alone is a
£13 billion market and has grown by 6% annually.
74%
easyJet Holidays has built an entire organisation focused on
technology, digital and data, working alongside our experienced
local hotel sourcing team and supported by our commercial,
marketing, finance, HR, legal and customer functions. Our people
2018: 75% are a mix of industry and tech specialists and easyJet talent.
www.easyJet.com 21
The all-new easyJet Holidays offering will be launching in the UK

market before Christmas, taking bookings for the winter 2019 and
summer 2020 seasons. Our new holidays website and mobile
VALUE BY
app will offer a simple-to-use streamlined search and booking
process with inspiring content. EFFICIENCY
The way that customers are taking holidays is changing and we
know customers want holidays with various durations and not just
the traditional seven and 14 nights. Our research tells us that
easyJet customers will value easyJet Holidays’ unrivalled flight
flexibility, curated portfolio of hand-picked hotels and compelling
pricing. easyJet Holidays is well placed to provide customers with
this level of flexibility and the tailored holidays they want, and our
business is built to respond to this.
easyJet is excited about the opportunity to build a major player in the
holidays market for a low upfront investment and with limited risk.
BUSINESS
easyJet is proud that it has been voted UK Business Airline of
the Year at the Business Travel Awards (UK).
easyJet has a well-established and attractive business passenger
offer, based on its network of primary airports, its slot portfolio
and high frequency on Europe’s major commercial routes. easyJet
has built its business customer base from 10 million in 2012 to
almost 17 million in 2019. The increase in business passengers
during 2019 was 11.0% and has been driven by a B2B sales focus
on promoting a new Flexi Fare proposition and Inclusive products easyJet has built a sustainable
on our UK, French and German domestic routes, which saw a 13%
increase in business passenger numbers. Overall penetration of
cost advantage based on ongoing
business rose by 0.5 percentage points to 17.5%. The business efficiency and cost control. We
pricing premium decreased by 4% reflecting tougher market continue to drive a number of cost
conditions, however continued investment in its business offer will
help easyJet reach a higher market share of European short-haul and efficiency programmes in order
business travellers. We now proactively work with 40% of the to mitigate the effects of inflation
FTSE 100 and our dedicated business travel team is actively
engaged with a high proportion of DAX30 and CAC40 companies.
and to build further resilience into
our business model.
LOYALTY
easyJet has a great offer and a great brand which continue to
drive customer loyalty. Loyal customers are much more valuable
to us, with returning customers buying twice as many flights per
year as first timers.
Brand affinity is at an all-time high across our major markets, with
both affinity and preference increasing to our highest ever levels
compared to 2018 in the UK, France, Germany, Italy, Netherlands
and Switzerland.
The easyJet brand is considered of equal status to many of our
full-service competitors.
In the 2019 financial year, 68% of easyJet seats were booked by
customers who had made a booking in the preceding two years,
representing 65 million passengers. This is a 7 million increase
compared to 2018.
Membership of easyJet’s invitation-only loyalty programme,
Flight Club (for those who fly more than 20 times a year with FEWER CANCELLATIONS
easyJet) also grew strongly, with Flight Club members increasing
by 24% in 2019 and accounting for 9% of all bookings made.
easyJet Plus membership rose by 17% over the 2019 financial year.
easyJet’s ambition is to drive customer loyalty further whilst
proving that expensive and complex structures are not needed in
order to be innovative. Whilst our internal resources have been
focused on the easyJet Holidays launch during 2019, easyJet will
46%
continue to evolve its loyalty offering during 2020 to grow the
total value per passenger through a customer-centric loyalty COST SAVINGS
programme that enhances the end-to-end travel experience,
driving loyalty through personalised benefits which offer fair value
and relevancy.
£139M
easyJet is committed to maintaining its structural cost advantage • Customer management – reduced unnecessary or duplicative

in the markets in which it operates, particularly compared to the customer communications, and increased automation in
legacy airlines. easyJet is low cost, driving efficiency and investing claims processing
only where it matters most to our customers and our people. • Data products – introduced 21 new data products, to
Through its Cost and Efficiency Programme, easyJet continues to support operational decision making including
drive both short-term efficiencies and longer term structural cost • Crewing Analyser, to predict crew pairings which would
savings across all areas of the business, leveraging its increasing benefit from being split
scale. These savings enable the airline to offset the effects of
• OTP Simulator, to predict EU 261 events and enable
underlying inflation and build flexibility to help mitigate revenue
proactive action.
pressure. Data is playing an increasingly large part in identifying
and delivering cost savings. easyJet has successfully reversed the trend of increasing
The Cost and Efficiency Programme has been able to deliver disruption events and costs (this includes delays over 3 hours,
sustainable reductions this period: £139 million of savings have overnight delays and cancellations) during the 2019 financial
been achieved in the financial year (2018: £107 million), principally in: year thanks to our resilience work.
• airport deals: easyJet continues to benefit from economies Our Operational Resilience programme has yielded tangible
of scale and delivering passenger growth to its network of airports positive results (2019 compared to 2018) including:
• ground handling costs • 30% reduction in total events
• disruption cost savings • 46% reduction in cancellations
• 24% reduction in 3 hour delays
easyJet expects to deliver at least £80 million incremental savings
in the 2020 financial year. In mitigating the impact of ATC delays our pre-flight tactical
planning team avoided over 550 hours of forecast delay and the
DISRUPTION flight planning team is re-routing on the day to avoid a further
In addition to our structural cost programme initiatives to leverage 20,000 minutes of delay per week.
our scale, easyJet sees opportunities to address the difficult
Overall we have managed to keep net total minutes of delay per
aviation operating environment and the associated cost of
flight broadly flat this year, in extremely challenging conditions.
disruption. This in turn will drive better On Time Performance
For the first time in the last four years easyJet has seen a
(OTP) and customer satisfaction, as well as reduce costs.
reduction in disruption costs year-on-year.
The Air Traffic Control (ATC) environment in Europe remains
challenging, experiencing 24.5 million delay minutes in 2019, ON-TIME PERFORMANCE
compared to 14.1 million in 2015, as reported by Eurocontrol. In the year to 30 September 2019, OTP was flat year on year
During the financial year easyJet has made significant at 75%. This reflects our renewed focus on operational resilience
progress in its Operational Resilience (OR) programme, using in order to counteract the effects of operating at scale in
data and resource from across the company to plan for this increasingly congested airspace. This is despite OTP in the
difficult environment. fourth quarter being significantly affected by the impact of
lightning storms across Europe.
The OR Programme has resulted in improvements in several
key areas: OTP % ARRIVALS WITHIN 15 MINUTES1
• Schedule design – for the summer 2019 schedule easyJet Q1 Q2 Q3 Q4 Full year
has improved automation and increased the number of 2019 Network 79% 82% 74% 66% 75%
parameters used in the planning process, including factoring 2018 Network 81% 82% 73% 68% 75%
in longer turn times for bigger aircraft such as the A320s and
A321s and buffers for congested airspace or curfew-constrained 1. On-time performance is defined as the percentage of flights which arrive
within 15 minutes of the scheduled arrival time and is measured by
airports. As easyJet operates more slots at constrained airports internal easyJet systems
than any other airline in the world this is a key development
which will continue to be enhanced in the future
• Crew cost and resilience – standby has been increasingly
shifted to afternoon/evening duties, and around 900
prioritised pairings have been proactively split
• Aircraft planning – increased standby aircraft to 13 aircraft
• First wave and turn – re-timed first wave processes and
introduced new hot turn/hot arrival processes
• Operations Control Centre (OCC) resilience – new operating
model rolled-out including specialist ‘pods’ or sub teams to
manage each cluster of bases
www.easyJet.com 23
THE RIGHT As our business continues to evolve and grow, easyJet

remains committed to fostering an inclusive and energising
environment which attracts the right people and inspires
PEOPLE everyone to learn and grow.

This commitment is demonstrated in an Employee Net Promoter
Score (eNPS) of 23 and an overall engagement score of 8 out of
10, which are both strong results. easyJet also has a Glassdoor
rating of 4.1, which puts us in the Top 50 places to work in the
UK and the best airline.
easyJet’s business model of employing crew on local contracts
across Europe delivers significant value in attracting and
retaining high quality crew. easyJet believes this is the best
long-term and sustainable resourcing model in the markets
where we operate. easyJet’s investment in this area has driven
structural benefits including employee turnover being amongst
the lowest in the industry.
EMPLOYEE TURNOVER
Employee turnover remains at very low rates, at 5% for cabin
crew, 6% for pilots and 6% in total over the year.
Our employees tell us that they value our friendly, positive and
upfront atmosphere, our famous ‘orange spirit’ and our
competitive remuneration policies.
easyJet is investing significant resources to improve schedule
and rostering efficiency, which will improve crew productivity
People are at the heart of everything and create a more stable working environment.
easyJet does. Our customer-facing
FEMALE PILOTS
employees are the very best in the easyJet’s Amy Johnson Flying Initiative continues to address the
industry and provide the warmest significant gender imbalance in the worldwide pilot community.
welcome in the sky. The positive This programme promotes and supports female recruits and has
seen considerable success. Activity this year has included over
experience which they provide for 180 visits to schools and youth organisations, sponsorship of an
customers leads to increased loyalty Aviation Badge for Brownies (a division of Girlguiding in the UK)
and highlighting female easyJet pilots in the media. From just 5%
and repeat business. of our pilot intake in 2015, the proportion of new entrant pilots
who were female continues to rise and is on track to meet our
20% target in 2020. We will continue to work to influence the
issue of diversity on the flight deck in the coming years.
EMPLOYEE TURNOVER
6%
TARGET FOR NEW
FEMALE PILOTS
20%
INNOVATING Over the 2019 financial year our teams have been working in a

coordinated, airline-wide way to identify improvements across
the end-to-end process, from designing our flying schedules
WITH DATA and rosters, managing our fleet, communicating with and

supporting our customers, and using data to make the best
network-wide decisions.
Our data scientists now use analytics in a much more
sophisticated way to inform every part of our plan. We have
introduced new data products, upgraded core systems and
created a new team to provide rapid insights on recent events,
and identify any systemic patterns or opportunities to improve.
This has included activating over 50,000 updates to the summer
2019 schedule to help us avoid disruption where possible, and to
be better positioned to manage where we cannot. easyJet has
also optimised our maintenance planning and used analytics to
better predict where and when standby aircraft might be
required, reducing delays and speeding up recovery when
disruption occurred.
easyJet has invested in a new team to work directly with external
bodies involved in air traffic management, so we can improve
how we plan our flight slots and work together to avoid delays.
Notable successes in 2019 included:
• taking predictive data analysis into our schedule design, in order
to manage disruption. This has resulted in our disruption costs
actually falling this year, for the first time in the last four years
easyJet is aiming to become the • testing the impact of what is placed in the booking funnel and
world’s most data-driven airline. Our where, in order to maximise ancillary revenue
Chief Data and Information Officer • analysing the results of our fourth band of seat pricing, which
Sam Kini has built a team of data is delivering well
• voted best airline app at the World Aviation Awards
scientists and data analysts to help us
• starting the roll-out of iPads for our crew, to improve OTP,
achieve this goal. We have identified a reduce disruption, improve customer service and save
rich pipeline of projects to optimise 30,000 pieces of paper a day
revenues and costs throughout easyJet.
FUTURE PROJECTS
easyJet’s current pipeline of data projects include:
• our late yield initiative, which was introduced after the softer
trading in Q2, in order to capture some of the pricing gap in
super-late bookings, relative to our competitors. easyJet
now has a new data team working side-by-side with a much
larger trading team, identifying the best performing flights to
get more yield, generating tens of millions of pounds in
incremental revenue. Initial results have been very encouraging
and we will roll out a further wave in 2020
• ongoing operational resilience processes, such as the OTP
simulator, which has helped us to keep net total minutes
of delay per flight broadly flat year-on-year, in extremely
challenging conditions
• continued roll-out of our predictive maintenance capabilities,
PIECES OF PAPER TO BE with 56 aircraft already benefiting from the Advanced Active
SAVED EVERY DAY WITH software. The predictive maintenance programme notifies
CREW I-PADS us in advance of potential issues and has avoided 318
cancellations and 47 major delays already since launch
30,000
• analysis of onboard purchasing decisions to assess whether
changes should be made to our offering
• continual innovation in our offer such as the new Bag Sizer
on the easyJet app and the roll-out of Auto Bag Drop,
which is now offered in 19 airports
SUMMER SCHEDULE This exciting pipeline of projects for the coming year will
UPDATES continue to drive cost efficiency and operational excellence
in 2020 and beyond.
>50,000
www.easyJet.com 25
KEY PERFORMANCE INDICATORS
measuring our performance

easyJet has six Key Performance Indicators, aligned to Our Plan, which we
use to measure progress.
HEADLINE PROFIT BEFORE TAX PER SEAT (£)
WHY IT IS IMPORTANT HOW WE PERFORMED 2019 4.07

Incremental improvements in profitability Headline profit before tax per seat 2018 6.07
ensure that we have a platform for decreased to £4.07 (2018: £6.07).
long-term growth while generating Revenue per seat decreased primarily 2017 4.71
value for all stakeholders. due to Brexit-related market uncertainty
coupled with a wider macroeconomic 2016 6.18
WHAT WE MEASURE slowdown in Europe. This was partially 2015 9.15
Headline profit before tax divided by offset by the reduction in headline cost
the number of seats flown. per seat excluding fuel due to our strong
cost focus and operational resilience.
2015 as reported, not headline.
2016 as restated, headline.
HEADLINE EARNINGS PER SHARE (P)

Delivering sustainable shareholder value is Headline EPS decreased to 88.7 2018 118.3
a fundamental part of our mindset as we (2018: 118.3) driven by a reduction
manage our business. in profit in the year. Total EPS 2017 82.5
decreased to 88.6 (2018: 90.9).
WHAT WE MEASURE 2016 108.4
Headline profit after tax divided by the 2015 139.1
weighted average number of shares in
issue during the period (adjusted for
shares held in employee benefits trusts).
2016 as restated, headline.
HEADLINE RETURN ON CAPITAL EMPLOYED (%)

As a low cost business, we focus on Headline ROCE decreased to 11.4% 2018 14.6
efficiency to produce customer solutions (2018: 14.6%) driven by a reduction in
whilst also driving operational efficiencies headline profit in the year. Total ROCE 2017 11.9
which will maximise our return on decreased to 11.4% (2018: 11.7%).
investment. Without the adoption of IFRS 9, 15 and 2016 15.0
16 headline ROCE would have been
9.9% and total ROCE 10.0%.
Headline operating profit after tax, divided
by average capital employed.
2015-2018 pre IFRS 16: normalised operating
profit after tax divided by average adjusted
capital employed. 2019 post IFRS 16.
2016 and 2018 restated, headline.

STRATEGIC REPORT KEY PERFORMANCE INDICATORS
CUSTOMER SATISFACTION (%)
WHY IT IS IMPORTANT HOW WE PERFORMED 2019 74

Customers have increasing choice and Overall customer satisfaction was lower 2018 75
their expectations are rising. Ensuring this year primarily due to delays caused
we meet their evolving needs will position by ongoing air traffic congestion. 2017 73
us as the brand of choice when flying
within Europe. 2016 76
WHAT WE MEASURE 2015 80

Our customer satisfaction index is based
on the results of a customer satisfaction
survey measuring how satisfied the Revised calculation in 2019,
customer was with their most recent flight. 2015-2018 restated.
ON-TIME PERFORMANCE (%)
WHY IT IS IMPORTANT HOW WE PERFORMED 2019 75

Reliable operational performance is a key Our OTP is flat year on year at 75% 2018 75
factor in our customers’ perceptions of (2018: 75%). This is in spite of increased
their experience with us. Managing OTP congestion in air traffic on our network, 2017 76
and minimising disruption will positively continued adverse weather conditions,
impact on the likelihood of our customers and disruption at London Gatwick. 2016 77
choosing to fly with us on a repeat basis. 2015 80
WHAT WE MEASURE
Percentage of flights which arrive within
15 minutes of the scheduled arrival time.
CO2 EMISSIONS PER PASSENGER

An important part of Our Promise to be a In 2019 our carbon emissions per 2018 78.46
safe and responsible airline is to help tackle passenger kilometre were 77.07g, down
climate change. In the short-term our from 78.46g in 2018. Since 2000, we 2017 78.62
focus is over being as efficient as we can, have reduced our carbon emission per
to reduce carbon emissions. passenger kilometre by over one third. 2016 79.89

How much carbon dioxide is produced for
each passenger, for each kilometre they
fly with us.
www.easyJet.com 27
FINANCIAL REVIEW
OUR FINANCIAL
RESULTS
andrew findlay
Chief Financial Officer
In the 2019 financial year, easyJet flew 96.1 million passengers (2018: 88.5 million) and delivered a headline profit before tax for the year
of £427 million (2018: £578 million) or £4.07 per seat (2018: £6.07 per seat). Total reported profit before tax for the year was £430 million
(2018: £445 million) or £4.10 per seat (2018: £4.68 per seat).
IFRS 9, 15 and 16 have been adopted with effect from 1 October 2018, applying the standard prospectively for IFRS 9 and using the
cumulative catch-up (‘modified’) transition method for IFRS 15 and 16. This means that the prior year comparatives have not been
restated. The impact on the 2019 financial results of the adoption has been disclosed in the income statement to allow comparability
with the 2018 financial year.
Amounts presented at constant currency are an alternative performance measure and not determined in accordance with International
Financial Reporting Standards but provide relevant and comparative reporting for users.
FINANCIAL OVERVIEW
2019 2018
Amounts without
£m (reported) adoption of new IFRSs Impact of new IFRSs As reported As reported
Revenue 6,408 (23) 6,385 5,898
Headline costs excluding fuel (4,568) 26 (4,542) (4,136)
Fuel (1,416) – (1,416) (1,184)
Headline profit before tax 424 3 427 578
Headline tax charge (78) – (78) (112)
Headline profit after tax 346 3 349 466
Non-headline items 18 (15) 3 (133)
Non-headline tax (charge)/credit (3) – (3) 25
Total profit/(loss) after tax 361 (12) 349 358
2019 2018
Amounts without
£ per seat (reported) adoption of new IFRSs Impact of new IFRSs As reported As reported
Revenue 61.03 (0.22) 60.81 61.94
Headline costs excluding fuel (43.51) 0.25 (43.26) (43.43)
Fuel (13.48) – (13.48) (12.44)
Headline profit before tax 4.04 0.03 4.07 6.07
Headline tax charge (0.75) – (0.75) (1.18)
Headline profit after tax 3.29 0.03 3.32 4.89
Non-headline items 0.17 (0.14) 0.03 (1.39)
Non-headline tax (charge)/credit (0.02) – (0.02) 0.26
Total profit/(loss) after tax 3.44 (0.11) 3.33 3.76
HEADLINE PROFIT
REVENUE BEFORE TAX TOTAL PROFIT AFTER TAX
6,385m
2018: 5,898m
427m
2018: 578m
349m
2018: 358m
Total revenue increased by 8.3% to £6,385 million (2018: £5,898 million), and increased by 7.3% at constant currency. Excluding the
STRATEGIC REPORT FINANCIAL REVIEW

impact of IFRS 15, which changes the recognition of certain fees from the time of booking to the time of flying and reclasses an
element of disruption costs to offset revenue, total revenue would have been £6,408 million. The increase in total revenue reflected an
increase in passenger numbers of 8.6% to 96.1 million. Within total revenue, ancillary revenue increased by 13.7% reflecting easyJet’s
customer-focused products and improved ancillary conversion.
Total revenue per seat decreased by 1.8% to £60.81 (2018: £61.94), with a decrease of 2.7% at constant currency. Excluding the impact
of IFRS 15, total revenue per seat would have fallen 1.5% to £61.03, or 2.3% at constant currency. The decrease in revenue per seat is a
consequence of a number of contributors including Brexit-related market uncertainty coupled with a wider macroeconomic slowdown in
Europe. In addition, the dilutive impact of a full period of Tegel flying, and the non-repeat of one-off benefits in 2018, such as the
bankruptcies of Monarch and Air Berlin, also impacted our performance.
Headline cost per seat excluding fuel decreased by 0.4% to £43.26, and decreased by 0.8% at constant currency. The key drivers were
lower disruption costs, benefiting from easyJet’s Operational Resilience programme, reduced navigation charges and lower wet leasing
costs, as well as unit cost savings from the up-gauging of the fleet to larger and more efficient aircraft. easyJet continues to negotiate
volume deals on airport contracts, and obtain savings through our cost programme initiatives. This decrease in cost was achieved in spite
of an environment of continued inflationary pressure and significant air traffic congestion. Excluding the impact of the adoption of IFRS
15 and 16, headline cost per seat excluding fuel decreased by 0.2%, and decreased by 0.5% at constant currency.
Fuel cost per seat increased by 8.4% to £13.48 (2018: £12.44) and by 4.3% at constant currency, driven by hedging fuel at higher rates
compared to the prior year.
A non-headline profit of £3 million (2018: £133 million charge) was recognised in the period, consisting of a £2 million gain as a result of
the sale and leaseback of 10 A319 aircraft, a £2 million gain for balance sheet revaluations, a £2 million credit from releasing the balance
of the non-headline 2018 Commercial IT platform close down accrual no longer required, a £1 million gain on fair value adjustments,
partially offset by a £4 million charge in relation to Brexit-related plans.
The total tax charge for the year was £81 million (2018: £87 million). The effective rate for the year was 18.9% (2018: 19.7%). This is in line
with the standard UK rate of 19% (2018: 19%).
Due to the recognition of the post-employment obligation for the Swiss retirement benefit scheme, a change was reflected as a
restatement of previous financial statements. In addition, easyJet has presented other income as a separate line on the face of the
consolidated income statement. Prior year comparatives have been reclassified from other costs and other financing income lines to be
consistent with the change in presentation. Please refer to note 1 of the Annual Report and Accounts for full details of both changes.
EARNINGS PER SHARE AND DIVIDENDS PER SHARE

2019 2018
Change in
Pence per share Pence per share pence per share
Basic headline earnings per share 88.7 118.3 (29.6)
Basic total earnings per share 88.6 90.9 (2.3)
Diluted headline earnings per share 87.8 117.4 (29.6)
Proposed ordinary dividend per share 43.9 58.6 (14.7)
Basic headline earnings per share decreased to 88.7 pence (2018: 118.3 pence) and basic total earnings per share decreased to 88.6
pence (2018: 90.9 pence).
In line with the stated dividend policy of a pay-out ratio of 50% of headline profit after tax, the Board is recommending an ordinary
dividend of £174 million or 43.9 pence per share which is subject to shareholder approval at the Company’s Annual General Meeting on
6 February 2020. This will be paid on 20 March 2020 to shareholders on the register at close of business on 28 February 2020.
RETURN ON CAPITAL EMPLOYED (ROCE)

2019 2018
Pre IFRS 9, 15 and 16
adoption Reported Restated
Headline return on capital employed 9.9% 11.4% 14.6%
Total return on capital employed 10.0% 11.4% 11.7%
www.easyJet.com 29
FINANCIAL REVIEW CONTINUED
Headline ROCE for the period was 11.4%, a decline of 3.2 percentage points on the prior year, driven by the decrease in profit for the
period, partially offset by a decrease in the average adjusted capital employed due to the adoption of IFRS 16. Total ROCE for the
period was 11.4%, a decline of 0.3 percentage points from last year.
For 2018, the ROCE calculation includes an adjustment for the capital implicit in aircraft operating lease arrangements. This adjustment is
calculated by multiplying the annual charge for aircraft dry leasing by a factor of seven. Upon adoption of IFRS 16 in 2019, the recognition
of newly-capitalised lease liabilities results in this lease adjustment no longer being required.
Headline ROCE without adopting IFRS 9, 15 and 16 would be lower at 9.9%, due to the adverse impact of the lease adjustment
described above.
EXCHANGE RATES
The proportion of revenue and costs denominated in currencies other than Sterling remained broadly consistent year on year:
Revenue Costs
2019 2018 2019 2018
Sterling 43% 45% 30% 29%
Euro 46% 44% 38% 39%
US dollar 1% 1% 26% 26%
Other (principally Swiss franc) 10% 10% 6% 6%
AVERAGE EXCHANGE RATES

2019 2018
Euro – revenue €1.13 €1.15
Euro – costs €1.13 €1.13
US dollar $1.32 $1.37
Swiss franc CHF 1.27 CHF 1.31
Foreign exchange rate movements arise as easyJet’s foreign currency risk management policy is to hedge between 65% and 85% of
the next 12 months’ forecast surplus cash flows on a rolling basis, and hence a portion of cash flows remains unhedged. Additionally
the Group’s foreign currency risk management policy is aimed at reducing the impact of a fluctuation in exchange rates on future cash
flows, however the timing of cash flows can be different to the timing of recognition within the income statement resulting in foreign
exchange movements.
HEADLINE EXCHANGE RATE IMPACT

Euro Swiss franc US dollar Other Total
Favourable/(adverse) £ million £ million £ million £ million £ million
Total revenue 37 16 3 (1) 55
Fuel – – (54) – (54)
Headline costs excluding fuel – (11) (3) (1) (15)
Headline total 37 5 (54) (2) (14)
NON-HEADLINE EXCHANGE RATE IMPACT

Euro Swiss franc US dollar Other Total
Favourable/(adverse) £ million £ million £ million £ million £ million
Non-headline profit excluding prior year
balance sheet revaluations – – 4 3 7
Prior year balance sheet revaluations 3 1 (4) (1) (1)
Non-headline total 3 1 – 2 6
There was an £8 million adverse (2018: £1 million adverse) impact on total profit due to the year-on-year changes in exchange rates.
A £14 million adverse (2018: £8 million favourable) impact on headline profit was partially offset by a £6 million favourable
(2018: £9 million adverse) impact on the non-headline items. The adverse impact of the Sterling/US dollar exchange rate movement
on fuel costs was offset by a favourable impact on revenue mainly driven by the continued weakening of Sterling against the Euro.

FINANCIAL PERFORMANCE

Revenue
2019 2018
Amounts without
£ million (Reported) adoption of IFRS 15 Impact of IFRS 15 As reported As reported
Passenger revenue 5,030 (21) 5,009 4,688
Ancillary revenue 1,378 (2) 1,376 1,210
Total revenue 6,408 (23) 6,385 5,898

Amounts without
£ per seat (Reported) adoption of IFRS 15 Impact of IFRS 15 As reported As reported
Passenger revenue 47.91 (0.20) 47.71 49.23
Ancillary revenue 13.12 (0.02) 13.10 12.71
Total revenue 61.03 (0.22) 60.81 61.94
Total revenue increased by 8.3% to £6,385 million (2018: £5,898 million), and increased by 7.3% at constant currency. Excluding the
impact of IFRS 15, total revenue would have been £6,408 million. The number of passengers increased by 8.6% to 96.1 million (2018: 88.5
million) driven by a growth in capacity of 10.3% to reach 105.0 million seats (2018: 95.2 million). Load factor decreased by 1.4 percentage
points to 91.5% (2018: 92.9%).
Revenue per seat (RPS) decreased by 1.8% to £60.81 (2018: £61.94), with a decrease of 2.7% at constant currency. Excluding the
impact of IFRS 15, total revenue per seat would have fallen 1.5% to £61.03, or 2.3% at constant currency.
Despite Brexit-related market uncertainty coupled with a wider macroeconomic slowdown in Europe, there has been strength in
underlying trading, with easyJet’s brand recognition supporting demand, as well as the success of a number of self-help initiatives
including a focus on late yields. This helped to partially offset a number of other adverse contributors such as the impact of IFRS 15,
the dilutive impact of a full period of Tegel flying, as well as the non-repeat of one-off benefits in 2018 such as the bankruptcies of
Monarch and Air Berlin.
The increase in ancillary revenue of 13.7% has been mainly driven by the capacity growth. On a per seat basis, ancillary revenue has
increased by 3.1%, with product and pricing initiatives and improved conversion rates offsetting lower load factor.
HEADLINE COSTS EXCLUDING FUEL

Headline cost per seat excluding fuel decreased by 0.4% to £43.26 (2018: £43.43) and decreased by 0.8% at constant currency.
2019 2018
Amounts
without
adoption Impact of new
of new IFRSs IFRSs As reported Cost per seat As reported Cost per seat
£ million £ million £ million £ million £ million £ million
Operating costs/(income)
Airports and ground handling 1,848 (3) 1,845 17.57 1,649 17.32
Crew 859 – 859 8.18 754 7.92
Navigation 409 – 409 3.89 400 4.20
Maintenance 387 (85) 302 2.88 313 3.28
Selling and marketing 157 – 157 1.50 143 1.50
Other costs 480 (24) 456 4.36 507 5.32
Other Income (29) – (29) (0.27) (13) (0.13)
4,111 (112) 3,999 38.11 3,753 39.41
Ownership costs
Aircraft dry leasing 187 (182) 5 0.05 152 1.59
Depreciation 240 244 484 4.61 199 2.09
Amortisation 15 – 15 0.14 15 0.15
Net finance charges 15 24 39 0.35 17 0.19
457 86 543 5.15 383 4.02
Total headline costs excluding fuel 4,568 (26) 4,542 43.26 4,136 43.43
Headline airports and ground handling cost per seat increased by 1.5%, and by 1.1% at constant currency. Airport charges were
adversely impacted by the change in airport mix, which is driven by the annualisation of Tegel flying and continued inflationary
increases at regulated airports. This was partially offset by cost savings obtained by our continued focus on airport procurement
activity and cost initiatives.
Headline crew cost per seat increased by 3.3% to £8.18, and by 2.9% at constant currency. This was driven by agreed inflationary
increases in crew and pilot pay, low attrition rates and investment in operational resilience over the summer peak period.
Headline navigation cost per seat decreased by 7.5% to £3.89, and decreased by 7.6% at constant currency, resulting from
lower Eurocontrol rates from January 2019.
www.easyJet.com 31
Headline maintenance cost per seat decreased by 12.3% to £2.88, and decreased by 13.2% at constant currency. Underlying increases
in maintenance costs from inflationary price rises and unanticipated heavy maintenance findings were offset by the impact of the
introduction of IFRS 16, which reclassifies maintenance provision charges out of the maintenance line into depreciation expense.
Headline other costs per seat decreased by 17.9% to £4.36 per seat, and by 18.6% at constant currency. There has been a significant
decrease in disruption costs as a result of our investment in operational resilience, which resulted in a lower number of disruption events
and cost in 2019 and a small reclassification of disruption costs to revenue from the introduction of IFRS 15. In addition, there was a
reduction in wet leasing charges, due to the high level of Tegel wet lease flying in 2018 whilst our own fleet was being introduced and
lower staff incentive payments.
Headline other income is an additional line item in the income statement that separately recognises income not originating from
customers, which includes items such as insurance receipts, compensation (including Airbus delay compensation) and dividends
received, which have been reclassified in both 2018 and 2019.
OWNERSHIP COSTS
Ownership cost per seat has been significantly impacted by the adoption of IFRS 16. Under IFRS 16, all aircraft and properties previously
held under operating leases have been capitalised. Annual operating lease and maintenance costs, which would have been recognised
under the existing leases accounting standard, are replaced by similar aggregated levels of depreciation and interest expense.
Dry lease costs have decreased from £152 million in 2018 to only £5 million in 2019. Only those leases which are exempt under IFRS 16,
due to their short duration or low value, are now recognised within this line item.
Depreciation costs have increased from £199 million in 2018 to £484 million in 2019. Excluding the impact of the adoption of IFRS 16,
depreciation increased to £240 million, being driven by the additional depreciation charged as a result of the annualisation of the 28
aircraft delivered in 2018, and 22 new aircraft delivered in 2019.
Net finance charges have increased by £22 million to £39 million in 2019. Excluding the impact on interest expense from the adoption
of IFRS 16, the net charge decreased by £2 million from 2018. This was mainly due to income from higher yield deposits, partially offset
by an increase in interest payable as a result of the issuance of a €500m bond in June 2019.
FUEL
2019 2018
£ million £ per seat £ million £ per seat
Fuel 1,416 13.48 1,184 12.44
Total fuel cost for the year was £1,416 million (2018: £1,184 million). Fuel cost per seat of £13.48 increased by 8.4% and by 4.3% at
constant currency.
The operation of easyJet’s fuel and US dollar hedging policy meant that the average effective fuel price movement saw an increase of
5.5% to an actual cost of £458 per tonne from £434 per tonne in the previous year.
The increase in fuel costs also reflects increased fuel fees and an increase in the price of ETS (Emission Trading System) permits.
NON-HEADLINE ITEMS
Non-headline items are non-recurring items or items which are not considered to be reflective of the trading performance of the business.
2019 2018
£ million £ per seat £ million £ per seat
Commercial IT platform credit/(charge) 2 0.02 (65) (0.68)
Tegel integration – – (40) (0.42)
Sale and leaseback gain/(loss) 2 0.02 (19) (0.20)
Brexit-related costs (4) (0.04) (7) (0.07)
Organisational review – – (1) (0.01)
Fair value adjustment 1 0.01 (1) (0.01)
Balance sheet foreign exchange gain 2 0.02 – –
Non-headline profit/(charge) before tax 3 0.03 (133) (1.39)
Non-headline profit before tax items of £3 million comprise:

• a £2 million credit for releasing the balance of a 2018 non-headline commercial IT platform close down accrual no longer required
(2018: £65 million charge);
• there were no further non-headline integration costs in relation to the operations in Tegel in 2019 (2018: £40 million charge);
• a £2 million gain as a result of the sale and leaseback of 10 A319 aircraft in the period (2018: £19 million charge as a result of the
sale and leaseback of 10 A319 aircraft);
• a £4 million charge in relation to our Brexit-related preparation plans (2018: £7 million charge) principally due the cost of transferring
pilot licenses and re-registering aircraft to Austria;
• there were no further organisational review costs classified as non-headline during 2019 (2018: £1 million charge);
• £1 million fair value gain (2018: £1 million charge); and
• a £2 million gain for balance sheet revaluations (2018: £nil).

SUMMARY NET CASH RECONCILIATION

2019 2018 Change
£ million £ million £ million
Operating profit 466 463 3
Depreciation and amortisation 499 214 285
Loss on disposal of intangibles – 4 (4)
Commercial IT platform charge (2) 60 (62)
Net movement in working capital and other items of an operating nature 118 446 (328)
Net tax paid (58) (74) 16
Net capital expenditure (984) (1,012) 28
Net proceeds from sale and operating leaseback of aircraft 121 106 15
Purchase of own shares for employee share schemes (16) (17) 1
Decrease/(increase) in restricted cash 7 (4) 11
Repayment of capital element of finance leases arising under IAS 17 – (6) 6
Repayment of capital element of leases arising under IFRS 16 (174) – (174)
Other (including the effect of exchange rates) 65 21 44
Ordinary dividend paid (233) (162) (71)
Net (decrease)/increase in net cash (191) 39 (230)
Net cash at closing of the prior period 396 357 39
IFRS 16 implementation impact at 1 October 2018 (531) – (531)
Net (debt)/cash at the beginning of the period (135) 357 492
Net (debt)/cash at end of year (326) 396 (722)
Operating lease adjustments (7x basis) – (1,134) 1,134
Adjusted Net debt (326) (738) 412
Net debt as at 30 September 2019 was £326 million (30 September 2018: net cash £396 million) and comprised cash and money market
deposits of £1,576 million (30 September 2018: £1,373 million) and borrowings of £1,902 million (30 September 2018: £977 million).
Borrowings as at 30 September 2019 include £578 million of lease liabilities as a result of the adoption of IFRS 16. On 1 October 2018,
£531 million of lease liabilities were recognised, and £98 million of existing finance lease obligations within borrowings in the financial
statements were reclassified as lease liabilities.
After allowing for the impact of aircraft operating leases (calculated as seven times operating lease costs incurred in the year), adjusted
net debt as at 30 September 2018 was £738 million, with no operating lease adjustment required to the £326 million net debt balance as
at 30 September 2019 due to the recognition of lease liabilities upon adoption of IFRS 16.
The movement in net working capital has decreased by £328 million, driven by a decrease in trade and other payables as a result of
timing of invoices, movement in short-term derivative financial instruments and provisions.
Net capital expenditure includes final delivery payments for the acquisition of 22 aircraft (2018: 28 aircraft), the purchase of life-limited
parts used in engine restoration, and pre-delivery payments relating to aircraft purchases. The number of aircraft in the fleet increased
from 315 as at 30 September 2018 to 331 as at 30 September 2019. The sale and leaseback of 10 aircraft in 2019 resulted in a net cash
inflow of £121 million (2018: £106 million).
easyJet made corporation tax payments totalling £58 million during the period (2018: £74 million).
The depreciation and amortisation charge of £499 million includes £244 million depreciation arising from adoption of IFRS 16 whereby
operating lease and maintenance costs, which would have been recognised under the existing leases accounting standard, are replaced
by similar aggregated levels of depreciation and interest expense.
SUMMARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2019 2018 Change
Pre IFRS 9, 15 and Reported
16 adoption Reported £ million
£ million £ million (restated) £ million
Goodwill and other intangible assets 561 561 546 15
Property, plant and equipment (excluding RoU assets) 4,732 4,661 4,140 521
Right of use (RoU) assets under IFRS 16 – 502 – 502
Derivative financial instruments 49 63 364 (301)
Equity investments – 48 – 48
Other assets (excluding cash and money market deposits) 550 542 539 3
Unearned revenue (977) (1,069) (877) (192)
Trade and other payables (1,065) (1,050) (1,023) (27)
Other liabilities (excluding debt) (952) (947) (852) (95)
Capital employed 2,898 3,311 2,837 474
Cash and money market deposits1 1,576 1,576 1,373 203
Debt (excluding lease liabilities) (1,420) (1,324) (977) (347)
Lease liabilities under IFRS 16 – (578) – (578)
Net assets 3,054 2,985 3,233 (248)
Net (debt)/cash 156 (326) 396 (722)
1. Excludes restricted cash
www.easyJet.com 33
Since 30 September 2018 net assets have decreased by £248 million. This reflects payment of the 2018 ordinary dividend and the
unfavourable mark-to-market movement in jet fuel forward contracts, partially offset by retained earnings in the period, and the
recognition of the equity investment in The Airline Group required under IFRS 9.
The net book value of property, plant and equipment excluding right of use assets, recognised due to adoption of IFRS 16, has
increased by £521 million as a result of the acquisition of 22 aircraft and pre-delivery payments relating to future aircraft purchases,
offset by depreciation.
Upon adoption of IFRS 16, all operating leases have been capitalised on the balance sheet with a £497 million opening right of use
asset adjustment being recognised, with a corresponding lease liability of £531 million representing easyJet’s obligation to make lease
payments. Previously recognised finance leases of £73 million were reclassified to right of use assets as at 1 October 2018.
At 30 September 2019, right of use assets amounted to £502 million. Lease liabilities amounted to £578 million which includes additions
during the year as a result of aircraft sale and leasebacks, as well as the impact of lease payments and extensions.
Net derivative financial instruments have decreased by £301 million. This movement is largely due to mark-to-market losses on jet fuel
contracts and cross currency interest rate swaps, partially offset by mark-to-market gains in US dollar contracts.
The equity investment of £48 million represents a 13.2% shareholding in a non-listed entity, The Airline Group Limited, which has a
shareholding of 41.9% in NATS Holdings Limited – the provider of air traffic control services for the UK. This investment has been held at
cost by easyJet since 2001. With the adoption of IFRS 9, this asset is now required to be recognised at fair value.
Unearned revenue increased by £192 million. This is due to the increase in capacity and the adoption of IFRS 15 which changes the timing
of the recognition of certain fees from the time of booking to being recognised at the time of flying.
Other liabilities include a £47 million post-employment benefit obligation in relation to a Swiss retirement benefit scheme (2018: £29
million). In the current year, easyJet has assessed options to extend the pension scheme insurance it holds. It has been identified as part
of this work that, despite the scheme being fully insured, it meets requirements to be accounted for as a defined benefit plan under
IAS 19, primarily due to the legal obligation to accrue interest on the pension accounts and the payment of lifetime pension benefits.
Actuarial valuations have been performed to calculate the valuation of the scheme assets and liabilities under IAS 19. The scheme was
recognised with effect from 1 October 2017 and the impact on the 30 September 2018 statement of financial position was recognition of
a net defined benefit obligation with a corresponding reduction in retained earnings of £26 million. Refer to note 1 in the Annual Report
and Accounts for further details.
Debt has increased by £347 million in the period, primarily due to the issuance of a €500 million bond in June 2019.
GOING CONCERN
easyJet’s business activities, together with factors likely to affect The business is exposed to fluctuations in fuel prices and US
its future development and performance, are described in the dollar and euro exchange rates. The Group’s policy is to hedge
Strategic report on pages 2 to 48. Principal risks and between 65% and 85% of estimated exposures 12 months in
uncertainties are described on pages 37 to 47. Note 24 to the advance, and between 45% and 65% of estimated exposures
accounts sets out the Group’s objectives, policies and from 13 up to 24 months in advance. Specific decisions may
procedures for managing its capital and gives details of the risks require consideration of a longer term approach. Treasury
related to financial instruments held by the Group. strategies and actions will be driven by the need to meet
treasury, financial and corporate objectives. The Group was
At 30 September 2019, the Group held cash and cash
compliant with this policy at the date of this Annual report and
equivalents of £1,285 million and money market deposits of £291
Accounts.
million. Total debt including lease liabilities of £1,902 million is
free from financial covenants, with £219 million due for After making enquiries, the Directors have a reasonable
repayment in the year to 30 September 2020. expectation that the Company and the Group will be able to
operate within the level of available facilities and cash and
Net current liabilities at 30 September 2019 were £549 million
deposits for the foreseeable future. Accordingly, they continue
and included unearned revenue (payments made by customers
to adopt the going concern basis in preparing the Annual
for flights scheduled post year end) of £1,069 million.
Report and Accounts.

Viability Statement

ASSESSMENT OF VIABILITY
The Directors have assessed easyJet’s viability over a three-year period. This is based on a three-year strategic plan, which gives
greater certainty over the forecasting assumptions used and is also in line with the long term management incentives.
The assessment of the long-term viability of the company includes the following factors:
• The strategic plan – which takes into consideration new initiatives such as easyJet holidays as well as market conditions, future
commitments and funding requirements.
• The fleet plan – the plan provides significant levels of flexibility to ramp up or reduce the size of the fleet in response to
opportunities or risks.
• The strong investment grade credit ratings from Standard & Poor’s and Moody’s – this demonstrates the sustainable strength
of the balance sheet and gives access to capital markets.
• Brexit planning – with a multi Air Operator Certificate structure already in place easyJet is well prepared for Brexit.
• Risk assessment – see below.
RISK ASSESSMENT
The corporate risk management framework facilitates the identification, analysis, and response to plausible risks, including emerging
risks as our business grows and evolves in an increasingly volatile environment. Through cross-functional risk governance groups a
robust assessment of the principal risks facing the organisation has been performed (see pages 37 to 47 in the strategic report)
along with the controls and mitigations.
Risk theme Potential impact on viability
Asset efficiency and effectiveness Unavailability of slots or fleet
Environment and sustainability Weather pattern disruption
Expectations of customers and employees
Environmental legislation
Legislative and regulatory landscape Licence impact
Reputational damage
Macroeconomic and geopolitical Fuel price fluctuations
Exchange rate fluctuations
Restrictions in Europe following Brexit
Supply/demand imbalance
People Industrial action
Safety, security, and operations Major safety or security incident
Technology and cyber Cyber attacks on critical technologies
Data breaches
As part of the assessment of viability the potential financial and operational impact of the risks has been considered through severe but
plausible scenarios. easyJet maintains a liquidity buffer including cash, insurance and an unutilised revolving credit facility which means
easyJet could withstand a grounding of the entire fleet for at least one month at peak times, or at least two months at less busy times.
CONCLUSION
Based on this assessment, 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 2022. In making this statement, the directors have made the following
key assumptions:
• Refinancing risk is minimal due to easyJet having access to a wide variety of funding options including capital markets, bank debt
or aircraft financing. It is also assumed that funds will be available for capital projects as required in all plausible market conditions.
• In the event that one or more risks occur, all available actions to mitigate the impact to the Group would be taken on a timely basis.
easyJet has appropriate processes in place to identify potential risks and implement mitigating actions, as outlined in the risk section
on pages 37 to 47.
• Implausible scenarios, either through multiple risks occurring at the same time or risks which are not able to be mitigated by
management actions to the extent expected, do not occur.
• There will not be a prolonged grounding of a substantial portion of the fleet.
• The terms on which the United Kingdom leaves the European Union are such that easyJet will be able to continue to operate over
broadly the same network as at present and there will be no material and sustained economic downturn following the United
Kingdom’s exit from the European Union.
www.easyJet.com 35
Summary statistics
OPERATING MEASURES
Increase/
2019 2018 (decrease)
Seats flown (millions) 105.0 95.2 10.3%
Passengers (millions) 96.1 88.5 8.6%
Load factor 91.5% 92.9% (1.4ppt)
Available seat kilometres (ASK) (millions) 116,056 104,800 10.7%
Revenue passenger kilometres (RPK) (millions) 107,741 98,522 9.4%
Average sector length (kilometres) 1,105 1,101 0.4%
Sectors 605,899 559,857 8.2%
Block hours (‘000) 1,184 1,088 8.8%
Number of aircraft owned/leased at end of year 331 315 5.1%
Average number of aircraft owned/leased during year 321.5 295.1 8.9%
Number of aircraft operated at end of year 317 305 3.9%
Average number of aircraft operated during year 297.0 269.0 10.4%
Average operated aircraft utilisation (hours per day) 10.9 11.1 (1.8%)
Number of routes operated at end of year 1,051 979 7.4%
Number of airports served at end of year 159 156 1.9%
FINANCIAL MEASURES
Increase/
2019 2018 (decrease)
Total return on capital employed (2018 restated) 11.4% 11.7% (0.3ppt)
Headline return on capital employed (2018 restated) 11.4% 14.6% (3.2ppt)
Liquidity per 100 seats (£m) 3.6 3.9 (7.7%)
Total profit before tax per seat (£) 4.10 4.68 (12.4%)
Headline profit before tax per seat (£) 4.07 6.07 (32.9%)
Total profit before tax per ASK (pence) 0.37 0.42 (12.8%)
Headline profit before tax per ASK (pence) 0.37 0.55 (33.2%)
Revenue
Revenue per seat (£) 60.81 61.94 (1.8%)
Revenue per seat at constant currency (£) 60.28 61.94 (2.7%)
Revenue per ASK (pence) 5.50 5.63 (2.2%)
Revenue per ASK at constant currency (pence) 5.45 5.63 (3.1%)
Revenue per passenger (£) 66.47 66.67 (0.3%)
Revenue per passenger at constant currency (£) 65.90 66.67 (1.2%)
Costs
Per seat measures
Headline cost per seat (£) 56.74 55.87 1.5%
Non-headline cost per seat (£) (0.03) 1.39 (102.0%)
Total cost per seat (£) 56.71 57.26 (1.0%)
Headline cost per seat excluding fuel (£) 43.26 43.43 (0.4%)
Headline cost per seat excluding fuel at constant currency (£) 43.11 43.43 (0.8%)
Total cost per seat excluding fuel (£) 43.23 44.82 (3.6%)
Total cost per seat excluding fuel at constant currency (£) 43.15 44.82 (3.7%)
Per ASK measures
Headline cost per ASK (pence) 5.13 5.08 1.1%
Non-headline cost per ASK (pence) – 0.13 (100.0%)
Total cost per ASK (pence) 5.13 5.21 (1.4%)
Headline cost per ASK excluding fuel (pence) 3.91 3.95 (0.8%)
Headline cost per ASK excluding fuel at constant currency (pence) 3.90 3.95 (1.2%)
Total cost per ASK excluding fuel (pence) 3.91 4.08 (4.2%)
Total cost per ASK excluding fuel at constant currency (pence) 3.90 4.08 (4.4%)

Our Corporate risk
STRATEGIC REPORT RISK

management Framework
The Board is ultimately responsible for determining the nature and GOVERNANCE
extent of the principal risks it is willing to take to achieve its
As part of the new framework, cross functional risk governance
strategic objectives, its risk appetite, and maintaining the Group’s
groups and risk action groups are being established for each of
systems of internal control and risk management systems. The
the Principal Risks & Uncertainties. This is in addition to discussion
Board has delegated aspects of this to the Audit Committee.
of key risk topics and events, including emerging or changing risks,
Corporate risk management activities are coordinated by the at the Airline Management Board (AMB), Audit Committee and
Risk and Assurance team, which reports to the Chief Financial plc Board as appropriate.
Officer, as well as having a direct reporting line to the Chair of
the Audit Committee. HIGH IMPACT EVENT PREPAREDNESS AND
RESPONSE
During the course of this year, the Board approved the adoption
of a new corporate risk management framework. The Board Being prepared for unplanned or unwanted events of any scale
believes this new framework enables the organisation to be more through recovery activities is critical. Throughout 2019, there
effective in the identification, analysis, and response to risk, have been further enhancements to the incident and crisis
including emerging risks, in an increasingly volatile environment. management framework to reflect the increasingly uncertain
There are three dimensions to this framework which are explained operating environment.
further below. Implementation of this framework has commenced The Board is therefore satisfied that it has carried out a robust
and full implementation is expected to be completed in 2020. assessment of the principal risks facing the organisation,
including those that would threaten the business model,
METHODOLOGY future performance, solvency, or liquidity.
An effective corporate risk management framework has a simple,
yet effective methodology. This helps encourage engagement at,
and across, appropriate levels of the organisation. The
methodology at the heart of the new corporate risk management
framework is what is commonly known as the “bow tie” approach.
This encourages a range of stakeholders to consider risk in a
structured and consistent way, with the unwanted or unexpected
event at the centre. Potential causes and consequences of this
event are then identified together with an assessment of the
controls and mitigations that may reduce the likelihood or impact
of the unwanted or unexpected event.
www.easyJet.com 37
RISK CONTINUED
Our risk Profile

The key risks reviewed by the Board fall into seven broad themes Having reviewed our environment and sustainability risk profile and
listed in alphabetical order: including emerging risks, we have identified a number of different
risks, each with its own characteristics these relate to:
• Asset efficiency and effectiveness – making the best use of
capacity/slots and fleet mix in the right airports at the right • Carbon trading schemes
prices, and driving value through our supply chain • Climate change
• Environment and sustainability – the impacts of climate • Changes in the legislative/regulatory environment
change on our business and operations, carbon credit
programmes, regulation/taxation, and changing consumer and Further detail is outlined on page 41.
colleague expectations
BREXIT
• Legislative/regulatory landscape – being aware of, and
compliant with, legislation and regulation affecting our business easyJet has continued its preparations for Brexit. The focus has
been on ensuring that our network is unaffected by Brexit and
• Macro-economic and geopolitical – events that can affect our
that our operations are uninterrupted by any eventual Brexit
financial performance including supply/demand imbalance,
outcome, including a potential no deal exit. The cross functional
general economic trends, Brexit, as well as impact of fuel cost,
Brexit programme continues to oversee Brexit planning, led by
foreign exchange rates, and counterparty performance
the General Counsel. The Board has also had oversight of the
• People – having the right people through talent acquisition, preparations and is regularly briefed.
retention, engagement, and succession planning
Over the last three years easyJet has put in place a series of
• Safety, security, and operations – the delivery of a safe and measures to protect our flying rights regardless of the eventual
secure operation which meets the needs and expectations of Brexit outcome, these include:
our customers
• Implementing a new operating model, with easyJet operating
• Technology and cyber – the availability, security, compliance
as a pan-European airline group with three operating airlines:
and performance of website and critical technologies, and the
in Austria, Switzerland and the UK. This will ensure we can
protection of company and customer data
continue to maintain our network after Brexit.
CHANGES IN THE YEAR • Focusing our investor relations programme on ensuring that we
remain majority EU27 owned and controlled and putting in place
Our principal risks and uncertainties continue to evolve over time.
a contingency plan to ensure that we remain compliant with the
As we evolve our strategy in a dynamic industry against a
requirement that EU airlines are majority owned and controlled
backdrop of political and economic uncertainty, new risks emerge
by EU nationals.
and we adapt our response activities as our risk exposure
changes. The roll out of the new corporate risk framework has • Ensuring that our operation is robust to the UK leaving EASA,
been a catalyst for reviewing the presentation of a number of the European Aviation Safety Agency, including by transferring
these risks, including the new themes set out above. The following our EU27 based pilots to Austrian pilot licences and ensuring
changes in our risk profile have been approved by the Board. we have sufficient pilots and cabin crew of EU27 nationality.
• Continuing to engage with European governments, aviation
Since 30 September 2018, risks associated with the following
regulators and the European Commission on Brexit issues.
three themes have increased:
• Asset efficiency and effectiveness Of particular focus over the last year has been ensuring that
easyJet is robust to a no deal Brexit outcome and that flights are
• Environment and sustainability
able to continue between the EU and the UK. We successfully
• Technology and cyber worked with the EU and UK governments to ensure that there is
a legislative framework in place for flights to continue even in the
These risks, together with our response plans, are monitored
event of a no deal Brexit. Alongside this the EU and UK have put
regularly through our governance structure. Further detail on the
in place the necessary arrangements to govern safety issues.
risks, the potential causes and consequences, together with key
controls and mitigations are detailed on the following pages. To further support the robustness of our operation to a no deal
outcome we have invested in operational measures to ensure
This year, we have incorporated our ‘third-party service providers’
that there is no reliance on EU/UK trading links in case these are
risk into a broader ‘continuity of services’ risk, due to the
disrupted, including putting in place stores for spare parts
outsourced nature of our business model and the similarity in
within the EU27.
management response.
A no deal Brexit carries potential financial risks for instance
from changes in airport and tax charging structures and any
unexpected outcomes. Alongside this there remains uncertainty
about the economic effects of a no deal Brexit.

ASSET EFFICIENCY AND EFFECTIVENESS

We maintain our competitive cost advantage by making the best use of capacity/slots and fleet mix in the right airports at the right
prices, and driving value through our supply chain.
Potential causes Potential consequences Controls and mitigations
AIRPORT • Increased • Weakened • Where easyJet is affected by industrial action or other

INFRASTRUCTURE competitor customer service interruption by a key supplier, resources are
capacity proposition deployed to manage this as effectively as possible.
Flying to primary airports
• Environmental • Loss of market See the significant operational disruption risk on
is an important element
restrictions/ share page 46 for further details.
of our customer
proposition. The airports pressure restricting • Inefficient use of • Sophisticated processes and systems to ensure
to which we fly may airport expansions crew/aircraft slot transactions are made in an efficient and
already be or may • Delays in airport effective manner.
• Significant increase
become congested. infrastructure in costs • Effective cross-functional governance to ensure
expansion optimal business decisions are made.
Links to Our Plan • Increase in airport • easyJet places emphasis on the management of
charges airport capacity through a dedicated airport
1 2 5 • Changes in
regulation
development team who ensure close collaboration
on capacity plans. The team helps influence the
B D • Ineffective slot
management
development of appropriate capacity increases in
a cost efficient and timely manner.
• Managing aircraft gauge to improve our ability
to grow.
CONTINUITY OF • Failure of critical IT • System • The four key areas of business resilience (IT and
SERVICES system unavailability for processes, people, premises, and suppliers) all form
• Significant external customers and/or part of easyJet’s functional business and airport
easyJet is dependent on
incident (terrorism, staff Business Continuity Plans.
a mixture of critical IT
systems and processes, weather, activism) • Inability to access • Critical IT systems are identified with ongoing efforts
employees, buildings/ • Failure of third key buildings/ to match the business needs with recovery capabilities.
facilities and third-party party facilities The risk of system unavailability is now mitigated
suppliers. A loss of one or • Unavailability of further, thanks to the adoption of the cloud, in
• Industrial action
more of the above critical staff addition to easyJet’s two data-centres.
components could lead • Reliance on • Incident Management and Resilience teams are in
to significant disruption to inadequate place and ready to respond to any IT related incident.
operations and could supplier recovery • Time-critical staff have been identified via Business
have an adverse plans Impact Assessments and Business Continuity Plans,
reputational, financial or • Operational with regularly tested recovery desks allocated at
legal impact. disruption alternate locations, should the usual place of work be
unavailable. An increased provision of laptops and
Links to Our Plan tablets also enables greater mobility and remote
ways of working.
2 3 5 • Enhanced procurement processes include risk
assessments aligned with business objectives.
a b d e These require relevant third-parties to have their own

Business Continuity/Disaster Recovery plans and we
are implementing a process to review a sample of
these each year.
• Maintain close working relationships with key
stakeholders including, but not limited to, airport
authorities and slot coordinators lobbying where
appropriate.
LINKS TO OUR PLAN CHANGE IN RISK

Safe and Always
1 Network 4 Data a responsible d efficient
Increase
On our Forward
2 Loyalty 5 Efficiency b customers’ side e thinking
No change
3 People c In it together Decrease
www.easyJet.com 39
RISK CONTINUED
ASSET EFFICIENCY AND EFFECTIVENESS CONTINUED

NON-DELIVERY • Resource • Business benefits • Complex, large-scale programmes have been initiated,
OF STRATEGIC dedicated to not realised prioritised and are managed through the Project
INITIATIVES change delivery • Financial Management Office.
and oversight underperformance • A project management framework, which sets out
The business continues to
undertake a number of • Changes in • Inefficient use of approval processes, governance requirements, and
initiatives to support its organisation’s resource key ongoing processes and controls, is followed by all
strategy. priorities (may be projects and programmes, and reviews are undertaken
driven by internal to ensure continuous improvement in this approach.
or external factors) • Each strategic initiative has an executive sponsor from
Links to Our Plan
• Scope change/ the AMB and its own steering group which provides
2 3 4 time available oversight and challenge to the project, monitors

progress against programme objectives and ensures
that decisions are made at the appropriate level.
d e • Key strategic initiatives are managed by experienced
programme managers, complemented by appropriate
subject matter specialist resource where appropriate.
• A Project Management Office is in place to oversee
delivery of projects and programmes, including the
allocation of support resource, budget tracking and
realisation of benefits.
• The AMB meets twice monthly. The executive sponsor
provides routine updates and can use this as an
escalation channel for any issue resolution.
• The Board also receives updates on key strategic
initiatives including any risks or issues associated
with their delivery.
• The Internal Audit function provides independent
programme assurance over our most significant
initiatives, drawing upon independent subject
matter expertise where appropriate.
SINGLE FLEET • Delays in the • Schedule • There are approximately 8,500 A320 family (A319,
SUPPLIER delivery of new reductions/ A320, A321) aircraft operating, with a proven track
aircraft cancellations record for safety and reliability.
easyJet is dependent on
Airbus as its sole supplier • Technical/ • Grounding of all/ • Introduction of the A320neo in part mitigates this
for aircraft. The Board mechanical issues part of the fleet single fleet supplier risk as the aircraft is equipped
considers that the • Fluctuating second • Loss of customer with a different engine type.
efficiencies achieved by hand market confidence • easyJet continues to work closely with Airbus to
operating a single fleet • Financial impact ensure full visibility of the delivery schedule for new
type outweigh the risks when aircraft leave aircraft. In the event that there are material delays,
associated with easyJet’s the fleet appropriate mitigation is put in place; for example
single fleet strategy. short-term wet lease arrangements are used to
minimise any operational impact.
Links to Our Plan • easyJet operates a rigorous established aircraft
maintenance programme. Maintenance schedules
3 5 are approved by the relevant regulatory body.
• easyJet regularly reviews the second hand market and
a d has a number of different options when looking at

fleet exit strategies. Sale and leaseback facilitates the
exit of aircraft from the fleet by transferring residual
value risk, and also provides flexibility in managing the
fleet size.

ENVIRONMENT AND SUSTAINABILITY

The impacts of climate change on our business and operations, carbon credit programmes, regulation/taxation, and changing consumer
and colleague expectations. easyJet’s promise in Our Plan is to be a safe and responsible airline. This is what guides our approach to
sustainability, whether that be related to climate change, health and safety, diversity, or employee engagement. More information is in
the Sustainability section on page 48.
CARBON TRADING • Political change • Closure of existing • easyJet influences future and existing policy and
SCHEMES • Uncertainty driven scheme regulations which affect the airline industry through
by Brexit • Loss of free a number of different channels, including working
Adverse changes to
allocations, leading with relevant industry bodies to assist in this;
carbon trading schemes, • International
including the existence alignment to significant cost • easyJet look to optimise fuel usage to reduce
and/or cost of the impact emissions and therefore reduce the potential impact
• External pressure
scheme. • Introduction of of those schemes, for example ensuring optimal
groups
new schemes routings as well as using climb, descent and landing
techniques to improve efficiency; and
Links to Our Plan • Inability to hedge
in line with fuel • easyJet has an appropriate hedging strategy
2 3 policy (to the extent possible).
a b d e
CLIMATE CHANGE • Increased CO2 • Adverse customer • easyJet continues to bring Airbus neo aircraft into its
emissions experience fleet which are significantly more fuel efficient than
Weather patterns
• Injury to customers the standard variant;
including, but not limited
to, winds, storms, • Operational • easyJet aircraft use only one engine when taxiing on
extreme temperatures, disruption the ground;
are becoming increasingly (including airspace • easyJet operates flights with a high load factor, and
difficult to predict. and runway is a short-haul operator, which has a lower carbon
closures) impact per passenger kilometre than airlines whose
Links to Our Plan • Aircraft damage operations include a significant amount of long-haul
flight; and
2 5 3 • Disruption management measures include advanced
winter planning, standby crews and aircraft, as well as
a b c the continual review of flight plans to ensure the

optimal routings. In addition, to reduce the time it
takes to resolve aircraft technical faults, easyJet has a
d e contract for two light aircraft and crew to transport
engineers and spare parts around its network, with
dedicated engineers on standby to travel.
ECO-TAXES • Political change • Significant increase • By engaging with key stakeholders, easyJet seeks to
• External pressure in cost of existing reach a common understanding on the drive to
Future policy measures
groups aviation taxes/ impose policy measures and regulation to address
and regulation to tackle
levies the impact of aviation on climate change;
the impact of aviation on • Customer demand
climate change could • Future expansion • easyJet continues to explain it’s environmental
impact easyJet’s business of taxes/levies performance, and the further action it is taking, to it’s
if they impose limitations • Policies to customers and other stakeholders. For example, this
and cost on how easyJet constrain growth/ has included highlighting the introduction of the
operates and the services capacity A320neo and A321neo aircraft and their reduced
it can provide. emissions compared to previous generation aircraft,
• Increasing noise
and work with partners in regards to new technologies
curfews
to radically reduce the carbon footprint of flying;
Links to Our Plan • Pressure on
• easyJet is able to operate flexible routings in the
margins
2 4 event of constraints being brought in; and
• The new generation Airbus A320neo and A321neo
a b d e aircraft are 50% quieter during takeoff and landing

than the equivalent previous generation aircraft.
www.easyJet.com 41
RISK CONTINUED
LEGISLATIVE/REGULATORY LANDSCAPE
The airline industry is heavily regulated and there is a continual need to keep well informed and adapt (as required) to any legislative or
regulatory changes across the jurisdictions in which easyJet operates.
BRAND LICENSE • Shareholder • Eventual loss of • Active shareholder engagement programme;

AND MAJOR activism the brand licence • Regular engagement with easyGroup Holdings
SHAREHOLDER • Actions of Limited alongside other major shareholders;
• easyJet has two major easyGroup or • Relationship agreement with easyGroup and Polys
shareholders other easyGroup Holdings in line with the controlling shareholder
(easyGroup Holdings licensees regime set out in the Financial Conduct
Limited and Polys Authority’s Listing Rules;
Holdings Limited) which, • Representatives from the Board and senior
as a concert party, management take collective responsibility for
control approximately addressing issues arising from any activist approach
33% of its ordinary adopted by the major shareholder. The objective is to
shares. address issues when they arise and anticipate and
• easyJet does not own plan for potential future activism;
its company name or • Quarterly meeting of senior representatives from both
branding, which is sides, attended by the Chief Financial Officer and the
licensed from Company Secretary and Group General Counsel, to
easyGroup Ltd. The actively manage brand-related issues as they arise; and
licence includes certain • easyJet makes contributions to the joint brand
minimum service levels protection fund.
that easyJet must meet
in order to retain the
right to use the name
and brand.
Links to Our Plan
3
a
LEGAL/ • New or changes to • Sustained adverse • Compliance framework including, but not limited to,
REGULATORY existing legislation/ media coverage policies, procedures, and mandatory training
NON-COMPLIANCE regulation • Fines/regulatory programmes;
Failure to comply with • Employee/agent sanctions • easyJet has an in-house team of Legal experts to
legislation and regulation, ignorance • Reduction in future advise on legal issues and developments, and to assist
such as local consumer • Rogue employee/ revenue the business in interpreting any formal regulatory
laws, new case law or agent behaviour requirements. Where appropriate, this expertise is
• Operational
policy changes in supplemented with specialist external support relevant
disruption
relation to customer to a specific discipline or jurisdiction;
• Loss of operating
compensation, • Panel of external legal advisers, both in the UK and
licence
environmental or airport in key easyJet markets, are briefed to keep easyJet
• Significant spike in informed of any changes or new legislation and to
regulation, in the
costs assist easyJet in developing appropriate responses
jurisdictions in which
easyJet operates, could • Share price to such legislation;
have an adverse movement • easyJet influences future and existing policy and
reputational and financial • Loss of colleague/ regulations which affect the airline industry through a
impact. customer trust number of different channels, including working with
relevant industry bodies to assist in this; and
Links to Our Plan • easyJet adapts to new legislation and regulation,
where possible adapting existing compliance
2 3 4 frameworks (for example mandatory training
programmes and clear policies and associated
a b guidance).

MACRO-ECONOMIC AND GEOPOLITICAL

The airline industry can be sensitive to macro-economic and geopolitical conditions. These risk events can affect our financial
performance including supply/demand imbalance, general economic trends, Brexit (discussed on page 18), as well as impact of fuel cost,
foreign exchange rates, and counterparty performance.
SUPPLY/DEMAND • Increased capacity • Loss of market • Enhancements to our Commercial organisation to

IMBALANCE • Industry positions (relative provide even further focus on existing and new
consolidation market share) initiatives to optimise the revenue position.
easyJet’s success in the
highly competitive • Increased • Pressure on • Weekly trading meeting to review performance –
European short-haul competition from margins attended by senior managers, including members
aviation market is built on other airlines and • Adverse financial of the AMB.
our key competitive transport providers position • Relentless focus on maintaining easyJet’s competitive
advantages: our network, • Government • Share price advantages.
cost base, brand, digital interventions movement • The Network Development Forum, a cross-functional
innovation and efficient • Fall in consumer panel of senior managers, including members of the
and robust capital demand (including AMB, approves the allocation of assets around the
structure. but not limited to network in the context of expected market conditions.
macro-economic • Competitor and consolidation activity is monitored in
Links to Our Plan conditions and detail by the Network team, enabling strategic decision
environmental making on key market positions.
1 2 3 4 concerns) • Fleet framework arrangements, together with the
• Internal growth Group’s leasing policy, provide easyJet with significant
5 plans flexibility in respect of scaling the fleet according to
business requirements.
b d
VOLATILITY IN • Market price risk: • Insufficient cash to • The Finance Committee (a committee of the plc
FINANCIAL volatility in jet fuel meet financial Board) oversees the Group’s treasury and funding
MARKETS prices, foreign obligations as they policies and activities. See page 94 for further details.
exchange rates, fall due and/or the • Treasury policy sets out plc Board approved strategies
easyJet is exposed to a
carbon prices, inability to fund the for market price risk management, counter-party
variety of financial
inflation rates or business when credit risk management and liquidity risk management.
markets, volatility in which
interest rates needed leading to Monthly reporting on all treasury activity including
could give rise to adverse
• Counter-party risk: insolvency reporting on compliance with treasury policy.
pressure on the cash
flows of the group. default of counter • Significant increase • Maintaining a liquidity buffer supported by cash, a
parties used for in costs revolving credit facility (provided by a group of
depositing surplus relationship banks) and a business interruption
Links to Our Plan cash and hedging insurance policy.
1 3 5 • Liquidity risk:
inability to raise
• Ability to access diverse sources of funding to
support liquidity requirements.
funds when
d required
• Rolling hedging programmes on jet fuel and foreign
exchange market price exposure.
www.easyJet.com 43
RISK CONTINUED
PEOPLE
Having the right people is a key part of Our Plan. In today’s environment, we need to create an inclusive and energising environment that
attracts the right people and inspires everyone to learn and grow.
INDUSTRIAL • Adverse employee • Sustained adverse • easyJet seeks to maintain positive working
ACTION experience media coverage relationships with all trade unions and other
• Changes to terms • Operational representative bodies and has a framework in place
easyJet, and the aviation
and conditions disruption for consulting and engaging with trade unions and
industry in general, has a
consultative bodies.
significant number of • Political unrest • Significant spike
employees who are in costs • In the event of industrial action or expected disruption,
members of trade unions. easyJet has processes to mitigate the impact to our
• Reduction in future
operations. The Operations department also has
Each of the European revenue
specific procedures to deal with such events.
countries in which easyJet • Share price
operates has localised movement
employment terms and • Loss of colleague/
conditions. As such its customer trust
pilots and crew are
members of 22 trade
unions across eight
countries. There are
also an additional 11
consultative bodies
including five Works
Councils and a European
Works Council that
operate under EU
legislative guidance.

Links to Our Plan
2 4
a b c
TALENT • Uncompetitive • Sustained inability • Benchmarking of reward packages.
ACQUISITION AND remuneration to deliver key • Quarterly employee listing tool with action plans to
RETENTION packages strategic initiatives address issues raised.
In today’s shifting • Lack of career • Increased costs • Talent mapping of senior employees to ensure
environment, we need to progression continued investment and development of top talent.
place even more focus on • Outdated ways of • Succession planning of key roles.
recruiting the right people working
• Diversity and inclusion strategy.
and building the right
• Strategic programme to enhance ways of working
talent.
for head office staff.
Links to Our Plan
3 4
c

SAFETY, SECURITY AND OPERATIONS

easyJet’s number one priority is the safety and security of its customers, colleagues, and contractors. The delivery of a safe and secure
operation which meets the needs and expectations of our customers is critical to our business.
SIGNIFICANT • Flight safety • Significant injury/ • Functional Safety Action Groups from across the
SAFETY OR incident loss of life airline are chaired by the appropriate senior manager
SECURITY EVENT • Health and safety • Sustained adverse and are responsible for the identification, evaluation
incident media coverage and control of safety-related risks.
• easyJet’s number one
priority is the safety • Major security • Reduction in future • The easyJet Safety Board meets monthly to review
and security of its threat revenue safety, security and compliance performance across all
customers, colleagues, Air Operator Certificates (AOC) chaired by the CEO,
• Fines/regulatory
and contractors. attended by the three AOC accountable managers
sanctions
and periodically by AOC regulators.
• The Safety Committee • Operational
(a committee of the • Safety Review Boards are held locally and are open for
disruption
Board) provides the local regulator to attend.
• Significant spike
oversight of the • A Safety Policy is published that promotes the incident
in costs
management of reporting process and supports this safety culture;
• Share price
easyJet’s safety • easyJet operates a Safety Management System using
movement
processes and systems. leading software systems to:
See pages 85-86 for • report incidents and identify events;
further details.
• identify hazards and threats and take appropriate
• The easyJet Safety risk-mitigating actions;
Board, chaired by the
• collect and analyse safety data (enabling potential
Chief Executive and
areas of risk to be projected); and
including the Chief
Operating Officer and • enable learning from easyJet and industry events/
AOC Accountable incidents to be captured and embedded into future
Managers, is responsible risk mitigations.
for directing overall • Timely, credible and reliable information upon which to
safety and security base operational decisions.
policy and governance. • easyJet has an emergency response process and
The Safety Board performs crisis management exercises.
meets every month • Hull (all risks) and liabilities insurance (including spares)
to review safety is held.
performance and any
• Security cleared specialists continually review geopolitical
emerging security
developments across the easyJet network in particular
issues.
those countries deemed to be higher risk and report
back to the Board any areas of concern.
Links to Our Plan • easyJet maintains an inspection regime of all our
airports to ensure the security elements are being
2 4 effectively managed.

a
www.easyJet.com 45
RISK CONTINUED
SAFETY, SECURITY AND OPERATIONS CONTINUED

SIGNIFICANT • Adverse weather • Customer • Key strategic project, Operational Resilience,

OPERATIONAL • Industrial action dissatisfaction focusing on:
DISRUPTION • Technology failure • Compensation ad • Building appropriate resilience into the flying
• This year there has welfare payable to schedule;
• Supplier failure
been a significant customers • Aircraft and crew standby;
• Infrastructure
reduction in disruption • Inefficient use of
failure • Operations Control Centre reporting on the day of
events (three hour crew/aircraft
• Airspace/airport operations, including customer communication;
delays, cancellations • Adverse media
restrictions/closure • Airport performance and strategic supply chain;
and overnight delays). coverage
Events within • Air traffic control system lobbying and flight
• Share price
easyJet’s control planning enhancements; and
movement
(‘non-extraordinary’) • The use of data across the operation to predict
have reduced against and manage events and aid decision support.
2018 by 25%, as a result
• There is also continued focus on the EU261 claims
of the Operational
management process which has been further
Resilience programme
strengthened during the year by increasing the
and a range of easyJet
size of the team handling legal claims.
interventions, and
events outside of • New incident and crisis management framework
easyJet’s control (e.g. to further enhance the effectiveness of response.
weather, strikes) have • Liquidity buffer to better manage the impact of
reduced by 34%. downturns in business or temporary curtailment of
• On Time Performance activities (see the volatility in financial markets risk
has remained stable outlined on page 43).
against 2018, despite a • Business interruption insurance which provides some
significant reduction cover for very significant shock events such as
in cancellations. extreme weather, air traffic management issues and
• The European Air loss of access to key airports. The policy would allow
Traffic Control system us to claim in the event of a very substantial number
experienced fewer total of cancellations. This is included within our definition
delay minutes than in of liquidity.
2018. easyJet flight
planning interventions
further reduced the
proportion of these
delay minutes that
impacted easyJet.
En-route delay minutes
reduced, largely driven
by fewer ATC strikes
than in 2018. Airport
delay minutes
worsened. The ATC
system still performed
worse than 2017.
Links to Our Plan
2 3 5
b d e

TECHNOLOGY AND CYBER

The nature of these risks, easyJet’s reliability on technology (particularly online devices) and the ever-increasing sophistication of serious
organised crime groups, terrorists, nation states and even lone parties means that, despite all the mitigation detailed, easyJet will
inevitably retain an element of vulnerability regarding the availability, confidentiality and integrity of its information and data.
DATA BREACH • Cyber attack • Sustained adverse • A data and cyber risk governance structure exists to
• Third party media coverage regularly review the data and cyber risk landscape and
A data breach involves the
incident • Fines/regulatory determine required action to take place in order to
unauthorised access to
sanctions manage risk effectively.
customer or employee • User error
data. Protecting that data • Third party liability/ • Dedicated Information Security team who proactively
• Misconfigured
and its privacy remains a class actions monitor threats and respond to incidents.
systems
priority for easyJet. • Reduction in future • Employee education and awareness programme
revenue including a network of champions, online training
Links to Our Plan and awareness campaigns.
• Operational
disruption • Security logging and monitoring.
2 5 • Significant spike in • Vulnerability scanning and penetration testing.
costs • Ongoing General Data Protection Regulation
a b d • Share price (GDPR) programme to ensure compliance with
GDPR regulations in support of the Data
movement
Protection Officer (DPO).
• Loss of colleague/
customer trust
FAILURE OF • Cyber attack • Sustained adverse • Monitoring and alerting of availability of critical
CRITICAL • Hardware failure media coverage technologies and their inter-dependencies.
TECHNOLOGY • Aged • Reduction in future • Security logging and monitoring.
easyJet relies on a infrastructure revenue • Vulnerability scanning and penetration testing.
number of critical • Data Centre • Fines/regulatory • Business Interruption Insurance in place.
technologies that are key Outage sanctions
• IT Change Management Process embedded to assess
to the delivery of essential • Third Party Outage • Operational risk of all changes to technology including changes
business processes. disruption made by third party providers.
• Technological
These include, but are not • Significant spike
Dependency • Critical technologies are either cloud hosted, hosted
limited to, operational, in costs
Failure across two data centres or at third party provider
commercial and financial
• IT change • Share price locations with necessary failover protocols and
systems. A critical
movement security perimeters in place.
technology failure
includes any technical • IT Major Incident Management team is in place to
failure which is sufficient respond rapidly to any unforeseen critical technology
enough to interrupt incidents including those of a security nature.
critical business • IT Supplier Relationship Management process to
operations (which may ensure that third party services and associated risks
include one or more are regularly reviewed and assessed.
systems). This includes • easyJet are progressing the delivery of a hosting and
system unavailability or a network programme that will further improve the
failure which results in the resiliency of core infrastructure and cloud connectivity
loss or corruption of data. capabilities.
Links to Our Plan
2 3
a b d e
www.easyJet.com 47
SUSTAINABILITY
Sustainability
at easyjet
JOHan lundgren
Chief Executive Officer
Our Promise is to be a safe and responsible airline. This is what We are doing this by offsetting the carbon emissions from the fuel
guides our approach to sustainability. used for all of our flights through schemes accredited by two of the
highest verification standards, Gold Standard and Verified Carbon
As an airline, we recognise that our most significant impact and
Standard (VCS).
sustainability challenge is climate change. This is an issue which
we all have to tackle – including us at easyJet. We recognise that offsetting is only an interim measure, but at the
moment we believe it’s the best way we have to remove carbon
In the past year we have seen increased debate about climate
from the atmosphere. At the same time, we will continue to support
change and the urgency in which action is needed. It is clear that
the development of new technologies to decarbonise aviation for
all companies will need a clear vision and plan to address this.
the longer term.
People have a choice in how they travel and many more people are
We are focused on working with others across the industry on
now thinking about the potential carbon impact of different types
hybrid and electric aircraft and on the technologies which will be
of transport. If people choose to fly, we want to be one of the best
needed to make these happen. This is why we are supporting
choices they can make for themselves and for the planet.
Wright Electric who are aiming to produce an all-electric plane
We have continued to focus on being as efficient as we can; which could be used for short haul flights and have recently
transitioning our fleet to more modern, fuel efficient aircraft; flying established a partnership with Airbus to jointly research the
them in ways which avoid noise and flying them full of passengers. opportunities and challenges of introducing hybrid and electric
All these things help to reduce carbon emissions for each aircraft for short haul flying in Europe.
passenger we fly.
Sustainability for easyJet is of course much wider than climate
This financial year our carbon emissions per passenger kilometre change and we have commitments on many important issues,
were 77.07 grams, down from 78.46 grams last year. We have such as health and safety, diversity, employee engagement and
reduced this by over one-third since 2000 and our aim is to customer satisfaction. In the pages that follow we have highlighted
bring this down further. our progress on all these issues.
But in the long term this will not be enough. Aviation will have to To better understand which sustainability issues are most important
reinvent itself and in our view move to electric and hybrid aircraft to our business and our stakeholders, we have this year carried out
powered by renewable energy, along with other carbon reduction a materiality assessment. We set out the results in this section.
technologies. However, these are some years away and we
We have been using the materiality assessment to continue to
decided at the beginning of the new 2020 financial year to take
develop our sustainability strategy, so that it has a clear focus on
action on our carbon emissions.
our carbon emissions. We look forward to sharing more information
We announced that we would become the world’s first major airline on this in our 2020 financial year.
to operate net-zero carbon flights across our whole network.
SUSTAINABILITY GOVERNANCE Specific sustainability issues are also managed and overseen by
issue-specific committees and these are detailed in this section.
Our management of sustainability, including climate change
related issues, is overseen by our sustainability lead, who is a REPORTING FOR 2019 FINANCIAL YEAR
member of the Airline Management Board (Executive
Committee) and reports to the Chief Executive. At easyJet we recognise the need for structured and transparent
sustainability reporting. As part of our work to increase and
Our target on carbon emissions per passenger kilometre is the improve our reporting, we have taken some initial, additional
responsibility of our Operations function and will be overseen actions in this financial year:
by the new Chief Operating Officer, who is a member of the
Airline Management Board. In the interim, while we have not • Carried out our first full materiality assessment – this is
had a Chief Operating Officer, this has been the responsibility detailed in this chapter.
of our Head of Operations. • Participated in the CDP climate change programme – for the
first time since 2016
Climate change related risks are also included in our Risk
Management Framework, which is overseen by the PLC Board. We plan to build on these reporting improvements in future
More information is p41. years, to ensure we continue to meet legal reporting
In addition to the existing oversight of the Airline Management requirements but also provide our stakeholders with information
Board of sustainability issues, the PLC Board regularly discuss that helps show our progress with our material issues.
sustainability issues and intends to continue to monitor progress All references to ‘this year’ in this chapter refer to the easyJet
in the coming year. 2019 financial year (1 October 2018 to 30 September 2019),
unless otherwise stated.

sustainability Materiality
STRATEGIC REPORT SUSTAINABILITY

Determining materiality is an important aspect of operating sustainably; it involves
identifying and prioritising a business’s most critical non-financial issues. These
issues are the ones that have the greatest impact on the business, our stakeholders
and society in general. This matrix is based on our materiality assessment of the
most important sustainability issues for easyJet. Some issues which are important
to the business as a whole may not be prioritised in this matrix.
MATERIALITY MATRIX
PRIORITY ISSUES
Higher
Employee
Health and Safety CLIMATE CHANGE
(including carbon
IMPORTANCE TO STAKEHOLDERS
Employees Climate
change emissions, climate
Security Waste and plastics change adaptation, fuel
reduction efficiency and types)
Emergency
preparedness
EMPLOYEES
Diversity and Customer
satisfaction (including decent
inclusion
Data protection work and labour
Training and
Local air quality Economic development relations, employee
Customer performance
accessibility Ethical supply chain Wellbeing engagement)
management Human Aircraft noise
rights and WASTE & PLASTIC
Tax practices human
trafficking REDUCTION
Corruption Over-tourism
Economic
contribution Charitable giving and community programmes
EMPLOYEE HEALTH
Lower
Wildlife conservation & SAFETY

IMPORTANCE TO THE BUSINESS
Lower Higher
Track Actively monitor Prioritise
OUR MATERIALITY PROCESS • Customer and employee surveys – which sought to identify and
rank the most important issues for these groups.
We undertook our first formal materiality assessment from April to
June 2019. The assessment was carried out by an independent The final result is a materiality matrix that plots stakeholder
sustainability firm in consultation with easyJet. prioritisation against business impact for each topic. Topics in the
The process was carried out in line with the Global Reporting top right of the matrix are the most material to easyJet’s business.
Initiative approach on materiality and involved: The material topics identified by the assessment were used as a
focus for the reporting in this section and are being used as a
• A desktop review of internal and external information sources to
guide to further develop our approach to sustainability.
produce a long list of potential sustainability issues
• In-depth interviews with key stakeholders – who were asked EASYJET HOLIDAYS MATERIALITY ASSESSMENT
to rank a list of topics and identify those they felt were most Sustainability has been a founding principle of the easyJet
important. Interviews were carried out by the consultancy and Holidays business. To inform the development of the easyJet
views were shared with easyJet without attribution. Those Holidays sustainability strategy, a materiality assessment was
interviewed were based across Europe and included: carried out in the latter part of the 2019 financial year. The
results of this materiality assessment and more information on
• PLC Board members
the business’ sustainability strategy will be included in next
• Investors year’s Annual Report.
• Suppliers This sustainability chapter covers issues for the easyJet
• Regulators airline business, as easyJet Holidays was not launched in
• Corporate customers this financial year.
• Employee representative groups and trade unions MORE INFORMATION ON THE EASYJET HOLIDAYS BUSINESS
IS AVAILABLE ON P22.
• NGOs
www.easyJet.com 49
SUSTAINABILITY CONTINUED
SUSTAINABILITY DASHBOARD
PRINCIPLES MATERIALITY ISSUES ACTIVITIES
1.SAFETY
Prioritise • Safety management and oversight
• Employee Health • Employee health and safety
and Safety • Preventing and addressing disruptive
Actively monitoring behaviour on flights
• Security • Security management
• Emergency preparedness • Providing a whistleblowing process
• Preparing to respond to emergencies and
significant events
2.
Actively monitor • Reducing disruption through operational
• Customer satisfaction resilience
• Human rights and human trafficking • Supporting customers during disruption
• Data protection • Supporting customers who need special
HONEST AND • Economic performance

Track
assistance
• Protecting customer and employee data
FAIR • Customer accessibility
• Corruption
• Building positive supplier relationships
• Preventing modern slavery and human trafficking
WITH OUR • Ethical supply chain management • Preventing bribery and corruption
CUSTOMERS
AND SUPPLIERS
3.
Prioritise • Employing people locally
• Employees • Engaging with our employees
• Strong work and labour relations • Working collaboratively with trade unions
• Employee engagement • Supporting employees’ health and wellbeing
A RESPONSIBLE Actively monitor

• Diversity and inclusion
• Encouraging a diverse workforce
• Offering fair reward
AND RESPONSIVE • Training and development
• Wellbeing
• Providing learning and development opportunities
EMPLOYER • Economic performance

Track
• Economic contribution

4.
Prioritise • Investing in efficient aircraft
• Climate change • Using operational efficiency measures
• Carbon emissions • Flying aircraft with the majority of seats
• Climate change adaption occupied by passengers
A GUARDIAN • Fuel efficiency and types

• Waste and plastic reduction
• Removing plastic from our inflight food
and drink range
FOR FUTURE Actively monitor
• Managing Nitrogen Oxides (NOx) emissions
• Reducing the aircraft noise that affects
GENERATIONS • Aircraft noise
• Local air quality
communities around airports
Track
• Over-tourism
• Wildlife conservation
5.
Track • Raising funds for our charity partner Unicef
• Charitable giving and • Making donations to charities nominated by
community programmes employees
• Tax practices • Complying with the tax laws in the countries in
A GOOD CITIZEN which we operate

MEASUREMENTS AND OUTCOMES
• The Safety Committee regularly reviews the • Our aircraft are equipped with defibrillators and we are
effectiveness of the safety management processes. introducing inhalers and auto-injectors for breathlessness
• The Audit Committee oversees our Whistleblowing and allergic reactions.
process. In addition, the new Business Integrity Committee • We are removing all food products containing nuts from
is a management forum on Whistleblowing. It receives our inflight retail range.
summaries of all reported concerns; it monitors any
ongoing concerns and ensures that the proposed
outcomes of investigations are fair, transparent and robust,
with root causes identified and remedial actions agreed.
• Customer satisfaction this year was 74%, broadly flat from • We have created new training materials for all our cabin
75% last year. and ground crew on how to identify and report possible
• Customer satisfaction amongst our customers who human trafficking.
need special assistance was 82.3% this year. This is • We established a Business Integrity Committee ethics
higher than the average for all customers for the sixth policies and management.
consecutive year.
• We appointed our first Special Assistance Manager, to lead
our work on supporting customers with accessibility needs.
• 85% of supplier invoices were paid on time in the year to
30 September 2019 (2018: 87%).
• We updated our due diligence questionnaire on modern
slavery for suppliers this year.
• We employ people on local contracts in eight countries • Employees held interests in shares with a value of over
across Europe, complying with national laws. £215 million, representing 5% of the total share value of the
• We work in partnership with 20 trade unions across company (based on share price at 30 September 2019).
eight countries. • 80 apprentices are currently learning with easyJet.
• Employee engagement, measured using our Peakon • We appointed our first Special Assistance Manager, to lead
survey, was 7.9 out of 10 this year. our work on supporting customers with accessibility needs.
• We are on track to achieve our target that 20% of the new
entrant co-pilots we attract should be female by 2020.
• Over 75% of our front-line people managers have received
mental health awareness training. We expect all these
managers to have been trained by the end of 2019.
• Employee turnover was 5.1% across easyJet this year,
down from 6.5% last year.
• This year carbon emissions were 77.07 grams per • Over half of all our aircraft are also now fitted with
passenger kilometre, down from 78.46 grams last year. ‘Sharklet’ wingtips, which can reduce fuel usage and
This is a reduction of over one-third since 2000. carbon emissions by up to 4%.
• Our current target is a reduction in carbon emissions per • We participated in the CDP Climate Change
passenger kilometre by 2022 from our 2016 financial programme for the first time since 2016.
year performance. Since 2016, this figure has now reduced • We have started to remove plastic items from our inflight
by 3.64%. retail food and drinks range and now offer a discount for
• Our A320neo and A321neo aircraft, which are 15% more customers who use their own reusable cup.
fuel efficient and 50% quieter during takeoff and landing
than their equivalent previous generation aircraft, now
make up 11% of our overall fleet.
• We have raised over £14 million for our charity partner

Unicef since 2012. This includes over £2 million raised
this year.
• We also held onboard fundraising appeals for Prostate
Cancer UK and Breast Cancer Now which raised over
£438,000.
• This year we awarded over 140 donations to local
charities nominated by our employees.
www.easyJet.com 51
1.
OUR APPROACH
Our Plan includes our promise to be a safe and responsible airline.
We have mature safety management processes and procedures,
to ensure safe journeys for our customers and a safe working
Safety environment for employees and suppliers.
SAFETY MANAGEMENT AND OVERSIGHT

The ultimate responsibility for safety management lies with
easyJet’s Chief Executive. In addition, the Accountable Managers
for easyJet UK, easyJet Switzerland SA and easyJet Europe Airline
GmbH are accountable to the relevant regulator for safety and
compliance. easyJet’s Director of Safety, Security and Compliance
has a remit to act independently on safety and security matters
without operational or commercial constraints. The Director
reports directly to the Chief Executive and has regular access to
the Chairman.
The Safety Committee regularly reviews the effectiveness of
safety management processes on behalf of the PLC Board. This
includes reviewing the ongoing development of our Safety Plan,
which details planned improvements to the safety management
system. The Committee is made up of independent Non-Executive
Directors: there are further details on page 85 to 86.
SAFETY PROCESSES
Our safety processes have risk management at the heart of
their approach. There are a number of functional safety action
groups responsible for identifying, evaluating and controlling
WHY IS THIS MATERIAL? safety-related risks, chaired by the appropriate senior managers.
Safety is easyJet’s highest priority The safety management system uses leading software systems
(SafetyNet and RiskNet).
and the issue was also seen as highly
The easyJet fleet is continually updated with new safety features,
important by our stakeholders. Our to supplement our operating procedures and training, as aircraft
customers and employees trust are replaced. A320neo and A321neo aircraft are fitted with an
Autopilot Traffic Collision Avoidance System (APTCAS) and a
easyJet to keep them safe while Runway Overrun Prevention System (ROPS), which alerts pilots to
travelling or working. avoid high-energy approaches that may lead to runway overruns.
In addition to flight safety, the EMPLOYEE HEALTH AND SAFETY

Health and safety of employees and contractors is a material
materiality assessment also focus for easyJet. It is about holistic wellbeing and covers mental
highlighted the importance of and physical health, as well as safety in the air and on the ground.
wider employee health and Aeromedical and health and safety risks are managed through an
safety, which was seen as a key integrated risk management framework, business processes and
structures. This is a proactive integrated approach to aeromedical
part of a safety culture. and occupational health management, human factors and
occupational safety. This may include the mental fitness of pilots,
communicable disease concerns, health and safety and
occupational health issues.
We do not tolerate disruptive or abusive behaviour on our flights
or towards our crew and ground agents. Crews are trained to
avoid any risk to the safety of flights and passengers. We have
measures to discourage and prevent disruptive behaviour, and to
support our cabin crew to respond when it does occur. Cabin
crew may refuse to serve alcohol to customers and customers are
not allowed to consume their own alcohol on easyJet flights.
SECURITY
Our security team work to protect customers and employees
against security threats, including working with the relevant
government and regulatory agencies. The team carries out
security risk assessments, tailored for each country and each
airport to which we fly. These assessments are also updated to
MATERIAL ISSUES reflect the latest geopolitical developments. Security efforts
also include business and personal data – see page 45 for
EMPLOYEE HEALTH & SAFETY further detail.
SECURITY
EMERGENCY PREPAREDNESS

CABIN SAFETY

We have a number of measures in place to support the safety Any customer who has a nut allergy can give notification in
of our customers during our flights. All our cabin crew are advance through our special assistance service, so that the
trained in first aid and how to respond to medical issues which ground crew and cabin crew will be informed. Our cabin crew
occur onboard. Our aircraft are equipped with defibrillators will make an announcement to ask other customers not to eat
(used when a person has a cardiac arrest) and our cabin crew any nut products for the duration of the flight. We will also stop
are trained to use these items. the sale of any products containing nut traces on board.
We are also currently introducing Salbutamol Inhalers (used This year we decided to go further and remove our inflight food
to relieve the symptoms of asthma and breathlessness) products which contain nuts. Most items were removed from
and auto-injectors for anaphylaxis (an allergic reaction) on sale in March 2019 and one final item, a Baklava, will be
our aircraft. introduced in a new recipe without nuts before the end of 2019.
WHISTLEBLOWING EMERGENCY PREPAREDNESS

All employees of easyJet and our suppliers should feel able to We prepare for emergencies through our business resilience
raise concerns about any safety, legal or ethical issues. If they feel activity, which aims to: safeguard customer and employee
unable to report these concerns to a manager, we also provide a interests; minimise the financial impact of any incidents; and
whistleblowing process. protect the easyJet brand and reputation.
The ‘Speak Up, Speak Out’ service is run independently of easyJet We have a Business Resilience team which works to ensure
and reports can be made confidentially and anonymously. In easyJet has the ability to anticipate and assess, protect and
addition to the existing phone service, this year – following control, plan and prepare, and respond and recover in the
feedback from trade unions – we added the ability to report context of major disruptive or catastrophic risks, whether they
concerns online or using a mobile app. are internal or external, known or unknown.
All reports are investigated and followed up as necessary by
HIGH IMPACT EVENT PREPAREDNESS AND RESPONSE’ IS ALSO
an easyJet senior manager responsible for business integrity. ONE OF THREE DIMENSIONS OF OUR RISK MANAGEMENT
The Audit Committee oversees the whistleblowing process. In FRAMEWORK (MORE INFORMATION IS ON P45).
addition, the new Business Integrity Committee is a management

forum on whistleblowing. It receives summaries of all reported
concerns; it monitors any ongoing concerns and ensures that the
proposed outcomes of investigations are fair, transparent and
robust, with root causes identified and remedial actions agreed.
www.easyJet.com 53
2. OUR APPROACH
We want to provide our customers with the warmest welcome
in the sky.
Honest and
An important measure of our relationship with our customers is
customer satisfaction. This is based on surveys of customers after
they have travelled with easyJet. Overall customer satisfaction
score this year was 74%, compared to 75% last year. There is
fair with more information on our customer priority on page 15.

This year we established an Operational Resilience programme to
reduce the amount of disruption to our flights and the impact this
customers
has on our customers. More information on this is on page 4.
We also recognise that we have additional responsibilities to
provide support for certain customers, including provision of
accessible travel for people with additional needs and customers
and suppliers who do experience disruption.
ACCESSIBLE TRAVEL
This year we appointed a dedicated Accessibility and Assistance
Manager, who works with our existing easyJet Special Assistance
Advisory Group (ESAAG), and across the Company on accessible
travel. There is also a dedicated customer management team for
accessibility-related complaints and support during disruption.
The easyJet website Help pages have information on the
assistance provided and encourage Customers to give notification
of their requirements in advance. We aim to comply with Web
Content Accessibility Guidelines (WCAG) 2.1 guidelines.
ESAAG was established in 2012; it includes members from key
easyJet markets with experience of special assistance issues. It is
chaired by former UK cabinet minister Lord David Blunkett. It
gives feedback and guidance that has led to measures such as
onboard wheelchairs and more accessible toilets on aircraft.
ESAAG has improved services in key airports and is continuing to
look at support for customers with hidden disabilities. Our cabin
crew are also trained to recognise hidden disability lanyards and
badges. This year, ESAAG has had input into the easyJet response
to the UK Government’s Aviation 2050 strategy consultation,
WHY IS THIS MATERIAL? which considers accessible travel policy.
Winning customers’ loyalty is one of Customer satisfaction amongst special assistance customers was
82.3%, compared to 74% for all customers. This is the sixth
the priorities in Our Plan. We believe successive year that satisfaction is higher among customers who
that by making it easy, affordable, need special assistance than the average across all customers.
enjoyable and sustainable for our DISRUPTION SUPPORT
customers to travel with us, easyJet When disruption does happen, we also want to support
will be a more successful and resilient customers. Updates are provided by text message, email and live
updates in our app, which includes the reason for the disruption
business. We also aim to build strong, and what customers should do next.
lasting relationships with all our In the case of delays, we will provide support and overnight
suppliers and partners, as they are an accommodation as needed. If disruption is due to an airline issue,
integral part of easyJet’s success. we make compensation payments in line with EU Regulation
261/2004. Customers can find claim forms online, with payments
made by bank transfer. We are also a member of an alternative
dispute resolution body approved by the UK Civil Aviation
Authority (CAA).
MATERIAL ISSUES
CUSTOMER HUMAN RIGHTS AND
SATISFACTION HUMAN TRAFFICKING
DATA PROTECTION CUSTOMER
ACCESSIBILITY
ETHICAL SUPPLY
CHAIN MANAGEMENT ECONOMIC
PERFORMANCE
CORRUPTION

INFORMATION SECURITY

Protecting the information we hold on our customers and
employees is a high priority for easyJet. More information on Chair of the easyJet
how we manage this is available on page 47.
SUPPLIERS Special Assistance

We believe open, constructive and effective relationships, ensuring
that suppliers’ rights and responsibilities are clearly set out. Advisory Group
Our supplier relationship management framework provides a
toolkit and guidance for managers who lead relationships with
key partners.
ETHICAL SUPPLY CHAIN MANAGEMENT

Our Supplier Code of Conduct is based on easyJet’s Code of
Business Ethics and requires partners to comply with easyJet
societal and environmental standards, and to ensure the
compliance of any subcontractors. In line with the Modern Slavery
Act, it prohibits modern slavery and human trafficking.
MODERN SLAVERY
To help prevent modern slavery, this year we reviewed our
modern slavery risk assessment in easyJet and our supply chain.
This work was focused on identifying the areas of our business
and the third-party suppliers that are higher risk for occurrences
of modern slavery. An updated due diligence questionnaire was
also introduced this year to strengthen the process.
More information is available in our latest Modern Slavery Act
statement at corporate.easyjet.com.
MORE INFORMATION IS AVAILABLE IN OUR LATEST MODERN SLAVERY ACT

STATEMENT AT CORPORATE.EASYJET.COM.
HUMAN TRAFFICKING
All airlines and transport providers are at risk that their services I have been very pleased in the last year
could be used by human traffickers. We have created new training to see the progress made and the
materials for all our cabin and ground crew on how to identify and willingness to listen and adapt by key
report possible human trafficking. Our security team also work staff at easyJet. The advisory group are
with authorities across our network on prevention activities and very clear that this is an ongoing task,
investigations. not only in key aspects such as
updating training and improving
BUSINESS ETHICS technology and communication but
We have in place ethical and compliance policies, covering topics also addressing new challenges,
that include bribery and corruption, gift giving, fraud, human rights including hidden disabilities and the
and modern slavery. These policies and our commitment to growing elder population, including
Human Rights statement are available to employees on the those with the onset of dementia.
easyJet intranet. This means that the work of the group
All new entrants to easyJet receive mandatory ethics training is critical in spotting where things
during the onboarding process. All employees are also required require attention, need urgently
to complete annual online refresher training on ethics, anti-bribery resolving and the emergence of
and corruption. problems on an ongoing basis, but
above all thinking ahead and working
This year a Business Integrity Committee was established as a on prevention. The decision to appoint
management forum for ethics policies and management. The a dedicated Accessibility and
committee receives reports of suspected unethical behaviour, Assistance Manager is another
identifies Group-wide trends, and monitors follow up. The indication of the seriousness with which
committee’s remit includes disciplinary issues or grievances easyJet take its responsibilities to all
raised with HR, environmental concerns and suspected fraud. travellers and their wellbeing.
RT hon Lord David Blunkett

Chair of the easyJet Special
Assistance Advisory Group
www.easyJet.com 55
3. OUR APPROACH
At easyJet we want to attract, retain and develop the right people
as they are fundamental to our success. We seek to treat all
employees fairly, uphold their rights and reward them
A responsible competitively.
At 30 September 2019, we employed over 15,000 people in eight
countries across Europe.
and Responsive We employ people on local contracts and comply with the
relevant national laws. Our approach is to ensure that working for
easyJet is an attractive option for local workers. This also helps to
employer
build and maintain our good relationships with local stakeholders.
EMPLOYEE ENGAGEMENT
We maintain regular communications with our employees and
encourage them to share feedback. Regular updates are provided
to employees on key issues for the business, including our financial
performance. This includes a regularly updated intranet, a monthly
CEO update, a weekly all-staff newsletter, separate newsletters for
pilots and cabin crew, staff events and inviting feedback and
discussion on Workplace, our internal collaboration platform.
This year we introduced the employee engagement platform
Peakon, which seeks views and feedback on working at easyJet,
following a successful trial last year. Last year we also introduced
Workplace by Facebook to encourage employees to collaborate
and communicate within and between teams. More information
on both platforms is in the case study on page 57.
This year our overall employee engagement score was 7.9 out of
10 (average score for 2019 financial year). This is based on asking
employees the question “How likely is it you would recommend
easyJet as a place to work?” through our Peakon surveys. This
remains closely in line with the Peakon trial data from last year
(8.0 out of 10 based on 30% of employees) and demonstrates
that engagement with our people remains strong in a challenging
WHY IS THIS MATERIAL? operating environment. Our engagement score is above the
majority of companies who use Peakon.
We are a large European employer
EMPLOYEE REPRESENTATIVE DIRECTOR
and rely on our people to provide the
This year the PLC Board appointed Moya Green DBE as the
warmest welcome to our customers Employee Representative Director. This role is intended to further
and deliver our business priorities. bring the voice of easyJet employees, and consideration of how
business decisions may affect them, into Board discussions.
Good employee relations, employee Further details on this new role are on p79.
engagement, diversity & inclusion and EMPLOYEE REPRESENTATIVE GROUPS AND

wellbeing were seen as important TRADE UNIONS
We continue to invest in and value our relationship with our
issues in the materiality assessment employee representative groups and trade unions across Europe.
amongst stakeholders. We work in partnership with 20 trade unions across eight
countries, along with our five national works councils in Europe,
our European Works Council and a number of other internal
employee consultative groups. Despite increasing union activity
in the aviation sector, we believe our willingness to work
constructively with trade unions and employee work groups has
limited the impact of industrial action on our operations and the
resulting disruption for customers.
MATERIAL ISSUES
EMPLOYEES ECONOMIC
CONTRIBUTION
– DECENT WORK
WELLBEING
– EMPLOYEE
ENGAGEMENT DIVERSITY AND
INCLUSION
– LABOUR RELATIONS
TRAINING AND
ECONOMIC DEVELOPMENT
PERFORMANCE

building employee engagement

e use two complementary employee engagement
W WORKPLACE
platforms, to improve employee communications and
Workplace emphasises conversation and idea sharing, allowing
strengthen relationships.
instant interaction between peers and from senior leaders in
PEAKON the business. The Chief Executive and members of the Airline
Management Board regularly use the platform to give business
Peakon is a survey platform which we use to gather feedback updates and engage with employees, including Q&A sessions.
from our employees. More than 7,500 employees have now Employees have been able to ask the leadership team about
participated in Peakon surveys. subjects such as the onboard retail technology, Brexit and
Results from Peakon have helped us to identify the issues that crew iPads.
are most important for employee engagement, so that we can Crew often use it to pass on feedback, such as how a new
focus resources on the things that matter most to our initiative is being received by customers. When easyJet was
workforce. Managers – with teams of seven or more – have a recognised by the Skytrax airline awards, employees said that
dashboard with engagement scores, and can create action they wanted easyJet to communicate this to customers. As a
plans and reply directly and quickly to team comments. result, Skytrax decals were added on to each aircraft.
Workplace shows consistently high engagement rates, with
over half of the workforce actively using the platform.
WELLBEING GENDER
We are committed to supporting the health and wellbeing of As part of our work on Diversity & Inclusion, we are continuing to
our employees. improve the ratio of male to female employees in management
and leadership positions. We believe that a good gender mix
An important aspect of this is the wellbeing of our pilots and
improves decision making and better reflects our customer base.
cabin crew. We carry out analysis of the working environment,
ways of working, and the experience of crew during their As at 30 September 2019:
rostered duties, as well as how operational disruption affects
PLC BOARD
the lives of our crew and other employees.
70% (7) 30% (3)
We introduced an Operational Resilience programme this year
EXECUTIVE COMMITTEE (AIRLINE MANAGEMENT BOARD)
(see case study on page 4), which aimed to reduce disruption
which affects working days for crew. 54% (6) 46% (5)
People managers have also started to receive mental health ALL EMPLOYEES
awareness training and as at 30 September 2019 over 75% of 54% (8,399) 46% (7,119)
our front-line people managers, including those who manage
cabin crew and pilots, have received this training. We expect to MALE FEMALE
complete the training of all these people managers before the

end of 2019. easyJet supports the Women in Hospitality 2020 group, whose
purpose is to increase gender representation at senior levels,
EMPLOYEE TURNOVER sending employees to their masterclasses and return to work
2019 2018 programmes.
Management & Administration 8.6% 10.1% In September 2019 our Chief Executive, Johan Lundgren, was
Pilots 5.7% 4.9% named Number One Advocate on the list of 50 Advocate
Cabin Crew 4.2% 6.6% Executives by HERoes, which recognises leaders who have
supported the achievements of women in business.
Total 5.1% 6.5%
www.easyJet.com 57
diversity and inclusion strategy
This year we introduced a new Diversity and Inclusion (D&I) • A development programme for women – this year 40
strategy focusing on four pillars of activity: high-performing middle managers took a residential course,
Shine@easyJet, focusing on ‘Self’ and ‘Purpose’.
• Firm Foundations: embedding D&I into policies and
processes • The establishment of a Trailblazer community of volunteers
from around the business, who support all D&I initiatives and
• Increase the Mix: ensuring the employee mix reflects our
make suggestions on future activity.
customer base
• Training and Development: upskilling leaders to support Over the next year we intend to:
cultural change and maintain a welcoming employee
• Engage employees with a voluntary D&I survey to better
experience
understand their needs
• Partnerships: sourcing expert input and support to help
• Review the return to work processes after long-term
guide activities
absence (for parental leave and ill health)
The strategy is the result of an in-depth review across all • Embed D&I training into all people management training
teams, which established that efforts should focus on learning • Embed the Trailblazer community, who have been recruited
and development, communication and behaviour. as D&I champions, across the business
A Head of Diversity & Inclusion and team have been appointed, • Improve our Peakon engagement scores on D&I measures
who work across all functions to deliver the strategy. The
• Continue to develop our pipeline for female talent
strategy has also been endorsed by the Airline Management
Board. • Review and develop recruitment tools and processes
• Create a D&I charter to use with our suppliers and partners
Activity that has already taken place this year includes:
• The introduction of management courses on recognising
and valuing difference and how to model inclusive behaviour.

FEMALE PILOTS TRAINING AND DEVELOPMENT

Our work to help address the significant gender imbalance among All easyJet employees have access to online learning
pilots globally has continued this year. The easyJet Amy Johnson opportunities, as well as career development planning tools. All
Initiative, which was set up in 2015 and named after a pioneering employees receive feedback on their performance and support on
British female pilot has this year included: their development. People managers are also given resources and
advice to help them support the development of their teams. This
• Over 180 visits by pilots to schools, youth and aeronautical
year we launched ‘My Journey’, a support tool for performance
organisations.
and personal development reviews in the management and
• Sponsorship of the Aviation Badge for Brownies, the UK administration community.
Girlguiding organisation for 7 to 10 year olds.
• Highlighting female easyJet pilots in the media. APPRENTICESHIPS
We have several apprenticeship programmes employing
We are on track to achieve our target that 20% of the new advanced, higher and degree apprentices across various
entrant co-pilots we attract should be female by 2020. The leadership and technical disciplines. The apprenticeships help
equivalent figure was 5% when we started the initiative in 2015. develop new skills and build employees capabilities to build their
We will provide a further update on this in 2020. full potential. In the next year, we plan to expand our offering of
apprenticeships across the company.
GENDER PAY
Our gender pay gap is influenced by the gender makeup of our EMPLOYEES WITH DISABILITIES
pilot community. Pilots are currently predominantly male; their easyJet treats every applicant equally and supports employees
higher salaries, relative to other employees, significantly increase who are or become disabled. This includes offering flexibility and
average male pay levels at easyJet. making reasonable adjustments to the workplace to ensure they
Pay rates for cabin crew and pilots are negotiated collectively in can achieve to their full potential. However, for easyJet’s two
each country. This ensures our pilots and cabin crew are paid the largest communities, pilots and cabin crew, there are a range of
same rate of pay per rank regardless of gender. regulatory requirements on health and physical ability with which
all applicants and current employees must comply.
GENDER PAY GAP IN HOURLY RATE OF PAY
FOR UK EMPLOYEES
Median 47.9%
Mean 54.1%
This is the pay gap data published in our 2018 gender pay report,
the latest published in March 2019. All data is for UK employees as
specified by UK reporting requirements.
Our full gender pay report is available at corporate.easyjet.com.
REWARD
We offer a competitive reward package, focused on cash and
variable pay rather than fixed benefits. All easyJet employees, with
a minimum amount of service, have the opportunity to become
shareholders in easyJet.
As at 30 September 2019 our employees held interests in shares
with a value of over £215 million, representing 5% of the total
share value of the company.
www.easyJet.com 59
4. OUR APPROACH
At easyJet we are aware that our operations can have a range of
impacts on the environment.
A guardian
We work to minimise that potential impact, complying with or
exceeding the relevant regulations and continually looking for
ways to improve performance and reduce the use of resources.
for future
CARBON OFFSETTING
On 19 November 2019, we announced that we will offset the
carbon emissions from the fuel used for all of our flights, to
become the first major airline to operate net-zero carbon flights
generations across its whole network. We are doing this through schemes
which meet either the Gold Standard or Verified Carbon Standard
(VCS) accreditation, which are globally recognised and respected
for their standards of offsetting.
As this change took place in our 2020 financial year, it is not
covered in detail in this sustainability report. Further information
is available on corporate.easyjet.com and we will report on the
scheme in our 2020 Annual Report.
CLIMATE CHANGE AND GREENHOUSE GAS

EMISSIONS
Tackling climate change is an important part of Our Promise to be
a safe and responsible airline.
In the short term we are focused on efficiency, including operating
modern, fuel-efficient aircraft and flying them with most seats
occupied by passengers, in fuel-efficient ways.
To track our progress, we measure and report our carbon dioxide
per passenger kilometre, which is the standard measure of airline
emissions. We also report on our total annual quantity of carbon
dioxide emissions from our aircraft operations.
Carbon dioxide is our most material greenhouse gas and this is
where we are focusing. We estimate that our non-carbon dioxide
WHY IS THIS MATERIAL? emissions, including Nitrogen Oxide and Methane, are in line with
One of easyJet’s largest impacts is the industry averages of around 1%.
carbon emissions produced from our In the long term, we are preparing for a move to electric and
hybrid aircraft powered by renewable energy. We support Wright
flights. In the materiality assessment, Electric in its work to develop an all-electric aircraft for short-haul
all stakeholders believed climate flights and we are also working with Airbus, Derwent Engineering
and Safran on the development of new technologies.
change was a very important issue for
easyJet, including carbon emissions, CLIMATE CHANGE-RELATED RISKS ARE ALSO MANAGED AS PART OF OUR
RISK MANAGEMENT PROCESS. SEE MORE INFORMATION ON P41.
climate change adaptation, fuel
efficiency and types. CARBON EMISSIONS TARGET
As part of our goal to reduce carbon emissions, we have set a
The assessment also highlighted that public target based on the carbon dioxide emissions produced
stakeholders, particularly our for each kilometre travelled by our passengers.
customers and crew, were also Carbon dioxide emissions per passenger kilometre is a useful
measure, as it allows potential customers to understand the
interested in other environmental difference in carbon impact between different airlines flying on
issues, particularly the use of plastic the same route. It is the way we express our emissions in a way
which relates to our activities as an airline.
and waste management.
The current target is to achieve a 10% reduction in carbon
dioxide emissions per passenger kilometre from our flights by
2022, compared to our 2016 figures. This would equate to
MATERIAL ISSUES
72 grams (g) per passenger kilometre in 2022.
CLIMATE CHANGE WASTE AND PLASTICS In the 2019 financial year our carbon dioxide emissions per
REDUCTION passenger kilometre were 77.07g. This is a reduction from
– CARBON EMISSIONS
AIRCRAFT NOISE 78.46g in 2018.
– CLIMATE CHANGE
Since 2000, we have reduced our carbon emissions per passenger
ADAPTATION WILDLIFE
kilometre by over one-third. If we meet our target for 2022, we will
CONSERVATION
– FUEL EFFICIENCY have reduced our carbon emissions by 38% since 2000.
AND TYPES OVER-TOURISM
LOCAL AIR QUALITY

LOCAL AIR QUALITY use of the airport capacity available, particularly at airports across

Europe that have constrained capacity.
Nitrogen oxides (NOx) emissions during aircraft takeoffs and
landing can affect local air quality. Our new Airbus A320neo These new generation aircraft currently make up over 11% of our
aircraft, equipped with LEAP-1A engines, produce up to 50% lower overall fleet and will make up a larger proportion as we receive
NOx emissions than the CAEP/6 standard of the International Civil more new aircraft. All future aircraft deliveries from easyJet’s order
Aviation Organization. book will be new, more efficient A320neo and A321neo aircraft.
ANNUAL CARBON DIOXIDE EMISSIONS Over half (57%) of all our aircraft are also now fitted with
‘Sharklet wingtips, which can reduce fuel usage and carbon
easyJet’s annual carbon dioxide emissions in the 2019 financial emissions by up to 4%.
year was 8.2 million tonnes, compared to 7.6 million tonnes in the
2018 financial year. Our methodology for the calculation of NUMBER OF AIRCRAFT BY TYPE
emissions is based on fuel burn measurement, which complies Percentage
with the EU’s Emissions Trading System requirements. Aircraft type Number of fleet
The increase in emissions is due to the continued expansion of A319 125 38%
easyJet’s operations. In this financial year passenger numbers A320 169 51%
increased by 8.6% from the 2018 financial year. A320neo 31 9%
A321neo 6 2%
NON-AIRCRAFT EMISSIONS
Our non-aircraft operations, such as energy usage in the small EFFICIENT OPERATIONS
number of buildings we operate, also create carbon dioxide and
Our business model is based on filling most seats on each
other greenhouse gas emissions
flight. This also means we make good use of each flight and its
However, we do not believe these emissions are material when associated carbon emissions. This year our ‘load factor’, which
compared to the emissions from our aircraft operations. is the percentage of seats used by passengers, was 91.5%
As part of our continued improvements to our sustainability (2018: 92.9%).
reporting, we will be doing further work over the next financial We continue to operate our aircraft as efficiently as possible, within
year on carbon emissions from energy usage at our facilities and the constraints of the operational environment. This includes:
emissions from our non-aircraft operations. This will include
• The optimisation of flight plans to ensure the most efficient
complying with the new UK Streamlined Energy and Carbon
routings and flight levels are selected by use of the latest
Reporting (SERC) framework which will apply from our 2020
flight plan and weather information.
financial year.
• The use of single engine taxi on arrival and departure.
EFFICIENT AIRCRAFT • The optimisation of climb and descent profiles for flights.
We operate a fleet of modern, efficient Airbus A320 family aircraft. • The optimisation of the use of ground power by our aircraft
In 2017 we started to operate our first Airbus A320neo (New at airports.
Engine Option) aircraft, equipped with LEAP-1A engines. Last year
Reducing weight on each aircraft also helps to reduce fuel usage.
we also started operating the larger Airbus A321neo aircraft.
This is why we have been introducing lightweight Recaro
The Airbus neo aircraft (A320 and A321) are 15% more fuel passenger seats and our pilots use electronic devices rather
efficient and 50% quieter during takeoff and landing than their than paper documents on the flight deck.
equivalent previous generation aircraft (A320ceo and A321ceo –
Over the next year we will also introduce electronic tablet devices
current engine option).
for our cabin crew. In addition to providing them with more useful
The A321neo aircraft, which have a larger capacity than the information, we estimate that the change will avoid printing
A320neo (235 seats compared to 186), also helps to maximise the 30,000 pieces of paper every day.
EMISSIONS PER PASSENGER KILOMETRE SINCE 2000

120
115
CO2 emissions – grams per passenger kilometre
3.2% 5.3%
110
105 8.0%
10.1%
100
15.0%
95
17.6% 17.8%
90
22.3%
26.4%
85 24.9%
27.4% 27.2% 27.9%
80 29.4%
30.2% 31.2%
32.3% 32.5%
75 33.7%
70
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Percentage reduction since 2000 Financial year
www.easyJet.com 61
CDP CLIMATE CHANGE PROGRAMME These are the first changes made and we are continuing to work
with our retail partner, Gate Gourmet, to introduce more ways to
This year we participated in the CDP Climate Change programme
reduce the amount of plastic used.
for the first time since 2016.
The CDP Climate Change programme (CDP) is an international WASTE MANAGEMENT
not-for-profit organisation that provides a global system for Our cabin crew collect waste in two bags, separating out
companies and cities to measure, share and disclose recyclable materials.
environmental information.
As waste management was rated highly in our sustainability
We have decided to begin participating again as we recognise materiality assessment, we intend to do further work over the
that CDP is a widely-used measure of environmental management. next year with our aircraft cleaning, ground handling and
As part of the participation process this year, we have identified a airport partners on the management of waste.
number of areas where we can make improvements to our
environmental management and reporting for future years. AIRCRAFT NOISE
We recognise that our operations can affect those who live near
IATA INTERNATIONAL TARGET airports or under flight paths. We work with individual airports and
In addition to our own action, we are part of industry-wide efforts. air traffic control teams to implement noise mitigation activities
This includes the International Air Transport Association (IATA) that best fit each location. Our pilots also use flying techniques
target for a 1.5% improvement in fuel efficiency each year to that reduce the impact of aircraft noise, such as continuous
2020, a cap on net emissions from 2020 onwards, and a 50% descent approaches.
net reduction in emissions by 2050, compared to 2005 levels.
The new generation Airbus A320neo and A321neo aircraft are
INTERNATIONAL SCHEMES 50% quieter during takeoff and landing than the equivalent
previous generation aircraft.
All easyJet flights within the European Economic Area, which
make up the large majority of all our flights, are covered by the We have also carried out a retrofit programme to address a
EU Emissions Trading System scheme. particular sound, associated with A320 family aircraft of all
airlines, due to the airflow under the wing. This involved fitting
PLASTICS REDUCTION aircraft with vortex generators.
To help reduce the amount of single use plastics used on our
flights, this year we have focused on changes to our inflight food SUSTAINABLE TOURISM
and drink products and service. The tourists that easyJet, other airlines and travel operators bring
to destinations make a very significant contribution to local
We have prioritised our actions using the following principles:
economies. However tourism also needs to have a sustainable
• Reduce the amount of plastic items that are used. impact on the local environment and community.
• Replace plastic items with non-plastic alternatives. Sustainability has been a founding principle of the easyJet holidays
• Reduce the amount of plastics used in items. business and we will provide further information on the business’
sustainability strategy in next year’s Annual Report.
The initial changes have been to the ‘dry store’ items which are
used to serve food and drink products. This has included: WILDLIFE CONSERVATION
• Replacing a plastics drinks stirrer with a wooden alternative. Wildlife conservation was rated as a lower level materiality issue
• Introducing a new hot drinks cup which are now made of for easyJet and we have not carried out any significant work in
sustainably-sourced cardboard, except for a plant-based this area. However we will continue to keep this under review as
plastic lining, and that is compostable. we continue to develop the sustainability strategies for the airline
and easyJet holidays.
• Offering a 50 pence / 50 cent discount on hot drinks
for customers who bring their own reusable cup.
Efficient aircraft
Our A320 neo and A321 neo aircraft are 15% more fuel efficient and 50% quieter during takeoff and landing than their equivalent
previous generation aircraft.

5. OUR APPROACH

We want to contribute to local communities across our network
and society in general. This includes through a range of charitable
donations and initiatives in partnership with recognised charity
A good citizen organisations.
CHARITY COMMITTEE
Our Charity Committee makes donations to support charities
nominated by easyJet employees. This is to ensure that the
causes we support help the communities in which we operate,
and have personal meaning to easyJet employees.
Any employee can submit a nomination for an award for a
charity of their choice. Nominations are considered anonymously
and 12 charities are selected each month for a flight voucher for
two people, or a financial donation of £250 / Euro 300.
This year the Committee has made 144 awards of flight vouchers
or financial donations.
UNICEF
We have a pan-European charity partnership, Change for Good,
with Unicef, the world’s leading children’s organisation. Our cabin
crew make onboard appeals for customers to donate spare
change and unwanted foreign coins at certain times each spring,
summer and winter. Since 2012 the partnership has raised over
£14.0 million. This includes over £2.0 million raised in the 2019
financial year.
Collections during December and January support vaccination
WHY IS THIS MATERIAL? programmes as part of the global initiative to eradicate polio,
We operate across Europe and want which has been running since 1985. Since it began, the initiative
has contributed to polio cases decreasing by 99%, with the
to have a strong reputation and disease now found in only two countries: Afghanistan and
relationships in our core markets. Pakistan. 2019 marks three years since any cases have been
reported in Nigeria, meaning that the whole African region is
This means we need to make a now on the way to being certified polio free.
positive contribution to these areas To date, the partnership has helped vaccinate 5.3 million
and society in general, as well as mothers and babies against deadly diseases and protect more
minimise our negative impacts. than 30 million children against polio, as well as helped with the
procurement and distribution of 2,600 cold boxes, 6,000 vaccine
carriers and 22,280 ice packs, and the installation of 44 solar
While charitable giving and community refrigerators to improve vaccine storage capacity.
programmes were rated at a lower Since summer 2018, the one-month spring holiday and three-
level by stakeholders in the materiality month summer collection periods support Unicef’s Education in
assessment, we believe it is still right Emergencies work, providing education for children in emergency
situations all over the world. easyJet funds are distributed to
that we support charitable organisations where they are needed most. The money raised so far for
in our network and more widely. Education in Emergencies could provide over 14,500 School’s in
a Box, with the potential to bring education to one million
children in emergencies.
In 2019 we also supported Unicef’s UK Soccer Aid campaign by
collecting funds on inbound and outbound UK flights throughout
June. Employees also took part in fundraising activities such as
bake sales, quiz nights and raffles.
This year the partnership won the Third Sector Business Charity
Awards prize for best Charity Partnership, Sport, Travel & Leisure.

MATERIAL ISSUES
CHARITABLE GIVING TAX PRACTICES
AND COMMUNITY
PROGRAMMES
www.easyJet.com 63
UNICEF SOCCER AID
In 2019 easyJet was one of the official partners of The Soccer Aid campaign culminated in a TV-broadcast
Unicef Soccer Aid in the UK. celebrity football match at Chelsea Football Club’s Stamford
Bridge. During the match half time, easyJet crew
Unicef Soccer Aid’s aim is to make sure that more than 80,000
representatives presented a cheque on behalf of easyJet’s
children in Sierra Leone and Zambia can have a childhood full
customers to Soccer Aid.
of play. Where poverty and malnutrition unsettle childhoods,
Unicef works to support its partners in caring for mums and easyJet’s support for Soccer Aid in 2019 raised £200,000.
new babies. Unicef helps provide vaccinations so children can These funds were allocated to Unicef’s unrestricted fund, so
spend their time in the playground. In Zambia Unicef provides will be sent where the need is greatest and could be used as
preschools in a box for stimulating playtimes. part of any of Unicef’s core funding areas.
PROSTATE CANCER UK AND BREAST COMMUNITY SUPPORT AROUND OUR

CANCER NOW HEAD OFFICE
In addition to our long-running charity partnership with Unicef, In addition to the charitable activities across our network, we also
we decided to help raise funds for two cancer charities in Autumn provide more targeted support in the community around our
2018. This was in recognition that this is an important cause for Head Office in Luton, UK. This includes supporting the Luton Town
many of our employees. Football Club Community Trust’s school sports programme and as
a sponsor of Love Luton, a campaign which promotes the town.
Between October and November 2018, we partnered with
Prostate Cancer UK and Breast Cancer Now on a collection TAX PRACTICES
campaign on flights with UK-based crew. As the most common
cancers in men and women, one man and one woman die from We are committed to complying with the tax laws of the countries
prostate and breast cancer every 45 minutes. The campaign was in which we operate. We seek to act with integrity in all tax
called Life-Saving Journeys. matters and to working openly with tax authorities.
The campaign raised over £438,000, which was split equally

between Breast Cancer Now and Prostate Cancer UK.

NON-FINANCIAL INFORMATION STATEMENT

easyJet aims to comply with the Non-Financial Reporting Directive requirements. The table below sets out where relevant information
can be found in the report.
REPORTING
REQUIREMENT POLICIES RELEVANT INFORMATION
• As we are continuing to develop our • Materiality assessment, p49
1.
sustainability strategy, a new Environmental • Chief Executive’s introduction, p16
ENVIRONMENTAL Policy will follow on from this work • Climate change risks, p60
MATTERS • Carbon emissions, p60
• Aircraft efficiency, p61
• Plastics reduction, p62
• Waste management, p62
• Aircraft noise, p62
• Safety Plan • Materiality assessment, p49

2.
• People Handbook, which includes: • Chief Executive’s introduction, p16
EMPLOYEES • Code of Ethics • Safety, p52
• Parental, paternity, maternity and • Employment approach, p56
adoption leave • Employee engagement, p56
• Employee consultation • Employee representative groups and trade unions,
• ‘Speak up Speak out’ policy on p56
whistleblowing • Wellbeing, p57
• New Diversity & Inclusion Strategy endorsed • Employee turnover, p57
by the Airline Management Board • Reward, p59
• Diversity and inclusion, p58
• Employees with disability, p59
• Supplier Code of Conduct, including the • Suppliers, p55

3.
prohibition of modern slavery and human • Modern Slavery, p55
HUMAN RIGHTS trafficking • Human trafficking, p55
• Commitment on Human Rights statement • Business ethics, p55
• Modern Slavery Statement
• easyJet and Unicef charity partnership • Customers who need special assistance, p54
4.
• Charity Committee • Customers affected by disruption, p54
SOCIAL MATTERS • Charity partnership with UNICEF, p63
• Local charity donations, p64
• Aircraft noise, p62
• Ethical and compliance policies, covering • Suppliers, p55

5.
topics that include bribery and corruption, • Business ethics, p55
ANTI- gift giving and fraud
CORRUPTION • Mandatory ethics training during the
AND ANTI- onboarding process
BRIBERY • Annual online refresher training on ethics,
anti-bribery and corruption
• Business Integrity Committee established
this year to oversee ethics policies and
management
• ‘Speak up Speak out’ policy on
whistleblowing
• Supplier Code of Conduct
• Business model, p12

6.
BUSINESS MODEL
• Safety risks, p45

7.
• People risks, p44
PRINCIPAL RISKS • Compliance and regulatory risks, p42
AND IMPACT • Climate change risks, p41
OF BUSINESS
ACTIVITY
• Carbon emissions per passenger kilometre, p27

8.
• Customer satisfaction, p27
NON-FINANCIAL • On-time performance, p27
KEY
PERFORMANCE
INDICATORS
www.easyJet.com 65
CHAIRMAN’S STATEMENT ON CORPORATE GOVERNANCE
COMMITTED TO
effective corporate
governance
john barton
Non-Executive Chairman
2019 governance I am pleased to introduce this report, which describes the

activities of your Board during the year, along with our
governance arrangements.
highlights The Board has continued to focus on providing effective

leadership and oversight of the Group as it seeks to focus on
its strategic priorities and create value for our shareholders.
board stakeholder The role and effectiveness of the Board and the culture it
promotes are essential to a successfully run company; the
changes engagement way in which we discharge our duties is set out on the
following pages. A summary of Board activity during the
Dr Anastassia Lauterbach The Board continued to year can be found on page 78.
and Nick Leeder joined the focus on understanding
Board during the year, the views of its CHANGES TO THE BOARD
bringing a depth of stakeholders. Moya
The Board keeps its balance of skills, knowledge, experience,
knowledge and experience Greene was appointed
independence and diversity under regular review. As a result
in technology and data, Employee Representative
there have been a number of Board changes since the last
adding to the diversity of Director in January 2019,
Annual Report. Appointments have been subject to a
skills amongst Board enhancing the employee
formal, rigorous and transparent procedure, led by the
members. voice in Board discussions.
Nominations Committee.
We welcomed Dr Anastassia Lauterbach as an Independent
PAGE PAGE Non-Executive Director and member of the Audit Committee,
81 79
and Nick Leeder as an Independent Non-Executive Director
and member of the Safety Committee, on 1 January 2019. With
easyJet having an increased focus on digital and the use of
data as a source of competitive advantage, we were very
pleased to welcome both Anastassia and Nick to the Board.
They bring different perspectives on technology and artificial
intelligence, with a depth of knowledge across a range of
board activity in 2019 businesses. Both are international in outlook and experience and
further strengthen the diverse mix of approach and skills on the
The Board has an annual programme of activity
which is designed to balance the need to
PAGE Board. More detailed information on Anastassia and Nick’s
78
induction can be found on page 82.
provide effective oversight of the Group’s
activities and the setting of strategic priorities Adèle Anderson stepped down from the easyJet Board at the
for the future. conclusion of the AGM on 7 February 2019. On behalf of the
Board, I would like to reiterate my thanks to Adèle for her
important contribution to the easyJet Board and specifically
in her role as Audit Committee Chair until 1 January 2019.
We also announced that after eight years Charles Gurassa is to
step down as Chair of the Remuneration Committee, but remain
a member of the Committee, with effect from 21 October 2019.
I would like to thank Charles for his wise and effective leadership
of the Committee during his tenure. Moya Greene has replaced
Charles as Chair with effect from the same date.

CULTURE AND PURPOSE DIVERSITY
GOVERNANCE CHAIRMAN’S STATEMENT ON CORPORATE GOVERNANCE

easyJet has an open and collaborative culture which is underpinned We take the issue of diversity in the boardroom and throughout
by the values and behaviours which we call ‘Our Promise’: the business very seriously and are mindful of important recent
developments in this area.
• Safe & responsible: safety is our number one priority.
• On our customers’ side: we always think about the customer We remain focused on maintaining an inclusive and diverse
and see things from their point of view. culture. We believe this improves effectiveness, encourages
constructive debate, delivers strong performance and enhances
• In it together: we are one team and work together in all we do.
the success of the business. The Board has a Diversity and
• Always efficient: we will always be efficient and focus on Inclusion Policy that sets our objectives in this area. You can
what matters most. read more about this, and our overall approach to diversity
• Forward thinking: we anticipate what we need tomorrow and and inclusion in our other senior leadership positions and
consider how what we do today might affect us in future. across easyJet, on page 88.
easyJet’s purpose is also clearly defined as part of ‘Our Plan’ BOARD EVALUATION
and set out on page 2. As a Board, our purpose, values and Following the externally facilitated Board evaluation conducted
behaviours are always top of mind. We aim to lead by example last year, our Nominations Committee oversaw an internally
by ensuring that the values are integrated into decision making facilitated review of the composition, diversity and effectiveness
and that the policies and procedures we put in place maintain the of the Board this year. A full report on the activities of the
open and collaborative culture we have at easyJet. This includes Nominations Committee and the outcomes of the evaluation
the Safety Committee monitoring the nature and frequency of can be found on pages 87 to 88.
safety incidents to determine whether there are any counter-
cultural trends; the Board reviewing whistleblowing cases to UK CORPORATE GOVERNANCE CODE
understand the matters being reported; and the Nominations I am pleased to report that we were in full compliance with
Committee reviewing company-wide progress on culture, diversity the requirements of the 2016 UK Corporate Governance Code
and inclusion initiatives. (the ‘2016 Code’) during the year.
UNDERSTANDING OUR STAKEHOLDERS We welcomed the publication by the FRC of the revised UK
The Board continues to take account of the impact of its decisions Corporate Governance Code in July 2018 (the ‘2018 Code’) and its
on all of our stakeholders, who include customers, suppliers, focus on the themes of corporate and Board culture, stakeholder
shareholders, regulators and governments, including as set out in engagement and sustainability, which are critical factors for us as
section 172 of the Companies Act 2006. The Board believes that we partner with our stakeholders to build a successful and
part of that responsibility includes understanding the views of those enduring business. While the 2018 Code will not apply until our
stakeholders and building constructive relationships with them. financial year beginning on 1 October 2019, we have chosen to
adopt some of its elements early and further details are
Last year we reported that we had begun to consider ways in included in this report.
which a stronger and more meaningful engagement could take
place between the Board and the workforce. I am pleased to The following pages set out details of the composition of our
report that Moya Greene took up the position of Employee Board, its corporate governance arrangements, processes
Representative Director with effect from 1 January 2019 to better and activities during the year, and reports from each of the
reflect the employee voice in the boardroom. Further details on Board’s Committees.
Moya’s activities are set out on page 79.
The Board’s visit to Austria also allowed us to engage with
stakeholders including Austrocontrol and local airport
management. More information can be found on page 77.
During the year the Board received presentations from relevant JOHN BARTON
parts of the business focusing on the customer, shareholders Non-Executive Chairman
and regulators. Further details of all our stakeholders and how
we have engaged with them are set out on page 15.
SUSTAINABILITY
As clearly articulated by Johan Lundgren on page 48, sustainability
has been a key focus of the Board this year and will continue to
be over the coming year. It is important to the Board that we
operate a safe and responsible business and sustainability plays
an important part in this.
BREXIT
The Board continued to closely oversee the implementation
of easyJet’s planning for Brexit. This has involved regular
management updates on both the design and implementation of
easyJet’s response to Brexit negotiations, and the likely impact on CONTENTS OF THE CORPORATE
the European airline industry. We are confident that easyJet’s GOVERNANCE REPORT
operating model and network are unaffected by Brexit and that
flying rights between the EU and the UK will be maintained. 68 Board and Airline Management Board (‘AMB’) profiles
This year the Board’s annual visit to our European operations took 75 Our governance framework
place in Vienna, which provided an opportunity to see at first hand 78 Board activity in 2019
the operation of the easyJet Europe airline, established in 2017 as 85 Board Committee overview and activities during the year
part of the Company’s Brexit preparations.
116 Directors’ report
www.easyJet.com 67
BOARD OF DIRECTORS
An experienced
and balanced Board
N F
john barton (75) Charles Gurassa (63) johan lundgren (53)

Non-Executive Chairman Non-Executive Deputy Chairman and Chief Executive Officer
Senior Independent Director
Nationality: Appointed: Nationality: Appointed: Nationality: Appointed:

British May 2013 British June 2011 Swedish December 2017
Key areas of expertise: Key areas of expertise: Key areas of expertise:
Finance, Governance Aviation, Travel and Tourism and Travel and Tourism
Telecommunication
Skills & experience Skills & experience Skills & experience

John has significant board experience Charles has extensive experience in the Johan has more than 30 years’ experience
having previously served as Chairman of travel, tourism and leisure industries working in the travel industry, starting his
Next plc, Catlin Group Limited, Cable and including having served as Chief Executive career as a tour guide and occupying
Wireless Worldwide plc, Brit Holdings plc of Thomson Travel Group plc, Executive various roles in travel marketing and sales.
and Wellington Underwriting plc. He was Chairman of TUI Northern Europe Limited Prior to joining easyJet in December 2017
previously Senior Independent Director of and Director of Passenger and Cargo at as Chief Executive, Johan was the Group
WH Smith plc, Hammerson plc and SSP British Airways plc. Charles retired in June Deputy Chief Executive Officer and Chief
Group plc. He was also the Chief Executive 2003 to pursue a portfolio career. He was Executive Officer of Mainstream Tourism
of insurance broker JIB Group plc. After previously Non-Executive Chairman of at TUI AG. Prior to this Johan was the
JIB’s merger with Lloyd Thompson, he Genesis Housing Association, LOVEFiLM Managing Director for the Northern Region
became Chairman of the combined Group, International Ltd, Phones4U Ltd, Virgin at TUI Travel plc from 2007 until 2011.
Jardine Lloyd Thompson Group plc, until Mobile plc, Alamo/National Rent a Car and From 2003 until 2007, he was the
2001. John is a qualified Chartered 7Days Ltd, a Non-Executive Director at Managing Director and Chief Executive
Accountant and has an MBA from Whitbread plc and Senior Independent Officer of TUI Nordic. Johan led MyTravel’s
Strathclyde University. Director at Merlin Entertainments plc. businesses out of Canada and Sweden
Charles has a bachelor’s degree in between 1999 and 2003, prior to which he
Economics and an MBA from the was Managing Director of Always Tour
International Management Centre Operations from 1996.
at Buckingham.
Current external appointments Current external appointments Current external appointments

Senior Independent Director of Luceco plc Non-Executive Chairman of Channel 4 and None.
and member of its Audit, Remuneration member of its Remuneration, Ethics and
and Nomination Committees. Non- Audit Committees. Chairman of Great Rail
Executive Director of Matheson & Co Ltd. Journeys and Member of the Board of
Trustees at English Heritage and the
Migration Museum.

BOARD COMMITTEES
GOVERNANCE BOARD OF DIRECTORS

Committee Chair F Finance Committee R Remuneration Committee
A Audit Committee N Nominations Committee S Safety Committee
S R
F S
andrew findlay (50) Dr Andreas Bierwirth (48) MOYA GREENE DBE (65)
Chief Financial Officer Independent Non-Executive Director Independent Non-Executive Director &
Employee Representative Director

British October 2015 German July 2014 British and Canadian July 2017
Finance Aviation, European Perspective Logistics and Transport

Andrew was previously Chief Financial Andreas previously served as a Director Moya has wide-ranging strategic and
Officer at Halfords Group plc from and Chief Commercial Officer at Austrian leadership experience gained in both the
February 2011 to October 2015. Prior to Airlines AG. Andreas also served as Vice private and public sectors. Moya served as
this, Andrew was Director of Finance, Tax President of Marketing at Deutsche Chief Executive of Royal Mail Group for
and Treasury at Marks and Spencer Group Lufthansa AG (Frankfurt) and Chairman of eight years. Prior to joining Royal Mail,
plc. He has also held senior finance roles at the Supervisory Board at T-Mobile Polska Moya was Chief Executive Officer of
the London Stock Exchange and at Cable SA. Prior to this, Andreas was firstly Canada Post. She also has a strong public
and Wireless, in the UK and the US. Deputy Managing Director and later sector background, developed over a
Andrew qualified as a Chartered Managing Director at Germanwings. 17-year period when she assumed
Accountant with Coopers and Lybrand. progressively more senior roles in seven
different Ministries of the Canadian Federal
Public Service. She has previously served
as a Non-Executive Director of Rio Tinto
plc as well as Great-West Life co and Tim
Hortons Inc, both publicly quoted in Canada.

Non-Executive Director of Rightmove plc, Chief Executive Officer of Magenta Member of the Board of Trustees of the
Chair of its Audit Committee and member Telekom (formerly T-Mobile Austria). Tate Gallery.
of its Nomination Committee. Chairman of the Supervisory Board of
Do&Co AG and Member of the
Supervisory Board of Telekom Deutschland
GmbH, Casinos Austria AG, Avcon Jet AG,
FK Austria Wien AG. He is also a Director
of Federation of Austrian Industry and the
German Chamber of Commerce in Austria.
www.easyJet.com 69
BOARD OF DIRECTORS CONTINUED
A S F
DR ANASTASSIA LAUTERBACH (47) NICK LEEDER (50) ANDY MARTIN (59)

Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director

German January 2019 Australian January 2019 British September 2011
Information Technology, Cyber Information Technology Finance

Anastassia brings expertise in innovative Nick has substantial leadership experience Andy was, until 2015, Group Chief
technologies, including cyber security with deep expertise of print to digital Operating Officer, Europe and Japan, for
and artificial intelligence. She served as business transformation within the media Compass Group plc, having previously
the Senior Vice President of Global sector. Nick has spent the last eight years been their Group Finance Director from
Business Operations Europe at Qualcomm leading Google’s businesses in Australia, 2004 to 2012. Before joining Compass
Incorporated, a world leader in 3G, 4G New Zealand and France before moving Group plc, Andy was Group Finance
and next-generation wireless to Ireland. Prior to Google, Nick was at Director at First Choice Holidays plc
technologies. She also held several roles News Corporation, firstly as Chief (now TUI Group) and prior to that held a
at Deutsche Telekom AG, including Senior Operating Officer of News Digital Media number of senior finance roles at Forte plc
Vice President, Business Development and latterly as Deputy Chief Executive of and Granada Group plc (now ITV plc).
and Investments, Acting Chief Products national broadsheet newspaper, Andy trained as a Chartered Accountant
and Innovation Officer, and Senior Vice ‘The Australian’. Before that he was at Peat Marwick before moving to Arthur
President, Planning & Development Chief Operating Officer of newspaper Andersen where he became a partner.
and served as a member of the Executive group, Fairfax Digital. He has a degree in
Operating Board. Prior to this, she served pure mathematics from University of
as Executive Vice President, Group Sydney and an MBA from Insead.
Strategy at T-Mobile International AG and,
prior to T-Mobile, she served in various
operational and strategic roles at Daimler
Chrysler Financial Services, McKinsey &
Company and Munich Reinsurance
Company.

Director at Dun & Bradstreet, Member of Vice President at Google Ireland, EMEA Non-Executive Director of Intertek Group
the Supervisory Board at Wirecard AG and Headquarters. plc and Chairman of its Audit Committee.
Censhare AG. Chief Executive Officer and Non-Executive Director of the John Lewis
founder of Lauterbach Consulting & Partnership and Chairman of its Audit &
Venturing GmbH. Risk Committee. Non-Executive Chairman
of Hays Group plc and Chairman of its
Nomination Committee.

GOVERNANCE BOARD OF DIRECTORS
A
DIVERSITY IN THE BOARD
R
easyJet recognises the benefits of having diversity across the
S Board to ensure effective engagement with key stakeholders
and effective delivery of the business strategy.
TENURE
JULIE SOUTHERN (59)

Independent Non-Executive Director 0-3 years: 5
4-6 years: 3
7-9 years: 2
Nationality: Appointed:
British August 2018
Key areas of expertise:
Finance, Aviation
GENDER
Skills & experience
Julie has significant board experience and
has held a number of commercially
oriented finance and related roles during
her career. She was Chief Commercial Male: 7
Officer of Virgin Atlantic Limited between Female: 3
2010 and 2013, responsible for the
commercial strategy of Virgin Atlantic
Airways and Virgin Holidays. Prior to this,
Julie was Chief Financial Officer of Virgin
Atlantic Limited for 10 years. In addition,
Julie was previously Group Finance AGE
Director at Porsche Cars Great Britain
and Finance and Operations Director at
WH Smith – HJ Chapman & Co. Ltd. She
was previously the Non-Executive Director
of Stagecoach Group plc, Cineworld plc 40-49: 2
and DFS Furniture plc. Julie holds a BA 50-59: 5
(Hons) in Economics from the University of 60+: 3
Cambridge and is a qualified
Chartered Accountant.
Current external appointments

Non-Executive Director and Chair of the
Audit Committees of Rentokil Initial plc and
NXP Semi-Conductors N.V.. Non-Executive
CHANGES TO THE BOARD DURING THE
Director, Chair of the Audit Committee and YEAR AND UP TO 18 NOVEMBER 2019:
member of the Remuneration Committee • Dr Anastassia Lauterbach and Nick Leeder were appointed
at Ocado plc. to the Board on 1 January 2019.
• Adèle Anderson stepped down from the Board
on 7 February 2019.
www.easyJet.com 71
AIRLINE MANAGEMENT BOARD
An experienced and focused

management team
ELLA BENNETT MAAIKE DE BIE LIS BLAIR

Group People Director Group General Counsel and Company Chief Marketing Officer
Secretary

British May 2018 Dutch June 2019 British May 2018
People, Reward and Digital Transformation Legal, Compliance and Regulatory Customer Insight, Digital and Marketing

Ella is a skilled Group HR Director with Maaike is an experienced international Lis joined the AMB as Chief Marketing
strong experience in the UK and lawyer with over 25 years’ practical Officer in May 2018 after six years heading
internationally in lean and digital experience in a variety of sectors. Maaike up Customer Relationship Management
transformation, large-scale change as well joined easyJet in June 2019 from Royal Mail (CRM) and insight for the airline. Prior to
as talent development and reward. Ella plc where she was Group General Counsel joining easyJet, Lis spent five years as a
joined easyJet from Sainsbury’s Argos, accountable for all legal, compliance, claims marketing consultant across multiple
where she led the integration of their management, security and information sectors, leading brands and marketing
non-food business to create a multi- governance matters. Prior to Royal Mail, agencies including Audi, Barclaycard, Belu
product, multi-channel business with fast Maaike was a Legal Director and part of the and Rapier London. Her marketing career
delivery networks. Ella was also Group HR governance body of EY LLP, Maaike also began with 10 years at Barclays,
Director at Home Retail Group, leading the spent six years with General Electric, five incorporating leadership roles in all areas of
people aspects of Argos’ digital years as General Counsel for one of its marketing, including digital, CRM, insight,
transformation. Prior to this she was a capital companies in EMEA and then brand and advertising. She graduated from
member of the executive management promoted into the HQ office of GE Capital Cambridge with an MA in Natural Sciences.
team at Fujitsu. She earned her BA (Hons) in Europe to lead the improvement of
in English Literature from the University of enterprise risk management & corporate
Bristol and her Master’s Degree from the governance across EMEA. She has also held
University of London. senior international legal positions at the
European Bank for Reconstruction and
Development, LLP in London and White &
Case LLP in New York.
CHANGES TO THE AMB DURING THE YEAR

AND UP TO 18 NOVEMBER 2019:
• Chris Browne stepped down as the Chief Operating • Maaike de Bie was appointed General Counsel and
Officer. David Morgan has been acting Head of Company Secretary with effect from 3 June 2019.
Operations on an interim basis since 7 March 2019. Daud Khan acted as interim General Counsel and
• Luca Zuccoli stepped down as Chief Data Officer. Company Secretary until Maaike’s appointment.
Sam Kini was appointed Chief Data and Information
Officer from 1 August 2019.

GOVERNANCE AIRLINE MANAGEMENT BOARD
ROBERT CAREY THOMAS HAAGENSEN FLIC HOWARD-ALLEN
Chief Commercial Officer Group Markets Director Chief Communications Officer

French September 2017 Danish May 2018 British / Irish August 2018

Aviation and Strategy Commercial and Operations Management Corporate Communications, Sustainability

Robert joined from McKinsey & Company With over 21 years’ experience in Flic has over 20 years’ experience in
where he was a partner and leader in the operations management in a variety of corporate, consumer, internal, government
Airline practice. Over the last 11 years, roles across Europe, Thomas has served as relations and crisis communications. Flic
Robert has assisted airline clients around easyJet’s Country Director for the joined easyJet from Associated British
the world on a range of strategy, revenue, Germany, Austria and Switzerland region Foods, the owner of Primark, Twinings and
commercial and operational issues. Prior to since 2011, developing the market entry many other major brands, where she
McKinsey, Robert worked for Delta Air strategy for Germany and the business headed up external affairs. Flic was
Lines and America West Airlines in a traveller segment in Northern Europe. Most previously Director of Communications and
variety of roles across revenue and recently, Thomas was appointed Managing Corporate Responsibility at Marks and
operations functions. Director of our Austrian AOC, easyJet Spencer Group plc where she led the
Europe GmbH, which forms a key part of creation of ‘Plan A’, its Corporate
our Brexit plans, and managed the Responsibility and Sustainability approach.
transition of over 100 aircraft to easyJet Flic was also a Director at public relations
Europe. Thomas holds a degree in business consultancy Hill + Knowlton for a number
administration with a focus on of years. She holds a BA (Hons) degree in
management and marketing from English Literature from the University of
University of Lausanne. Leeds.
DIVERSITY IN THE AIRLINE GENDER AGE

MANAGEMENT BOARD
easyJet recognises the benefits of
having diversity across the executive
leadership team to inspire innovation
Male: 6 40-49: 5
and increased performance.
Female: 5 50-59: 6
www.easyJet.com 73
AIRLINE MANAGEMENT BOARD CONTINUED
SAM KINI David Morgan GARRY WILSON

Chief Data and Information Officer Interim Head of Operations Chief Executive, easyJet Holidays

British August 2019 British March 2019 British November 2018
Data and Information Technology Flight Operations Travel, Business Transformation and
Global Markets

Sam joined easyJet as Chief Data and David Morgan joined easyJet in Garry is a highly experienced commercial
Information Officer in August 2019 from September 2016 as the airline’s Chief Pilot. leader working across international
Telenet, the largest provider of cable In December 2017 he took up the position organisations, and has over 21 years’
broadband services in Belgium, where she of Director of Flight Operations, taking experience in the holiday and travel sector.
had been Chief Information Officer for responsibility the safe and efficient He joined the business from TUI Group
three years. She was responsible for data, operation of the airline’s flights across where he most recently held the role of
IT, digital, systems and services across the Europe. In March 2019 David took up the Managing Director for Group Product and
combined Telenet group. Before that, Sam interim role of Head of Operations, Purchasing, leading commercial strategies
held a number of positions at Virgin Media, reporting directly to the CEO. David and across a number of markets and heading
including Director of Development, his operations team focus on the safe, a global team across 20 countries. Prior to
Delivery, Technology and Transformation. efficient and sustainable operations in an this, Garry worked in a number of senior
Sam brings with her significant experience increasingly complex and challenging commercial roles at TUI Group. He also
of leading data, IT, transformation and environment. Prior to joining the airline held the position of Director of Europe,
change in complex organisations. David was Chief Flight Operations Officer Middle East and Africa for American travel
at Wizz Air. His long career in aviation has group Orbitz Worldwide (now Expedia
taken him around the world including Inc.). Garry has worked extensively with
Australia and the Middle East. He is a overseas governments, PwC and the
graduate of the Royal Military Academy Travel Foundation to create sustainable
Sandhurst. tourism policies to promote major
economic growth and positive social
change whilst minimising negative
environmental impact. He holds a
BCom (Hons) degree in Business
Management and Languages from
the University of Edinburgh.
JOHAN LUNDGREN ANDREW FINDLAY

Chief Executive Chief Financial Officer
SEE BOARD OF DIRECTORS’ PROFILES SEE BOARD OF DIRECTORS’ PROFILES

ON PAGE 68. ON PAGE 69.

governance framework
GOVERNANCE CORPORATE GOVERNANCE REPORT

SHAREHOLDERS
CHAIRMAN
Responsible for the leadership of the easyJet plc Board (the ‘Board’) and for ensuring
that it operates effectively through productive debate and challenge.
THE BOARD
The Board is responsible for providing leadership to the airline. It does this by setting strategic priorities and overseeing their delivery in a way that is
aligned with easyJet’s culture and enables sustainable long-term growth, whilst maintaining a balanced approach to risk within a framework of effective
controls and taking into account the interests of a diverse range of stakeholders. There are certain matters which are reserved for the Board’s decision.
BOARD COMMITTEES
The terms of reference of each Committee are documented and agreed by the Board. The Committees’ terms of reference
are reviewed annually and are available in the Governance section of easyJet’s corporate website at corporate.easyjet.com.
The key responsibilities of each Committee are set out below.
SAFETY NOMINATIONS AUDIT FINANCE REMUNERATION

COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE
To examine specific safety To keep under review the To monitor the integrity of To review and monitor the To set remuneration for all
issues as requested by the composition, structure and the Group’s accounts, and Group’s treasury policies, Executive Directors, the
Board or any member of size of, and succession to, the adequacy and treasury operations and Chairman and the AMB,
the Committee. the Board and its effectiveness of the funding activities, along with including pension rights and
Committees. systems of internal control the associated risks. any compensation
To receive, examine and
(including whistleblowing payments.
monitor reports on actions To provide succession
procedures).
taken by departments. planning for senior To oversee remuneration
executives and the Board, To monitor the and workforce policies and
To review and monitor the
leading the process for all effectiveness and practices and take these
implementation of easyJet’s
Board appointments. independence of the into account when setting
annual safety plan.
internal and external the policy for Directors’
To evaluate the balance of
auditors. remuneration.
skills, knowledge, experience
and diversity on the Board.
COMMITTEE REPORT COMMITTEE REPORT COMMITTEE REPORT COMMITTEE REPORT COMMITTEE REPORT
ON PAGES 85 TO 86 ON PAGES 87 TO 88 ON PAGES 89 TO 93 ON PAGES 94 TO 95 ON PAGES 96 TO 115
CHIEF EXECUTIVE
Responsible for the day-to-day running of the Group’s business and performance,
and the development and implementation of strategy.
AIRLINE MANAGEMENT BOARD (‘AMB’)

Led by the Chief Executive, the AMB members are collectively responsible for driving the performance
of the airline against strategic KPIs and managing the allocation of central funds and capital.
www.easyJet.com 75
CORPORATE GOVERNANCE REPORT CONTINUED
COMPLIANCE WITH THE UK CORPORATE Division of responsibilities

GOVERNANCE CODE The roles of Chairman and Chief Executive are separate, set out in
writing, clearly defined, and approved by the Board. They are
As a listed company easyJet follows the principles set out in the
available on easyJet’s corporate website at corporate.easyjet.com.
2016 UK Corporate Governance Code (the ‘2016 Code’), the full
text of which is available at www.frc.org.uk, and is required to The Chairman
disclose whether it has complied with the provisions of the 2016 The Chairman, John Barton, is responsible for leadership of the
Code during the financial year. The Board is pleased to confirm Board and ensuring effectiveness in all aspects of its role. He is
that the Company complied with the 2016 Code throughout the responsible for setting the Board’s agenda and ensuring adequate
year and further details are set out in this section of the Annual time is available for discussion of all agenda items, including
Report (together with the Directors’ remuneration report on strategic issues. He is responsible for encouraging and facilitating
pages 96 to 115 and the Directors’ report on pages 116 to 119). active engagement by and between all Directors, drawing on their
skills, knowledge and experience.
2018 UK GOVERNANCE CODE
The Board welcomed the introduction of the 2018 UK Corporate Senior Independent Director
Governance Code (the ‘2018 Code’) and its focus on the themes Charles Gurassa is the Senior Independent Non-Executive Director
of corporate and Board culture, stakeholder engagement and and Deputy Chairman. He acts as a sounding board for the
sustainability. While it will only formally apply to the Company Chairman and acts as an intermediary for the other Directors
from the financial year beginning 1 October 2019, the Board has when necessary. He is also available to address shareholders’
considered the requirements of the 2018 Code during the year concerns that have not been resolved through the normal
and taken the opportunity to adopt certain elements early. The channels of communication with the Chairman, Chief Executive
main changes that have been made are set out below. or other Executive Directors. He is responsible for evaluating the
performance of the Chairman in consultation with the other
• Moya Greene has been appointed the Employee Representative
Non-Executive Directors.
Director from 1 January 2019, further details of which are set out
on page 79. Non-Executive Directors
• The terms of reference for the Remuneration Committee have The Non-Executive Directors provide an external perspective,
been updated to ensure that pay for senior management is sound judgement and objectivity to the Board’s deliberations and
formally set by the Committee. decision making. With their diverse range of skills and expertise,
• Succession and development plans for the Board, AMB and ELT they support and constructively challenge the Executive Directors
have been discussed on a regular basis and enhanced. and monitor and scrutinise the Group’s performance against
agreed goals and objectives. The Non-Executive Directors are
• To ensure that stakeholder voices (which includes customers, also responsible for determining appropriate levels of executive
suppliers, shareholders, regulators and governments) are remuneration, appointing and removing Executive Directors and
understood by the Board, presentations on key stakeholder succession planning. The Non-Executive Directors together with
groups have been given during the year and opportunities the Chairman meet regularly without any Executive Directors
identified to build relationships where appropriate. being present.
Further details of the Company’s compliance with the 2018 Code Chief Executive Officer
will be provided in next year’s Annual Report. Johan Lundgren has specific responsibility for recommending
the Group’s strategy to the Board and for delivering the strategy
LEADERSHIP
once approved. In undertaking such responsibilities, the CEO
Role of the Board takes advice from, and is provided with support by, his senior
The Board is responsible for providing effective leadership to the management team and all Board colleagues. Together with the
Company by setting the strategic priorities of the Group and Chief Financial Officer, the CEO monitors the Group’s operating
overseeing management’s execution of the strategy in a way and financial results and directs the day-to-day business of the
that enables sustainable long-term growth, while maintaining a Group. The CEO is also responsible for recruitment, leadership
balanced approach to risk within a framework of prudent and and development of the Group’s executive management team
effective controls. It is responsible for ensuring that it has the below Board level.
right mix of skills, knowledge, experience and diversity to
perform its role effectively. Company Secretary
Maaike de Bie as Company Secretary supports and works closely
The Board is collectively responsible for promoting the long-term with the Chairman, the Chief Executive Officer and the Board
success of the Group for the benefit of its members as a whole, Committee Chairs in setting agendas for meetings of the Board
through the creation of sustainable shareholder value. In exercising and its Committees. She supports the accurate, timely and clear
this responsibility, the Board takes into account the needs of all information flow to and from the Board and the Board
relevant stakeholders – including customers, suppliers, Committees, and between Directors and senior management. In
shareholders, regulators and governments – and the effect of addition, she supports the Chairman in designing and delivering
the activities of the Company on the environment. Directors’ induction programmes and the Board and Committee
The Board is provided with timely and comprehensive performance evaluations. She also advises the Board on corporate
information to enable it to discharge its responsibilities, to governance matters and Board procedures, and is responsible for
encourage strategic debate and to facilitate robust, informed administering the Company’s Share Dealing Code and the Annual
and timely decision-making. General Meeting.
The Board has a formal schedule of matters reserved for its
decision and specific matters delegated to certain Board
Committees. The matters reserved to the Board and the Terms
of Reference of the Board Committees are available in the
Governance section of easyJet’s corporate website at corporate.
easyjet.com. Day-to-day management responsibility rests with the
Airline Management Board (‘AMB’), the members of which are
listed on pages 72 to 74.

Board activity in 2019 In addition, to allow for opportunities for the Board to engage with

The Board meets regularly, with 11 scheduled meetings having senior management to discuss key elements of the business, a
been held during the year including the strategy days. Each Board number of Board dinners were held during the year.
meeting follows a carefully tailored agenda agreed in advance by
A summary of the key activities covered during the year is set out
the Chairman, CEO and Company Secretary. A typical meeting will
on page 78. Details of the Board’s stakeholder engagement
comprise reports on current trading and financial performance
activities are also set out in this section, with information on
from the CEO and CFO, legal and governance updates, Safety and
the visit to Austria included below and further details of Moya
Investor Relations updates and deep dives into areas of particular
Greene’s appointment as Employee Representative Director
strategic importance.
set out on page 79.
STAKEHOLDER ENGAGEMENT IN ACTION

BOARD VISIT, AUSTRIA
An understanding of, and connection with, easyJet’s business is The Board found the visit informative and welcomed the
fundamental for our Non-Executive Directors to enable them opportunity to meet and discuss the progress of the business
to maximise their contribution to Board discussions and with local management and better understand the views of
understand our stakeholders. With this in mind, the Board visits local external stakeholders.
one of our European operations at least once a year. These
visits provide our Non-Executive Directors with a valuable
opportunity to engage with local management and crew and
gain insight into how the culture and values of the business are
translated into day-to-day operations.
In June 2019, all of the Board members visited our operations in
Vienna, Austria. This is also home to the ‘easyJet Europe’ airline, Our visit to Vienna
which was established in 2017 as part of the Company’s Brexit
preparations to allow easyJet to continue to operate flights allowed us to meet
both across Europe and domestically within European countries
after the UK has left the EU.
with key stakeholders
The Board toured the Vienna facilities and local management and see the easyJET
provided an overview of the local operating model, the
establishment of the new airline, and various activities across
CULTURE in action
the business including safety, training, ground and flight
operations, security and compliance. The Board were also able
to see how easyJet’s values and culture are brought to life on
the ground in Austria.
The Board had the opportunity to hear first-hand from external
stakeholders by receiving a presentation from Austrocontrol,
the air navigation services provider that controls Austrian
airspace, and hosting a dinner with local management, the
Managing Directors of Austrocontrol and the Managing
Director of Vienna Airport.
www.easyJet.com 77
board activity in 2019

STRATEGY, OPERATIONS AND FINANCE SAFETY
KEY ACTIVITIES KEY ACTIVITIES
• Monitored and received regular updates on Brexit and the • Received and discussed safety performance reports and
legislative landscape, including the potential impact of updates at each main Board meeting, presented by the
Brexit on both easyJet and the aviation sector as a whole Director of Safety, Security and Compliance
• Discussed developments around sustainability in the airline • Undertook deep dives on manual flight planning, aircraft
industry and the development of a sustainability strategy data security, and Regulatory Management Framework
• Received updates on recent developments in the in relation to flight operations
competitive landscape • Received updates from the Chair of the Safety
• Approved the Group’s five-year plan and strategic initiatives Committee on its activities
• Reviewed and approved the strategy and corporate
SAFETY IS OUR NUMBER ONE PRIORITY: READ MORE ABOUT HOW
structure for easyJet Holidays and received updates on WE ARE ENSURING THIS ON PAGES 85 TO 86
the launch plans
• Received regular status updates on the Operational
• Received a presentation from management on INTERNAL CONTROL AND RISK
customers and marketing MANAGEMENT
• Received presentations from the Chief Executive Officer KEY ACTIVITIES
and Chief Financial Officer and senior management on
• Reviewed the Group’s Risk Management Framework and
strategic initiatives and trading performance
principal risks and uncertainties
• Approved the annual budget, business plan and KPIs
• Reviewed and confirmed the Group’s Viability Statement
• Reviewed and approved the Group’s full year 2018 and and going concern status
half year 2019 results (including the final 2018 dividend),
• Reviewed and validated the effectiveness of the Group’s
as well as its quarterly results.
systems of internal controls and risk management
• Approved the Group’s 2018 Annual Report (including a
• Reviewed updates on the information and cyber security
fair, balanced and understandable assessment) and
control environment
2019 AGM Notice
• Reviewed the Group’s debt, capital and funding OUR RISK MANAGEMENT FRAMEWORK AND PRINCIPAL RISKS ARE SET
arrangements and approved the issuance of a €500 OUT ON PAGES 37 TO 47
million Eurobond under the EMTN programme
• Considered fleet and engineering requirements and
approved various key operational and fleet agreements
GOVERNANCE AND LEGAL
THE STRATEGIC AND FINANCIAL REVIEW EXPLAINS THIS IN MORE
DETAIL ON PAGES 16 TO 34 KEY ACTIVITIES
• Received and reviewed regular briefings on corporate
governance developments and legal and regulatory issues
• Approved the Group’s Modern Slavery Statement for
LEADERSHIP AND PEOPLE publication
KEY ACTIVITIES • Received reports on engagement with institutional
shareholders, investors and other stakeholders
• Continued to focus on the composition, balance and
throughout the year
effectiveness of the Board, approved the appointment
of Dr Anastassia Lauterbach and Nick Leeder on the • Reviewed progress against the 2018 Board evaluation
recommendation of the Nominations Committee action plan
• Approved the appointment of Moya Greene as Employee • Conducted an internally facilitated Board evaluation
Representative Director from 1 January 2019 and received covering the Board’s effectiveness, processes and ways
an update on her activities since appointment of working with the outcome discussed by the full Board
• Reviewed the key operational roles and identified gaps • Reviewed the terms of reference for the Board
in experience needed to deliver the Group’s strategy Committees and the matters reserved to the Board
• Reviewed the Group’s culture, vision and values • Reviewed and approved changes to the delegated
authority policy
• Reviewed and approved the proposals for the Chairman’s
and Non-Executive Directors’ fees • Received regular reports from the Chairs of the Safety,
Nominations, Audit, Finance and Remuneration
• Held separate Non-Executive Director sessions with the
Committees
Chairman after every Board meeting to discuss
leadership and other Board matters TO SEE HOW WE COMPLY WITH THE UK CORPORATE GOVERNANCE
CODE PLEASE TURN TO PAGE 76
YOU CAN READ MORE ABOUT THIS ON PAGES 87 TO 88

STAKEHOLDER ENGAGEMENT IN ACTION
ENHANCING THE EMPLOYEE VOICE IN THE BOARDROOM
Understanding the views of
EMPLOYEES and bringing
them into the Boardroom
has never been more
important
At easyJet we have a dedicated and hardworking workforce In addition to meeting the EWC and MACG, I have access to
of over 15,000, including pilots and crew, and having the right easyJet’s employee feedback and listening platform, Peakon,
people is one of the Company’s strategic priorities. The Board and the ‘Workplace’ internal communications platform, which
has always considered employees when making strategic allows me to understand what matters are of importance to
decisions, but understanding their views and bringing them into our colleagues.
the boardroom has never been more important. This was also
It is important to note that our employees continue to be able
recognised by the 2018 Code, which recommends that Boards
to raise any concerns confidentially, should they wish to do so,
have a specific method for engaging with the workforce.
using easyJet’s whistleblowing arrangements.
During the year the Board addressed this by appointing me
as the Employee Representative Director from 1 January 2019. I report to the Board at least twice a year on my activities, and
bring the employee voice into conversations in the boardroom
In this role I chair an Employee Liaison Committee and engage
whenever possible. This can be as simple as ensuring that the
with the two main employee engagement bodies that are
potential impact on the workforce is part of the conversation
already well established at easyJet, the European Works
when the Board discusses strategic matters, which is
Council (‘EWC’) and Management & Administration
something I have sought to do during the year.
Consultative Group (‘MACG’). The intention is that I meet with
both groups regularly and report any concerns that arise to While the role remains relatively new, I am looking forward to
the relevant service head or corporate function, if necessary. engaging further with employees during the coming year and
exploring ways to bring their views back to our discussions at
Since my appointment I have met with each of the EWC and
the Board.
MACG to introduce myself and seek their feedback on a wide
range of matters. When the Board conducted its visit to Vienna I am grateful to all those I have met with so far for their
I took the opportunity to meet separately with a group of openness and insights.
Austrian employees to explain my Employee Representative
Director role and understand their questions and concerns.
Moya Greene DBE
www.easyJet.com 79
ATTENDANCE AT MEETINGS
The Directors’ attendance at the Board and Committee meetings held during the year are shown in the table below. The core activities
of the Board and its Committees are covered in scheduled meetings held during the year. Additional ad hoc meetings are also held to
consider and decide matters outside scheduled meetings. Non-Executive Directors are encouraged to communicate directly with each
other and senior management between Board meetings.
If a Director is unable to attend a meeting because of exceptional circumstances, they still receive the papers in advance of the meeting
and have the opportunity to discuss with the relevant Chair or the Company Secretary any matters on the agenda which they wish to
raise. Feedback is provided to the Director on the decisions taken at the meeting.
All Directors holding office at the time attended the Annual General Meeting held on 7 February 2019.
For further information regarding when Board members joined or stepped down from Committees during and after the 2019 financial
year, please refer to the ‘Committee changes’ sections in the relevant Committee reports (pages 85 to 115).
Board Audit Finance Nominations Remuneration Safety

No of meetings 11 4 5 5 4 4
Executive Directors
Johan Lundgren 11/11 – – – – –
Andrew Findlay 11/11 – – – – –
Non-Executive Directors
John Barton 11/11 – – 5/5 – –
Charles Gurassa1 11/11 1/1 5/5 5/5 4/4 –
Adèle Anderson2 3/4 1/1 – – 2/2 2/2
Dr Andreas Bierwirth 11/11 – 5/5 – – 4/4
Moya Greene DBE 10/11 – – 5/5 4/4 4/4
Dr Anastassia Lauterbach3 9/9 3/3 – – – –
Nick Leeder3 8/9 – – – – 3/3
Andy Martin 11/11 4/4 5/5 5/5 4/4 –
Julie Southern 11/11 4/4 – – 2/2 3/3
Notes:
1. Charles Gurassa stood down as a temporary member of the Audit Committee with effect from 1 January 2019.
2. Adèle Anderson stepped down from the Board with effect from the conclusion of the AGM on 7 February 2019.
3. Dr Anastassia Lauterbach and Nick Leeder joined the Board on 1 January 2019.
Directors are encouraged to attend all Board and Committee meetings but in certain circumstances meetings are called at short notice and due to prior
business commitments and time differences Directors may be unable to attend. In these circumstances Directors receive relevant papers and are updated
on developments by either the Chairman or Group CEO.

EFFECTIVENESS Andrew Findlay has acted as Non-Executive Director at Rightmove

plc since June 2017, with his time commitment for this role being
COMPOSITION AND INDEPENDENCE OF eight days per year. Executive Directors’ appointments to such
THE BOARD positions are subject to the approval of the Board which considers,
The Board currently comprises 10 Directors, two Executive amongst other things, the time commitment required.
Directors and eight Non-Executive Directors. Over half of our
Board (excluding the Chairman) comprises independent Non- DEVELOPMENT
Executive Directors and the composition of all Board Committees On joining the Board, new members receive a tailored induction
complies with the 2016 Code. Additionally, the Chairman was organised by the Company Secretary which covers, amongst
considered independent on his appointment. More information other things, the business of the Group, their legal and regulatory
about the Board members is available on pages 68 to 71. responsibilities as Directors, briefings and presentations from
relevant executives and opportunities to visit and experience
The independence of the Non-Executive Directors is considered
easyJet’s business operations. For details of the Board induction
by the Board and reviewed on an annual basis, as part of the
programme provided for Dr Anastassia Lauterbach and Nick
Board effectiveness review. The Board considers factors such as
Leeder during the year, please see page 82.
length of tenure and relationships or circumstances that are likely
to affect, or appear to affect, the Directors’ judgement in To update the Directors’ skills, knowledge and familiarity with the
determining whether they remain independent. Non-Executive Group and its stakeholders, visits to bases are organised for the
Directors do not participate in any of the Company’s share option Board periodically, to assist Directors’ understanding of the
or bonus schemes. operational issues that the business faces. Details of the Board
visit to Austria in 2019 are set out on page 77.
Following this year’s review, the Board concluded that all of the
Non-Executive Directors continue to remain independent in In order to facilitate greater awareness and understanding of the
character and judgement and are free from any business or other Group’s business and the environment in which it operates, regular
relationships that could materially affect the exercise of their briefing papers are provided to Board members to update them
judgement. The Board also reviews its Committee membership on relevant developments in law, regulation and best practice,
annually to ensure that undue reliance is not placed on individuals. usually two to four times per year. Directors are encouraged to
highlight specific areas where they feel their skills or knowledge
APPOINTMENTS TO THE BOARD would benefit from further development as part of the annual
The Board has processes in place to appoint Non-Executive Board evaluation process. Training opportunities are provided
Directors who can apply their wider business skills, knowledge and through internal meetings, workshops, presentations and
experience to the oversight of the Group, and provide input and briefings by internal advisers and business heads, as well as
challenge in the boardroom to assist in the development and external advisers.
execution of the Board’s strategy. Similarly, Executive Director
appointments are made to ensure the effective formulation and
implementation of the Group’s strategy.
The Nominations Committee, on behalf of the Board, reviews the
skills of Board members at least annually, identifying any areas of
skills, experience and knowledge that we can further strengthen.
All director appointments are made by the Board and are subject
to a formal, rigorous, and transparent process.
During the year, Dr Anastassia Lauterbach and Nick Leeder were
appointed as Non-Executive Directors. Both Anastassia and Nick
possess in-depth knowledge of IT and digital business and have
an international outlook which brings a fresh perspective to the
Board. The Board plans to continue to execute against its
succession plans and it is anticipated that there will be further
changes to the Board in the coming year.
All Board appointments are subject to continued satisfactory
performance following the Board’s annual effectiveness review.
The Nominations Committee leads the process for Board
appointments and makes recommendations to the Board.
The activities of the Nominations Committee and a description
of the Board’s policy on diversity and inclusion are on page 88.
TIME COMMITMENT
Following the Board evaluation process, detailed further below,
the Board has considered the individual directors attendance, their
contribution, and their external appointments and is satisfied that
each of the Directors is able to allocate sufficient time to the
Group to discharge his or her responsibilities effectively.
Contracts and letters of appointment with Directors are made
available at the Annual General Meeting or upon request.
The standard terms and conditions of the appointment of
Non-Executive Directors are also available in the Governance
section of easyJet’s corporate website at corporate.easyjet.com.
Executive Directors and the AMB are permitted to take up
non-executive positions on the board of a listed company so long
as this is not deemed to interfere with the business of the Group.
www.easyJet.com 81
NON-EXECUTIVE DIRECTOR INDUCTION

PROGRAMME 2019
Dr Anastassia Lauterbach and Nick Leeder, appointed BOARD AND SENIOR MANAGEMENT
Non-Executive Directors on 1 January 2019, followed a tailored
• Met separately with the Chairman and Senior Independent
induction programme covering a range of key areas of the
Director to understand the role of the Board and the
business, a flavour of which is given below.
individual contribution required.
SAFETY • Met separately with the Chief Executive Officer and other
• Attended a half-day session hosted by the Director of Safety key members of the Airline Management Board including
which included briefings on the regulatory framework, the Chief Commercial Officer, Chief Operating Officer, Chief
compliance monitoring, health and human rights Marketing Officer and Chief Data Officer.
performance and safety operations and security. • Received a Board induction pack to assist with building an
• Met with the Chair of the Safety Committee to discuss the role understanding of the nature of the Group, its business,
of the Committee and key safety policies and procedures. markets and people, and to provide an understanding of
the Group’s main relationships. The pack also included
GOVERNANCE AND REMUNERATION information to help facilitate a thorough understanding of
• Attended a briefing session with the Group People Director the role of Director and the framework within which the
and Head of Reward to discuss our approach to reward, our Board operates.
remuneration policy and succession planning. BUSINESS AND FUNCTIONS
• Met with the Chair of the Remuneration Committee to • Met with the Head of Airport and Central Procurement, to
understand the remuneration framework. understand the relationship with airports and status of our
• Met with Group General Counsel and Company Secretary to largest bases.
understand the Board and Committee procedures, brand • Met with the Head of Investor Relations to understand
licence, shareholder issues and Brexit planning. relationships with major shareholders and the market
FINANCE AND AUDIT environment.
• Attended face-to-face briefing sessions on key risks, costs • Met with one of the Company’s brokers to understand
and revenue, balance sheet and financial metrics with the easyJet from a market and broker’s perspective.
Chief Financial Officer, Head of Risk and Assurance, and the • Received a briefing from McKinsey which focused on key
Finance Director. issues facing easyJet, and the dynamics of the low-cost
• Met with the Chair of the Audit Committee to understand airline market.
the role of the Committee.
INFORMATION AND SUPPORT BOARD COMMITTEES

All members of the Board are supplied with appropriate, clear Certain governance responsibilities have been delegated by the
and accurate information in a timely manner covering matters Board to Board Committees, to ensure that there is independent
which are to be considered at forthcoming Board or oversight of internal control and risk management and to assist
Committee meetings. the Board with carrying out its responsibilities. The Board
Committees comprise Independent Non-Executive Directors and,
Should Directors judge it necessary to seek independent legal
in some cases, the Chairman. Each individual Committee’s Chair
advice about the performance of their duties with the Group,
reports to the Board on matters discussed at Committee
they are entitled to do so at the Group’s expense. Directors also
meetings and highlights any significant issue that requires
have access to the advice and services of the Company Secretary,
Board attention.
who is responsible for advising the Board on all governance
matters and ensuring that Board procedures are complied with. The terms of reference for the Committees, approved by
the Board, are available on our corporate website at
The appointment and removal of the Company Secretary is a
corporate.easyjet.com.
matter requiring Board approval.
For a summary of the roles of each Committee see the
RE-ELECTION framework on page 75.
The Company’s Articles of Association require the Directors to
submit themselves for re-election by shareholders at least once
every three years. The 2016 Code requires that all directors of
FTSE 350 companies should be subject to annual election by
shareholders. In accordance with the Code, all continuing
Executive and Non-Executive Directors will stand for re-election
at the Company’s 2020 Annual General Meeting.

2018 BOARD AND COMMITTEE EXTERNAL EVALUATION: ACTION AND PROGRESS

As reported in the 2018 Annual Report, for the 2018 Board evaluation the Board engaged Dr Sabine Dembkowski of Better Boards
Limited who conducted an independent external evaluation of the performance of the Board, its Committees and the Chairman.
The overall outcome was an understanding of the levers that individual Directors can personally pull to increase their impact in the
boardroom in order to make the Board more effective and a collective action plan that allows the Board to focus on the right
and most crucial issues.
AREAS OF FOCUS IDENTIFIED ACTIONS TAKEN
Succession planning – continued The Nominations Committee reviewed both the Board’s and the Group’s leadership and
focus on succession planning at succession plans. During 2019, the Nominations Committee continued the process for the
Board, AMB and executive leadership identification and recruitment of additional independent Non-Executive Directors, which
team level culminated in the appointment of Dr Anastassia Lauterbach and Nick Leeder. It is anticipated
that further changes will be made to the Board in the coming year as the Board executes
against its succession plan.
A comprehensive review of our talent and succession coverage across all business functions
and at executive and senior leadership level has been underway since 2018. This continued
over the course of 2019 and the Nominations Committee discussed detailed succession and
development plans for the AMB and executive leadership team (ELT).
Agenda planning and focus The Board agenda setting process has continued to evolve. The annual Board calendar was
– enhancements to be made to shared with Directors during the year and efforts have been made to improve the balance of
agenda planning working practices to time spent on commercial matters and more strategic discussion, including industry
improve the effectiveness and consolidation, the competitive environment and the impact of Brexit on the business.
organisation of Board meetings
Stakeholder views – integration of a The Board appointed Moya Greene as the Employee Representative Director from 1 January
broader set of stakeholders’ interests 2019 to further bring the employee voice into the boardroom. Presentations relating to key
within Board decision making stakeholder groups are also now incorporated on the agenda, for example the Board
processes received a presentation on the Customer Voice during the year. Opportunities for engaging
with stakeholders are identified wherever possible, for example the Austrian visit as set out
on page 77.
2019 BOARD AND COMMITTEE INTERNAL EVALUATION: OUTCOMES

Having undertaken an external evaluation in 2018, an internal evaluation was undertaken during 2019. The review extended to all aspects
of Board and Committee performance including composition and dynamics, the Chairman’s leadership, agenda and focus, time
management, strategic oversight, overview of risk, succession planning and priorities for change.
The review was conducted via an online questionnaire, which sought Directors’ feedback on the above areas and the extent to which
actions taken from the previous evaluation had been well implemented. The results of the questionnaire were collated by the Company
Secretary and anonymised before being discussed with the Chairman and the Board.
The results of this year’s evaluation were positive overall, with the culture of openness and transparency in the boardroom highlighted
as a particular strength. The key areas identified for increased focus and development during the 2020 financial year are set out below,
which build on those raised in the previous evaluation. Progress against these areas will be reviewed as part of the 2020 evaluation and
reported on next year.
AREAS OF FOCUS IDENTIFIED ACTIONS TO BE TAKEN
Continued focus on succession As highlighted above, good progress has been made o n succession plans for the Board,
planning – continue the positive AMB and ELT following the Nominations Committee’s attention during the year. The
progress made on succession Nominations Committee will continue to focus on this area to ensure it is strengthened
planning at Board, AMB and ELT further and kept updated.
level, and share this with the full Board
Communicating the succession plans beyond the Nominations Committee to the full Board
at least annually
was highlighted as an area that could be improved. All Non-Executive Directors will be
notified when succession planning is on the agenda for discussion at the Nominations
Committee so that they can choose to attend if they wish, and a formal update on
succession planning will be provided to the full Board at least annually.
Stakeholder views – continue to The Board is mindful of the requirement to provide information on how it has had regard to
enhance the integration of stakeholders’ the matters set out in section 172 of the Companies Act 2006, which it will do more fully in
interests within Board decision making next year’s Annual Report. While there was significant stakeholder engagement during the
processes year and progress had been made, the Board will look to enhance further the integration of
stakeholders’ interests within Board decision making processes.
Board papers – improve the consistency The Company Secretariat team will arrange for training to be given to paper preparersand
and articulation of the Board ‘ask’ in improve the ‘briefing’ process to ensure that papers more succinctly address the key points
papers and are consistent.
www.easyJet.com 83
REVIEW OF THE CHAIRMAN’S PERFORMANCE INTERNAL AUDIT

Charles Gurassa, as Senior Independent Director, led a review of Details of the Internal Audit function are provided within this
the Chairman’s performance and held a private meeting of the report on page 92.
Non-Executive Directors without the Chairman being present to
discuss this. It was concluded that John Barton’s performance and AUDIT COMMITTEE AND AUDITORS
contribution remain strong and that he demonstrates effective For further information on the Group’s compliance with the
leadership. The Executive Directors and the Non-Executive Code and provisions relating to the Audit Committee and auditors,
Directors also reviewed, and were satisfied with the Chairman’s please refer to the Audit Committee report on pages 89 to 93.
time commitment to the Board and the business.
REMUNERATION
ACCOUNTABILITY The responsibility for determining remuneration arrangements for
FINANCIAL AND BUSINESS REPORTING the Chairman and Executive Directors has been delegated to the
Remuneration Committee. For further information on the Group’s
The Strategic Report on pages 2 to 65 explains the Group’s
compliance with the Code provisions relating to remuneration,
business model and the strategy for delivering the objectives
please refer to the Directors’ remuneration report on pages 96 to
of the Group.
115 for the level and components of remuneration; and page 107
A Statement on Directors’ Responsibilities on the Annual (the Remuneration Committee report) for procedures relating to
Report and Accounts being fair, balanced and understandable remuneration.
can be found on page 120 and a statement on the Group as a
going concern and the Viability Statement are set out on pages SHAREHOLDER ENGAGEMENT
34 and 35. The Group actively engages with investors and seeks their
feedback. The Chairman and Deputy Chairman met with
RISK MANAGEMENT AND INTERNAL CONTROL shareholders during the year to help maintain a balanced
RISK MANAGEMENT understanding of their issues and concerns. They also attended
a senior investor dinner in January and met with a number of the
The Board has overall responsibility for easyJet’s risk management Group’s top institutional investors. The Chairman has updated the
and systems of internal control. The Board has carried out a Board on the opinions of investors. The views of shareholders
robust assessment of the principal risks facing the Group and and market perceptions are also communicated to the Board
how those risks affect the prospects of the Group. Please refer to via presentations by the Head of Investor Relations at least
pages 37 to 47 for further information on the risk management every quarter.
process and the Group’s principal risks and uncertainties and
page 35 for their impact on the longer-term viability and easyJet has an Investor Relations function which runs an active
prospects of the Group. programme of engagement with actual and potential investors
based around the financial reporting calendar. This year the
Ongoing risk management and assurance is provided through the programme has included one-to-one meetings with institutional
various monitoring reviews and reporting mechanisms that are investors, roadshows and conferences. easyJet has particularly
embedded in the business operations. The results of these reviews targeted and engaged with European investors during the year
are reported to the Audit Committee and the Board, which as part of an enhanced programme related to potential future
consider whether these high-level risks are being effectively ownership changes. There is also regular communication with
controlled. institutional investors on key business issues.
Regular operational (including safety), commercial, financial and During the year, the Chairman, Deputy Chairman and Chief
IT functional meetings are held to review performance and to Executive met with representatives of easyGroup Holdings
consider key risks and issues (please refer to page 85 for Limited, the Company’s largest shareholder, to discuss relevant
details of the Safety Committee). matters. The Chief Financial Officer and Company Secretary and
The executive management meets regularly to consider Group General Counsel have also met separately with
significant risks, the status of risk mitigations and overall business representatives of easyGroup Limited (an affiliate of easyGroup
performance; this ensures key issues are escalated through the Holdings Limited) to discuss matters relating to the management
management team and, as appropriate, ultimately to the Board. and protection of the ‘easyJet’ and ‘easy’ brands.
The Directors review the effectiveness of internal controls,
including operating, financial and compliance controls. CONSTRUCTIVE USE OF THE ANNUAL GENERAL
MEETING
The Audit Committee undertakes an annual review of the
appropriateness of the risk management processes to ensure The Annual General Meeting (AGM) gives all shareholders the
that they are sufficiently robust to meet the needs of the opportunity to communicate directly with the Board and
Group (please refer to pages 89 to 93 for details of the encourages their participation. Shareholders are given the
Audit Committee’s responsibilities). opportunity to raise issues formally at the AGM or informally with
Directors after the meeting. All Directors attend the AGM and the
INTERNAL CONTROL Chairs of the Committees are available to answer questions.
The Group’s internal control systems are designed to manage, All the resolutions at the 2019 AGM were voted by way of a poll.
rather than eliminate, the risk of failure to achieve business The 2020 AGM will be held on Thursday, 6 February 2020. A
objectives. By their nature, they can only provide reasonable, not separate circular, comprising a letter from the Chairman, Notice
absolute, assurance against material misstatement or loss. The of Meeting and explanatory notes on the resolutions proposed,
overall responsibility for easyJet’s systems of internal control and will be issued separately and will also be published on easyJet’s
for reviewing their effectiveness rests with the Board. The Board corporate website at corporate.easyjet.com/investors.
has conducted an annual review of the effectiveness of the
systems of internal control during the year under the auspices of
the Audit Committee. Further information on the Group’s internal
control systems is set out on page 92.

CORPORATE GOVERNANCE REPORT
Board committees

SAFETY COMMITTEE
REPORT
I am pleased to present the Safety Committee (the ‘Committee’)
report covering the work of the Committee during the 2019
financial year.
Safety is fundamental to everything we do at easyJet, and part of
‘Our Promise’ is to be safe and responsible. The Committee’s key
role is to oversee the quality and effectiveness of easyJet’s safety
strategies, standards, policies and initiatives, together with risk
exposures, targets and performance, in order to ensure that safety
receives the highest level of Board attention.
We do this through receiving regular reports on notable incidents
and the actions arising from them, reviewing and receiving
updates on the progress of the annual safety plan and reviewing
the resourcing and operation of the Safety, Security and
Compliance team.
The Committee has had an active year. Notable incidents included
the drone incident at London Gatwick in December 2018, where
Safety is easyJet’s response, and that of the whole aviation industry, has
received significant focus from the Committee. We also undertook
FUNDAMENTAL TO an in-depth review of aircraft cyber security, crew health and
wellbeing, and the compliance framework relating to compliance
EVERYTHING WE DO with global safety regulations. The Committee also discussed the
AT EASYJET. the strong safety culture at easyJet, and we look forward to exploring
how this can be maintained and improved in the future.
Committee’s role is
to oversee the
effectiveness of
THE safety Dr ANDREAS BIERWIRTH
Chair of the Safety Committee
FRAMEWORK
MEMBERSHIP, MEETINGS & ATTENDANCE
• Dr Andreas Bierwirth (Chair)
• Adèle Anderson (until 7 February 2019)
• Moya Greene DBE
• Nick Leeder (from 1 January 2019)
• Julie Southern
All members listed above are independent Non-Executive

Directors. Member biographies can be found on pages 68 to 71.
During the year Nick Leeder was appointed to the Board and a
member of the Committee on 1 January 2019. Adèle Anderson
stepped down as a Committee member and Non-Executive
Director at the AGM on 7 February 2019. The Company Secretary
acts as Secretary to the Committee.
www.easyJet.com 85
SAFETY COMMITTEE REPORT CONTINUED
The Committee met four times during the year. The Director of Areas of focus
Safety, Security and Compliance has attended all Safety
Committee meetings during the year. Other key invitees include OCCUPATIONAL Received an update on health and
the Chief Executive Officer, the Chief Operating Officer, the HEALTH AND wellbeing in support of the right
interim Head of Operations and the Head of Safety. Nominated WELLBEING people priority in Our Plan.
persons for Flight Operations, Engineering and other functions Discussed fatigue risk
have attended as relevant. management and the focus on
mental health and physical
Meeting attendance can be found in the table on page 80. The wellbeing amongst employees
Committee’s terms of reference can be found on the Company’s
website at corporate.easyjet.com. FLIGHT DATA Reviewed the core function of the
MONITORING Flight Data Monitoring (FDM)
KEY ACTIVITIES DURING THE YEAR team, FDM safety performance
The Safety Committee continues to ensure that safety receives indicators and the reports received
the highest level of Board attention. The Director of Safety, as part of FDM Assurance
Security and Compliance reports to the Chief Executive Officer programme
and also has the right of direct access to Dr Andreas Bierwirth as
Committee Chair and to the Board Chairman, which reinforces the SECURITY Received an overview of the cyber
independence of safety oversight. As Committee Chair, security arrangements in relation
Andreas reports to the Board with his own assessment of safety to aircraft, and discussed easyJet’s
management within the airline throughout the year. response to the drone incident at
London Gatwick in December 2018
The Committee continued to monitor the progress of the annual
safety plan, including reviewing the safety performance indicators OPERATIONS Received an update on the
for the financial year. Standing items at each meeting included contractual relationships
progress against the 2019 safety plan, employee health and implemented between the three
wellbeing, notable incidents and actions, and a report on different AOCs, the decision-
compliance from the Head of Safety. making framework and discussed
the development of the RMF to
The Committee also conducted deep dives into the Group’s
ensure safety and security
business areas, crew health and wellbeing, aircraft cyber security
compliance across AOCs
and the scope and design of the Regulatory Management
Framework (the ‘RMF’). The RMF is designed to achieve
COMPLIANCE Reviewed the Compliance strategy
compliance with aviation, safety, security, occupational safety
MONITORING and audit plan, which covered the
and occupational health regulations across the three Air Operation approach to compliance
Certificates (AOCs), integrating separate regulatory environments monitoring and the methods of
into a single framework which enables synergies and improves developing and agreeing the
compliance overall. The RMF also establishes and maintains a compliance monitoring
process for monitoring, measurement, analysis and performance programme
evaluation.
The Committee received regular reports from the Director of LOOKING FORWARD
Safety, Security and Compliance to ensure the safety team had
Over the next year, the Committee will continue to monitor and
adequate resources and appropriate information to perform its
review the structure, content and operation of the Group’s safety,
function effectively and in accordance with the relevant
security and compliance activities. More generally, we will continue
professional standards.
to provide support to management on embedding the strong
The easyJet Safety Board (ESB), which reports to the Airline safety culture to ensure high standards of safety continue to
Management Board, supported the role of the Committee in be delivered across the Group.
ensuring the safety risks and issues are identified and prioritised
and action plans are in place to mitigate any risks.

NOMINATIONS

COMMITTEE REPORT
I am pleased to present the Nominations Committee (the

‘Committee’) report covering the work of the Committee during
the 2019 financial year.
The main purpose of the Committee is to monitor and maintain
an appropriate balance of skills, experience, independence and
diversity on the Board whilst regularly reviewing its structure, size
and composition. It is also responsible for ensuring there is a
formal, rigorous and transparent process for the appointment of
new Directors to the Board.
During the year the Committee oversaw the appointment
process which resulted in the appointment of Dr Anastassia
Lauterbach and Nick Leeder to the Board with effect from 1
January 2019. The Committee continues to review membership
and composition of the Board and it is anticipated that there will
be further changes in the coming year as it continues to execute
against its succession plans.
The Committee With the Board’s succession plans underway, the Committee has
also focused on succession planning for the Airline Management
monitors and Board and Executive Leadership Team during the year. This
included receiving presentations from the Chief Executive Officer
maintains an and Group People Director on candidates identified and any
appropriate associated development plans.

Implementation of the annual Board evaluation process to
balance of assess the performance of individual Directors and the
skills, effectiveness of the Board and its Committees is also one of

the key responsibilities of the Committee. The Committee led an
experience, internal evaluation process during the year which built on the
comprehensive external evaluation conducted by Better Boards
independence last year. I am pleased to report that the Board was deemed to
operate effectively, and the outcome of the evaluation and areas
and diversity on of focus are set out further on page 83.
the Board
John Barton
Chair of the Nominations Committee

• John Barton (Chair)
• Moya Greene DBE
• Charles Gurassa
• Andy Martin
The Committee consists of the independent Non-Executive

Directors listed above. The Chairman of the Board acts as
Chairman of the Committee with members of the executive
management invited to attend meetings. During the year, there
were no changes to the membership of the Committee. The
Company Secretary acts as Secretary to the Committee.
All members of the Committee are independent Non-Executive
Directors. Member biographies can be found on pages 68 to 71.
www.easyJet.com 87
NOMINATIONS COMMITTEE REPORT CONTINUED
The Committee met five times in the year. Meeting attendance RE-ELECTION OF DIRECTORS
can be found in the table on page 80. The Committee’s terms of
The effectiveness and commitment of each of the Non-Executive
reference can be found on the Company’s website at
Directors is reviewed annually as part of the Board evaluation.
corporate.easyjet.com.
The Committee has satisfied itself as to the individual skills,
KEY ACTIVITIES DURING THE YEAR relevant experience, contributions and time commitment of all
the Non-Executive Directors, taking into account their other
NON-EXECUTIVE DIRECTOR APPOINTMENTS offices and interests held.
The Committee had previously identified the need for a number The Board is recommending the re-election to office of all the
of non-executive appointments as part of its succession plans, other Directors at this year’s AGM. Details of the service
and during the year it oversaw the process which led to the agreements for the Executive Directors and letters of
recommendation that Dr Anastassia Lauterbach and Nick Leeder appointment for the Non-Executive Directors, and their
be appointed as additional Non-Executive Directors. availability for inspection, are set out in the Directors’
Having identified the desired skills and experience sought in the remuneration report on page 114.
new Directors, the Committee engaged Russell Reynolds, after a
selection process, to act as easyJet’s search consultants for the
DIVERSITY AND INCLUSION
roles. The Committee considered a list of potential candidates The Committee and Board are committed to ensuring that
provided by Russell Reynolds, and took into account the balance together the Directors possess the correct diversity of skills,
of skills, knowledge, independence, diversity and experience of experience, knowledge and perspectives to support the long-term
the Board together with an assessment of the time success of the Company. In this regard, the role of diversity in
commitment expected. promoting balanced and considered decision-making which aligns
with the Group’s purpose, values and strategy is fully recognised.
Following an interview process, a shortlist of candidates was All Board appointments are made on an objective and shared
discussed by the Committee and Nick and Anastassia’s understanding of merit, in line with required competencies
appointments were recommended to the Board. They bring an relevant to the Company as identified by the Committee, and
interest in technology and depth of knowledge across a range of consistent with the Company’s Board Inclusion and Diversity
businesses. Their experience and international outlook further Policy, which further requires processes to be employed such
strengthen the diverse mix of skills and experience on the Board. that a diverse pool of candidates can be identified and considered.
The Committee oversaw the induction programmes for Anastassia This Policy was reviewed during the period to ensure that it
and Nick, further details of which are set out on page 82. remains appropriate and reflects recognised societal and
stakeholder expectations.
BOARD COMMITTEE MEMBERSHIP
Following the annual review of the Board, the Committee
To ensure that the Board Committees retain the correct discussed the makeup of the Board and agreed annual
balance of skills and experience, the Committee monitors objectives on diversity for proposal to the Board, taking into
overall composition and membership. As a result of the changes account the recommendations set out in the Hampton-Alexander
to the Board during the year, a number of changes to the Review (which recommends that at least 33% of Board and
membership of Board Committees were recommended and executive committee members should be female), the McGregor-
approved by the Board: Smith Review and the Parker Review (which recommends at least
• Adèle Anderson stepped down as the Chair of the Audit one director of colour by 2021). At the year end, the Board had a
Committee and Julie Southern was appointed in her place 30% female representation, close to the 33% recommended by
with effect from 1 January 2019. the Hampton-Alexander Review. The AMB has 45% female
• Dr. Anastassia Lauterbach was appointed a member of the representation. Further details on Diversity can be found
Audit Committee on appointment to the Board. on pages 57 to 59.
• Nick Leeder was appointed a member of the Safety The Nominations Committee also oversees the development
Committee on appointment to the Board. of a diverse pipeline for future succession to Board and senior
management appointments, including the gender balance
• After eight years as Chair of the Remuneration Committee,
of senior management and its direct reports. Where there
Charles Gurassa decided to step down but remain a member
is a known requirement to improve the diversity at a certain
of the Remuneration Committee. Moya Greene replaced Charles
level or in a certain function in the organisation, the recruiting
as Chair with effect from 21 October 2019.
team will ask to see a higher proportion of candidates fitting
the diversity criteria. However, the final selection will always be
EMPLOYEE REPRESENTATIVE DIRECTOR on merit.
During the year the Committee recommended to the Board that
easyJet’s People team monitors the Group’s diversity on at least
Moya Greene be appointed to the newly created role of Employee
an annual basis and highlights any areas of concern to the AMB.
Representative Director with effect from 1 January 2019. Further
The sustainability section of the Annual Report on pages 57 to 59
details of the role and Moya’s activities are set out on page 79.
reports in further detail on the approach being taken to diversity
SUCCESSION PLANNING and inclusion, and the implementation of the policy across the
Group.
The Board continues to be satisfied that plans are in place for
orderly succession for appointments to the Board so that the right BOARD EVALUATION
balance of appropriate skills and experience is represented,
During the year an evaluation of the Board, its Committees and
building on the work previously undertaken. During the year, the
the Chairman was undertaken in line with the Committee’s terms
Committee reviewed the balance of skill and experience and
of reference. The evaluation process was internally facilitated by
independence of the Board members to ensure appropriate
the Company Secretary, details of which can be found on page 83.
succession plans were in place. The Committee also received a
report from the Group People Director on succession plans and ADVISERS
leadership development plans for the members of the AMB and
ELT, satisfying themselves that significant progress had been During the year, Russell Reynolds were engaged to identify
made and that further initiatives in this area were planned. candidates for additional Non-Executive Director roles. Russell
Reynolds do not have any other connection with the Group.

audit COMMITTEE

REPORT
I am pleased to present my first Audit Committee (the

‘Committee’) report covering the work of the Committee during
the 2019 financial year, having taken over as Chair on 1 January
2019. I would like to thank Adèle Anderson for her previous
Chairmanship of the Committee and supporting a smooth transition.
During the year the Committee continued to play a key role in
assisting the Board in fulfilling its oversight responsibility.
Its activities included reviewing and monitoring the integrity of
financial information, the Group’s system of internal controls
and risk management, the internal and external audit process
and the process for compliance with laws, regulations and
ethical codes of practice.
We have considered the processes underpinning the production
and approval of this year’s Annual Report to enable the Board to
confirm that the Annual Report taken as a whole is fair, balanced
and understandable and provides the information necessary for
shareholders to assess the Company’s position and performance,
the Committee business model and strategy. The Committee also assessed the
viability of the Group over a three-year period.
continued to play a There were four meetings during the year and after each
key role in assisting Committee meeting I provided an update to the Board on the key
issues discussed during our meetings. I have also met separately
the Board in with the external audit partner and key management on a number
of occasions during the year.
fulfilling its This report sets out details of the role of the Committee and how
oversight it has discharged its duties and responsibilities during the year.
responsibility
JULIE SOUTHERN
Chair of the Audit Committee

• Julie Southern (Chair)
• A
dèle Anderson (Chair until 1 January 2019, member until
7 February 2019)
• Charles Gurassa (until 1 January 2019)
• Dr Anastassia Lauterbach (from 1 January 2019)
• Andy Martin
The Committee consists of independent Non-Executive Directors

and is chaired by Julie Southern. The Board has confirmed that it
is satisfied that Committee members possess an appropriate level
of independence and offer a depth of financial and commercial
experience including the travel sector in which the Company
operates. The Board also confirmed that both Andy Martin and
Julie Southern have recent and relevant financial experience.
www.easyJet.com 89
AUDIT COMMITTEE REPORT CONTINUED
Adèle Anderson stepped down as Chair of the Committee on 1 KEY ACTIVITIES DURING THE YEAR
January 2019 and Julie Southern was appointed Chair from the
The main areas of Committee activity during the 2019 financial
same date. Dr Anastassia Lauterbach was appointed to the
year included the planning, monitoring, reviewing and approval of
Committee on her appointment to the Board on 1 January 2019.
the following:
Charles Gurassa stepped down as a temporary member of the
Committee on 1 January 2019. The Company Secretary acts as FINANCIAL REPORTING
Secretary to the Committee.
• The integrity of the 2018 full year and 2019 half year financial
The Committee met four times during the year with members of statements relating to the financial performance and
senior management required to attend as and when required. governance of the Group
The Committee also met with the internal and external auditor • The material areas in which significant judgements were applied
and Head of Risk and Assurance separately after each meeting. based on reports from both the Group’s management and the
In addition, the Committee Chair holds regular private sessions external auditor. Further information is provided in the
with the Chief Financial Officer, Group Finance Director, the Head significant judgements section on page 92
of Risk and Assurance and the external audit team to ensure that
open and informal lines of communication exist should they wish • The information, underlying assumptions and stress-test analysis
to raise any concerns outside formal meetings. presented in support of the Viability Statement and going
concern status
Meeting attendance can be found in the table on page 80.
• The consistency and appropriateness of the financial control
ROLE OF THE COMMITTEE and reporting environment
The responsibilities of the Committee are set out in its terms of • The impact of new accounting standards IFRS 9 (Financial
reference, and include, but are not limited to: Instruments), IFRS 15 (Revenue from Contracts with Customers)
and IFRS 16 (Leases)
FINANCIAL • monitor the integrity of the • The availability of distributable reserves to fund the dividend
REPORTING financial statements of the policy and make dividend payments
Company and the Group, • The fair, balanced and understandable assessment of the
preliminary results and Annual Report and Accounts for the 2018 financial year and the
announcements 2019 half year statement
• review the appropriateness and
consistency of significant • The five-year plan for the business.
accounting policies
• review and report to the Board INTERNAL FINANCIAL CONTROLS AND RISK
on significant financial issues and MANAGEMENT
judgements • The adequacy and effectiveness of the Group’s ongoing risk
management systems and control processes, through an
INTERNAL • carry out a robust assessment of evaluation of: the risk and assurance plans; Internal Audit
CONTROL the Company’s emerging and review reports; risk assessments; information and cyber
AND RISK principal risks on an annual basis security threats; and business continuity and control themes
MANAGEMENT • review the effectiveness of the
• The Group’s risk environment, including its significant and
Company’s risk management
emerging risks register
system annually and the
assurance reports from • The Group’s fraud detection, bribery prevention and
management on the internal whistleblowing measures
control and risk management • The updated delegated authority policy
system
• Regular updates and assurance in relation to IT strategy,
including external assurance in relation to the progress of our
COMPLIANCE, • review the adequacy and security
commercial IT platform development
WHISTLEBLOWING of the Company’s arrangements
AND FRAUD for the employees to raise • The financial controls relating to jet fuel supplier contracts.
concerns about possible
wrongdoing in financial reporting INTERNAL AUDIT EFFECTIVENESS AND REVIEW
or other matters OF ACTIVITIES
• An assessment of the effectiveness and independence of the
INTERNAL AND • review and approve the role and
Internal Audit function, including consideration of:
EXTERNAL AUDIT mandate of Internal Audit, monitor
and review the effectiveness of its • key Internal Audit reports
work and carry out a periodic
assessment of the effectiveness • stakeholder feedback on the quality of Internal Audit activity
of the Internal Audit function • Internal Audit’s compliance with prevailing professional
• consider and make standards
recommendations to the Board, • the implementation of Internal Audit recommendations.
to be put to shareholders for
approval at the AGM, in relation to
the appointment, reappointment
and removal of the Company’s
external auditor
• oversee the relationship with the
external auditor
The Committee’s terms of reference are approved annually and

are available on the Company’s website at corporate.easyjet.com.

RELATIONSHIP WITH EXTERNAL AUDITOR In carrying out the above processes, key considerations included

ensuring that there was consistency between the financial
• Reviewed the scope of, and findings from, the external audit
statements and the narrative provided in the front half of the
plan undertaken by PricewaterhouseCoopers LLP (‘PwC’) as the
Annual Report, and that there was an appropriate balance
external auditor
between the reporting of weaknesses, difficulties and challenges,
• The effectiveness of the external audit process as well as successes, in an open and balanced manner including
• The assessment of the performance, continued objectivity and linkage between key messages throughout the document.
independence of PwC
FINANCIAL AND BUSINESS REPORTING
• The level of fees paid to PwC for permitted non-audit services
Through its activities, the Committee focuses on maintaining the
• The reappointment of PwC as external auditor
integrity and quality of our financial reporting, considering the
significant accounting judgements made by management and the
COMPLIANCE, WHISTLEBLOWING AND FRAUD findings of the external auditor. The Committee assesses whether
• Whistleblower reports, reports on anti-bribery and corruption suitable accounting policies have been adopted and whether
procedures, reports on procedures for fraud and loss prevention management has made appropriate estimates and judgements.
and reports on credit card fraud, together with monitoring and The Committee reviewed accounting papers prepared by
investigations management which provided details of significant financial
reporting judgements. The Committee also reviewed the reports
OTHER SPECIFIC ITEMS CONSIDERED AS PART by the external auditor on the half year and full year 2019 results,
OF MAIN ACTIVITIES which highlighted any issues with respect to the work undertaken
• The Group’s exposure to fraud within the business and on the audit.
associated mitigating controls and action The Committee’s process included the comprehensive review of
• Regular updates including key milestones in regard to the financial issues through the challenge of management,
payroll accuracy project consideration of the findings of the external auditor and
• The Group’s tax strategy comparison with other organisations. The number of such issues
currently considered significant is limited, reflective of easyJet’s
• The Committee’s effectiveness and terms of reference relatively simple business model and group structure which are
• Compliance with the Code and the Group’s regulatory and unencumbered by legacy issues. The significant issues considered
legislative requirements in relation to the financial statements are detailed below.
FAIR, BALANCED AND UNDERSTANDABLE REPORTING CONTROLS

The Committee assessed and recommended to the Board that, Management is responsible for maintaining adequate internal
taken as a whole, the 2019 Annual Report and Accounts (which control over the financial reporting of the group. A summary of
the Board subsequently approved) are fair, balanced and the group’s financial results and commentary on performance
understandable and provide the necessary information for measures is provided to the Board each month. Controls are in
shareholders to assess the Group and Company’s position and place over the preparation of financial data including; balance
performance, business model and strategy. sheet reconciliations, review meetings on key balances,
commentary on variances to forecast and prior periods. On a
The Committee is satisfied that, taken as a whole, the Annual monthly basis, senior management, including the Group Financial
Report and Accounts are fair, balanced and understandable. In Controller and CFO review the management reporting packs.
reaching this conclusion, the Committee considered the overall
review and confirmation process around the Annual Report and The Annual Report and Accounts is produced by the Group
Accounts, including: Financial Control team based on submissions from individual
teams across the business including Investor Relations, Finance,
• the input of subject matter experts, the AMB and other senior Corporate Affairs, HR, Company Secretary and Risk & Assurance.
management and, where applicable, the Board and its The report contributors are required to maintain supporting
Committees; evidence for their submissions and ensure they are reviewed. The
• the processes and controls which underpin the overall review figures are then independently validated by the Group Financial
and confirmation process, including the preparation, control Control team and the Risk and Assurance team perform sample
process, verification of content, and consistency of information tests of disclosures back to supporting evidence.
being carried out by an internal financial controls specialist
The Annual Report and Accounts is reviewed by the AMB, Board
(independent of the Finance function);
of Directors and Audit Committee for accuracy and to ensure a
• Internal Audit providing assurance over the audit trail for fair, balanced and understandable view is presented. Senior
material data points relating to the non-financial statement members of the finance team including the CFO and Group
aspects of the Annual Report and Accounts, and external audit Financial Controller meet with the Audit Committee to present
providing assurance over the financial statements; and key events and discuss areas of judgement or estimates as
• a full-day session to review the Annual Report and Accounts outlined below. In depth presentations on significant areas are
held by senior management and other subject matter experts provided throughout the year as appropriate.
to focus solely on the reporting being fair, balanced and The finance team have regular proactive conversations with the
understandable. external auditors on topics which are of audit relevance. The
The Committee was provided with, and commented on, a draft external auditors perform audit procedures and challenge of the
copy of the Annual Report and Accounts. It also received a Annual Report and Accounts and present their findings to the
specific paper from management to assist in its challenge and Audit Committee.
testing of a fair, balanced and understandable assessment. This
paper contained an agreed list of key positive and negative
narratives for the business in the 2019 financial year and asked the
Committee to confirm whether it feels each narrative was given
due prominence in the report and treated in a fair, balanced and
understandable manner.
www.easyJet.com 91
AUDIT COMMITTEE REPORT CONTINUED
RISK AND ASSURANCE

SIGNIFICANT JUDGEMENTS
The Audit Committee is responsible for overseeing the work of the
CARRYING VALUE OF INTANGIBLE ASSETS Internal Audit function. It reviews and approves the scope of the
The Committee considered whether the carrying value of Internal Audit annual plan and assesses the quality of Internal
goodwill and landing rights held by easyJet, including those Audit reports, along with management’s actions relating to
acquired as part of the Air Berlin transaction, should be findings and the closure of recommended actions. The Audit
impaired. The judgement in relation to impairment largely Committee also considers stakeholder feedback on the quality
relates to the assumptions underlying the calculation of the of Internal Audit’s work.
value in use of the business being tested for impairment; During 2019, a carefully targeted internal audit plan was agreed
primarily whether the forecasted cash flows are achievable and and undertaken across easyJet’s operations, systems and support
the overall macroeconomic assumptions which underlie the functions with subsequent reports, including management
valuation process. The Committee addressed these matters responses, recommended action plans and follow-up reviews
using reports received from management outlining the basis being considered by the Audit Committee at each of its four
for assumptions used. The forecasted cash flows used in the meetings held during the year.
calculation were presented to the Board.
In order to safeguard the independence of the Internal Audit
KEY JUDGEMENTAL ACCRUALS AND function, the Head of Risk and Assurance (who heads up the
PROVISIONS Internal Audit function) is given the opportunity to meet privately
with the Audit Committee without any other members of
The Committee reviewed the level and calculations of key
management being present.
accruals and provisions which are judgemental in nature,
specifically customer claims in respect of flight delays and RISK MANAGEMENT AND INTERNAL CONTROL
cancellations.
The Board as a whole, including the Audit Committee members,
AIRCRAFT MAINTENANCE PROVISIONS considers the nature and extent of easyJet’s risk management
framework and the risk profile that is acceptable in order to
The Committee reviewed the maintenance provision at the
achieve the Group’s strategic objectives. The Audit Committee has
year end. A number of judgements are used in the calculation
reviewed the work undertaken by management, the Committee
of the provision, primarily pricing, utilisation of aircraft and
itself and the Board on the assessment of the Group’s principal
timing of maintenance checks. The Committee addressed
risks, including their impact on the prospects of the Group. As a
these matters using reports received from management which
result, it is considered that the Board has fulfilled its obligations
underpin the basis of assumptions used. The Committee also
under the Code in relation to risk management and internal
discussed with the external auditors their review of the
controls. Further details on the Group’s principal risks and
assumptions underlying the estimates used.
uncertainties and their impact on the prospects of the Group
ADOPTION OF NEW ACCOUNTING STANDARDS are set out on pages 37 to 47.
The Committee considered the accounting policy under new easyJet’s system of internal controls, along with its design and
accounting standards IFRS 15 Revenue from contracts with operating effectiveness, which includes the Group’s financial
customers, IFRS 16 Leases and IFRS 9 Financial Instruments, reporting process, is subject to review by the Audit Committee,
including the judgements, assumptions and estimates made by through reports received from management, along with those
management and the financial impact these had both upon from both internal and external auditors. Any control deficiencies
adoption on 1 October 2018 and in the first year of adoption. identified are followed up, with action plans tracked by the AMB
The Committee also considered the disclosure requirements and the Committee.
of the new standards.
ANTI-BRIBERY AND WHISTLEBLOWING
PENSION ACCOUNTING The Code includes a provision requiring the Audit Committee to
The Committee considered the financial and demographic review arrangements by which staff of the Company may, in
assumptions used in the calculation of the Swiss net defined confidence, raise concerns about possible improprieties in matters
benefit obligation. Advice was sought from expert independent of financial reporting or other matters. The Audit Committee’s
actuaries by the management team as part of the process. The objective is to ensure that arrangements are in place for the
Committee also considered the disclosure for the restatement proportionate and independent investigation of such matters and
of prior periods to reflect the pension scheme obligations. for appropriate follow-up action.
TREASURY OPERATIONS INCLUDING DERIVATIVE The Group is committed to the highest standards of quality,
honesty, openness and accountability. The Group and all operating
FINANCIAL INSTRUMENTS
companies have whistleblowing policies in place. Employees are
The Committee considered the approach taken to determine encouraged to raise genuine concerns under the policy and any
the fair value of derivative financial instruments under IFRS 13 concerns raised are investigated carefully and thoroughly to
Fair Value Measurement. The Committee also considered the assess what action, if any, should be taken. Any matters of
approach taken to the revised accounting and disclosure significance are reported to the Audit Committee, along with a
requirements following the introduction of IFRS 9 Financial comprehensive full year report. The Board supports the objectives
Instruments. of the Bribery Act 2010 and procedures have been established to
ensure that compliance is achieved. These set out what is
expected from our colleagues and stakeholders to ensure that
they protect themselves as well as the Group’s reputation and
assets. Training has been provided to the Board, senior
management and all employees and is refreshed on a regular
basis. Any breach of the Bribery Act will be regarded as serious
misconduct, potentially justifying immediate dismissal.

EXTERNAL AUDITOR EXTERNAL AUDITOR INDEPENDENCE AND NON-

PricewaterhouseCoopers LLP (‘PwC’), as the external auditor, is AUDIT FEES
engaged to conduct a statutory audit and express an opinion on To preserve objectivity and independence, the external auditor
the financial statements. Its audit includes the review and review does not provide consulting services unless this is in compliance
of the systems of internal financial control and data which are with the Group’s non-audit services policy which reflects the EU
used to produce the information contained in the financial audit reform regulations and the FRC’s Revised Ethical Standard
statements. PwC was reappointed as auditor of the Group at 2016. This policy is available in the governance section of easyJet’s
the 2019 Annual General Meeting following a tender process corporate website at corporate.easyjet.com.
undertaken in 2015.
In the 2019 financial year, PwC undertook only audit related
The current external audit engagement partner is Andrew Kemp, non-audit services for the Company as set out in note 3 to the
Senior Statutory Auditor, who has held this role since 2016. The financial statements.
external audit plan and the £0.4 million fee proposal for the
financial year under review (2018: £0.4 million) was prepared by EXTERNAL AUDIT TENDERING
PwC in consultation with management and presented to the PwC were first appointed to audit the Annual Report and
Committee for consideration and approval. Accounts for the year ended 30 September 2006, and have
therefore served a 14-year term. Under EU audit reform legislation,
EXTERNAL AUDITOR EFFECTIVENESS companies are required to have a mandatory tender of auditors
Senior management monitors the external auditor’s performance, after 10 years, or 20 years if there is a compulsory re-tender at 10
behaviour and effectiveness during the exercise of their duties, years. During the 2015 financial year, the Committee led a tender
which informs the Audit Committee’s decision on whether to process for external audit services, following which the Audit
recommend reappointment on an annual basis. Committee agreed to recommend that the Board reappoint PwC
The Audit Committee also assesses the effectiveness, as, on balance, they performed best against the Committee’s
independence and objectivity of the external auditor by, pre-agreed selection and assessment criteria. Having undertaken
amongst other things: such a process, the Company confirms that it has complied with
the provisions of the Statutory Audit Services for Large Companies
• considering all key external auditor plans and reports; in Market Investigation (Mandatory Use of Competitive Tender
particular those summarising audit work performed on Processes and Audit Committee Responsibilities) Order 2014.
significant risks and critical judgements identified, and
detailed audit testing thereon; LOOKING FORWARD
• having regular engagement with the external auditor during The Committee will continue to consider the financial reporting of
Committee meetings and ad hoc meetings (when required), the Group and review the Group’s accounting policies and annual
including meetings without any member of management statements. In particular, any major accounting issues of a
being present; subjective nature will be discussed by the Committee.
• the Committee Chair having discussions with the Senior The Committee will also continue to review internal and
Statutory Auditor ahead of each Committee meeting; and external audit activity and the effectiveness of the risk
• following the end of the financial year, each Committee management process.
member completing an auditor effectiveness review
questionnaire.
The Committee this year asked PwC to reiterate the steps taken
to ensure the quality of its listed audits. PwC confirmed that the
audit partner and audit team are not the subject of any PwC,
Institute, FRC or other regulatory investigation.
The Committee was satisfied that the external audit had provided
appropriate focus to those areas identified as the key risk areas to
be considered by the Audit Committee. It had also continued to
address the areas of significant accounting estimates. On this
basis, and considering the views of senior management, the
Committee concurred that the external audit had been effective.
EXTERNAL AUDIT TENDERING TIMELINE
2006 2015 2020 2024/2025 2026
PwC appointed Full competitive Mandatory Competitive tender PwC cannot be

tender, PwC appointment of to take place unless reappointed in 2026
reappointed new external audit required earlier and a competitive
lead partner after tender will take place
five years to sign
(if not already
off on the 2021
effected prior to this
financial year
date)
www.easyJet.com 93
FINANCE COMMI TTEE REPORT
finance COMMITTEE REPORT
I am pleased to present the Finance Committee (the ‘Committee’)

report covering the work of the Committee during the 2019
financial year.
The Committee’s key role is to review and monitor the Group’s
treasury policies, treasury operations and funding activities along
with associated risks. It is responsible for regulating the treasury
activities of the Company and controlling the associated risks,
determining and approving material inter-company distributions
and changes to share warehousing policies and loan facility
arrangements. The Committee is also responsible for providing
approvals in relation to hedging, International Swaps and
Derivatives Association (ISDA) arrangements, letters of credit,
guarantees in line with the delegated authority and the
treasury policy.
This report sets out how it has discharged its duties and
responsibilities during the year, including reviewing
compliance with treasury policies and approving the issuance
The Committee’s key of a €500 million bond under the EMTN programme.
role is to review and

monitor the Group’s
treasury policies, Andy Martin
treasury operations Chair of the Finance Committee
and funding
activities along with MEMBERSHIP, MEETINGS AND ATTENDANCE
associated risks • Andy Martin (Chair)
• Andreas Bierwirth
• Charles Gurassa

and is chaired by Andy Martin with members of the executive
management invited to attend meetings. There were no changes
to the membership of the Committee during the year. The
Company Secretary acts as Secretary to the Committee.
Member biographies setting out their skills and experience can
be found on pages 68 to 71.
The Committee met five times during the year. Meeting
attendance can be found in the table on page 80. The
Committee’s terms of reference can be found on the
Company’s website at corporate.easyjet.com.

KEY ACTIVITIES DURING THE YEAR Areas of focus
The Committee continued to monitor treasury activities to ensure
JET FUEL Reviewed and approved the
the Company continued to be appropriately funded and the
overall treasury objective and the specific objectives of each
HEDGING Company’s jet fuel hedging
policy and forecasts
treasury activity were consistent with both the financial and
corporate business objective. CARBON Reviewed and discussed carbon
The Committee monitors activities by receiving regular reports HEDGING hedging and the impact of the
from the Treasury function setting out details of cash and EU Emissions Trading System on
deposits, hedging positions for fuel, foreign exchange and carbon, the Company to address the
debt maturity, interest rate analysis and monitoring credit ratings, issues potentially faced as a
amongst other matters. result of Brexit
The Committee also considered aircraft financing, monitoring the EMTN Reviewed and approved the
number of aircraft in the fleet that are owned or leased and PROGRAMME annual update to the EMTN
approving sale and leasebacks where appropriate to manage programme and approved a
residual value risk and maintain flexibility. €500 million bond issuance
under the programme
The Committee continued to provide effective oversight of the
Group’s treasury and funding policies, ensuring that treasury FINANCIAL Received an update on the
activities undertaken do not subject the Group to undesired levels
REGULATION financial regulatory developments
of risk, and that these activities are appropriately aligned with the of relevance to the Company
UPDATE
Group’s strategy and financial performance. During the year the
Committee reviewed compliance with the Group’s policies and
approved changes in relation to counterparty credit risk and
IFRS 16 risk management.
The Committee also approved the creation of a new risk policy to
reduce income statement volatility introduced from the
recognition of an IFRS 16 lease liability.
The Committee approved the annual update to the Euro Medium
Term Note (EMTN) programme, and approved a €500 million
bond issuance under the programme during the year which
completed in June 2019. On completion of the bond issuance,
the £250 million revolving credit facility was cancelled.
www.easyJet.com 95
Annual statement by the Chair of the
Remuneration Committee
On behalf of the Board, we are pleased to present the Directors’
remuneration report for the year ended 30 September 2019
(the ‘Report’). The Report sets out details of the remuneration
policy for Executive and Non-Executive Directors, describes how
the remuneration policy is implemented and discloses the
amounts paid relating to the year ended 30 September 2019, and
explains how it will be implemented for the 2020 financial year.
PERFORMANCE AND REWARD OUTCOMES IN

THE 2019 FINANCIAL YEAR
Overall the Company performed well given the challenging
circumstances. The difficult early trading conditions and ongoing
market uncertainty meant that our profit performance ended
MOYA GREENE DBE behind our initial expectations at the outset of the year. Passenger
Chair of the Remuneration Committee (from numbers and total revenue both increased, while we achieved an
October 2019) overall reduction in cost per seat (excluding fuel) and made good
progress on our operational resilience and strategic initiatives.
Incentive plan performance against our targets for both the bonus
plan and LTIP are summarised in the ‘Remuneration at a glance’
section on page 98 to 99 and described below.
BONUS
Annual bonus payments are based 70% on financial performance
and 30% on strategic goals including a minority element based on
personal objectives.
Operational performance over the year remained resilient with
cost per seat, On-Time Performance and Customer Satisfaction
measures all performing between the threshold and target levels
set by the Committee. However, despite a strong recovery in the
second half of the year, profit before tax for the full year fell below
the threshold level set. The Committee also assessed the
Executive Directors’ performance against their individual objectives
and was pleased with their strong personal performance and
leadership during the year. Based on all the above, a bonus of 16%
and 17% of the maximum was payable to the CEO and CFO
Charles Gurassa respectively for 2019. The Committee was satisfied that this
Chair of the Remuneration Committee (until outcome was appropriate with no further discretionary
October 2019) adjustments considered necessary. One-third of the bonuses
earned is subject to compulsory deferral into shares for three
years (see page 109 to 110 for full details).
LTIP
Awards were made to the Chief Financial Officer and other
members of senior management under the LTIP in December 2016
with vesting based on three-year performance to 30 September
2019. The ROCE target (70% of the award) was met in full, while
TSR performance (30% of the award) was below the threshold
level. The Committee considered this outcome and determined
that it was a fair reflection of the long-term performance of the
Company as a whole in the context of the challenging business
environment and the targets set by the Committee at the time of
the award. 70% of the award will therefore vest in December 2019
(see page 111 for full details).

GOVERNANCE REMUNERATION REPORT
IMPLEMENTATION OF THE REMUNERATION with the strategic plan described on page 19 and the targets set
POLICY IN THE 2020 FINANCIAL YEAR have taken into consideration the challenging trading environment
and market consensus. The targets will be disclosed at the point
We will take the following approach to implementation of the
of grant and again in the 2020 Annual Report.
remuneration policy for the year ending 30 September 2020.
SALARY REVIEW OF THE REMUNERATION POLICY DURING

2020
Executives’ base salaries are reviewed annually, and any changes
The Directors’ Remuneration Policy was last approved by
are normally made in line with the average increase for the wider
shareholders at our 2018 AGM, and as such a new policy will need
workforce. The Committee has therefore awarded a 2.8% increase
to be approved in 2021. The Committee will therefore be carrying
to the CEO, which is slightly below the 3% increase typically
out a full review of the policy during 2020, taking account of our
awarded to our wider workforce in the UK.
evolving strategic and stakeholder needs as well as market
As noted on page 108 Andrew Findlay will increase his practice and best practice governance developments since our
accountabilities by taking on the corporate strategy function in last review. The Committee is especially mindful of the need for
addition to fleet planning. This will allow easyJet to navigate the our remuneration policies to reflect the unique nature of our
increasingly complex trading climate and long-term strategic business and the sector-specific challenges we face. As part of
choices ahead to maximise long-term shareholder value and this process, the Committee will engage fully with easyJet’s major
achieve our sustainability ambitions. As per the remuneration shareholders and other stakeholders, to ensure that we are able to
policy, the Committee considered this a material increase in listen to their views.
responsibilities which merited an increase beyond the level
As we announced earlier this year, Charles Gurassa stepped down
granted to the wider workforce. The Committee agreed, therefore,
as Chair of the Remuneration Committee at the end of the year,
a change in Andrew Findlay’s salary from £510,000 to £550,000
and as of October 2019, has been succeeded by Moya Greene.
effective 1 January 2020 (an increase of 7.8%). The Committee is
Moya will lead the Committee through the upcoming review of the
satisfied that this is appropriate and in keeping with easyJet’s
Directors’ Remuneration Policy. We thank shareholders for their
remuneration principles, noting Andrew’s continued exceptional
engagement and support throughout Charles’s tenure. We hope
performance.
that you will find this report informative and, as always, the
BONUS Committee welcomes any comments you may have.
The Committee has reviewed the bonus measures and targets,
taking account of our strategic goals and our KPIs set out on page
110. The majority of the bonus will continue to be based on
financial measures (comprising 70% of the maximum) and 30% on
strategic goals for the CEO and CFO. In particular, the Committee
has decided to incorporate our commitment to the progression of MOYA GREENE DBE
our environmental sustainability agenda within the bonus structure Chair of the Remuneration Committee (from October 2019)
of the entire Airline Management Board alongside other strategic
KPIs around our customers, employees and launch of our Holidays 18 November 2019
business. More details on the specific weightings for each metric
are set out on page 108. One-third of any bonus earned will
continue to be subject to compulsory deferral into shares for
three years.
LTIP Charles gurassa

In line with the approach adopted in 2018, LTIP awards will be Chair of the Remuneration Committee (until October 2019)
granted to Executive Directors in December 2019 with a
combination of EPS, ROCE and TSR performance measures. The 18 November 2019
Committee has determined that these measures remain aligned
WHAT IS IN THIS REPORT?

This Report sets out easyJet’s remuneration policy for Executive and Non-Executive Directors, describes the implementation of
that policy and discloses the amounts earned relating to the year ended 30 September 2019. The Report complies with the
provisions of the Companies Act 2006 and supporting regulations. The Report has been prepared in line with the
recommendations of the UK Corporate Governance Code and the requirements of the UK Listing Authority Listing Rules.
The Directors’ remuneration policy (set out on pages 100 to 106) was approved by shareholders in a binding vote at the AGM in
February 2018 and became effective on that date. The Annual Statement by the Chairman of the Remuneration Committee
(set out on pages 96 to 97) and the Annual Report on Remuneration (set out on pages 107 to 115) will together be subject to
an advisory vote at the forthcoming AGM.
www.easyJet.com 97
DIRECTORS’ REMUNERATION REPORT CONTINUED
Remuneration at a glance
REWARD PRINCIPLES
The Remuneration Committee’s primary objective is to design a remuneration framework which promotes the long-term success of
the Group. For some time we have been guided by the following reward principles:
Principle Application in remuneration framework
Simple & cost-effective To establish a simple and cost-effective reward package in line with our low-cost and efficient business
model. For example, our Executive Directors do not receive the level of benefits that can be found in the
majority of listed companies and instead are aligned with those in the wider employee population.
Aligned with business To support the achievement of our business strategy of growth and returns, performance is assessed
strategy against a range of financial, operational, and longer-term targets. This ensures that value is delivered to
shareholders and that Executive Directors are rewarded for the successful and sustained delivery of the
key strategic objectives of the Group.
Pay for performance Total remuneration closely reflects performance and is therefore more heavily weighted towards variable
pay than fixed pay. This ensures that there is a clear link between the value created for shareholders and
the amount paid to our Executive Directors.
SINGLE TOTAL FIGURE OF REMUNERATION (£’000)

Johan Lundgren (Chief Executive)
2019 £780 £226 £1,006
2018 £631 £869 £1,500
Andrew Findlay (Chief Financial Officer)

2019 £544 £154 £705 £1,403
2018 £526 £650 £1,176
£200 £400 £600 £800 £1,000 £1,200 £1,400 £1,600
FIXED BONUS LTIP
CEO & CFO ANNUAL BONUS - FY2019 PERFORMANCE

Annual bonus – performance for the 2019 financial year
Achieved % of Maximum
Metrics Weighting Threshold On-Target Maximum
(% of max) bonus achieved
Headline profit before tax
at budgeted constant £455
60% 0% 0%
currency (£m) £479 £532 £612
On-time performance 10% 74.6% 44% 4.4%

72.9% 74.9% 76.9%
Customer satisfaction 10%

73.9% 12% 1.2%
73.8% 76.3% 78.8%
Headline cost per seat at £42.94
10% 17% 1.7%
budgeted constant currency £43.03 £42.59 £42.16
(CEO) 85% 85% 8.5%

Department / individual 10%
(CFO) 100%
100% 10%
0% 50% 100%
(CEO) 15.8% CEO 15.8%
100%
Total (CFO) 17.3% CFO 17.3%

LTIP – Performance for the three years to 30 September 2019
Target Actual Target Actual 70% vesting overall
100
13% 13.5% Upper 100% of ROCE
quartile awards vested
75
0% of TSR
50 awards vested
11.2%
25 Below
9%
Median Threshold
3 year average ROCE 3 year TSR Overall

(70% weighting) (30% weighting)
EXECUTIVE DIRECTOR REMUNERATION POLICY – AT A GLANCE

Element Policy Implementation of Policy for the 2020 financial year
Base salary Increase normally up to the average workforce Johan Lundgren’s salary will increase by 2.8% effective 1
level (though may be increased at higher rates January 2020, to £740,000. This just below the increase
in certain circumstances, for example where awarded to the wider UK workforce.
salary is set below market on recruitment and
Andrew Findlay’s salary will increase by 7.8%, reflecting his
is being transitioned to a competitive level in a
additional responsibility for Strategy as well as performance
series of planned stages).
and experience in the role. His base salary effective 1 January
2020 will therefore be £550,000.
Benefits and Modest pension and benefit provision, at similar Pension of 6.15% of salary (being the cash alternative to a 7%
pension levels as the wider UK workforce. employer contribution less UK employers’ national insurance
contributions); plus modest benefits.
Annual bonus Maximum opportunity is 200% of salary (Chief Maximum will remain at 200% of salary for the Chief
Executive) and 175% of salary (Chief Financial Executive and at 175% of salary for the Chief Financial Officer.
Officer). One-third of bonus is deferred into Similar to last year, performance metrics and weightings
shares for three years. Majority based on remain split between 70% financial and 30% strategic goals.
financial measures. Withholding and recovery See pages 109 to 110 for more information on the breakdown
provisions apply. of each measure. Full details of performance against each
metric will be provided in the 2020 Annual Report.
Annual bonus performance weighting
Total financial metrics 70%

Total strategic metrics 30%
Long-term Normal maximum awards of 250% of salary Award to the Chief Executive of 250% of salary and award to
incentive plan (Chief Executive) and 200% of salary (Chief the Chief Financial Officer of 200% of salary.
Financial Officer). Up to 300% of salary in
The performance targets for the 2020 awards will be disclosed
exceptional circumstances.
in full at the date of grant and in the Annual Report.
Three-year performance period plus two-year
post-vesting holding period.
Based on financial and relative TSR targets.
Withholding and recovery provisions apply.
Share ownership 200% of salary (Chief Executive) and 175% of 200% of salary for the Chief Executive and 175% of salary for
guidelines salary (Chief Financial Officer). the Chief Financial Officer: in line with policy.
Requirement to retain 50% of post-tax LTIP
vesting and 100% of post-tax deferred bonus
shares until guideline is met (and maintained).
www.easyJet.com 99
Directors’ remuneration policy
This part of the Directors’ remuneration report sets out easyJet’s In setting remuneration for the Executive Directors, the
Directors’ remuneration policy. This policy was approved by Committee takes note of the overall approach to reward for
shareholders in a binding vote at the AGM on 8 February 2018, employees in the Group. Salary increases will ordinarily be
and became effective on that date. The Committee’s current (in percentage of salary terms) no higher than those of the wider
intention is that the current policy will operate for the three-year workforce. The Committee does not formally consult directly
period to the AGM in 2021. with employees on executive pay but does receive periodic
updates from the Group People Director.
A copy of the Directors’ remuneration policy can be found
online, within the Annual Report and Accounts, at The Committee also considers developments in institutional
http://corporate.easyjet.com/. investors’ best practice expectations and the views expressed
by shareholders during any dialogue.
ROLE OF OUR REMUNERATION COMMITTEE
The Remuneration Committee has responsibility for determining CONSIDERING THE VIEWS OF SHAREHOLDERS
remuneration for the Executive Directors and the Chairman of the WHEN DETERMINING THE REMUNERATION
Board. The Committee also reviews the remuneration of the POLICY
Group’s most senior executives in consultation with the Chief easyJet remains committed to shareholder dialogue and takes an
Executive. The Committee takes into account the need to recruit active interest in voting outcomes. We consult extensively with our
and retain executives and ensure that they are properly motivated major shareholders when setting our remuneration policy or when
to perform in the long-term interests of the Company and its considering any significant changes to our remuneration
shareholders, while paying no more than is necessary. arrangements. The Committee also considers shareholder
feedback received in relation to the Directors’ remuneration report
CONSIDERATIONS WHEN DETERMINING THE each year following the AGM. This, plus any additional feedback
REMUNERATION POLICY received from time to time, is then considered as part of the
The primary objective of the Group’s remuneration policy is to Committee’s annual review of remuneration policy and its
promote the long-term success of the business through the implementation.
operation of competitive pay arrangements which are structured
so as to be in the best interests of shareholders. When setting the
policy for Executive Directors’ remuneration, the Committee takes
into account total remuneration levels operating in companies of a
similar size and complexity, the responsibilities of each individual
role, individual performance and an individual’s experience. Our
overall policy, having given due regard to the factors noted, is to
weight remuneration towards variable pay. This is typically
achieved through setting base pay at a competitive level,
offering very modest pension and benefits, and giving the
potential to earn above-market variable pay subject to the
achievement of demanding performance targets linked to the
Group’s strategic objectives.

SUMMARY OF THE REMUNERATION STRUCTURE

The table below sets out the main components of easyJet’s remuneration policy:
Framework used to assess
Element, purpose Operation (including maximum performance and provisions
and link to strategy levels where applicable) for the recovery of sums paid
Salary Base salaries are normally reviewed annually, with changes typically The Committee considers
To provide the core effective from 1 January. individual salaries at the
reward for the role. appropriate Committee
Salaries are typically set after considering salary levels in companies of a
meeting each year after
Sufficient level to recruit similar size and complexity, the responsibilities of each individual role,
having due regard to the
and retain individuals of the progression within the role, individual performance and an individual’s
factors noted in operating
necessary calibre to experience. Our overall policy, having given due regard to the factors noted,
the salary policy.
execute the Company’s is normally to target salaries at a broadly market competitive level.
business strategy. No recovery provisions
Salaries may be adjusted and any increase will ordinarily be no higher than
apply to salary.
those of the wider workforce (in percentage of salary terms).
Increases beyond those granted to the wider workforce (in percentage of
salary terms) may be awarded in certain circumstances such as where there
is a change in responsibility or experience, progression in the role, or a
significant increase in the scale of the role or the size, value or complexity
of the Group.
Benefits Executive Directors receive benefits provisions at similar levels as the wider Not applicable.
In line with the Company’s UK workforce. Benefits will typically include, for example, modest death in
No recovery provisions
policy to keep remuneration service cover. The cost to the Company of providing these benefits may
apply to benefits.
simple and consistent. vary from year to year depending on the level of the associated premium.
Executive Directors typically receive no other conventional executive
company benefits, but will be eligible for any other benefits which are
introduced for the wider workforce on broadly similar terms.
Other benefits such as relocation allowances (and other incidental
associated expenses) may be offered if considered appropriate and
reasonable by the Committee.
Executive Directors can pay for voluntary benefits, where Company
purchasing power may provide an advantage to employees.
Executive Directors are also eligible to participate in any all-employee share
plans operated by the Company, in line with HMRC guidelines currently
prevailing (where relevant), on the same basis as for other eligible
employees.
Should it be appropriate to recruit a Director from overseas, flexibility is
retained to provide benefits that take account of those typically provided in
their country of residence (e.g. it may be appropriate to provide benefits
that are tailored to the unique circumstances of such an appointment as
opposed to providing the benefits detailed above).
Necessary expenses incurred undertaking Company business are
reimbursed so that Executive Directors are not worse off on a net of tax
basis as a result of fulfilling Company duties.
Pension Defined contribution plan with the same monthly employer contributions Not applicable.
To provide employees with as those offered to eligible employees in the wider UK workforce (i.e. up to
No recovery provisions
long-term savings via 7% of base salary); or a cash alternative to the equivalent value less
apply to employer pension
pension provisions in line employer’s National Insurance contribution costs.
contributions.
with the Company’s
easyJet operates a pension salary sacrifice arrangement whereby
strategy to keep
individuals can exchange part of their salary for Company-paid pension
remuneration simple and
contributions. Where individuals exchange salary this reduces employer
consistent.
National Insurance contributions. easyJet credits half of this reduction
(currently 6.9% of the salary exchanged) to the individual’s pension plan.
www.easyJet.com 101
SUMMARY OF THE REMUNERATION STRUCTURE CONTINUED

Element, purpose Framework used to assess performance
and link to strategy Operation (including maximum levels where applicable) and provisions for the recovery of sums paid
Share ownership The Chief Executive and the Chief Financial Officer Not applicable.
To ensure alignment are expected to build and maintain a holding
between the interests of equivalent to 200% and 175% of salary respectively
Executive Directors and over a period of five years from appointment.
shareholders.
Executive Directors are expected to retain 50% of
the post-tax shares vesting under the LTIP and 100%
of the post-tax deferred bonus shares until the
guideline is met and keep it maintained thereafter.
Annual bonus Maximum opportunity of 200% of salary for Chief Bonuses are based on stretching financial,
To incentivise and Executive and 175% of salary for other Executive operational, and personal or departmental
recognise execution of the Directors. performance measures, as set and assessed by
business strategy on an the Committee in its discretion, with performance
One-third of the pre-tax bonus earned is subject to
annual basis. Rewards the normally measured over a one-year period.
compulsory deferral into shares (or equivalent),
achievement of annual Financial measures (e.g. headline profit before
typically for a period of three years, and is normally
financial and operational tax) will represent the majority of the bonus, with
subject to continued employment.
goals. other measures representing the balance. A
The remainder of the bonus is paid in cash. graduated scale of targets is set for each
Compulsory deferral
Dividend equivalent payments may be made on the measure, with 10% of each element being payable
provides alignment with
deferred bonus at the time of vesting, and may for achieving the relevant threshold hurdle.
shareholders.
assume the reinvestment of dividends. Safety underpins all of the operational activities of
All bonus payments are at the discretion of the the Group and the bonus plan includes a provision
Committee, as shown following this table. that enables the Remuneration Committee to
scale back the bonus earned (including to zero) in
the event that there is a safety event which it
considers warrants the use of such discretion.
The annual bonus plan includes provisions which
enable the Committee (in respect of both the
cash and the deferred elements of bonuses) to
recover or withhold value in the event of certain
defined circumstances.
LTIP Performance Share Each year LTIP awards may be granted subject to LTIP awards currently vest based on performance
Award the achievement of performance targets. Awards against a challenging range of financial targets
To incentivise and recognise normally vest over a three-year period. and relative TSR performance set and assessed
execution of the business by the Committee in its discretion. Financial
The maximum opportunity contained within the plan
strategy over the longer targets currently determine vesting in relation to
rules for Performance Share Awards is 250% of
term. Rewards strong at least 50% of awards. The selection of
salary (with awards up to 300% of salary eligible to
financial performance and measures and weightings may be varied for
be made in exceptional circumstances, such as
sustained increase in future award cycles as appropriate to reflect the
recruitment).
shareholder value. strategic priorities of the business at that time.
The normal maximum face value of annual awards
Performance is normally measured over a
will be 250% of salary for the Chief Executive and
three-year period.
200% of salary for other Executive Directors.
A maximum of 25% of each element vests for
Dividend equivalent awards may be made on LTIP
achieving the threshold performance target with
awards that vest, and may assume the reinvestment
100% of the awards being earned for maximum
of dividends.
performance.
A holding period applies to share awards granted in
The LTIP includes provisions which enable the
the financial year ended 30 September 2015 and
Committee to recover or withhold value in the
beyond. The holding period will require the Executive
event of certain defined circumstances.
Directors to retain the after-tax value of shares for 24
months from the vesting date.

DISCRETION RETAINED BY THE COMMITTEE IN PERFORMANCE METRICS AND TARGET SETTING
OPERATING THE INCENTIVE PLANS

The choice of the performance metrics applicable to the annual
The Committee will operate the annual bonus plan and LTIP bonus plan reflect the Committee’s belief that any incentive
according to their respective rules (or relevant documents) and in compensation should be appropriately challenging and tied to the
accordance with the Listing Rules where relevant. The Committee delivery of a blend of key financial, operational and personal
retains discretion, consistent with market practice, in a number of targets. These targets are intended to ensure that Executive
regards to the operation and administration of these plans. These Directors are incentivised to deliver across a scorecard of
include, but are not limited to, the following in relation to the LTIP objectives for which they are accountable. Financial measures
and annual bonus deferred in shares: (e.g. headline profit before tax) will be used for the majority of the
bonus and will be selected in order to provide a clear indication of
• the participants;
how successful the Group has been in managing operations
• the timing of grant of an award; effectively overall (e.g. in maximising profit per seat whilst
• the size of an award; maintaining a high load factor). The remainder of the bonus will be
• the determination of vesting; based on key operational (e.g. customer satisfaction) and personal
or departmental measures set annually.
• the payment vehicle of the award/payment;
Since safety is of central importance to the business, the award of
• discretion required when dealing with a change of control
any bonus is subject to an underpin that enables the
or restructuring of the Group;
Remuneration Committee to reduce the bonus earned (including
• determination of the treatment of leavers based on the rules of to zero) in the event that there is a safety event that it considers
the plan and the appropriate treatment chosen; warrants the use of such discretion.
• adjustments required in certain circumstances (e.g. rights issues, LTIP awards are earned for delivering performance against an
corporate restructuring events and special dividends); and appropriate balance of key long-term financial (e.g. headline ROCE
• the annual review of performance measures and weighting, and and headline EPS) and relative TSR targets. These seek to assess
targets for the LTIP from year to year. the underlying financial performance of the business while
maintaining clear alignment between shareholders and Executive
In relation to the annual bonus plan, the Committee retains
Directors. Targets are set based on a sliding scale that takes
discretion over:
account of relevant commercial factors.
• the participants;
Only modest awards are available for delivering threshold
• the timing of grant of a payment; performance levels, with maximum awards requiring substantial
• the determination of the bonus payment; outperformance of challenging plans.
• dealing with a change of control; The Committee has retained some flexibility on the specific
• determination of the treatment of leavers based on the rules of measures which can be used for the annual bonus plan and the
the plan and the appropriate treatment chosen; and LTIP to ensure that they will be fully aligned with the strategic
imperatives prevailing at the time they are set.
• the annual review of performance measures and weighting, and
targets for the annual bonus plan from year to year. No performance targets are set for Save As You Earn awards
since these are purposefully designed to encourage employees
In relation to both the Group’s LTIP and the annual bonus plan, across the Group to purchase shares in the Company. A measure
the Committee retains the ability to adjust the targets and/or set of Group performance is used in determining awards under the
different measures if events occur which cause it to determine Share Incentive Plan.
that the conditions are no longer appropriate (e.g. material
acquisition and/or divestment of a Group business), and the HISTORICAL AWARDS
amendment is required so that the conditions achieve their original All historical awards that were granted under any current or
purpose and are not materially less difficult to satisfy. previous share schemes operated by the Company, and which
Any use of the above discretions would be explained in the Annual remain outstanding, remain eligible to vest on the basis of their
Report on Remuneration and may be the subject of consultation original award terms.
with the Company’s major shareholders.
DIFFERENCES IN PAY POLICY FOR EXECUTIVE
The use of discretion in relation to the Group’s Save As You Earn DIRECTORS COMPARED TO OTHER EASYJET
and Share Incentive Plans will be as permitted under HMRC rules EMPLOYEES
and the Listing Rules.
The remuneration policy for the Executive Directors is more
Details of share awards granted to existing Executive Directors are heavily weighted towards variable and share-based pay than for
set out on page 111. These remain eligible to vest based on their other employees, to make a greater part of their pay conditional
original award terms. on the successful delivery of business strategy.
This aims to create a clear link between the value created for
shareholders and the remuneration received by the Executive
Directors. However, in line with the Group’s policy to keep
remuneration simple and performance-based, the benefit and
pension arrangements for the current Executive Directors are on
the same terms as those offered to eligible employees in the
wider workforce. All employees have the opportunity to
participate in a number of broad-based share plans.
www.easyJet.com 103
ILLUSTRATION OF HOW MUCH THE EXECUTIVE Fixed pay comprises:

DIRECTORS COULD EARN UNDER THE • Salaries – salary effective as at 1 January 2020;
REMUNERATION POLICY • Benefits – amount received in the 2019 financial year;
A significant proportion of remuneration is linked to performance,
• Pension – employer contributions or cash-equivalent payments
particularly at maximum performance levels. The charts below
received in the 2019 financial year; and
show how much the Chief Executive and Chief Financial Officer
could earn through easyJet’s remuneration policy under different • Matching Shares under the all-employee share incentive plan.
performance scenarios in the 2020 financial year. The following
assumptions have been made:
• Minimum (performance below threshold) – fixed pay only,
with no vesting under any of easyJet’s incentive plans
• In line with expectations – fixed pay plus a bonus at the
mid-point of the range (giving 50% of the maximum
opportunity) and vesting of 50% of the maximum
under the LTIP
• Maximum (performance meets or exceeds maximum)
– fixed pay plus maximum bonus and maximum
vesting under the LTIP
CHIEF EXECUTIVE (JOHAN LUNDGREN)1 CHIEF FINANCIAL OFFICER (ANDREW FINDLAY)2
Below threshold Below threshold

100% £787,000 100% £586,000
In line with expectations In line with expectations
32% 30% 38% £2,452,000 36% 30% 34% £1,617,000
Exceeds target Exceeds target
19% 36% 45% £4,117,000 22% 36% 42% £2,648,000
FIXED PAY ANNUAL BONUS LTIP (PERFORMANCE) FIXED PAY ANNUAL BONUS LTIP (PERFORMANCE)
1. Were easyJet’s share price to increase by 50%, Johan Lundgren’s total remuneration would increase to £5,042,000 under an ‘exceeds target’ scenario
– driven by the increased value of the LTIP awards
2. Were easyJet’s share price to increase by 50%, Andrew Findlay’s total remuneration would increase to £3,198,000 under an ‘exceeds target’ scenario
– driven by the increased value of the LTIP awards
The scenarios do not include any dividend assumptions. It should be noted that since the analysis above shows what could be earned by
the Executive Directors based on the remuneration policy described above (ignoring the potential impact of share price growth), these
numbers will differ to values included in the table on page 109 detailing actual earnings by Executive Directors.

EXECUTIVE DIRECTORS’ TERMS OF the achievement of any relevant performance conditions with a
EMPLOYMENT

pro-rata reduction to reflect the proportion of the vesting period
served. The Committee has discretion to disapply time pro-rating
The Group’s policy is for Executive Directors to have service
if it considers it appropriate to do so. In the event of a takeover,
contracts which may be terminated with no more than 12 months’
the Committee may determine, with the agreement of the
notice from either party.
acquiring company, that awards will be exchanged for equivalent
The Executive Directors’ service contracts are available for awards in another company.
inspection by shareholders at the Company’s registered office.
POLICY ON EXTERNAL APPOINTMENTS
APPROACH TO LEAVERS Executive Directors are permitted to accept appropriate outside
If notice is served by either party, the Executive Director can Non-Executive Director appointments so long as the overall
continue to receive basic salary, benefits and pension for the commitment is compatible with their duties as Executive Directors
duration of their notice period, during which time the business and is not thought to interfere with the business of the Group.
may require the individual to continue to fulfil their current duties Any fees received in respect of these appointments are retained
or may assign a period of garden leave. directly by the relevant Executive Director.
A payment in lieu of notice may be made and, in this event, the
APPROACH TO DETERMINING REMUNERATION
Committee’s normal policy is to make the payment in up to 12
ON RECRUITMENT
monthly instalments which may be reduced if alternative
employment is taken up during this period. Base salary levels will be set in accordance with easyJet’s
remuneration policy, taking into account the experience and
Bonus payments may be made on a pro-rata basis, but only for calibre of the individual. Where it is considered appropriate to offer
the period of time served from the start of the financial year to a lower salary initially, a series of increases to achieve the desired
the date of termination and not for any period in lieu of notice. salary positioning may be given over the following few years to
Any bonus paid would be subject to the normal bonus targets, reflect progression in the role, subject to individual performance.
tested at the end of the financial year. Benefits will normally be provided in line with those offered to
In relation to a termination of employment, the Committee other employees. The Committee may provide an allowance and/
may make any statutory entitlements or payments to settle or or reimbursement of any reasonable expenses in relation to the
compromise claims in connection with a termination of any relocation of an Executive Director. easyJet may also offer a cash
existing or future Executive Director as necessary. The Committee amount on recruitment, payment of which may be staggered, to
also retains the discretion to reimburse reasonable legal expenses reflect the value of benefits a new recruit may have received from
incurred in relation to a termination of employment and to meet a former employer.
any outplacement costs if deemed necessary. Should it be appropriate to recruit a Director from overseas,
The rules of the Company’s share plans set out what happens to flexibility is retained to provide benefits that take account of those
awards if a participant ceases to be an employee or Director of typically provided in their country of residence (e.g. it may be
easyJet before the end of the vesting period. Generally, any appropriate to provide benefits that are tailored to the unique
outstanding share awards will lapse on such cessation, except in circumstances of such an appointment).
certain circumstances. The maximum level of variable pay that may be offered on an
If an Executive Director ceases to be an employee or Director of ongoing basis and the structure of remuneration will be in
easyJet as a result of death, injury, retirement, the sale of the accordance with the approved policy detailed above, i.e. at an
business or company that employs the individual, or any other aggregate maximum of up to 450% of salary (200% annual bonus
reason at the discretion of the Committee, then they will be and 250% Performance Shares under the LTIP), taking into
treated as a ‘good leaver’ under the relevant plan’s rules. Under account annual and long-term variable pay. This limit does not
the deferred bonus, the shares for a good leaver will normally include the value of any buy-out arrangements. Any incentive
vest in full on the normal vesting date (or on cessation of offered above this limit would be contingent on the Company
employment in the case of death) and if the award is in the form receiving shareholder approval for an amendment to its approved
of an option, there is a 12 month window in which the award can policy. Different performance measures may be set initially for the
be exercised. Awards structured as options which have vested annual bonus, taking into account the responsibilities of the
prior to cessation can be exercised within 12 months of cessation individual, and the point in the financial year that they joined.
of office or employment. LTIP awards can be made shortly following an appointment
(assuming the Company is not in a closed period).
Under the LTIP, a good leaver’s unvested awards will vest (either
on the normal vesting date or the relevant date of cessation, as The above policy applies to both an internal promotion to the
determined by the Committee) subject to achievement of any Board or an external hire.
relevant performance conditions, with a pro-rata reduction to In the case of an external hire, if it is necessary to buy out
reflect the proportion of the vesting period served. The incentive pay or benefit arrangements (which would be forfeited
Committee has the discretion to dis-apply time pro-rating if on leaving the previous employer), this would be provided for
it considers it appropriate to do so. A good leaver may taking into account the form (cash or shares), timing and
exercise their vested awards structured as options for a period expected value (i.e. likelihood of meeting any existing
of 12 months following the individual’s cessation of office or performance criteria) of the remuneration being forfeited.
employment, whereas unvested awards may be exercised Replacement share awards, if used, will be granted using
within 12 months of vesting. easyJet’s share plans to the extent possible, although awards
In determining whether an Executive Director should be treated as may also be granted outside these schemes if necessary and
a good leaver, and the extent to which their award may vest, the as permitted under the Listing Rules.
Committee will take into account the circumstances of an In the case of an internal promotion, any outstanding variable pay
individual’s departure. awarded in relation to the previous role will be paid according to
In the event of a takeover or winding-up of easyJet plc (which is its terms of grant (adjusted as relevant to take into account the
not part of an internal reorganisation of the easyJet Group, in Board appointment).
circumstances where equivalent replacement awards are not
granted) all awards will vest subject to, in the case of LTIP awards,
www.easyJet.com 105
On the appointment of a new Chairman or Non-Executive TERMS OF APPOINTMENT OF THE

Director, fees will be set taking into account the experience and NON‑EXECUTIVE DIRECTORS
calibre of the individual. Where specific cash or share
The terms of appointment of the Chairman and the other
arrangements are delivered to Non-Executive Directors, these will
Non-Executive Directors are recorded in letters of appointment.
not include share options or other performance-related elements.
The required notice from the Company is three months. The
The Board evaluation and succession planning processes in place Non-Executive Directors are not entitled to any compensation on
are designed to ensure there is the correct balance of skills, loss of office.
experience and knowledge on the Board. The activities of the
The Non-Executive Directors’ letters of appointment are available
Nominations Committee overseeing these matters are disclosed in
for inspection by shareholders at the Company’s registered office.
the Nominations Committee report on pages 87 to 88.
NON-EXECUTIVE DIRECTOR FEES

The Non-Executive Directors receive an annual fee (normally paid
in monthly instalments). The fee for the Non-Executive Chairman
is set by the Remuneration Committee and the fees for the other
Non-Executive Directors are approved by the Board, on the
recommendation of the Chairman and Chief Executive.
Element Purpose and link to strategy Operation (including maximum levels where applicable)
Fees To attract and retain a high The Chairman is paid an all-inclusive fee for all Board responsibilities.
calibre Chairman, Deputy
The other Non-Executive Directors receive a basic Board fee, with supplementary fees
Chairman and Non-Executive
payable for additional Board Committee responsibilities.
Directors by offering
market-competitive fee levels The Chairman and Non-Executive Directors do not participate in any of the Group’s
incentive arrangements.
Fee levels are reviewed on a regular basis, and may be increased, taking into account
factors such as the time commitment of the role and market levels in companies of
comparable size and complexity.
Flexibility is retained to exceed current fee levels if it is necessary to do so in order to
appoint a new Chairman or Non-Executive Director of an appropriate calibre.
In exceptional circumstances, if there is a temporary yet material increase in the time
commitments for Non-Executive Directors, the Board may pay extra fees to recognise
the additional workload.
Necessary expenses incurred undertaking Group business will be reimbursed so that
the Chairman and Non-Executive Directors are not worse off, on a net of tax basis, as
a result of fulfilling Company duties.
No other benefits or remuneration are provided to the Chairman or Non-Executive
Directors.

Annual report on remuneration

ROLE OF THE REMUNERATION COMMITTEE KEY ACTIVITIES DURING THE YEAR
The key role of the Committee is to make recommendations to • Assessed the level of performance in respect of the bonus for
the Board on executive remuneration packages and to ensure the 2019 financial year, and LTIP awards set in December 2016
that remuneration policy and practices of the Company reward and vesting in December 2019, to determine appropriate payouts
fairly and responsibly, with a clear link to corporate and individual • Determined the bonus and LTIP targets for the 2020 financial
performance. The Committee’s terms of reference can be found year after considering and debating alternative targets, investor
on the Company’s website at corporate.easyjet.com. expectations and internal business plans
MEMBERSHIP, MEETINGS AND ATTENDANCE • Reviewed and approved the remuneration packages for new
AMB members
• Moya Greene (Chair from 21 October 2019)
• Reviewed the total packages and service contracts of the AMB
• Adèle Anderson (until 7 February 2019)
and senior management
• Charles Gurassa
• Considered the results and implications of gender pay gap
• Andy Martin reporting, and reviewed and commented on recommendations
• Julie Southern to further enhance the Company’s performance
• Reviewed and approved the payment of the all-employee
Performance Share Award in respect of the 2019 financial year
and was chaired by Charles Gurassa during the year. Charles
Gurassa stepped down as Chair of the Committee with effect The Board and the Committee are committed to ensuring that
from 21 October 2019 but remains a member of the Committee. easyJet’s remuneration framework is designed to support the
Moya Greene took up the role of Chair with effect from the same strategy, providing balance between motivating and challenging
date. There were no other changes to the membership of the senior management whilst also driving the long-term success of
Committee during the year. The Company Secretary acts as the Group for its shareholders.
Secretary of the Committee. Other key invitees include the Chief
Executive Officer, the Group People Director, Head of Reward and The Committee carefully considered and approved packages for
external advisers as relevant. new members appointed to the AMB during the year.
Remuneration arrangements have been designed to promote the
Member biographies setting out their skills and experience can be long-term success of the Company.
found on pages 68 to 71. The Committee met four times during
the year. Meeting attendance can be found in the table on page 80. APPLICATION OF THE REMUNERATION POLICY
FOR THE 2020 FINANCIAL YEAR
KEY RESPONSIBILITIES
There will be no material changes to the remuneration policy or its
• T
o set the remuneration policy for all Executive Directors and implementation for the 2020 financial year. easyJet’s
the Company’s Chairman remuneration policy has received consistently high levels of
• To set the remuneration packages for the AMB and monitor the investor support in recent years. Over the coming year and in
principles and structure of remuneration for other senior advance of the next policy vote in 2021, the Committee will
management consider the continued appropriateness of the current policy. The
• T
o oversee remuneration and workforce policies and practices, Committee considers that it remains aligned with the best practice
and take these into account when setting the policy for Director expectations of institutional investors.
and AMB remuneration
• T
o approve the design of, and determine targets for, all
employee share schemes operated by the Company
• T
o oversee any major changes in employee benefit structures
throughout the Company or Group
• T
o review and monitor the Group’s compliance with relevant
gender pay reporting requirements
www.easyJet.com 107
BASE SALARY Bonus payments may now be withheld or recovered if, within a
period of three years from the date of payment, there is: a case
As noted on page 97 Andrew Findlay will increase his
of serious personal misconduct; a misstatement of accounts; an
responsibilities by taking on the corporate strategy function in
error in calculation of results; an instance of corporate failure; or
addition to fleet planning. The Committee, therefore, agreed an
material damage to the Company’s reputation as a result of a
increase in Andrew’s current salary from £510,000 to £550,000.
safety event.
The current and proposed salaries of the Executive Directors are:
1 January 1 January Change vs LTIP AWARDS IN RELATION TO THE 2020
2020 salary 2019 salary 1 January 2019
FINANCIAL YEAR
Johan
We intend to make awards to the Chief Executive of 250% of
Lundgren £740,000 £720,120 2.8%
salary and to the Chief Financial Officer of 200% of salary in
Andrew £550,000 £510,000 7.8% respect of the 2020 financial year.
Findlay
Awards made for the 2020 financial year will be subject to a
For comparison, the typical rate of salary increase to be awarded combination of headline ROCE, headline EPS and TSR
to our wider UK workforce will be 3%. performance measures, reflecting a balance between growth
and returns, and aligning with the Group’s strategic priorities
ANNUAL BONUS IN RESPECT OF PERFORMANCE over the medium term described on page 19.
IN THE 2020 FINANCIAL YEAR
Finalised targets will be disclosed at the date of grant and in the
The maximum bonus opportunity remains at 200% of salary for next Annual Report.
the Chief Executive and at 175% for the Chief Financial Officer.
The measures have been selected to reflect a range of financial A post-vesting holding period requiring the Executive Directors to
and operational goals that support the key strategic objectives retain the post-tax value of any shares for two years from the
of the Group. vesting date will continue to apply to the 2020 and future awards.
The performance measures and weightings will be as follows: LTIP payments may be withheld or recovered if, within a period of
three years from the date of vesting, there is: a case of serious
As a percentage of
maximum bonus opportunity personal misconduct; a misstatement of accounts; an error in
Measure CEO CFO calculation of results; an instance of corporate failure; or material
Headline profit before tax at damage to the Company’s reputation as a result of a safety event.
budgeted constant currency 60% 60% NON-EXECUTIVE DIRECTOR FEES
Headline cost per seat ex fuel at
The fees for the Chairman and Non-Executive Directors from 1
budgeted constant currency 10% 10%
January 2020 will be:
Total financial measures 70% 70%
Chairman £314,568
Customer 10% 10%
Basic fee for other Non-Executive Directors £62,914
Employees 5% 4%
Fees for Deputy Chairman and
Environment 5% 4%
Senior Independent Director role1 £25,000
Other strategic goals 10% 12%
Chair of the Audit, Safety and
Total strategic measures 30% 30% Remuneration Committees1 £15,000
The proposed target levels for the 2020 financial year have been Chair of the Finance Committee1 £10,000
set to be challenging relative to the business plan and the current Chair of the Employee Engagement Committee1 £10,000
economic environment.
1. Supplementary fees
The Committee is comfortable that the bonus targets for both Fees payable to the Non-Executive Directors are reviewed
Executive Directors are appropriately demanding in light of their annually. Accordingly, a basic fee increase of 2.8% will apply
respective bonus opportunities. from 1 January 2020, which is slightly below the typical increase
The targets themselves, as they relate to the 2020 financial year, for the wider UK workforce.
are commercially sensitive. However, retrospective disclosure of
the targets and performance against them will be provided in next
year’s remuneration report unless they remain commercially
sensitive at that time. The safety of our customers and people
underpins all of the operational activities of the Group and the
bonus plan includes a provision that enables the Remuneration
Committee to scale back (including to zero) the bonus awarded in
the event that a safety event has occurred, which it considers
warrants the use of such discretion. One-third of the pre-tax
bonus earned will be deferred into shares for a period of three
years and will be subject to continued employment.

DIRECTORS’ REMUNERATION FOR THE YEAR ENDED 30 SEPTEMBER 2019

The table below sets out the amounts earned by the Directors (£’000) (audited)
2019 2018
Fees and Fees and
£’000 Salary Benefits(6) Bonus(7) LTIP(8) Pension(9) Total Salary Benefits(6) Bonus(7) LTIP Pension(9) Total
Executive
Johan Lundgren 717 19 226 – 44 1,006 594 – 869 – 37 1,500
Carolyn McCall DBE(1) – – – – – – 118 – – – 7 125
Andrew Findlay 508 5 154 705 31 1,403 491 5 650 – 30 1,176
Non-Executive
John Barton 305 – – – – 305 300 – – – – 300
Charles Gurassa 101 – – – – 101 100 – – – – 100
Adèle Anderson(2) 25 – – – – 25 75 – – – – 75
Dr Andreas Bierwirth 76 – – – – 76 75 – – – – 75
Keith Hamill OBE(2) – – – – – – 15 – – – – 15
Andy Martin 71 – – – – 71 70 – – – – 70
Julie Southern(3) 72 – – – – 72 10 – – – – 10
Moya Greene DBE 68 – – – – 68 60 – – – – 60
Dr Anastassia
Lauterbach(4) 46 – – – – 46 – – – – – –
Nicholas Leeder(5) 46 – – – – 46 – – – – – –
Total 2,035 24 380 705 75 3,219 1,908 5 1,519 – 74 3,506
1. Left the Board on 30 November 2017 but continued to be actively employed by easyJet until 31 December 2017, in order to assist with the transition to
the new Chief Executive. Carolyn McCall received salary of £58,833 and pension contributions of £3,618 between 1 December and 31 December 2017
2. Adèle Anderson left the Board on 7 February 2019 and Keith Hamill left the board on 31 December 2017
3. Appointed to the Board on 1 August 2018
4. Appointed to the Board on 1 January 2019
6. Benefits relate to the cost to the Company of personal accident and life assurance cover and the value of shares during the year under the Company’s
Share Incentive Plan, as well as reimbursements made to the Chief Executive for business-related travel expenses in respect of domestic car travel to the
value of £16,000
7. One-third of the bonus will be compulsorily deferred into shares for three years and subject to forfeiture
8. Andrew Findlay was granted LTIP awards in December 2016, vesting in December 2019 subject to Group performance measured to 30 September 2019.
This award was subject to a ROCE performance measure (70% of the award), which was met in full, and a TSR performance condition, which was not
met. Accordingly, 70% of the award will vest in December 2019. For the purpose of this table, this award has been valued using the three-month average
share price to 30 September 2019 of £10.01, and will be restated in next year’s report once the share price on the date of vesting is known. This compares
to a share price of £10.43 at grant
9. Johan Lundgren, Carolyn McCall and Andrew Findlay all received a cash alternative to pension contributions equivalent to 7% less UK employer’s NICs,
resulting in a gross cash allowance of 6.15% of basic salary
ANNUAL BONUS OUTTURN FOR PERFORMANCE IN THE 2019 FINANCIAL YEAR (AUDITED)
A sliding scale of financial and operational bonus targets was set at the start of the 2019 financial year. 10% of each element is payable
for achieving the threshold target, increasing to 50% for on-target performance and 100% for achieving maximum performance.
Achievements between these points are calculated on a straight-line basis.
Measure CEO & CFO Threshold On-Target Maximum Actual Payout
Headline profit before tax(1) 60% £479m £532m £612m £455m 0%
Customer satisfaction targets(2) 10% 73.8% 76.3% 78.8% 73.9% 12%
On-time performance(3) 10% 72.9% 74.9% 76.9% 74.6% 44%
Headline cost per seat (ex. fuel)(1) 10% £43.02 £42.59 £42.16 £42.94 17%
Personal and departmental objectives(4) 10% n/a n/a n/a Note 4 Note 4
1. At budgeted constant currency
2. Customer satisfaction measures the percentage of our passengers that are ‘Quite satisfied’, ‘Very satisfied’ or ‘Completely satisfied’ at last contact
3. On-time performance measures the percentage of arrivals within 15 minutes of scheduled time, subject to flying 99.5% of programme (excluding
cancellations made 14 days in advance which do not attract EU compensation and those which affect the whole airline sector e.g. terrorist disruption, or
major airport incidents)
4. Personal performance targets described over the page
www.easyJet.com 109
The personal performance element of the bonus was subject to the achievement of a set of individual performance targets agreed by
the Committee, as follows:
JOHAN LUNDGREN
Objective Weighting Commitments Achievements
Strategic Initiatives 30% Progress on launch of new Holidays, Loyalty, Data and All four strategic initiatives are on
Business initiatives track to launch within the agreed
timeframes and milestones agreed
by the Committee
Creative and energising 30% Embedding a creative and energising environment that Employee engagement survey
environment attracts the right people and inspires everyone to learn participation rates and overall
and grow scores were all maintained above
the agreed levels
Cost control 25% Progress on Operational Resilience Programme and Overall disruption costs were
Disruption Costs materially reduced versus FY18 as a
direct outcome of the Operational
Tegel acquisition 15% Progress on successful integration of the new Tegel Progress against Tegel integration
operation into the wider network targets were behind plan
Overall The Committee agreed that 85% of the maximum was
achieved.
ANDREW FINDLAY
Objective Weighting Commitments Achievements
Cost & Balance Sheet 25% Cost and Balance Sheet initiatives delivered or on track Multiple initiatives were all
Management as per plan without impacting speed of plan delivery delivered as planned without
impacting the speed of delivery of
the long-term strategic plan
IT and Data Leadership 25% Successfully lead IT and Data teams on an interim basis IT and Data team restructure and
ensuring smooth transition to the new Chief Data and strategic initiatives were completed
Information Officer as planned along with smooth
transition to the new Chief Data
and Information Officer over FY19
Strategic Initiatives 25% Progress on launch of new Holidays, Loyalty, Data and All four strategic initiatives are on
Business initiatives track to launch within the agreed
time frames and milestones defined
by the Committee
Creative and energising 25% Creating an inclusive and energising environment that Employee engagement survey
environment attracts the right people and inspires everyone to learn participation rates and overall
and grow scores were all maintained above
the agreed levels
Overall The Committee agreed that 100% of the maximum was
achieved
Accordingly, bonuses of 15.8% and 17.3% of the maximum were payable, resulting in bonus pay outs of £226,442 and £153,773 for Johan
Lundgren and Andrew Findlay, respectively. One-third of the bonus is compulsorily deferred into shares for three years and subject to
continued employment. The Committee is satisfied with the overall payments in light of the level of performance achieved.

LTIP (AUDITED)

The awards vesting in respect of the performance year to 30 September 2019 were subject to a combination of performance conditions
based on three-year average headline ROCE (based on a 7x operating lease expense adjustment) and relative TSR compared to FTSE
51-150 companies measured over the prior three financial years. The percentage which could be earned was determined using the
following vesting schedule:
Below threshold Threshold On Target Maximum (100% Vesting (% of
(0% vesting) (25% vesting) (50% vesting) vesting) Actual element)
ROCE awards (70% of total) < 9.0% 9.0% 11.2% 13.0% or above 13.5% 100%
TSR awards (30% of total) < Median Median n/a Upper quartile < Median 0%
Three-year average headline ROCE performance exceeded the maximum target, while our TSR performance was below median. As
previously disclosed, the Committee took the decision in 2017 to exclude the impact of the Air Berlin transaction from the 2015 and 2016
LTIP cycles. As a result, 70% of the award became eligible to vest. The Committee considered this outcome and determined that it was a
fair reflection of the performance of the Company as a whole in the context of the challenging business environment. 70% of Andrew
Findlay’s award (62,080 shares) will therefore vest in December 2019, together with a dividend equivalent award of 8,275 shares.
PAYMENTS FOR LOSS OF OFFICE AND PAYMENTS TO PAST DIRECTORS (AUDITED)

No payments for loss of office or any other payments have been made to any former Directors during the year.
EXECUTIVE DIRECTORS’ SHARE AWARDS OUTSTANDING AT THE FINANCIAL YEAR END (AUDITED)
Details of share options and share awards outstanding at the financial year end are shown in the following tables:
JOHAN LUNDGREN
Market
No. of shares/ Shares/ Shares/ Shares/ No. of shares/ price on
options at 30 options options options options at 30 Exercise exercise Date
September granted lapsed exercised September price date from which
Scheme 2018(1) in year in year in year 2019(1) Date of grant (£) (£) exercisable Expiry Date
A 134,350 – – – 134,350 19 Dec 20174 – – 19 Dec 2020 19 Dec 2027
A – 167,003 – – 167,003 19 Dec 20186 – – 19 Dec 2021 19 Dec 2028
B – 26,871 – – 26,871 19 Dec 2018 – – 19 Dec 2021 19 Dec 2028
C – 283 – – 283 5 Apr 2019 – – 5 Apr 2022 n/a
E – 1,571 – – 1,571 14 Jun 2019 – – 1 Aug 2022 1 Feb 2023
ANDREW FINDLAY
Market
No. of shares/ Shares/ Shares/ Shares/ No. of shares/ price on
options at 30 options options options options at 30 Exercise exercise Date
September granted lapsed exercised September price date from which
Scheme 2018(1) in year in year in year 2019(1) Date of grant (£) (£) exercisable Expiry Date
A 49,620 – (49,620) – – 17 Dec 20152 – – 17 Dec 2018 17 Dec 2025
A 88,686 – – – 88,686 19 Dec 20163 – – 19 Dec 2019 19 Dec 2026
A 72,621 – – – 72,621 19 Dec 20174 – – 19 Dec 2020 17 Dec 2027
A 14,585 – – – 14,585 4 Jun 20185 – – 4 Jun 2021 4 Jun 2028
A – 94,619 – – 94,619 19 Dec 20186 – – 19 Dec 2021 19 Dec 2028
B 4,985 – – – 4,985 19 Dec 2016 – – 19 Dec 2019 19 Dec 2026
B 12,789 – – – 12,789 19 Dec 2017 – – 19 Dec 2020 19 Dec 2027
B – 20,086 – – 20,086 19 Dec 2018 – – 19 Dec 2021 19 Dec 2028
C 182 – – – 182 5 Apr 2018 – – 5 Apr 2021 n/a
C – 283 – – 283 5 Apr 2019 – – 5 Apr 2022 n/a
D 324 138 – – 462 – – Note 7 – n/a
E 1,051 – (1,051) – – 10 Jun 2016 11.98 – 1 Aug 2019 1 Feb 2020
E 557 – – – 557 15 Jun 2017 9.69 – 1 Aug 2020 1 Feb 2021
The closing share price of the Company’s ordinary shares at 30 September 2019 was £11.50 and the closing price range during the year
ended 30 September 2019 was £8.55 to £13.48.
KEY:
A Long Term Incentive Plan – Performance Shares
B Deferred Share Bonus Plan
C Share Incentive Plan – Performance (Free) Shares
D Share Incentive Plan – Matching Shares
E Save As You Earn Awards (SAYE)
www.easyJet.com 111
Note 1: Number of share awards granted

The number of shares is calculated according to the scheme rules of individual plans based on the middle-market closing share price of
the day prior to grant. As is usual market practice, the option price for SAYE awards is determined by the Committee in advance of the
award by reference to the share price following announcement of the half year results.
Note 2: LTIP awards granted in December 2015

70% of vesting was based on three-year average ROCE performance (based on a 7x operating lease expense adjustment) for the three
financial years ending 30 September 2018, and 30% of vesting was based on relative TSR performance compared to companies ranked
FTSE 31-130. ROCE for the 2018 financial year has been calculated excluding the impact of the Air Berlin acquisition. The following targets
applied for these awards:
Vesting in Vesting in Threshold Maximum Vesting (% of
December 2018 December 2018 (25% vesting) Target (100% vesting) Actual element)
ROCE awards
(70% of total award) < 15.0% 15.0% 18.0% 20.0% 13.8% 0%
TSR awards
(30% of total award) < Median Median n/a Upper quartile < Median 0%
Three-year average ROCE (including lease adjustments) was 13.8%, and the Company did not meet the threshold TSR performance
target. These awards therefore lapsed in full in December 2018.
Note 3: LTIP awards made in December 2016

Details of this award are set out on page 111.
The face value of the award granted to Andrew Findlay was £924,995 (200% of salary). Three-year average ROCE (based on a 7x
operating lease expense adjustment) was 13.5%, and the Company did not meet the threshold TSR performance target, such that 70% of
the award will vest in December 2019. On vesting, 8,275 dividend equivalent shares will be granted, reflecting the value of dividends which
would have been earned had Andrew Findlay held shares over the vesting period.

40% of vesting is based on three-year average headline ROCE (including lease adjustment) performance for the three financial years
ending 30 September 2020, 40% is based on aggregate headline EPS over the three financial years ending 30 September 2020, and
20% is based on relative TSR performance compared to companies ranked FTSE 51-150. In addition, the TSR awards will not vest unless
there has been positive TSR over the performance period. The following targets apply for these awards:
Vesting in Below threshold Threshold Target Maximum

December 2020 (0% vesting) (25% vesting) (50% vesting) (100% vesting)
ROCE awards (40% of total award) < 9.0% 9.0% 11.2% 13.0%
EPS awards (40% of total award) < 278p 278p 310p 335p
TSR awards (20% of total award) < Median Median n/a Upper quartile
The face value of the awards granted was £1,850,000 (250% of salary) to Johan Lundgren and £1,000,000 (200% of salary) to Andrew Findlay.
Note 5: LTIP awards made in June 2018

As disclosed in the 2018 Annual Report, in June 2018 Andrew Findlay received an additional award of £249,914 (50% of salary).


40% of vesting is based on three-year average headline ROCE (using the new IFRS 16 lease accounting standard) performance for the
three financial years ending 30 September 2021, 40% is based on aggregate headline EPS over the three financial years ending 30
September 2021, and 20% is based on relative TSR performance compared to companies ranked FTSE 51-150. In addition, the TSR
awards will not vest unless there has been positive TSR over the performance period. The following targets apply for these awards:
Below threshold Threshold Target Maximum

Vesting in December 2021 (0% vesting) (25% vesting) (50% vesting) (100% vesting)
ROCE awards (40% of total award) < 12.5% < 12.5% 14.5% 16.5%
EPS awards (40% of total award) < 383p < 383p 414p 446p
TSR awards (20% of total award) < Median < Median n/a Upper quartile
Note that ROCE targets, which were previously disclosed in the prior year’s report, have been increased by 1.5pp to reflect the adoption of IFRS 15 and IFRS 16. EPS
and TSR targets remain unchanged. The face value of the awards granted was £1,800,300 (250% of salary) to Johan Lundgren and £1,020,000 (200% of salary)
to Andrew Findlay. The value of the awards was determined based on the closing share price on the day prior to the date of grant of £10.78.
Note 7: Buy As You Earn

Participants buy Partnership Shares monthly under the Share Incentive Plan. The Company provides one Matching Share for each Partnership
Share purchased, up to the first £1,500 per year. These Matching Shares are first available for vesting three years after purchase.
SHAREHOLDING GUIDELINES IN THE 2019 FINANCIAL YEAR (AUDITED)

The shareholding guidelines will continue to operate on the same basis as last year, i.e. the Chief Executive and Chief Financial Officer are
expected to build up a shareholding of 200% and 175% of salary, respectively, over the first five years from appointment to the Board.
Until the guideline is met, Executive Directors are required to retain 50% of net vested shares from the LTIP and 100% of net vested
deferred bonus shares. Similarly, the Non-Executive Directors, including the Chairman of the Board, are required to build up a
shareholding of 100% of annual fees over a period of five years from appointment.
DIRECTORS’ CURRENT SHAREHOLDINGS AND INTERESTS IN SHARES (AUDITED)

The following table provides details on current Directors’ interests in shares at 30 September 2019.
Interests in share schemes(7)
Unconditionally Shareholding Deferred
owned shares(2) guidelines achieved(3) bonus(4) SAYE LTIP(5) SIP(6) Total
John Barton 45,000 100% – – – – –
Charles Gurassa 18,198 100% – – – – –
Johan Lundgren 40,000 46% 26,871 1,571 301,353 283 330,078
Andrew Findlay 30,468 66% 37,860 557 270,511 1,011 309,939
Dr Andreas Bierwirth 5,251 100% – – – – –
Dr Anastassia
Lauterbach(1)
– 0% – – – – –
Nicholas Leeder(1)
– 0% – – – – –
Andy Martin 7,000 100% – – – – –
Moya Greene DBE 7,407 100% – – – – –
Julie Southern 776 13% – – – – –
2. Includes SIP Partnership Shares, vested SIP Performance (Free) Shares, vested SIP Matching Shares and any shares owned by connected persons
3. Based on unconditionally owned shares and post-tax value of share interests under the deferred bonus plan as per the Committee’s policy on
shareholding guidelines. Once the guideline has been met, the number of shares counting towards the guideline is fixed, regardless of any change in share
price, with the Director only needing to invest in additional shares to the value of any increase in salary or fees awarded during the year in order to
maintain satisfaction of the guideline
4. Includes 26,871 and 20,086 awards granted in the year to Johan Lundgren and Andrew Findlay, respectively
5. LTIP shares are granted in the form of nil-cost options subject to performance. Includes 167,003 and 94,619 LTIP awards granted in the year to Johan
Lundgren and to Andrew Findlay, respectively
6. Consists of unvested SIP Performance (Free) Shares and unvested SIP Matching Shares
7. Of these schemes, the LTIP is subject to performance conditions and continued service. All other schemes are subject to continued service only
As at 18 November 2019, the unconditionally owned shares of Andrew Findlay had increased by 25 shares since 30 September 2019 to
30,493 shares.
Changes in share ownership levels throughout the year may be found on our corporate website corporate.easyjet.com/.
www.easyJet.com 113
Executive Directors are deemed to be interested in the unvested shares held by the easyJet Share Incentive Plan and the easyJet plc
Employee Benefit Trust. At 30 September 2019, ordinary shares held in the Trusts were as follows:
Number of
ordinary shares
easyJet Share Incentive Plan Trust 2,230,577
easyJet plc Employee Benefit Trust 85,537
Total 2,316,114
POSITION AGAINST DILUTION LIMITS

easyJet complies with the Investment Association’s Principles of Remuneration with regard to dilution limits. These principles require that
commitments under all of the Company’s share incentive schemes must not exceed 10% of the issued share capital in any rolling 10-year
period. Share awards under all current share incentive schemes (LTIP, Save As You Earn and Share Incentive Plan) will be satisfied with
share purchases on the market and the Company’s current position against its dilution limit is within the maximum 10% limit.
EMPLOYEE SHARE PLAN PARTICIPATION

A key component of easyJet’s reward philosophy is to provide share ownership opportunities throughout the Group by making annual
awards of performance-related shares to all eligible employees. In addition, easyJet operates a voluntary discounted share purchase
arrangement for all employees via a Save As You Earn scheme and a Buy As You Earn arrangement with matching shares in the UK
under the tax-approved Share Incentive Plan.
DETAILS OF DIRECTORS’ SERVICE CONTRACTS AND LETTERS OF APPOINTMENT

Details of the service contracts and letters of appointment in place as at 30 September 2019 for Directors are as follows:
Date of Date of current Unexpired term at
appointment service contract 30 September 2019
John Barton 1 May 2013 3 May 2016 Letters of appointment for the
Charles Gurassa 27 June 2011 19 June 2017 Non-Executive Directors do
not contain fixed term periods;
Johan Lundgren 1 December 2017 10 November 2017
however, they are appointed
Andrew Findlay 2 October 2015 10 April 2015 in the expectation that they
Dr Andreas Bierwirth 22 July 2014 19 July 2017 will serve for a maximum of
Moya Greene DBE 19 July 2017 18 July 2017 nine years, subject to
Dr Anastassia Lauterbach 1 January 2019 14 December 2018 satisfactory performance and
re-election at AGMs.
Nicholas Leeder 1 January 2019 14 December 2018
Andy Martin 1 September 2011 19 July 2017
Julie Southern 1 August 2018 7 June 2018
REVIEW OF PAST PERFORMANCE

The chart below sets out the TSR performance of the Company relative to the FTSE 250, FTSE 100 and a group of European airlines(1)
since 2009. The FTSE 100 and FTSE 250 were chosen as easyJet has been a member of both indices during the period.
700
600
500
400
300
200
100
0
30 Sep 2009 30 Sep 2010 30 Sep 2011 30 Sep 2012 30 Sep 2013 30 Sep 2014 30 Sep 2015 30 Sep 2016 30 Sep 2017 30 Sep 2018 30 Sep 2019
easyJet FTSE 100 Index FTSE 250 Index Comparator Airlines
This graph shows the value, by 30 September 2019, of £100 invested in easyJet on 30 September 2009, compared with the value of
£100 invested in the FTSE 100 and FTSE 250 Indices or a comparator group of airlines on the same date.
The other points plotted are the values at intervening financial year ends. Overseas companies have been tracked in their local currency,
i.e. ignoring exchange rate movements since 30 September 2009.
1. British Airways, Lufthansa, Ryanair, Air France-KLM and Iberia have all been included in the comparative European airlines group. British Airways and Iberia
have been tracked forward from 2011 onwards as IAG

SINGLE TOTAL FIGURE OF REMUNERATION

The table below shows the total remuneration figure for the Chief Executive over the same 10-year period. The total remuneration figure
includes the annual bonus and LTIP awards which vested based on performance in those years.
The annual bonus and LTIP vesting percentages show the payout for each year as a percentage of the maximum.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Single total figure of
remuneration (£’000) 2,741 1,552 3,694 7,777 9,209(4) 6,241(3) 1,453(2) 757 1,625(1) 1,006
Annual Bonus (%) 0% 63% 96% 87% 76% 66% 13% 0% 73% 16%
LTIP vesting (%) n/a n/a 92% 100% 100% 100% 32% 0% n/a n/a
1. Includes remuneration for the current Chief Executive, Johan Lundgren, of £1,500,000, and £125,000 paid to his predecessor, Carolyn McCall DBE (who was not
eligible for a bonus payment in 2018)
2. Includes 48,509 LTIP shares (inclusive of dividend equivalents) at the vesting date share price of £10.43, a decrease of 30% on the share price at grant of £14.99
3. Includes 266,899 LTIP shares vesting for the period, share price is £17.15 (the actual share price at vesting) an increase of 133% on the share price at grant of £7.37
4. Includes 445,575 LTIP shares vesting for the period, share price was £16.71 (the actual share price at vesting) an increase of 325% on the share price at grant of £3.93
CHANGE IN CHIEF EXECUTIVE PAY FOR THE YEAR IN COMPARISON TO THAT FOR EASYJET
EMPLOYEES
The table below shows the year-on-year percentage change in salary, benefits and annual bonus earned between the year ended 30
September 2019 and the year ended 30 September 2018 for the Chief Executive, compared to the average earnings of all other easyJet
UK employees.
Salary Benefits(3) Annual bonus(4)
Chief Executive(1) 0.6% n/a (74)%
Average pay based on all easyJet’s UK employees(2) 3.0% 0% (81)%
1. Chief Executive figures present actual FY2019 earnings compared against annualised figures for FY2018 (his start date was 1 December 2017).
2. UK employees are presented as the comparator as their salaries and benefits represent the most appropriate comparison. Note that UK employees
comprise over 50% of total employees.
3. Chief Executive benefits include an award under the all-employee Performance share plan in April 2019 and reimbursements for business-related travel
expenses in respect of domestic car travel. Prior year benefits solely comprised health benefits not of material cost to the Company. UK employee
benefits remained unchanged versus the prior year.
4. The reduction in bonus outcome, both for the Chief Executive and for UK employees, principally resulted from easyJet’s missing its profit target in 2019. In
2018, easyJet exceeded its profit stretch target such that both UK pilots and cabin crew received the maximum bonus outcome.
RELATIVE IMPORTANCE OF SPEND ON PAY

The table below shows the total pay for all of easyJet’s employees compared to other key financial indicators.
Year ended Year ended
30 September 30 September
2019 2018 Change %
Employee costs (£m) 944 847 11%
Ordinary dividend (£m) 174 233 (25)%
Average monthly number of employees 14,751 13,104 13%
Revenue (£m) 6,385 5,898 8%
Headline profit before tax (£m) 427 578 (26)%
1. Additional information on the number of employees, total revenue and profit has been provided for context. The majority of easyJet’s employees (around
90%) perform flight and ground operations, with the rest performing administrative and managerial roles.
EXTERNAL APPOINTMENTS
Andrew Findlay received fees of £67,500 in the year to 30 September 2019 for his role as Non-Executive Director of Rightmove plc.
STATEMENT OF SHAREHOLDERS’ VOTING AT AGM

The table below provides details of shareholder voting in respect of the Directors’ Remuneration Policy (approved in February 2018), and
the Annual Report on Remuneration (in February 2019).
Policy Annual Report on Remuneration
(February 2018 AGM) (February 2019 AGM)
Votes cast in favour 299,660,093 99.06% 173,273,056 98.09%
Votes cast against 2,831,491 0.94% 3,366,581 1.91%
Total votes cast in favour or against 302,491,584 100% 176,639,637 100%
Votes withheld 40,212 413,182
ADVISERS TO THE REMUNERATION COMMITTEE

The Remuneration Committee is advised by the Executive Compensation practice of Aon plc. Aon was appointed by the Committee in
2004 following a tender process. Aon advises the Committee on developments in executive pay and on the operation of easyJet’s
incentive plans. Other than to the Committee, advice is also provided to easyJet in relation to, for example, legal implementation and the
fees of the Non-Executive Directors. Aon also provides pension and flexible benefits administration services to the Company. Total fees
(excluding VAT) paid to Aon in respect of services to the Committee during the 2019 financial year were £63,000, charged on a time
and materials basis. Aon is a signatory to the Remuneration Consultants Group Code of Conduct and any advice received is governed by
that code. The Committee has reviewed the operating processes in place at Aon and is satisfied that the advice it receives is
independent and objective.
www.easyJet.com 115
DIRECTORS’ REPORT
Directors’ report
The Directors present their Annual Report and Accounts together DIRECTORS’ INDEMNITIES
with the audited consolidated financial statements for the year
Directors’ and officers’ insurance cover has been established for all
ended 30 September 2019. This Directors’ report and the strategic
Directors to provide appropriate cover for their reasonable actions
report, which includes the trends and factors likely to affect the
on behalf of the Company. A deed was executed in 2007
future development, performance and position of the business
indemnifying each of the Directors of the Company and/or its
and a description of the principal risks and uncertainties of the
subsidiaries as a supplement to the Directors’ and officers’
Group (which can found on pages 2 to 65 and is incorporated
insurance cover. The indemnities, which constitute a qualifying
by reference), collectively comprise the management report as
third-party indemnity provision as defined by section 234 of the
required under the Disclosure and Transparency Rules (‘DTRs’).
Companies Act 2006, were in force during the 2019 financial year
RESULTS & DIVIDEND and remain in force for all current and past Directors of the
Company.
The total profit for the financial year after taxation amounts to
£349 million (last year £358 million). SHARES
The Company’s dividend policy is to pay shareholders 50% of SHARE CAPITAL AND RIGHTS ATTACHING
headline profit after tax, reflecting the Board’s confidence in TO SHARES
the long-term prospects of the business. The Directors are
recommending an ordinary dividend of 43.9 pence per share, The Company’s issued ordinary share capital as at 30 September
amounting to £174 million. 2019 comprised a single class of ordinary share. Further details of
the Company’s share capital during the year are disclosed in note
The ordinary dividend is subject to shareholder approval at 20 of the consolidated financial statement on page 159.
the Company’s Annual General Meeting (AGM) to be held on
6 February 2020 and will be payable on 20 March 2020 to All of the issued ordinary shares are fully paid and rank equally in
the shareholders on the register at the close of business on all respects. The rights and obligations attaching to the Company’s
28 February 2020. ordinary shares are set out in its Articles of Association. Holders of
ordinary shares are entitled, subject to any applicable law and the
BOARD Company’s Articles of Association, to:
BOARD OF DIRECTORS AND THEIR INTERESTS • have shareholder documents made available to them, including
notice of any general meeting;
Details of the Directors who held office at the end of the year
and their biographical details are set out on pages 68 to 71. • attend, speak and exercise voting rights at general meetings,
Changes to the Board in the year are set out on page 71. either in person or by proxy; and
The Directors’ interest in the ordinary shares and options of the • participate in any distribution of income or capital.
Company are disclosed within the Directors’ Remuneration
Report on pages 111 and 113. DIRECTORS’ POWERS IN RELATION TO ISSUING
OR BUYING BACK SHARES
APPOINTMENT AND RETIREMENT OF DIRECTORS
Subject to applicable law and the Company’s Articles of
The Directors may from time to time appoint one or more Association the Directors may exercise all powers of the
Directors. Any such Director shall hold office only until the next Company, including the power to authorise the issue and/or
AGM and shall then be eligible for appointment by the Company’s market purchase of the Company’s shares (subject to an
shareholders. It is the current intention that at the Company’s appropriate authority being given to the Directors by
2020 AGM all continuing Executive and Non-Executive Directors shareholders in a general meeting and any conditions
will retire and offer themselves for reappointment in compliance attaching to such authority).
with the 2018 Code.
At the 2019 AGM, the Directors were given the following authority:
DIRECTORS’ CONFLICTS OF INTEREST • to allot shares up to a nominal amount of £10,838,107,
Directors have a statutory duty to avoid situations in which they representing 10% of the Company’s then issued share capital;
have, or may have, interests that conflict with those of easyJet,
• authority to allot shares, without first offering them to existing
unless that conflict is first authorised by the Board. The Company
shareholders in proportion to their holdings, up to a maximum
has in place procedures for managing conflicts of interest. The
nominal value of £5,419,053, representing 5% of the Company’s
Company’s Articles of Association also contain provisions to allow
then issued share capital; and
the Directors to authorise potential conflicts of interest so that a
Director is not in breach of his or her duty under company law. • purchase in the market a maximum of 39,720,813 shares,
Should a Director become aware that he or she has an interest, representing up to 10% of the Company’s share capital.
directly or indirectly, in an existing or proposed transaction with
No shares were allotted or bought back under these authorities
easyJet, he or she should notify the Board in line with the
during the year ended 30 September 2019 and up to the date
Company’s Articles of Association. Directors have a continuing
of this report. These standard authorities will expire on 31 March
duty to update any changes to their conflicts of interest.
2020 or at the conclusion of the 2020 AGM, whichever is earlier.
The Directors will seek to renew the authorities at the AGM
in 2020.

VOTING RIGHTS AND RESTRICTIONS ON TRANSFER ADDITIONAL INFORMATION
GOVERNANCE DIRECTORS’ REPORT

OF SHARES
SUBSTANTIAL INTERESTS
None of the ordinary shares carry any special rights with regard to
In accordance with DTR 5, as at 30 September 2019 the Company
control of the Company. There are no restrictions on transfers of
had been notified of the following disclosable interests in its issued
shares other than:
ordinary shares:
• certain restrictions which may from time to time be imposed by % of issued
laws or regulations such as those relating to insider dealing; Number of share capital
shares as as at 30
• pursuant to the Company’s Share Dealing Code, whereby the notified to the September
Directors and designated employees require approval to deal in Company 2019
the Company’s shares; The Haji-Ioannou family concert 133,977,772 33.73%
• where a person with an interest in the Company’s shares has party shareholding, consisting of
been served with a disclosure notice and has failed to provide easyGroup Holdings Limited (holding
the Company with information concerning interests in those vehicle for Sir Stelios Haji-Ioannou
shares; and Clelia Haji-Ioannou) and Polys
Haji-Ioannou (through his holding
• where a proposed transferee of the Company’s shares has
vehicle Polys Holdings Limited)
failed to provide to the Directors a declaration of nationality
(together with such evidence as the Directors may require) Invesco Limited 39,717,251 9.99%
as required by the Company’s Articles of Association; and Blackrock, Inc. 20,475,122 5.15%
• t he powers given to the Directors by the Company’s Articles of Between 30 September 2019 and 18 November 2019, the
Association to limit the ownership of the Company’s shares by Company was notified that Blackrock’s holding had changed to
non-UK nationals or, following a decision of the Directors, by below 5% of voting rights. There were no other interests in shares
non-EU nationals, and powers to enforce this limitation, notified between 30 September 2019 and 18 November 2019.
including the right to force a sale of any affected shares.
ANNUAL GENERAL MEETING
There are no restrictions on exercising voting rights save in
situations where the Company is legally entitled to impose such a The venue and timing of the Company’s 2020 AGM will be
restriction (for example under the Articles of Association where an detailed in the notice convening the AGM at the relevant time.
Affected Shares Notice has been served, amounts remain unpaid
ARTICLES OF ASSOCIATION
in the shares after request, or the holder is otherwise in default of
an obligation to the Company). The Company is not aware of any The Company’s Articles of Association may only be amended by
arrangements between shareholders that may result in restrictions a special resolution at a general meeting of the shareholders. The
on the transfer of securities or voting rights. Company’s articles were last amended at the 2018 AGM to ensure
the Company was able to remain EU-owned and controlled at all
VARIATION OF RIGHTS times after the UK has left the EU as required under the EU law.
Subject to the Companies Act 2006, rights attached to any class
BRANCHES
of shares may be varied with the consent in writing of the holders
of three-quarters in nominal value of the issued shares of the class The Group, through various subsidiaries, has established branches
or with the sanction of a special resolution passed at a separate in France, Germany, Italy, Netherlands, Portugal and Spain, in
general meeting of the shareholders. which the business operates.
EMPLOYEE SHARE SCHEMES – RIGHTS OF FINANCIAL INSTRUMENTS

CONTROL Details of the Group’s use of financial instruments, together with
The trustees of the easyJet UK Share Incentive Plan, which is used information on our financial risk management objectives and
to acquire and hold shares in the Company for participants in the policies, hedging policies and our exposure to financial risks can
UK Share Incentive Plan, do not seek to exercise voting rights on be found in notes 24 and 27 to the consolidated financial
shares held other than on direction of the underlying beneficiaries. statements.
The trustees take no action in respect of ordinary shares for which
GOING CONCERN AND VIABILITY STATEMENT
they have received no direction to vote, or in respect of ordinary
shares which are unallocated. The Company’s going concern and viability statements are
detailed on pages 34 and 35 of the Strategic Report.
The trustee of the easyJet plc Employee Benefit Trust (the ‘Trust’),
which is used to acquire and hold shares in the Company for the
benefit of employees, including in connection with the easyJet
Long Term Incentive Plan, the International Share Incentive Plan
and Save As You Earn plans, has the power to vote or not vote,
at its absolute discretion, in respect of any shares in the Company
held unallocated in the Trust. However, in accordance with good
practice, the trustee adopts a policy of not voting in respect of
such shares.
Both the trustees of the easyJet UK Share Incentive Plan and the
easyJet plc Employee Benefit Trust have a dividend waiver in
place in respect of shares which are the beneficial property of
each of the trusts.
www.easyJet.com 117
DIRECTORS’ REPORT CONTINUED
INDEPENDENT AUDITOR AND DISCLOSURE OF SIGNIFICANT AGREEMENTS – CHANGE OF

INFORMATION TO THE AUDITOR CONTROL
The Directors have taken all reasonable steps to ensure any The Company also licences the easyJet brand from easyGroup
audit-related information has been brought to the attention of Limited. Further details are set out in note 28 to the financial
the Group’s auditor. The Directors are not aware of any relevant statements.
information which has not been disclosed to the auditor.
The following significant agreements which were in force at 18
A resolution to reappoint PricewaterhouseCoopers LLP as auditor
November 2019 take effect, alter or terminate on a change of
of the Group will be put to shareholders at the forthcoming AGM.
control of the Company.
POLITICAL DONATIONS AND EXPENDITURE EMTN Programme and Eurobond issue
easyJet works constructively with all levels of government across On 7 January 2016, the Group established a Euro Medium Term
its network, regardless of political affiliation. easyJet believes in the Note Programme (the ‘EMTN Programme’) which provides the
rights of individuals to engage in the democratic process; however Group with a standardised documentation platform to allow for
it is easyJet’s policy not to make political donations. There were no senior unsecured debt issuance in the Eurobond markets. The
political donations made or political expenditure incurred during maximum potential issuance under the EMTN Programme is
the 2019 financial year. £3 billion. The EMTN Programme was subsequently updated on
4 June 2019 with the issue of further Eurobonds.
RELATIONSHIP AGREEMENT WITH CONTROLLING
SHAREHOLDERS Under the EMTN Programme, the following notes (the ‘Notes’)
have been issued by the Company:
Any person who exercises or controls on their own, or together
with any person with whom they are acting in concert, 30% or • February 2016: Eurobonds consisting of €500 million
more of the votes able to be cast on all or substantially all matters guaranteed Notes paying 1.75% interest and maturing in
at general meetings of a company are known as ‘controlling February 2023;
shareholders’. The Listing Rules require companies with controlling • October 2016: Eurobonds consisting of €500 million guaranteed
shareholders to enter into a written and legally binding agreement Notes paying 1.125% interest and maturing in October 2023; and
which is intended to ensure that the controlling shareholder
• June 2019: Eurobonds consisting of €500 million guaranteed
complies with certain independence provisions. The agreement
Notes paying 0.875% interest and maturing in June 2025.
must contain undertakings that:
• transactions and arrangements with the controlling shareholder Pursuant to the final terms attaching to the Notes, the Company
(and/or any of its associates) will be conducted at arm’s length will be required to make an offer to redeem or purchase its Notes
and on normal commercial terms; at its principal amount plus interest up to the date of redemption
or repurchase if there is a change of control of the Company
• neither the controlling shareholder nor any of its associates will
which results in a downgrade of the credit rating of the notes to
take any action that would have the effect of preventing the
a non-investment grade rating or withdrawal of the rating by both
listed company from complying with its obligations under the
Moody’s and Standard & Poor’s.
Listing Rules; and
• neither the controlling shareholder nor any of its associates will Revolving credit facility
propose or procure the proposal of a shareholder resolution The Group was party to a revolving credit facility (RCF) which
which is intended or appears to be intended to circumvent contained change of control provisions. A new RCF was reviewed
the proper application of the Listing Rules. and approved by the Finance Committee in July 2018. The new
RCF amounted to £250 million, supported equally by five banks,
The Board confirms that, in accordance with the Listing Rules, on and was for a period of two years ending in July 2020. Following
14 November 2014, the Company entered into such an agreement the issuance of Medium Term Notes, the RCF of £250 million
with Sir Stelios Haji-Ioannou (easyJet’s founder) and easyGroup was discontinued.
Holdings Limited, an entity in which Sir Stelios holds a beneficial
interest and which holds shares in the Company on behalf of Sir
Stelios (the ‘Relationship Agreement’). Under the terms of the
Relationship Agreement, Sir Stelios and easyGroup Holdings
Limited have agreed to procure the compliance of Polys and Clelia
Haji-Ioannou with the independence obligations contained in the
Relationship Agreement. Sir Stelios, easyGroup, Polys and Clelia
Haji-Ioannou together comprise controlling shareholders of the
Company who have a combined total holding of approximately
33% of the Company’s voting rights.
The Board confirms that, since the entry into the Relationship
Agreement on 14 November 2014 until 18 November 2019, being
the latest practicable date prior to the publication of this Annual
Report and Accounts:
• the Company has complied with the independence provisions
included in the Relationship Agreement;
• so far as the Company is aware, the independence provisions
included in the Relationship Agreement have been complied
with by Sir Stelios, easyGroup, and Clelia and Polys Haji-Ioannou
and their associates; and
• so far as the Company is aware, the procurement obligation
included in the Relationship Agreement has been complied with
by Sir Stelios and easyGroup Holdings Limited.

Other agreements
GOVERNANCE DIRECTORS’ REPORT

The Company does not have other agreements with any Director DISCLOSURES REQUIRED UNDER LISTING
or employee that would provide compensation for loss of office RULE 9.8.4
or employment resulting from a change of control on takeover,
except that provisions of the Company’s share schemes and plans The information to be included in the 2019 Annual Report
may cause options and awards granted to employees under such and Accounts under LR 9.8.4, where applicable, can be
schemes and plans to vest on a takeover. located as set out below.
Information Page
The Annual Report and Accounts have been drawn up and
Amount of interest capitalised and tax relief n/a
presented in accordance with UK company law and the liabilities
of the Directors in connection with the report shall be subject to Publication of unaudited financial information n/a
the limitations and restrictions provided by such law. Details of long-term incentive schemes 96-115
easyJet plc is incorporated as a public limited company and is Waiver of emoluments by a director n/a
registered in England under number 3959649. easyJet plc’s Waiver of future emoluments by a director n/a
registered office is Hangar 89, London Luton Airport, Luton, Non pre-emptive issue for cash n/a
Bedfordshire, LU2 9PF. Non pre-emptive issue for cash to major
The Strategic Report (comprising pages 2 to 65) and Directors’ unlisted subsidiary undertaking n/a
report (comprising pages 116 to 119) were approved by the Board Parent participation in a placing by a
and signed on its behalf by the Company Secretary. listed subsidiary n/a
By order of the Board Contracts of significance 118
Provision of services by controlling
shareholder n/a
Shareholder waiver of dividends 117
Shareholder waiver of future dividends 117
Agreements with controlling shareholder 118
Other information that is relevant to this report, and which is

incorporated by reference, can be located as follows:
Maaike de Bie Information Page
Company Secretary Membership of Board during 2019
financial year 68-71
London, 18 November 2019 Directors’ service contracts 114
Financial instruments and financial risk
management Note 27
Carbon and greenhouse gas emissions 60-61
Corporate governance report 66
Future developments of the business
of the Group 16-25
Employee equality, diversity and inclusion 57-59
Employee engagement 56-57
www.easyJet.com 119
STAT EMENT OF DIRECTORS’ RESPONSIBILITIES
Directors’ responsibilities
and statements
The Directors are responsible for preparing the Annual Report, the Each of the Directors, whose names and functions are listed on
Directors’ remuneration report and the accounts in accordance pages 68 and 71, confirm that, to the best of their knowledge:
with applicable law and regulations.
• the Group and Company accounts, which have been prepared
Company law requires the Directors to prepare accounts for each in accordance with IFRS as adopted by the EU, give a true and
financial year. Under that law the Directors have prepared the fair view of the assets, liabilities, financial position and profit of
Group and Company accounts in accordance with International the Group and Company; and
Financial Reporting Standards (IFRS) as adopted by the European • the strategic report, included in the Annual Report, includes a
Union (EU). Under company law the Directors must not approve fair review of the development and performance of the
the accounts unless they are satisfied that they give a true and business and the position of the Group, together with a
fair view of the state of affairs of the Group and the Company and description of the principal risks and uncertainties that it faces.
of the profit or loss of the Group and the Company for that period.
In accordance with section 418 of the Companies Act 2006, each
In preparing these accounts, the Directors are required to:
Director in office at the date the Directors’ report is approved,
• select suitable accounting policies and then apply them confirms that:
consistently;
• so far as the Director is aware, there is no relevant audit
• make judgements and accounting estimates that are reasonable information of which the Company’s auditor is unaware; and
and prudent;
• he/she has taken all the steps that he/she ought to have taken
• state whether applicable IFRS as adopted by the EU have been as a Director in order to make himself/herself aware of any
followed, subject to any material departures disclosed and relevant audit information and to establish that the Company’s
explained in the accounts; and auditor is aware of that information.
• prepare the accounts on the going concern basis unless it is
inappropriate to presume that the Company will continue in The Annual Report on pages 1 to 120 was approved by the Board
business. of Directors and authorised for issue on 18 November 2019 and
signed on its behalf by:
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Group’s and
the Company’s transactions and disclose with reasonable accuracy
at any time the financial position of the Group and the Company.
This enables them to ensure that the accounts and the Directors’ JOHAN LUNDGREN
remuneration report comply with the Companies Act 2006 and, Chief Executive
as regards the Group accounts, Article 4 of the IAS Regulation.
They are also responsible for safeguarding the assets of the Group
and the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of,
amongst other things, the financial and corporate governance ANDREW FINDLAY
information provided on the easyJet website (corporate.easyjet.com). Chief Financial Officer
Legislation in the United Kingdom governing the preparation and
dissemination of accounts may differ from legislation in other
jurisdictions.
The Directors consider that the Annual Report and Accounts,
taken as a whole, are fair, balanced and understandable and
provide the information necessary for shareholders to assess the
Group’s and the Company’s position and performance, business
model and strategy.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF EASYJET PLC
REPORT ON THE AUDIT OF THE FINANCIAL the year then ended; and the notes to the financial statements,
STATEMENTS
FINANCIAL STATEMENTS INDEPENDENT AUDITORS’ REPORT

which include a description of the significant accounting policies.
OPINION Our opinion is consistent with our reporting to the Audit Committee.
In our opinion, easyJet plc’s Group financial statements and BASIS FOR OPINION
Company financial statements (the “financial statements”): We conducted our audit in accordance with International Standards
• give a true and fair view of the state of the Group’s and of the on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities
Company’s affairs as at 30 September 2019 and of the Group’s under ISAs (UK) are further described in the Auditors’ responsibilities
profit and the Group’s and the Company’s cash flows for the for the audit of the financial statements section of our report. We
year then ended; believe that the audit evidence we have obtained is sufficient and
• have been properly prepared in accordance with International appropriate to provide a basis for our opinion.
Financial Reporting Standards (IFRSs) as adopted by the Independence
European Union and, as regards the Company’s financial We remained independent of the Group in accordance with
statements, as applied in accordance with the provisions of the the ethical requirements that are relevant to our audit of the
Companies Act 2006; and financial statements in the UK, which includes the FRC’s Ethical
• have been prepared in accordance with the requirements of the Standard, as applicable to listed public interest entities, and we
Companies Act 2006 and, as regards the Group financial have fulfilled our other ethical responsibilities in accordance
statements, Article 4 of the IAS Regulation. with these requirements.
We have audited the financial statements, included within the To the best of our knowledge and belief, we declare that
Annual Report and Accounts (the “Annual Report”), which non-audit services prohibited by the FRC’s Ethical Standard were
comprise: the Consolidated and Company statements of financial not provided to the Group or the Company.
position as at 30 September 2019; the Consolidated income Other than those disclosed in the Corporate Governance report
statement and Consolidated statement of comprehensive income, on page 93, we have provided no non-audit services to the Group
the Consolidated and Company statements of changes in equity, or the Company in the period from 1 October 2018 to
and the Consolidated and Company statements of cash flows for 30 September 2019.
OUR AUDIT APPROACH

Overview MATERIALITY
• Overall Group materiality: £21.5m based on 5% of profit before tax (2018: £28.8m based on 5% of
headline profit before tax),
• Overall Company materiality: £21.3m (2018: £26.2m), based on 1% of total assets.
Materiality
AUDIT SCOPE
• We performed audit procedures over six reporting components in the Group, including all individually
significant components.
Audit scope
• Separate audit procedures were carried out over the Company and in relation to consolidation
adjustments.
• This provided coverage of 100% external revenue and profit before tax.
Area of
focus KEY AUDIT MATTERS
• Aircraft maintenance provision (Group).
• Fair value of derivative instruments (Group and Company).
• EU 261 provision (Group).
• Goodwill and landing rights impairment assessment (Group).
• Accounting for the liabilities associated with the Swiss pension scheme (Group).
• Accounting for the adoption of new accounting standards (IFRS 9, 15 and 16) (Group and Company).
THE SCOPE OF OUR AUDIT Rules. We evaluated management’s incentives and opportunities
for fraudulent manipulation of the financial statements (including
As part of designing our audit, we determined materiality and
the risk of override of controls), and determined that the principal
assessed the risks of material misstatement in the financial
risks were related to posting inappropriate journal entries, either in
statements.
the underlying books and records or as part of the consolidation
CAPABILITY OF THE AUDIT IN DETECTING process, and management bias in accounting estimates. The
IRREGULARITIES, INCLUDING FRAUD Group engagement team shared this risk assessment with the
component auditor so that they could include appropriate audit
Based on our understanding of the Group and industry, we
procedures in response to such risks in their work. Audit
identified that the principal risks of non-compliance with laws and
procedures performed by the Group engagement team and/or
regulations related to easyJet’s Air Travel Organiser’s Licence
component auditors included:
being revoked, breaches of the current EU Emissions Trading
System requirements or other environmental regulations, UK and • Discussions with management, internal audit and the Group’s
overseas tax legislation not being adhered to and non-compliance legal team, including consideration of known or suspected
with employment regulations in the UK and other jurisdictions in instances of non-compliance with laws and regulation and fraud;
which the Group operates, and we considered the extent to which • Reading key correspondence from the FRC;
non-compliance might have a material effect on the financial
• Challenging assumptions and judgements made by
statements. We also considered those laws and regulations that
management in it’s significant accounting estimates that
have a direct impact on the preparation of the financial
involved making assumptions and considering future events
statements such as the Companies Act 2006 and the Listing
www.easyJet.com 121
INDEPENDENT AUDITORS’ REPORT TO T HE MEMBERS OF EASYJET PLC CONTINUED
that are inherently uncertain. We focused on the valuation of fraud is higher than the risk of not detecting one resulting from
the maintenance provision, impairment of goodwill and landing error, as fraud may involve deliberate concealment by, for example,
rights, the valuation of pension scheme liabilities and the forgery or intentional misrepresentations, or through collusion.
valuation of the EU 261 provisions (see related key audit matters
below); KEY AUDIT MATTERS
• Consideration of recent correspondence with the Group’s legal Key audit matters are those matters that, in the auditors’
advisors to ensure that it aligned with the conclusions drawn on professional judgement, were of most significance in the audit of
obligations recognised in respect of uncertain legal matters; the financial statements of the current period and include the
most significant assessed risks of material misstatement (whether
• Identifying and testing journal entries, in particular any journal
or not due to fraud) identified by the auditors, including those
entries posted with unusual account combinations and crediting
which had the greatest effect on: the overall audit strategy; the
the income statement; and
allocation of resources in the audit; and directing the efforts of the
• Testing all material consolidation adjustments to ensure these engagement team. These matters, and any comments we make
were appropriate in nature and magnitude. on the results of our procedures thereon, were addressed in the
context of our audit of the financial statements as a whole, and in
There are inherent limitations in the audit procedures described
forming our opinion thereon, and we do not provide a separate
above and the further removed non-compliance with laws and
opinion on these matters. This is not a complete list of all risks
regulations is from the events and transactions reflected in the
identified by our audit.
financial statements, the less likely we would become aware of it.
Also, the risk of not detecting a material misstatement due to
Key audit matter How our audit addressed the key audit matter
AIRCRAFT MAINTENANCE PROVISION (GROUP)
The Group operates aircraft which are owned or held under We evaluated the maintenance provision model and tested
finance or operating lease arrangements and incurs liabilities for the calculations therein. This included assessing the process
maintenance costs in respect of aircraft leased under operating by which the variable factors within the provision are
leases during the term of the lease. These arise from legal and estimated, evaluating the reasonableness of the assumptions,
contractual obligations relating to the condition of the aircraft testing the input data and re-performing calculations. In
when it is returned to the lessor. Maintenance provisions of £526 particular, we challenged the key assumptions using the
million (2018: £392m) for aircraft maintenance costs in respect of Group’s internal data, such as business plans and maintenance
aircraft leased under operating leases were recorded in the contract terms and pricing. We also performed sensitivity
financial statements at 30 September 2019. At each balance analysis around the key drivers of the model. We found no
sheet date, the calculation of the maintenance provision includes material exceptions from these assessments and
a number of variable factors and assumptions including: likely comparisons.
utilisation of the aircraft; the expected cost of the heavy
Having ascertained the magnitude of movements in those key
maintenance check at the time it is expected to occur; the
assumptions, that either individually or collectively would be
condition of the aircraft; and the lifespan of life-limited parts. We
required for the provision to be misstated, we considered the
focused on this area because of an inherent level of management
likelihood of such movements arising and any impact on the
judgement required in calculating the amount of provision needed
overall level of aircraft maintenance provisions recorded in the
as a result of the complex and subjective elements around these
financial statements. Our assessment as to likelihood and
variable factors and assumptions.
magnitude did not identify any material exceptions.
Refer to the Accounting policies, judgements and estimates note
(note 1c.ii) and note 18, on page 156, for management’s disclosures
of the relevant judgements and estimates involved in assessing this
provision valuation. Refer to Audit Committee report on page 89.
FAIR VALUE OF DERIVATIVE INSTRUMENTS (GROUP AND COMPANY)

The Group and Company hold significant net funds, comprising We evaluated and assessed the processes, procedures and
cash and money market deposits and borrowings through bank controls in respect of treasury and other management
loans and lease obligations. Given the nature of the business, the functions which directly impact the relevant account balances
Group and Company also make use of derivative financial and transactions.
instruments. Forward contracts are used to hedge transaction
We tested management’s year end account reconciliation
currency risk (comprising fuel, leasing and maintenance US dollar
process. The results of this work allowed us to focus on
payments), jet fuel price risk, and Euro and Swiss Franc revenue
substantiating the year end positions recorded in the financial
receipts. At 30 September 2019, cash and money market deposits
statements. We did not identify any material exceptions. We
amounted to £1,580 million (2018: £1,384 million), borrowings were
independently obtained third-party confirmations from
£1,324 million (2018: £977 million), derivative financial assets
counterparties of the year end positions. .
amounted to £273 million (2018: £395 million) and derivative
financial liabilities were £210 million (2018: £31 million). We focus We assessed the appropriateness of hedge accounting for the
on these balances because of their materiality to the financial derivative financial instruments and tested, using independent
position of the Group and Company, the volume of transactions data feeds, the fair values being ascribed to those instruments
passing through the respective accounts and the number of at the year end. These procedures did not identify any material
counterparties involved. exceptions. We also assessed the appropriateness of the
disclosures in the financial statements in respect of both
non-derivative and derivative financial instruments. Based on
(note 1c.ii) and note 24, on pages 163 - 166, for management’s
our work, we considered the disclosures to be appropriate.
disclosures of the relevant judgements and estimates involved in
assessing the valuation of derivatives instruments. Refer to Audit
Committee report on page 89.


EU 261 PROVISION (GROUP)
The Group records a provision for EU 261 compensation We have understood the processes, procedures and controls
payable in respect of flight delays and cancellations. At 30 in place in respect of the EU 261 provision balance and
September 2019 this provision was £30 million (2018: £39 million). assessed key account reconciliation processes. We tested
We focused on this area because there is an inherent level of and challenged the reasonableness of the key assumptions
complexity in management’s estimate of this provision owing underlying the EU 261 provisions which included:
to its uncertain nature.
• passenger claim history;
Refer to the Accounting policies, judgements and estimates • levels of passenger claims;
note (note 1c.ii) and note 18, on page 156, for management’s • flight disruptions;
disclosures of the relevant judgements and estimates involved in • levels of no-show passengers; and
assessing this provision valuation. Refer to Audit Committee • time periods over which the assessment is made.
report on page 89.
We tested the input data of the EU 261 provisions,
reperformed the underlying calculations and performed
sensitivity analysis over the key drivers of the valuation of the
provision. We found no material exceptions from these
procedures.
Having ascertained the magnitude of movements in those key
assumptions, that either individually or collectively would be
required for the provision to be materially misstated, we
considered the likelihood of such movements arising and any
impact on the overall level of judgemental provisions recorded
in the financial statements. Our assessment as to the
likelihood and magnitude did not identify any material
exceptions.
GOODWILL AND LANDING RIGHTS IMPAIRMENT ASSESSMENT (GROUP)

Goodwill arises from acquisitions in previous years and has an We obtained management’s annual impairment assessment
indefinite expected useful life. Landing rights (which are intangible and ensured the calculations were mathematically accurate
assets) are considered by management to have an indefinite and the methodology used was in line with the requirements
useful life as they will remain available for use for the foreseeable of IAS 36 ‘Impairment of Assets’. Where our interpretation of
future. Goodwill and landing rights are tested for impairment at IAS 36 differed from that of management, we have adjusted
least annually at the cash-generating unit (“CGU”) level. The Group for this in our independent analysis to reflect the impact of
has one CGU, being its route network, to which all goodwill and any such differences on management’s base case model.
landing rights relate. At 30 September 2019, the aggregate value
We evaluated and challenged the future cash flow forecasts
of goodwill and landing rights amounted to £497 million (2018:
of the CGU, and the process by which they were drawn up,
£494 million). We focused on this assessment as the impairment
and tested the underlying value in use calculations. In doing
test involves a number of subjective judgements and estimates by
this, we compared the forecast to the latest Board-approved
management, many of which are forward-looking. These
plans, and compared prior year budget to actual data in order
estimates include key assumptions surrounding the strategic five
to assess the quality of the forecasting process.
year plan, fuel prices, exchange rates, long-term economic growth
rates and discount rates. We also challenged the key assumptions for fuel prices,
exchange rates and long-term growth rates in the forecasts
by comparing them to economic and industry forecasts and,
(note 1c.ii) and note 9, on pages 151 - 152, for management’s
for the discount rate, by assessing the cost of capital for the
Group and comparable organisations. We found no material
assessing goodwill and landing rights for impairment. Refer to
exceptions from our work.
Audit Committee report on page 89.
We performed our own independent sensitivity analysis
around the key assumptions by replacing key assumptions
with alternative scenarios to ascertain the extent of change in
those assumptions that either individually or collectively would
be required for the goodwill and landing rights to be impaired.
We found no material exceptions from this analysis.
www.easyJet.com 123
ACCOUNTING FOR THE LIABILITIES ASSOCIATED WITH THE SWISS PENSION SCHEME (GROUP)
A pension liability of £47 million has been recognised on the We obtained the IAS 19 actuarial valuations as at 30 September
balance sheet as at 30 September 2019 due to the obligations 2019, 30 September 2018 and 1 October 2017 prepared by
which arise due to minimum required rates of return under Swiss management’s experts and agreed the projected unit
law. The comparative period has also been restated in order to methodology used in all three valuations to be appropriate.
present the liability on consistent basis. An obligation of £29
In respect of each valuation we used our actuarial experts
million is therefore now recognised as at 30 September 2018. As a
from PwC Switzerland to assess the appropriateness of the
result of the quantum of this liability and the level of judgement
significant assumptions used in determining the pension
involved in calculating the opening and closing liability, there is an
liabilities including the discount rate, RPI and CPI inflation
increased risk of material misstatement. Whilst management
assumptions and mortality assumptions. Specifically, we
utilises the service of third party actuarial advisors to determine
ensured these fell within an acceptable range on benchmarking
the key assumptions, there is a risk that the discount rate, rate of
these against our accepted actuarial assumptions and noted no
inflation and mortality assumptions used in the calculation are
outliers. We also ensured that the valuation methodology used
inappropriate.
at each relevant date was consistent.
For each period impacted by the prior period adjustment, we
(note 1c.ii) and note 19, on pages 156 -158, for management’s
have tested the correction to retained earnings to ensure that it
has been calculated appropriately.
assessing the valuation of the pension obligation. Refer to Audit
Committee report on page 89. We assessed the appropriateness and adequacy of the
disclosures in respect of the pension liability in note 19 of the
financial statements and agree these to be satisfactory and
aligned to the requirements of IAS 19.
Based on the procedures we have performed we have
concluded that the accounting for the Swiss pension scheme
is appropriate
ACCOUNTING FOR THE ADOPTION OF NEW ACCOUNTING STANDARDS (IFRS 9, 15 AND 16)
(GROUP AND COMPANY)
easyJet has implemented IFRS 9 and 15 in accordance with the We obtained management’s narrative impact assessment in
required adoption date, and has chosen to early adopt IFRS 16. The respect of each new accounting standard and their proposed
impact on the financial statements of the adoption of all three new accounting policies. We assessed the appropriateness of
standards is significant. these initial assessments to ensure the proposed treatments
were in line with the requirements of standards. This included
a consideration of any exemptions or practical expedients to
(note 1b) for management’s disclosures of the relevant judgments
be exercised. Appropriate amendments to the methodology
and estimates involved in determining the impact of the adoption
and accounting policies to be applied were made by
of these three standards as well as for details of the relevant
management where required.
changes to the accounting policies applied for the year ended 30
September 2019 and going forward. This note can be found on Following the completion of the initial assessment we
pages 137 - 144. Refer to Audit Committee report on page 89. obtained management’s calculations for determining the
quantum impact of the adoption of these standards. We
tested the mathematical accuracy of the schedules obtained
and tested the accuracy of a sample of the input data used
to ensure this was appropriate.
We obtained the fair value assessment for equity investments
to be recognised under IFRS 9 which were prepared by
management’s experts. We utilised our internal valuations
team to assess the reasonableness of this valuation.
We also tested the appropriateness of the significant
assumptions used in determining the impact. For IFRS 15 this
included the assessment of what proportion of the
compensation costs incurred should be offset against
revenue. For IFRS 16 these included the discount rates and
assessment of lease extension options to be used in
calculating the value of the lease liabilities.
We assessed the appropriateness and adequacy of the
disclosures in respect of the adoption in note 1b of the
financial statements and concluded that these were aligned to
the requirements of IFRS 9, 15 and 16 respectively.
Based on the audit procedures performed we concluded that
the impact of adoption of new accounting standards has
been appropriate and the relevant judgements and estimates
have been disclosed in the financial statements.

HOW WE TAILORED THE AUDIT SCOPE

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements
as a whole, taking into account the structure of the Group and the Company, the accounting processes and controls, and the industry in
which they operate.
The Group operates through the Company and its twelve subsidiary undertakings of which six were actively trading through the year.
The remaining subsidiaries are either holding companies, dormant or have been newly established during the year and not yet started to
actively trade. The accounting for these components is largely centralised in the UK.
We determined the most effective approach to scoping was to perform full scope procedures over five components registered in the UK
and Austria, together with performing procedures over all material financial statement line items for easyJet Switzerland SA. Under our
direction and supervision some financial statement line items identified in our scope were audited by a component team from PwC Switzerland.
We determined the appropriate level of our involvement in the underlying work to ensure we could conclude that sufficient appropriate
audit evidence had been obtained for the Group financial statements as a whole. We issued written instructions to the component
auditor and had regular communications with them throughout the audit cycle. Additional audit procedures were performed in relation to
consolidation adjustments. The testing approach ensured that appropriate audit evidence had been obtained over all financial statement
line items in order to support our opinion on the Consolidated financial statements as a whole. Based on the detailed audit work
performed across the Group, we have gained coverage of 100% of both external consolidated revenue and profit before tax.
MATERIALITY
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually
and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group Financial Statements Company Financial Statements
Overall materiality £21.5m (2018: £28.8m). £21.3m (2018: £26.2m).
How we determined it 5% of profit before tax. 1% of total assets.
Rationale for benchmark applied We have applied this benchmark, a generally We have applied this benchmark of total
accepted auditing practice, in the absence of assets, a generally accepted auditing
indicators that an alternative benchmark would practice, in the absence of indicators that
be appropriate given that profitability is the an alternative benchmark would be
primary measure used by the shareholders in appropriate given that the Company does
assessing the underlying performance of the not generate revenues of its own.
Group. In the previous year a benchmark set at
5% of headline profit before tax was used to
determine overall materiality. This was due to
the significance of the non-headline items
which arose during the previous financial year.
For each component in the scope of our Group audit, we allocated a materiality that is less than our overall Group materiality. The range
of materiality allocated across components was between £1,650,000 and £21,330,000. Certain components were audited to a local
statutory audit materiality that was also less than our overall Group materiality.
We agreed with the Audit Committee that we would report misstatements identified during our audit above £1,075,000 (Group audit)
(2018: £1,400,000) and £1,065,000 (Company audit) (2018: £1,300,000) as well as misstatements below those amounts that, in our
view, warranted reporting for qualitative reasons.
GOING CONCERN
In accordance with ISAs (UK) we report as follows:
Reporting obligation Outcome
We are required to report if we have anything material to add or We have nothing material to add or to draw attention to.
draw attention to in respect of the directors’ statement in the
However, because not all future events or conditions can be
financial statements about whether the directors considered it
predicted, this statement is not a guarantee as to the Group’s
appropriate to adopt the going concern basis of accounting in
and Company’s ability to continue as a going concern. For
preparing the financial statements and the directors’
example, the terms on which the United Kingdom may withdraw
identification of any material uncertainties to the Group’s and
from the European Union are not clear, and it is difficult to
the Company’s ability to continue as a going concern over a
evaluate all of the potential implications on the Group’s trade,
period of at least twelve months from the date of approval of
customers, suppliers and the wider economy.
the financial statements.
We are required to report if the directors’ statement relating to We have nothing to report.
going concern in accordance with Listing Rule 9.8.6R(3) is
materially inconsistent with our knowledge obtained in the audit.
www.easyJet.com 125
REPORTING ON OTHER INFORMATION The directors’ assessment of the prospects of the Group and of
the principal risks that would threaten the solvency or liquidity
The other information comprises all of the information in the
of the Group
Annual Report other than the financial statements and our
We have nothing material to add or draw attention to regarding:
auditors’ report thereon. The directors are responsible for the
other information. Our opinion on the financial statements does • The directors’ confirmation on page 37 of the Annual Report
not cover the other information and, accordingly, we do not that they have carried out a robust assessment of the principal
express an audit opinion or, except to the extent otherwise risks facing the Group, including those that would threaten its
explicitly stated in this report, any form of assurance thereon. business model, future performance, solvency or liquidity.
In connection with our audit of the financial statements, our • The disclosures in the Annual Report that describe those risks
responsibility is to read the other information and, in doing so, and explain how they are being managed or mitigated.
consider whether the other information is materially inconsistent • The directors’ explanation on page 35 of the Annual Report as
with the financial statements or our knowledge obtained in the to how they have assessed the prospects of the Group, over
audit, or otherwise appears to be materially misstated. If we what period they have done so and why they consider that
identify an apparent material inconsistency or material period to be appropriate, and their statement as to whether
misstatement, we are required to perform procedures to conclude they have a reasonable expectation that the Group will be able
whether there is a material misstatement of the financial to continue in operation and meet its liabilities as they fall due
statements or a material misstatement of the other information. over the period of their assessment, including any related
If, based on the work we have performed, we conclude that there disclosures drawing attention to any necessary qualifications or
is a material misstatement of this other information, we are assumptions.
required to report that fact. We have nothing to report based on
these responsibilities. We have nothing to report having performed a review of the
directors’ statement that they have carried out a robust
With respect to the Strategic Report, Directors’ report and
assessment of the principal risks facing the Group and statement
Corporate Governance Statement, we also considered whether
in relation to the longer-term viability of the Group. Our review was
the disclosures required by the UK Companies Act 2006 have
substantially less in scope than an audit and only consisted of
been included.
making inquiries and considering the directors’ process supporting
Based on the responsibilities described above and our work their statements; checking that the statements are in alignment
undertaken in the course of the audit, the Companies Act 2006 with the relevant provisions of the UK Corporate Governance
(CA06), ISAs (UK) and the Listing Rules of the Financial Conduct Code (the “Code”); and considering whether the statements are
Authority (FCA) require us also to report certain opinions and consistent with the knowledge and understanding of the Group
matters as described below (required by ISAs (UK) unless and Company and their environment obtained in the course of
otherwise stated). the audit. (Listing Rules)
Strategic Report and Directors’ report Other Code Provisions

In our opinion, based on the work undertaken in the course of the We have nothing to report in respect of our responsibility to
audit, the information given in the Strategic Report and Directors’ report when:
report for the year ended 30 September 2019 is consistent with
• The statement given by the directors, on page 120, that
the financial statements and has been prepared in accordance
they consider the Annual Report taken as a whole to be fair,
with applicable legal requirements. (CA06)
balanced and understandable, and provides the information
In light of the knowledge and understanding of the Group and necessary for the members to assess the Group’s and
Company and their environment obtained in the course of the Company’s position and performance, business model and
audit, we did not identify any material misstatements in the strategy is materially inconsistent with our knowledge of
Strategic Report and Directors’ report. (CA06) the Group and Company obtained in the course of
performing our audit.
Corporate Governance Statement
• The section of the Annual Report on page 89 - 93 describing
In our opinion, based on the work undertaken in the course of the
the work of the Audit Committee does not appropriately
audit, the information given in the Corporate Governance
address matters communicated by us to the Audit Committee.
Statement (on page 37 - 47 and 66 - 120) about internal controls
and risk management systems in relation to financial reporting • The directors’ statement relating to the Company’s compliance
processes and about share capital structures in compliance with with the Code does not properly disclose a departure from a
rules 7.2.5 and 7.2.6 of the Disclosure Guidance and Transparency relevant provision of the Code specified, under the Listing Rules,
Rules sourcebook of the FCA (“DTR”) is consistent with the for review by the auditors.
financial statements and has been prepared in accordance with
applicable legal requirements. (CA06) Directors’ Remuneration
In our opinion, the part of the Directors’ Remuneration Report to
In light of the knowledge and understanding of the Group and
be audited has been properly prepared in accordance with the
Company and their environment obtained in the course of the
Companies Act 2006. (CA06)
audit, we did not identify any material misstatements in this
information. (CA06)
In our opinion, based on the work undertaken in the course of
the audit, the information given in the Corporate Governance
Statement (on page 37 - 47 and 66 - 120) with respect to the
Company’s Corporate Governance Code and practices and about
its administrative, management and supervisory bodies and their
committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the
DTR (CA06)
We have nothing to report arising from our responsibility to report
if a Corporate Governance Statement has not been prepared by
the Company. (CA06)

RESPONSIBILITIES FOR THE FINANCIAL OTHER REQUIRED REPORTING
STATEMENTS AND THE AUDIT

Companies Act 2006 exception reporting
RESPONSIBILITIES OF THE DIRECTORS FOR THE Under the Companies Act 2006 we are required to report to you
FINANCIAL STATEMENTS if, in our opinion:
As explained more fully in the Statement of Directors’ • we have not received all the information and explanations
responsibilities set out on page 120, the directors are responsible we require for our audit; or
for the preparation of the financial statements in accordance with • adequate accounting records have not been kept by the
the applicable framework and for being satisfied that they give a Company, or returns adequate for our audit have not been
true and fair view. The directors are also responsible for such received from branches not visited by us; or
internal control as they determine is necessary to enable the
• certain disclosures of directors’ remuneration specified by law
preparation of financial statements that are free from material
are not made; or
misstatement, whether due to fraud or error.
• the Company financial statements and the part of the Directors’
In preparing the financial statements, the directors are
Remuneration Report to be audited are not in agreement with
responsible for assessing the Group’s and the Company’s ability
the accounting records and returns.
to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of We have no exceptions to report arising from this responsibility.
accounting unless the directors either intend to liquidate the
Group or the Company or to cease operations, or have no Appointment
realistic alternative but to do so. Following the recommendation of the Audit Committee, we were
appointed by the members on 22 February 2006 to audit the
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF financial statements for the year ended 30 September 2006 and
THE FINANCIAL STATEMENTS subsequent financial periods. The period of total uninterrupted
Our objectives are to obtain reasonable assurance about whether engagement is 14 years, covering the years ended 30 September
the financial statements as a whole are free from material 2006 to 30 September 2019.
misstatement, whether due to fraud or error, and to issue an
auditors’ report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise Andrew Kemp
from fraud or error and are considered material if, individually or in (Senior Statutory Auditor)
the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these for and on behalf of PricewaterhouseCoopers LLP
financial statements. Chartered Accountants and Statutory Auditors
A further description of our responsibilities for the audit of the London
financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms 18 November 2019
part of our auditors’ report.
USE OF THIS REPORT

This report, including the opinions, has been prepared for and
only for the Company’s members as a body in accordance with
Chapter 3 of Part 16 of the Companies Act 2006 and for no other
purpose. We do not, in giving these opinions, accept or assume
responsibility for any other purpose or to any other person to
whom this report is shown or into whose hands it may come
save where expressly agreed by our prior consent in writing.
www.easyJet.com 127
CONSOLIDATED INCOME STATEMENT
30 September 2019 30 September 2018
Headline Non-headline Total Headline Non-headline Total
Notes £ million £ million £ million £ million £ million £ million
Passenger revenue 5,009 – 5,009 4,688 – 4,688
Ancillary revenue 1,376 – 1,376 1,210 – 1,210
Total revenue 26 6,385 – 6,385 5,898 – 5,898
Fuel (1,416) – (1,416) (1,184) – (1,184)

Airports and ground handling (1,845) – (1,845) (1,649) – (1,649)
Crew (859) – (859) (754) (7) (761)
Navigation (409) – (409) (400) – (400)
Maintenance (302) – (302) (313) (22) (335)
Selling and marketing (157) – (157) (143) – (143)
Other costs (456) – (456) (507) (93) (600)
Other income 29 – 29 13 – 13
EBITDAR 970 – 970 961 (122) 839
Aircraft dry leasing (5) – (5) (152) (10) (162)

Depreciation 10 (484) – (484) (199) – (199)
Amortisation of intangible assets 9 (15) – (15) (15) – (15)
Operating profit 466 – 466 595 (132) 463
Interest receivable and other

financing income 21 3 24 12 – 12
Interest payable and other
financing charges (60) – (60) (29) (1) (30)
Net finance (charges)/income 2 (39) 3 (36) (17) (1) (18)
Profit before tax 3 427 3 430 578 (133) 445
Tax (charge)/credit 6 (78) (3) (81) (112) 25 (87)
Profit for the year 349 – 349 466 (108) 358
Earnings per share, pence

Basic 7 88.6 90.9
Diluted 7 87.8 90.2
128 2019
easyJet plc Annual Report and Accounts 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended
Year ended 30 September
FINANCIAL STATEMENTS CONSOLIDATED ACCOUNTS

30 September 2018
2019 (restated)
£ million £ million
Profit for the year 349 358
Other comprehensive income/(expense)
Items that may be reclassified to the income statement:

Cash flow hedges
Fair value (losses)/gains in the year (214) 531
Gains transferred to income statement (165) (191)
Gains/(losses) transferred to property, plant and equipment 14 (19)
Related tax credit/(charge) 69 (60)
Cost of hedging 4 –
Items that will not be reclassified to the income statement:

Remeasurement of post-employment benefit obligations (17) (2)
Related deferred tax credit 3 –
Fair value movement on equity investment (6) –
(312) 259
Total comprehensive income for the year 37 617
For capital expenditure cash flow hedges, the accumulated gains and losses recognised in other comprehensive income will
be transferred to the initial carrying amount of the asset acquired, within property, plant and equipment.
Gains on cash flow hedges reclassified from other comprehensive income to the income statement lines are as follows:
2019 2018
Revenue (10) 32
Fuel (150) (206)
Maintenance (5) (2)
Aircraft dry leasing – (3)
Other costs – (12)
(165) (191)
www.easyJet.com 129
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 September
30 September 2018
2019 (restated)
Notes £ million £ million
Non-current assets
Goodwill 9 365 365
Other intangible assets 9 196 181
Property, plant and equipment 10 5,163 4,140
Derivative financial instruments 24 126 175
Equity investment 24 48 –
Restricted cash 13 4 11
Other non-current assets 11 142 122
6,044 4,994
Current assets
Trade and other receivables 12 372 406
Derivative financial instruments 24 147 220
Current tax assets 6 24 –
Money market deposits 13 291 348
Cash and cash equivalents 13 1,285 1,025
2,119 1,999
Current liabilities
Trade and other payables 14 (1,050) (1,023)
Unearned revenue (1,069) (877)
Borrowings 15 – (9)
Lease liabilities 16 (219) –
Derivative financial instruments 24 (138) (24)
Current tax payable – (9)
Provisions for liabilities and charges 18 (192) (118)
(2,668) (2,060)
Net current liabilities (549) (61)
Non-current liabilities
Borrowings 15 (1,324) (968)
Lease liabilities 16 (359) –
Derivative financial instruments 24 (72) (7)
Non-current deferred income 17 (6) (18)
Post-employment benefit obligation 19 (47) (29)
Provisions for liabilities and charges 18 (397) (335)
Deferred tax 6 (305) (343)
(2,510) (1,700)
Net assets 2,985 3,233
Shareholders' equity
Share capital 20 108 108
Share premium 659 659
Hedging reserve (4) 299
Cost of hedging reserve 8 –
Translation reserve (1) 1
Retained earnings 2,215 2,166
2,985 3,233
The accounts on pages 128 to 173 were approved by the Board of Directors and authorised for issue on 18 November 2019 and signed on
behalf of the Board.

Director Director
130 2019
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Cost of Retained
Share Share Hedging hedging Translation earnings Total
FINANCIAL STATEMENTS CONSOLIDATED ACCOUNTS

capital premium reserve reserve reserve (restated) (restated)
£ million £ million £ million £ million £ million £ million £ million
At 30 September 2018 108 659 299 – 1 2,166 3,233
Recognition on adoption of IFRS 9 – – (5) 4 – 55 54
Recognition on adoption of IFRS 15 – – – – – (70) (70)
Recognition on adoption of IFRS 16 – – (2) – – (34) (36)
At 1 October 2018 108 659 292 4 1 2,117 3,181
Profit for the period – – – – – 349 349
Other comprehensive income – – (296) 4 – (20) (312)
Total comprehensive income – – (296) 4 – 329 37
Dividends paid (note 8) – – – – – (233) (233)
Share incentive schemes
Value of employee services – – – – – 18 18
Purchase of own shares – – – – – (16) (16)
Currency translation differences – – – – (2) – (2)
At 30 September 2019 108 659 (4) 8 (1) 2,215 2,985
Cost of Retained
Share Share Hedging hedging Translation earnings Total
capital premium reserve reserve reserve (restated) (restated)
£ million £ million £ million £ million £ million £ million £ million
At 30 September 2017 108 659 38 – 1 1,996 2,802
Swiss pension scheme recognition – – – – – (24) (24)
At 1 October 2017 108 659 38 – – 1,972 2,778
Total comprehensive income – – 261 – – 356 617
Dividends paid (note 8) – – – – – (162) (162)
Value of employee services – – – – – 17 17
Purchase of own shares – – – – – (17) (17)
At 30 September 2018 108 659 299 – 1 2,166 3,233
The hedging reserve comprises the effective portion of the cumulative net change in fair value of cash flow hedging instruments relating
to highly probable transactions that are forecast to occur after the year end. Within the hedging reserve, £1 million relates to a deferred
tax liability and £39 million gain to trades where hedge accounting has been discontinued. As the hedged item is still expected
to occur this amount has been deferred until the underlying cash flow impacts the income statement.
Further details of the adjustment made to the opening retained earnings as at 1 October 2018 due to the adjustment arising on the
adoption of IFRS 9, 15 and 16 can be found in note 1. Details of the prior period restatement in relation to defined benefit pensions
can also be found in note 1.
www.easyJet.com 131
CONSOLIDATED STATEMENT OF CASHFLOWS
2019 2018
Cash flows from operating activities
Cash generated from operations 22 1,098 1,215
Ordinary dividends paid 8 (233) (162)
Interest and other financing charges paid (58) (29)
Interest and other financing income received 12 11
Tax paid (58) (74)
Net cash generated from operating activities 761 961
Cash flows from investing activities

Purchase of property, plant and equipment 10 (954) (931)
Purchase of intangible assets 9 (30) (81)
Net decrease in money market deposits 23 52 269
Net proceeds from sale and leaseback of aircraft 121 106
Net cash used by investing activities (811) (637)
Cash flows from financing activities

Purchase of own shares for employee share schemes (16) (17)
Proceeds from Eurobond issue 23 443 –
Repayment of capital element of finance leases arising under IAS 17 – (6)
Repayment of capital element of leases arising under IFRS 16 23 (174) –
Net decrease/(increase) in restricted cash 7 (4)
Net cash generated from financing activities 260 (27)
Effect of exchange rate changes 50 17
Net increase in cash and cash equivalents 260 314
Cash and cash equivalents at beginning of year 1,025 711
Cash and cash equivalents at end of year 13 1,285 1,025
132 2019
notes to the accounts
1. ACCOUNTING POLICIES, JUDGEMENTS AND ESTIMATES
FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS

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 whose shares are listed on the London Stock Exchange under the ticker symbol
EZJ and is incorporated and domiciled in the United Kingdom. The address of its registered office is Hangar 89, London Luton Airport,
Luton, Bedfordshire, LU2 9PF.
The accounts are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union,
taking into account IFRS Interpretations Committee interpretations and those parts of the Companies Act 2006 applicable to companies
reporting under IFRS.
BASIS OF PREPARATION
The accounts are prepared based on the historical cost convention except for certain financial assets and liabilities including derivative
financial instruments that are measured at fair value.
This is the first set of the Group’s financial statements where IFRS 9 ‘Financial instruments’, IFRS 15 ‘Revenue from contracts
with customers’ and IFRS 16 ‘Leases’ have been applied. Changes to significant accounting policies are described in note 1b.
easyJet’s business activities, together with factors likely to affect its future development and performance, are described in the
strategic report on pages 2 to 65. Principal risks and uncertainties are described on pages 37 to 47. Note 27 to the accounts sets out
the Group’s objectives, policies and procedures for managing its capital and gives details of the risks related to financial instruments
held by the Group.
The accounts have been prepared on a going concern basis. Details on going concern are provided on page 34.
The use of critical accounting estimates and management judgement is required in applying the accounting policies. Areas involving
a higher degree of judgement or complexity, or where assumptions and estimates are significant to the financial statements, are
highlighted on pages 145 to 146.
Income statement presentation
From 1 October 2018, easyJet has presented other income as a separate line on the face of the consolidated income statement. Other
income includes items such as insurance receipts, compensation and dividends received. It is believed this presentation enhances the
disclosure and understanding of these balances, which have increased in magnitude from previous years. The prior year comparatives
have been reclassified from other costs and other financing income lines to be consistent with the change in presentation but have not
been restated.
Prior period adjustment
The Swiss retirement benefit scheme operates as a defined contribution scheme under Swiss law. In the current year, easyJet has
assessed options to extend the pension scheme insurance it holds. It has been identified as part of this work that, despite the scheme
being fully insured, it meets requirements to be accounted for as a defined benefit plan under IAS 19 ‘Employee benefits’, primarily due
to the legal obligation to accrue interest on the pension accounts and the payment of lifetime pension benefits. An actuarial valuation
has been performed to calculate the valuation of the scheme assets and liabilities under IAS 19. Plan assets are measured at fair value
and plan liabilities reflect the future benefits of past and current service, discounted to present values. The service cost and interest on
the net defined benefit liability are recognised in the income statement and actuarial movements are recognised in other comprehensive
income. The impact on the 30 September 2018 statement of financial position was recognition of a net defined benefit obligation of
£31 million, and a £5 million deferred tax asset. Retained earnings have reduced by £26 million accordingly. There was also a £2 million
reclassification of a pension prepayment from Trade and other receivables into the net defined benefit obligation. There was no material
impact on the income statement, other comprehensive income or EPS for the year ended 30 September 2018.
The scheme was recognised with effect from 1 October 2017. The impact on the 1 October 2017 balance sheet is as follows:
As reported Adjustment Restated

Non current assets 4,237 – 4,237
Trade and other receivables 275 (2) 273
Current assets 1,734 (2) 1,732
Current liabilities (1,670) – (1,670)
Deferred tax liability (249) 5 (244)

Post-employment benefit obligation – (27) (27)
Non-current liabilities (1,499) (22) (1,521)
Net assets 2,802 (24) 2,778
Retained earnings 1,996 (24) 1,972

Equity 2,802 (24) 2,778
www.easyJet.com 133
N OTE S TO THE
NOTES T HE ACCOUNTS
ACC OUN TS CONTINUED
C ONTI NU ED
1A. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied are summarised below. Unless otherwise stated they have been applied consistently to
both years presented. The explanations of these policies focus on areas where judgement is applied or which are particularly significant
in the financial statements.
BASIS OF CONSOLIDATION
The consolidated accounts incorporate the accounts of easyJet plc and its subsidiaries for the years ended 30 September 2018 and
2019. A full list of subsidiaries can be found in the Notes to the Company accounts on page 176.
A subsidiary is an entity controlled by easyJet plc. Control is achieved when easyJet is exposed, or has rights, to variable returns from
its involvement with the investee and has the ability to affect those returns through its power, directly or indirectly, over the investee.
Intragroup balances, transactions and any unrealised gains and losses arising from intragroup transactions are eliminated in preparing
the consolidated accounts.
FOREIGN CURRENCIES
The primary economic environment in which a subsidiary operates determines its functional currency. The consolidated accounts
of easyJet are presented in Sterling, rounded to the nearest £million, which is the Company’s functional currency and the Group’s
presentation currency. Certain subsidiaries have operations that are primarily influenced by a currency other than Sterling. Exchange
differences arising on the translation of these foreign operations are taken to shareholders’ equity until all or part of the interest is sold,
when the relevant portion of the accumulated exchange gains or losses is recognised in the income statement. Profits and losses of
foreign operations are translated into Sterling at average rates of exchange during the year, since this approximates the rates on the
dates of the transactions.
Transactions arising in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies are translated into Sterling using the rate of exchange ruling at the end of a reporting
period and (except where the asset or liability is designated as a cash flow hedge) the gains or losses on translation are included in the
income statement. Non-monetary assets and liabilities denominated in foreign currencies are translated into Sterling at foreign exchange
rates ruling at the dates the transactions were effected.
BUSINESS COMBINATIONS
Business combinations in prior years were accounted for by applying the purchase method. The cost of the acquisition was measured
at the aggregate of the fair values, at the date of exchange, of assets given and liabilities incurred or assumed plus any costs directly
attributable to the business combination. The acquiree’s identifiable assets and liabilities were recognised at their fair values at the
acquisition date.
Goodwill arising on acquisition was recognised as an asset and initially measured at cost, being the excess of the cost of the business
combination over easyJet’s interest in the net fair value of the identifiable assets acquired and the liabilities assumed.
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill arising on acquisition was recognised as an asset and initially measured at cost, being the excess of the cost of the business
combination over easyJet’s interest in the net fair value of the identifiable assets acquired and the liabilities assumed. Goodwill is now
stated at cost less any accumulated impairment losses. It has an indefinite expected useful life and is tested for impairment at least
annually or where there is any indication of impairment.
Landing rights are stated at cost less any accumulated impairment losses. They are considered to have an indefinite useful life as they
will remain available for use for the foreseeable future provided minimum utilisation requirements are observed, and are tested for
impairment at least annually or where there is any indication of impairment.
Other intangible assets are stated at cost less accumulated amortisation, which is calculated to write off their cost, less estimated
residual value, on a straight-line basis over their expected useful lives. Expected useful lives and residual values are reviewed annually.
Expected useful life
Computer software 3–7 years
PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is stated at cost less accumulated depreciation. Depreciation is calculated to write off the cost, less
estimated residual value, of assets, on a straight line basis over their expected useful lives. Expected useful lives and residual values
are reviewed annually.
Expected useful life
Aircraft1 23 years
Aircraft spares 14 years
Aircraft – prepaid maintenance 7-10 years
Leasehold improvements 5-10 years or the length of lease if shorter
Freehold Land Not depreciated
Fixtures, fittings and equipment 3 years or length of lease of property where equipment is used if shorter
Computer hardware 3-5 years
1. Aircraft held as right of use assets are depreciated over the lease term, see leases section
Residual values, where applicable, are reviewed annually against prevailing market rates at the end of the reporting period for equivalently
aged assets and depreciation rates are adjusted accordingly on a prospective basis. The carrying value is reviewed for impairment if
events or changes in circumstances indicate that the carrying value may not be recoverable. For aircraft, easyJet is dependent on Airbus
as its sole supplier. This gives rise to a valuation risk which crystallises when aircraft exit the fleet, where easyJet is reliant on the future
demand for second-hand aircraft.
134 2019
An element of the cost of a new aircraft is attributed on acquisition to prepaid maintenance and is depreciated over a period ranging

from seven to ten years from the date of manufacture. Subsequent costs incurred which lend enhancement to future periods, such
as long-term scheduled maintenance and major overhaul of aircraft and engines, are capitalised and depreciated over the length of
the period benefiting from these enhancements. All other maintenance costs for owned aircraft are charged to the income statement
as incurred.
Pre-delivery and option payments made in respect of aircraft are recorded in property, plant and equipment at cost. These amounts
are not depreciated. Interest attributed to pre-delivery and option payments made in respect of aircraft and other qualifying assets
under construction are capitalised and added to the cost of the asset concerned.
Gains and losses on disposals (other than aircraft sale and leaseback transactions) are determined by comparing the net proceeds
with the carrying amount and are recognised in the income statement.
Freehold land is recorded at cost and not depreciated as it is considered to have an indefinite useful life. It is tested for impairment
at least annually or where there is any indication of impairment.
OTHER NON-CURRENT ASSETS
Payments for aircraft and engine maintenance, as stipulated in the respective lease agreements, have historically been made to some
lessors as security for the performance of future heavy maintenance works. The payments are recorded within current and non-current
assets (as applicable) as receivables from the lessors until the respective maintenance event occurs and the reimbursement with the
lessor is finalised. Any payment that is not expected to be reimbursed by the lessor is recognised immediately within operating expenses
in the statement of comprehensive income.
IMPAIRMENT OF NON-CURRENT ASSETS
An impairment loss is recognised to the extent that the carrying value exceeds the higher of the asset’s or cash generating unit’s fair
value less cost to sell and its value in use. Impairment losses recognised on goodwill are not reversed. Impairment losses recognised
on assets other than goodwill are only reversed where changes in the estimates used result in an increase in recoverable amount.
FINANCIAL GUARANTEES
If a claim on a financial guarantee given to a third party becomes probable, the obligation is recognised at fair value. For subsequent
measurement, the carrying amount is the higher of initial measurement and best estimate of the expenditure required to settle the
obligation at the reporting date.
TAX
Tax expense in the income statement consists of current and deferred tax. Tax is recognised in the income statement except when
it relates to items credited or charged directly to other comprehensive income or shareholders’ equity, in which case it is recognised
in other comprehensive income or shareholders’ equity. The charge for current tax is based on the results for the year as adjusted
for income that is exempt and expenses that are not deductible using tax rates that are applicable to the taxable income.
Deferred tax is provided in full on temporary differences relating to the carrying amount of assets and liabilities, where it is probable that
the recovery or settlement will result in an obligation to pay more, or a right to pay less, tax in the future, with the following exceptions:
• where the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other
assets and liabilities in a transaction that affects neither taxable income nor accounting profit; and
• deferred tax arising on investments in subsidiaries is not recognised where easyJet is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax is calculated at the tax rates that are expected to apply in the periods in which recovery of assets and settlement of
liabilities are expected to take place, based on tax rates or laws enacted or substantively enacted at the date of the statement of
financial position.
Deferred tax assets represent amounts recoverable in future periods in respect of deductible temporary differences, losses and tax
credits carried forwards. Deferred tax assets are recognised to the extent that it is probable that there will be suitable taxable profits
from which they can be deducted.
Deferred tax liabilities represent the amount of income taxes payable in future periods in respect of taxable temporary differences.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and it is the intention to settle these on a net basis.
PROVISIONS FOR CUSTOMER CLAIMS
Provisions are recognised when a present legal or constructive obligation arises as a result of a past event, it is probable that the Group
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Amounts provided for
represent the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into
account all related risks and uncertainties.
Provision is made for passenger compensation claims when the Group has an obligation to recompense customers under Flight
Compensation Regulation 261/2004. Provisions are measured based on known eligible events, passengers impacted and historical
claim rates.
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1A. SIGNIFICANT ACCOUNTING POLICIES CONTINUED

EMPLOYEE BENEFITS
easyJet contributes to defined contribution pension schemes for the benefit of employees (see below for the Swiss scheme treatment).
The assets of the schemes are held separately from those of easyJet in independently administered funds. easyJet's contributions are
charged to the income statement in the year in which they are incurred. easyJet has no further payment obligations once the
contributions have been paid for defined contribution schemes.
The expected cost of compensated annual leave and other employee benefits is recognised at the time that the related employees'
services are provided.
Switzerland pension scheme
easyJet contributes to an independently administered post-employment fund for employees in Switzerland. The final benefit is
contribution-based with certain minimum guarantees required by Swiss law. Due to these minimum guarantees, the Swiss pension
plan meets IAS 19 Employee Benefits’ requirements to be treated as a defined benefit plan for the purposes of these consolidated
financial statements.
The easyJet portion of the current service costs and the net interest cost are charged to the consolidated income statement in the
year in which they relate. Actuarial gains and losses are recognised in the consolidated statement of comprehensive income and the
consolidated statement of financial position reflects the net surplus or deficit at the balance sheet date.
The actuarial assumptions used to calculate the defined benefit obligation are based on the requirements set out in IAS 19. They are set
by management, based on advice from independent actuaries. The defined benefit obligation is calculated using the projected unit credit
method. Cost of managing the plan assets are deducted as incurred in determining the return on plan assets and the present value of
projected future general administration expenses that are a direct consequence of past service are included as part of the retirement
benefit obligation.
SHARE CAPITAL AND DIVIDEND DISTRIBUTION
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown
in equity as a deduction, net of tax, from the proceeds.
Where any Group company or employee benefit trust purchases the Company’s equity shares, the consideration paid and any directly
attributable incremental costs are deducted from retained earnings until the shares are cancelled or re-issued. Proceeds from re-issue
are shown as a credit to retained earnings.
easyJet settles share awards under the Long Term Incentive Plan, the Save As You Earn scheme, Restricted Share Plan and Share
Incentive Plans by purchasing its own shares on the market through employee benefit trusts. The cost of such purchases is deducted
from retained earnings in the period that the transaction occurs.
Dividend distributions to the Company’s shareholders are recognised as a liability in the period in which the dividends are approved
by the Company’s shareholders.
SHARE-BASED PAYMENTS
easyJet has a number of equity-settled share incentive schemes. The fair value of share options granted under the Save As You Earn
scheme is measured at the date of grant using the Binomial Lattice option pricing model. The fair value of grants under the Long Term
Incentive Plan is measured at the date of grant using the Black-Scholes model for awards based on ROCE performance targets, and
the Stochastic model (also known as the Monte Carlo model) for awards based on TSR performance targets. The fair value of all other
awards is the share price at the date of grant.
The fair value of the estimated number of options and awards that are expected to vest is expensed to the income statement on a
straight-line basis over the period that employees’ services are rendered, with a corresponding increase in shareholders’ equity. Where
non-market performance criteria (such as ROCE) attached to the share options and awards are not met, any cumulative expense
previously recognised is reversed. For awards with market-related performance criteria (such as TSR), an expense is recognised
irrespective of whether the market condition is satisfied.
The social security obligations payable in connection with grant of the share options are an integral part of the grant itself and the
charge is treated as a cash-settled transaction.
SEGMENTAL DISCLOSURES
easyJet has one operating segment, being its route network, based on management information provided to the Airline Management
Board, which is easyJet’s chief operating decision maker. Resource allocation decisions are made for the benefit of the route network
as a whole, rather than for individual routes within the network. Performance of the network is assessed based on the consolidated
income statement before tax for the year.
Revenue is allocated to geographic segments on the following bases:
• revenue earned from passengers is allocated according to the location of the first departure airport on each booking; and
• commission revenue earned from partners is allocated according to the domicile of each partner.
136 2019
1B. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES

The Group has initially adopted IFRS 15 ‘Revenue from Contracts with Customers’, IFRS 16 ‘Leases’ and IFRS 9 ‘Financial Instruments’
from 1 October 2018.
IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS
easyJet has adopted IFRS 15 on 1 October 2018 applying the cumulative catch-up (‘modified’) transition method. The comparative
information has not been restated, and the retrospective cumulative impact of IFRS 15 has been recognised within the opening balance
of retained earnings as at 1 October 2018.
The standard provides a single model for measuring and recognising revenue arising from contracts with customers. It supersedes all
existing revenue requirements in IFRS. Under IFRS 15, revenue is recognised when customers obtain control of goods or services and
so are able to direct the use, and obtain the benefits, of those goods or services.
easyJet identified two principal areas which were impacted on adoption of IFRS 15:
• Revenue recognition from certain revenue streams, principally administration and change fees, will be recognised on the date of flight
rather than the date of booking. This change results in a higher proportion of annual revenues being recognised in the second half
of the financial year.
• Some of the compensation payments made to customers (in respect of flight delays), previously recorded wholly within expenses, are
now offset against revenues recognised, with the excess compensation continuing to be recorded within expenses. This presentational
change will have no impact on the overall profit for the year.
easyJet continues to report one operating segment, being its route network. The IFRS 15 criteria for revenue disaggregation has
been reviewed and it has been determined that no additional disaggregation is appropriate.
Unearned revenue is a contract liability as defined by IFRS 15. In the current year £87 million has been recognised in revenue which
was recorded in unearned revenue at the beginning of the year.
ACCOUNTING POLICY FOR REVENUE
easyJet categorises total revenue earned on the face of the income statement between passenger and ancillary revenue. Passenger
revenue arises from the sale of flight seats and administration fees and is measured as the price paid by the customer. Passenger
revenue is recognised when the performance obligation has been completed. This is when the flight takes place. Amounts paid by
‘no-show’ customers are recognised as passenger revenue when the booked service is provided, as such customers are not generally
entitled to change flights or seek refunds once a flight has departed.
Ancillary revenue includes revenue from the provision of checked baggage, allocated seating and change fees, as well as revenue arising
from commissions earned from services sold on behalf of partners and inflight sales. It is measured as the price paid by the customer
for the service booked. Ancillary revenue is recognised when the performance obligation is complete, which is generally when the related
flight takes place, with the following exceptions:
• cancellation fees which are recognised when the cancellation is processed; and
• in the case of commission earned from travel insurance, revenue is recognised at the time of booking as easyJet acts solely
as appointed representative of the insurance company.
Unearned revenue from flights not yet flown is held in the statement of financial position until it is realised in the income statement
when the performance obligation is complete.
Some of the compensation payments made to customers (in respect of flight delays) are offset against revenues recognised up
to the amount of the flight, with the excess compensation being recorded within expenses.
IFRS 16 LEASES
IFRS 16 has been early adopted, bringing the timing of adoption in line with IFRS 9 and 15. The standard provides a single lessee
accounting model, specifying how leases are recognised, measured, presented and disclosed.
easyJet has applied the cumulative catch-up (‘modified’) transition method. The comparative information has not been restated,
and the retrospective cumulative impact of IFRS 16 has been recognised within the opening balance of retained earnings as at
1 October 2018. The financial statement impact of IFRS 16 is shown within this note. Refer also to note 10 property plant and
equipment and note 16 leases.
On initial adoption, easyJet has elected to use the following practical expedients proposed by the standard:
• the application of a single discount rate to a portfolio of leases with reasonably similar characteristics, for example aircraft with
similar lease term;
• the use of hindsight when determining the lease term if the contract contains options to extend or terminate the lease;
• the exclusion of initial direct costs from the measurement of the right of use asset; and
• lease payments for contracts with a duration of 12 months or less and contracts for which the underlying asset is of a low
value continue to be expensed to the income statement on a straight-line basis over the lease term.
Judgements made in applying IFRS 16 include assessing the lease term, identifying the discount rate to be used and assessing
maintenance obligations. Further details are given below.
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1B. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES CONTINUED

CAPITALISATION OF LEASE CONTRACTS
Under IFRS 16, easyJet has capitalised the right of use of all aircraft and properties previously held under operating leases. At the date
of adoption 84 aircraft and six properties were capitalised. The lease term corresponds to the duration of the contracts signed except
in cases where the Group is reasonably certain that it will exercise contractual extension or termination options.
easyJet has recognised a right of use asset representing its right to use the underlying asset and a corresponding lease liability
representing its obligation to make lease payments. Operating lease expenses have been replaced by a depreciation expense on right
of use assets recognised and an interest expense as the interest rate implicit in easyJet’s lease liabilities unwinds. When the interest
rate implicit in the lease is not readily determined, easyJet’s incremental borrowing rate has been used.
Finance leases previously capitalised under IAS 17 ‘Leases’ have been reclassified to the right of use asset category under IFRS 16.
ACCOUNTING FOR THE MAINTENANCE OF LEASED AIRCRAFT
easyJet has contractual obligations to maintain aircraft held under leases. Previously, provisions were created over the term of the lease
based on the estimated future costs of major airframe checks, engine shop visits and end of lease liabilities. These costs were discounted
to present value with the corresponding income statement charge recognised within maintenance costs and the unwinding of the
discount recognised within interest costs.
As at 1 October 2018 and going forward under IFRS 16, contractual maintenance obligations which are not dependent on the use of
the aircraft are recognised in full on commencement of the lease. They have been capitalised as part of the right of use asset at the
inception of the lease and will be depreciated over the lease term. Contractual maintenance obligations which are dependent on the
use of the aircraft will continue to be provided for over the term of the lease based on the estimated future costs, discounted to
present value. However they will be capitalised to the right of use asset rather than recognised within maintenance costs in the income
statement. This asset will be depreciated immediately as the obligation has arisen as a result of flying hours/cycles already undertaken.
Where an aircraft is sold and leased back, other than when first delivered to easyJet, a maintenance catch-up liability resulting from
past flying activity arises at the point the lease agreement is signed and a corresponding maintenance provision catch-up charge was
previously recognised immediately in the income statement. Under IFRS 16 this maintenance provision catch-up has been capitalised
as part of the right of use asset at the inception of the lease and depreciated over the lease term.
These changes will result in a decrease in maintenance costs and an increase in depreciation expense.
ACCOUNTING POLICY FOR LEASES
Finance leases and operating leases for the comparative period ended 30 September 2018, were recognised and measured in
accordance with IAS 17 Leases. The accounting policies set out below are those applied to the current period, in accordance with IFRS 16.
When a contractual arrangement contains a lease easyJet recognises a lease liability and a corresponding right of use asset at the
commencement of the lease.
At the commencement date the lease liability is measured at the present value of the future lease payments, discounted using the
Group’s incremental borrowing rate where the interest rate in the lease is not readily determined. Subsequently, the lease liability is
adjusted by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease
payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications.
The lease term is determined from the commencement date of the lease and covers the non-cancellable term. If easyJet has an
extension option, which it considers it reasonably certain to exercise, then the lease term will be considered to extend beyond that
non-cancellable period. If easyJet has a termination option, which it considers it reasonably certain to exercise, then the lease term
will be considered to be until the date of the termination option.
At the commencement date the right of use asset is measured at an amount equal to the lease liability plus any lease payments made
before the commencement date and any initial direct costs, less any lease incentive payments. An estimate of costs to be incurred in
restoring an asset, in accordance with the terms of the lease, is also included in the right of use asset at initial recognition. Subsequently,
the right of use asset is measured in accordance with the accounting policy for property, plant and equipment. Adjustment is also made
to the right of use to reflect any remeasurement of the corresponding lease liability.
Short-term leases and low value leases are not recognised as lease liabilities and right of use assets, but are recognised as an expense
straight line over the lease term.
easyJet enters into sale and leaseback transactions whereby it sells either new or mid-life aircraft to a third-party and immediately leases
them back. Where sale proceeds received are judged to reflect the aircraft’s fair value, any gain or loss arising on disposal is recognised in
the income statement, to the extent that it relates to the rights that have been transferred. Gains and losses that relate to the rights that
have been retained are included in the carrying amount of the right of use asset recognised at commencement of the lease. Where sale
proceeds received are not at the aircraft’s fair value, any below market terms are recognised as a prepayment of lease payments, and
above market terms are recognised as additional financing provided by the lessor.
138 2019
IFRS 9 FINANCIAL INSTRUMENTS

easyJet has adopted IFRS 9 on 1 October 2018 applying the standard prospectively. The standard removes the multiple classification
and measurement models for financial assets required by IAS 39 ‘Financial Instruments: Recognition and Measurement’ and instead
introduces a model that has three classification categories: amortised cost; fair value through profit or loss and fair value through other
comprehensive income. Classification of a debt asset instrument is driven by its cash flow characteristics and the
business model in which the asset is held. Equity investments can now be measured at fair value through either the income statement
or through other comprehensive income.
Accounting for financial liabilities and for derecognising financial instruments under IFRS 9 is materially consistent with that required
by IAS 39. IFRS 9 adds new requirements to address the impairment of financial assets and hedge accounting, which have had an
immaterial impact. Existing hedging activities have not materially changed on adoption of the standard. Some changes have been
recognised in the classification and measurement of financial instruments, though these changes do not materially impact the financial
statements due to the stable nature of the Group’s investments. Similarly, easyJet does not have a material impact from the changes
to hedge accounting or impairment due to upfront payments from customers and the high credit quality of counterparties with which
easyJet transacts. A summary of the changes to the classification and measurement of financial instruments under IFRS 9 is included
in note 24.
ACCOUNTING POLICY FOR FINANCIAL INSTRUMENTS
Financial instruments for the comparative period ended 30 September 2018, were recognised and measured in accordance with IAS 39.
The accounting policies set out below are those applied to the current period, in accordance with IFRS 9.
Financial instruments are recognised when easyJet becomes a party to the contractual provisions of the relevant instrument and
derecognised when it ceases to be a party to such provisions. Financial assets are also impaired (written-off) when the Group has
no reasonable expectation of recovering the financial asset.
With the exception of trade receivables that do not contain a significant financing component, financial instruments are initially measured
at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, directly attributable
transactions costs. Trade receivables that do not contain a significant financing component are initially measured at the transaction price.
Where market values are not available, the fair value of financial instruments is calculated by discounting expected cash flows
at prevailing interest rates and by applying period end exchange rates.
The equity investment in The Airline Group Limited is measured at fair value. Movements in fair value are assessed at each reporting
period and recorded in other comprehensive income. The fair value is measured with reference to income and market valuation
techniques in line with IFRS 13 ‘Fair Value Measurement’ requirements. See note 24 for further details.
Financial assets measured at amortised cost
Financial assets are classified and measured according to easyJet's business model for managing a specified group of financial
assets, and the nature of the contractual cash flows arising from that group of financial assets.
Subsequent to initial recognition, this classification of financial asset is measured at amortised cost using the effective interest
rate method.
Financial assets are measured at amortised cost when both of the following criteria are met:
• The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual
cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amounts outstanding.
Financial assets measured at amortised cost include refundable lease deposits and other refundable lease contributions, restricted
cash, trade and other receivables, money market deposits and cash and cash equivalents (excluding money market funds).
Restricted cash comprises cash deposits which have restrictions governing their use and is classified as a current or non-current
asset based on the estimated remaining length of the restriction.
Cash and cash equivalents comprise cash held in bank accounts with no access restrictions, bank term deposits and tri-party repos
all being repayable on demand or maturing within three months of inception.
Money market deposits comprise of term deposits and tri-party repos maturing greater than three months from inception.
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Financial assets measured at fair value through profit or loss
Subsequent to initial recognition, this classification of financial asset is measured at fair value through profit or loss.
Financial assets are measured at fair value through profit or loss when they do not meet the criteria to be measured at amortised
cost or at fair value through other comprehensive income.
Financial assets measured at fair value through profit or loss comprise of money market funds.
Financial assets measured at fair value through other comprehensive income
On initial recognition, equity investments, excluding interests in associates, are irrevocably designated as measured at fair value through
other comprehensive income. Subsequently they are measured at fair value with changes recognised in other comprehensive income
with no recycling of these gains and losses to the income statement.
Impairment of financial assets measured at amortised cost
At each reporting date easyJet recognises a loss allowance for expected credit losses on financial assets measured at amortised cost.
In establishing the appropriate amount of loss allowance to be recognised, easyJet applies either the general approach or the simplified
approach, depending on the nature of the underlying group of financial assets.
General approach – impairment assessment
The general approach is applied to the impairment assessment of refundable lease deposits and other refundable lease contributions,
restricted cash, money market deposits and cash and cash equivalents.
Under the general approach easyJet recognises a loss allowance for a financial asset at an amount equal to the 12-month expected
credit losses, unless the credit risk on the financial asset has increased significantly since initial recognition, in which case a loss allowance
is recognised at an amount equal to the lifetime expected credit losses.
Simplified approach – impairment assessment
The simplified approach is applied to the impairment assessment of trade and other receivables.
Under the simplified approach easyJet always recognises a loss allowance for a financial asset at an amount equal to the lifetime
expected credit losses.
Non-derivative financial liabilities
Non-derivative financial liabilities are initially recorded at fair value less directly attributable transaction costs, and subsequently at amortised
cost, and include trade and other payables and borrowings. Interest expense on borrowings is recognised using the effective interest method.
Borrowings are classified as current liabilities unless there is an unconditional right to defer settlement of the liability for at least 12 months
after the reporting period date.
Financial liabilities measured at amortised cost
Subsequent to initial recognition, this classification of financial liability is measured at amortised cost using the effective interest rate method.
Financial liabilities measured at amortised cost include trade and other payables, lease liabilities and borrowings.
Derivative financial instruments and hedging activities
Derivative financial instruments are measured at fair value through profit or loss with the exception of derivative financial instruments
that are designated as a hedging instrument in a cash flow for hedge relationship.
easyJet uses foreign currency forward exchange contracts to hedge foreign currency risks on transactions denominated in US dollars,
Euros, Swiss francs and South African rand. These transactions primarily affect revenue, fuel, fixed costs, and the carrying value of owned
aircraft. easyJet also uses cross-currency interest rate swaps to hedge currency and interest rate risk on certain borrowings, and jet fuel
forward contracts to hedge fuel price risks. Hedge accounting is applied to those derivative financial instruments that are designated as
cash flow hedges or fair value hedges.
Fair value hedges
Changes in the fair values of derivatives that are designated and qualify as fair value hedges are recorded in the income statement, together
with any changes in the fair values of the hedged assets or liabilities that are attributable to the hedged risk. Any differences between the
hedge item and hedge instrument fair valuation is recoded as hedge ineffectiveness as a non-headline item within the income statement.
Fair value changes in the derivative instrument attributable to currency basis are not designated as part of the hedged instrument.
Such fair value changes are recognised through other comprehensive income, and are recycled to the income statement on a rational
basis, according to the nature of the underlying hedged item.
Cash flow hedges
Gains and losses arising from changes in the fair value of foreign exchange forward, jet fuel forward swaps and cross currency interest
rate swap contracts designated as a cash flow hedge are recognised in other comprehensive income and deferred in the hedging
reserve to the extent that the hedges are determined to be effective. Fair value changes in the derivative instrument attributable
to currency basis are not designated as part of the hedged instrument. Such fair value changes are recognised through other
comprehensive income, and are recycled to the income statement on a rational basis, according to the nature of the underlying
hedged item. All other changes in fair value are recognised immediately in the income statement.
When the hedged forecast transaction relates to an item of property, plant and equipment, the relevant accumulated gains and losses are
transferred from the hedging reserve and included in the initial carrying amount of that purchased asset. Otherwise they are recognised in
the income statement in the same period in which the hedged transaction affects the income statement and against the same line item.
In the event that a hedged forecast transaction is no longer expected to occur, any related gains and losses are immediately transferred
from the hedging reserve and recognised in the income statement.
Hedge accounting is discontinued when a hedging instrument is derecognised (e.g. through expiry or disposal), or no longer qualifies
for hedge accounting. Where the hedged item continues to be expected to occur, the related gains and losses remain deferred in the
hedging reserve until the transaction takes place.
140 2019
Hedge Relationship

The Group determines that the criteria for each hedge accounting relationship are met due to:
• All relationships demonstrate a strong economic correlation;
• The effects of credit do not dominate the change in value of the associated hedged risk; and
• All Group hedge relationships have a hedge ratio of one to one, aligning to the Group’s risk management strategy.
IMPACT ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 1 OCTOBER 2018

The following table summarises the impacts of adopting IFRS 9, 15 and 16 on the Group’s consolidated statement of financial position
as at 1 October 2018.
As reported
30 September Adjusted
As at 1 October 2018 2018 opening
£ millions (restated) IFRS 9 impact IFRS 15 impact IFRS 16 impact balance sheet
Non-current assets
Goodwill 365 – – – 365
Other intangible assets 181 – – – 181
Property, plant and equipment 4,140 – – 497 4,637
Derivative financial instruments 175 – – – 175
Equity investments – 54 – – 54
Restricted cash 11 – – – 11
Other non-current assets 122 – – – 122
4,994 54 – 497 5,545
Current assets
Trade and other receivables 406 – – (8) 398
Money market deposits 348 – – – 348
Cash and cash equivalents 1,025 – – – 1,025
1,999 – – (8) 1,991
Current liabilities
Trade and other payables (1,023) – – 9 (1,014)
Unearned revenue (877) – (87) – (964)
Borrowings (9) – – 9 –
Lease liabilities – – – (152) (152)
Derivative financial instruments (24) – – – (24)
Current tax payable (9) – – – (9)
Provisions for liabilities and charges (118) – – (2) (120)
(2,060) – (87) (136) (2,283)
Net current liabilities (61) – (87) (144) (292)
Borrowings (968) – – 89 (879)
Lease liabilities – – – (477) (477)
Non-current deferred income (18) – – 12 (6)
Post-employment benefit obligations (29) – – – (29)
Provisions for liabilities and charges (335) – – (18) (353)
Deferred tax (343) – 17 5 (321)
(1,700) – 17 (389) (2,072)
Net assets 3,233 54 (70) (36) 3,181
Share capital 108 – – – 108
Share premium 659 – – – 659
Hedging reserve 299 (5) – (2) 292
Cost of hedging reserve – 4 – – 4
Translation reserve 1 – – – 1
Retained earnings 2,166 55 (70) (34) 2,117
3,233 54 (70) (36) 3,181
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The following tables summarise the impacts of adopting IFRS 9, 15 and 16 on the Group’s consolidated income statement for the year
ended 30 September 2019, its consolidated statement of financial position as at 30 September 2019, and its consolidated statement
of cash flows for the year ended 30 September 2019. There has been an immaterial impact of IFRS 9 adoption on the income statement
and cash flow statement.
IMPACT ON THE CONSOLIDATED INCOME STATEMENT
Amounts
without
Year ended 30 September 2019 adoption of
£ millions As reported IFRS 15 impact IFRS 16 impact IFRS 15 & 16
Passenger revenue 5,009 21 – 5,030
Ancillary revenue 1,376 2 – 1,378
Total revenue 6,385 23 – 6,408
Fuel (1,416) – – (1,416)

Airports and ground handling (1,845) – (3) (1,848)
Crew (859) – – (859)
Navigation (409) – – (409)
Maintenance (302) – (85) (387)
Selling and marketing (157) – – (157)
Other costs (456) (18) (3) (477)
Other income 29 – – 29
EBITDAR 970 5 (91) 884
Aircraft dry leasing (5) – (182) (187)

Depreciation (484) – 244 (240)
Amortisation of intangible assets (15) – – (15)
Operating profit 466 5 (29) 442
Interest receivable and other financing income 24 – 14 38

Interest payable and other financing charges (60) – 22 (38)
Net finance charges (36) – 36 –
Profit before tax 430 5 7 442
Taxation (81) – – (81)
Profit for the period 349 5 7 361
Earnings per share, pence

Basic 88.6 91.6
Interest receivable and other financing income includes a £16 million hedging benefit as a result of management action
142 2019
IMPACT ON THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amounts
without
As at 30 September 2019 As IFRS 9 IFRS 15 IFRS 16 adoption of
£ millions reported impact impact impact IFRS 9, 15 & 16
Non-current assets
Goodwill 365 – – – 365
Other intangible assets 196 – – – 196
Property, plant and equipment 5,163 – – (431) 4,732
Equity investments 48 (48) – – –
Restricted cash 4 – – – 4
Other non-current assets 142 – – – 142
6,044 (48) – (431) 5,565
Current assets
Trade and other receivables 372 – – 8 380
Derivative financial instruments 147 – – (14) 133
Current tax assets 24 – – – 24
Money market deposits 291 – – – 291
Cash and cash equivalents 1,285 – – – 1,285
2,119 – – (6) 2,113
Current liabilities
Trade and other payables (1,050) – – (15) (1,065)
Unearned revenue (1,069) – 92 – (977)
Borrowings – – – (43) (43)
Lease liabilities (219) – – 219 –
Current tax payable – – (17) – (17)
Provisions for liabilities and charges (192) – – 2 (190)
(2,668) – 75 163 (2,430)
Net current liabilities (549) – 75 157 (317)
Borrowings (1,324) – – (53) (1,377)
Lease liabilities (359) – – 359 –
Non-current deferred income (6) – – – (6)
Post-employment benefit obligations (47) – – – (47)
Provisions for liabilities and charges (397) – – 15 (382)
Deferred tax (305) – – (5) (310)
(2,510) – – 316 (2,194)
Net assets 2,985 (48) 75 42 3,054
Share capital 108 – – – 108
Share premium 659 – – – 659
Hedging reserve (4) 9 – 2 7
Cost of hedging reserve 8 (8) – – –
Translation reserve (1) – – – (1)
Retained earnings 2,215 (49) 75 40 2,281
2,985 (48) 75 42 3,054
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IMPACT ON THE CONSOLIDATED STATEMENT OF CASH FLOWS
Amounts
without
Year ended 30 September 2019 adoption of
£ millions As reported IFRS 15 impact IFRS 16 impact IFRS 15 & 16
Operating profit for the period 466 5 (29) 442
Adjustments for non cash items:

Depreciation 484 – (244) 240
Commercial IT platform (2) – – (2)
Gain on sale and leaseback (2) – – (2)
Amortisation of intangible assets 15 – – 15
Share-based payments charge 19 – – 19
Changes in working capital and other items

of an operating nature
Decrease in trade and other receivables 37 – – 37
Decrease in trade and other payables 43 – – 43
Increase in unearned revenue 105 (5) – 100
Increase/(decrease) in provisions (3) – 85 82
Increase in other non-current assets (20) – – (20)
Decrease in derivative financial instruments (32) – – (32)
Decrease in non-current deferred income (12) – – (12)
Cash generated from operating activities 1,098 – (188) 910
Ordinary dividends paid (233) – – (233)

Interest and other financing charges paid (58) – 21 (37)
Interest and other financing income received 12 – – 12
Net tax paid (58) – – (58)
Net cash generated from operating activities 761 – (167) 594
Cash flows from investing activities

Purchase of property, plant and equipment (954) – – (954)
Purchase of intangible assets (30) – – (30)
Net decrease in money market deposits 52 – – 52
Net proceeds from sale and leaseback of aircraft 121 – – 121
Net cash used by investing activities (811) – – (811)
Purchase of own shares for employee share schemes (16) – – (16)

Proceeds from Eurobond issue 443 – – 443
Repayment of capital element of finance leases arising under IAS 17 – – (7) (7)
Repayment of capital element of leases arising under IFRS 16 (174) – 174 –
Net decrease in restricted cash 7 – – 7
Net cash used by financing activities 260 – 167 427
Effect of exchange rate changes 50 – – 50

Net increase in cash and cash equivalents 260 – – 260
Cash and cash equivalents at beginning of period 1,025 – – 1,025

Cash and cash equivalents at end of period 1,285 – – 1,285
144 2019
1C.CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of accounts in conformity with generally accepted accounting principles requires the use of estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the accounts and the reported amounts of income and expenses
during the reporting period. Although these amounts are based on management’s best estimates, 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.
1C.(I) CRITICAL ACCOUNTING JUDGEMENTS
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the
Directors have made in the process of applying the Group’s accounting policies and that have the most significant effect on the
amounts recognised and presented in the financial statements.
CLASSIFICATION OF INCOME OR EXPENSES BETWEEN HEADLINE AND NON-HEADLINE ITEMS (NOTE 5)
The Group seeks to present a measure of underlying performance which is not impacted by material non-recurring items or items
which are not considered to be reflective of the trading performance of the business. This measure of profit is described as ‘headline’
and is used by the Directors to measure and monitor performance. The excluded items are referred to as ‘non-headline’ items.
Non-headline items may include impairments, amounts relating to acquisitions and disposals, expenditure on major restructuring
programmes, litigation and insurance settlements, balance sheet exchange gains or losses, the income or expense resulting from the
initial recognition of sale and leaseback transactions, fair value adjustments on financial instruments and other particularly significant
or unusual non-recurring items. Items relating to the normal trading performance of the business will always be included within the
headline performance.
Judgement is required in determining the classification of items between headline and non-headline.
CONSOLIDATION OF EASYJET SWITZERLAND
Judgement has been applied in consolidating easyJet Switzerland S.A. as a subsidiary on the basis that the Company exercises a
dominant influence over the undertaking. A non-controlling interest has not been reflected in the consolidated accounts on the basis
that holders of the remaining 51% of the shares have no entitlement to any dividends from that holding and the Company has an option
to acquire those shares for a pre-determined minimal consideration.
EU CARBON EMISSIONS TAX SCHEME
The EU emissions trading system (ETS) mandates that greenhouse gas producing businesses, such as airlines, offset their carbon
footprint by obtaining, and subsequently surrendering carbon allowances (‘allowances’) by submitting them to the relevant regulator.
Airlines can obtain allowances by receiving free allowances from the EU as allocated by the UK government and purchasing allowances
from the market.
In December 2018 the EU issued a regulation which stated that aviation operators may not use allowances issued by Member States
who have triggered article 50 and notified of their intention to leave the EU. This was implemented to protect the integrity of the carbon
allowances market and avoid an inundation of UK free allowances into the market if the EU law did not apply to the UK at the ETS
submission date, but free allowances had been allocated. The free allowances allocated to our Austrian and Swiss operations were
not impacted and have been received.
As at 30 September 2019 easyJet have recognised a UK ETS liability of £60 million and a UK free allowance asset of £25 million as
the EU confirmed the suspension would be lifted automatically in the event of a withdrawal agreement coming into force.
Brexit has now been further delayed. The submission date for ETS allowances relating to 2019 calendar year is 31 December 2019, with
settlement on 30 April 2020. Three scenarios are possible as at the due date of submission; firstly the UK could have left the EU with a
withdrawal agreement in place. In this case the transition period becomes applicable, meaning the UK will remain subject to the EU ETS
scheme for calendar 2019 and 2020 years, and therefore the free allowances automatically become available. Secondly, the UK could
have left without a deal, in which case EU law no longer applies and no ETS liability or free allowances apply, as confirmed by the UK
Government. In this scenario, de-recognition of the liability and asset relating to ETS may occur. Thirdly, Brexit could be further delayed.
In this case easyJet expect to be required to submit allowances to cover the total 2019 ETS liability and receive the related free
allowances. Due to the ongoing uncertainty, easyJet have retained the liability and related asset as at 30 September 2019 which
is consistent with historic treatment and reflects the conditions as at 30 September 2019.
1C.(II) CRITICAL ACCOUNTING ESTIMATES
The following critical accounting estimates involve a higher degree of judgement or complexity, or are areas where assumptions are
significant to the financial statements. The critical accounting estimates concerned are not 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 - £526 MILLION (NOTE 18)
easyJet incurs liabilities for maintenance costs in respect of aircraft leased during the term of the lease. These arise from legal and
constructive contractual obligations relating to the condition of the aircraft when it is returned to the lessor. To discharge these
obligations, easyJet will also normally need to carry out one heavy maintenance check on each of the engines and the airframe
during the lease term.
On recognition of a right of use asset under IFRS 16 a provision is made in the income statement for maintenance not dependent
on use of the aircraft, plus maintenance relating to previous use, based on hours or cycles flown, to provide for the cost of these
obligations. Contractual obligations which are dependent on the ongoing use of the aircraft will be provided over the term of the lease
based on the estimated future costs, discounted to present value. This will be capitalised to the right of use asset rather than recognised
in maintenance in the income statement. This asset will be depreciated immediately as the obligation has arisen as a result of flying hours
already undertaken. The most critical estimates required are considered to be the utilisation of the aircraft, the expected costs of the
heavy maintenance checks at the time which they are expected to occur, the condition of the aircraft, the lifespan of life-limited parts
and the rate used to discount the provision.
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1C.(II) CRITICAL ACCOUNTING ESTIMATES CONTINUED

The bases of all estimates are reviewed annually, and also when information becomes available that is capable of causing a material
change to an estimate, such as renegotiation of end of lease return conditions, increased or decreased utilisation, or changes in the
cost of heavy maintenance services. No reasonable combination of changes to these estimates would result in a material movement
to the carrying value of the provision.
PROVISIONS FOR CUSTOMER CLAIMS – £50 MILLION (NOTE 18)
easyJet incurs liabilities for amounts payable to customers who make claims in respect of flight delays and cancellations, and refunds
of air passenger duty or similar charges. Estimates include passenger claim rates, the value of claims made and the period of time over
which claims will be made. The bases of all estimates are reviewed at least annually and also when information becomes available that
is capable of causing a material change to the estimate. No reasonable combination of changes to these estimates would result in a
material movement to the carrying value of the provision.
GOODWILL AND LANDING RIGHTS – £497 MILLION (NOTE 9)
Goodwill and landing rights are tested for impairment at least annually. easyJet has one cash-generating unit, being its route network.
In making this assessment, easyJet has considered the manner in which the business is managed including the centralised nature of
its operations and the ability to open or close routes and redeploy aircraft and crew across the whole route network.
The value in use of the cash-generating unit is determined by discounting future cash flows to their present value. When applying
this method, easyJet relies on a number of key estimates including its 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.
Both fuel price and exchange rates are volatile in nature, and the assumptions used are sensitive to significant changes in these rates.
DEFINED BENEFIT PENSION ASSUMPTIONS – £47 MILLION (NOTE 19)
The Swiss pension scheme meets the requirements under IAS 19 to be recognised as a defined benefit pension scheme and the
net pension obligation is recognised on the balance sheet. 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 to the future obligation and a sensitivity analysis is
included in note 19.
DERIVATIVE FINANCIAL INSTRUMENTS – £273 MILLION ASSET, £210 MILLION LIABILITY (NOTE 24)
easyJet is exposed to financial risks including fluctuations in exchange rates, jet fuel prices and interest rates. Financial risk management
aims to limit these market risks with selected derivative hedging instruments being used for this purpose. The Group hold a number
of derivatives and financial instruments including foreign currency forward exchange contracts, jet fuel forward contracts and cross-
currency interest rate swap contracts. easyJet’s policy is not to speculatively trade derivatives but to use the instruments to hedge
anticipated exposure. Given the inherently complex nature of this area the Finance Committee (a committee of the Board) oversees
the Group’s treasury activities.
1D. NEW AND REVISED STANDARDS AND INTERPRETATIONS NOT APPLIED
There are no standards that are issued but not yet effective that would be expected to have a material impact on the entity in
the current or future reporting periods and on foreseeable future transactions.
2. NET FINANCE CHARGES
2019 2018
Interest receivable and other financing income
Interest income (22) (12)
Net defined benefit interest cost – –
Net exchange gains on monetary assets and liabilities1 (2) –
(24) (12)
Interest payable and other financing charges
Interest payable on bank and other borrowings 23 18
Interest payable on finance lease obligations under IAS 17 – 4
Interest payable on lease liabilities under IFRS 16 26 –
Other interest payable 11 8
60 30
Net finance charges 36 18
1. Included within net exchange gains on monetary assets and liabilities is an £24 million gain relating to the fair value gain on derivatives designated as
fair value through profit or loss. See Note 24 for details.
146 2019
3. PROFIT BEFORE TAX

The following have been included in arriving at profit before tax:
2019 2018
Depreciation of property, plant and equipment
Owned assets 236 195
Assets held under finance leases arising under IAS 17 – 4
Right of use assets under IFRS 16 248 –
(Gain)/loss on disposal of intangibles, property, plant and equipment – 4
(Gain)/loss on sale and leaseback (2) 11
Operating lease rentals arising under IAS 17
Aircraft – 154
Other assets – 7
Lease rentals on short-term and low value leases arising under IFRS 16
Dry leased aircraft and other low value rentals 11 –
Wet leased aircraft rentals1 22 56
1. These are short-term leases where the treatment remains the same under IAS 17 and IFRS 16
In the comparative period ended 30 September 2018 aircraft operating lease rentals of £154 million included only the operating dry
lease rental charges recognised in the period, as well as the impact of hedging the USD exposure on these lease rentals.
Wet leased aircraft rentals of £22 million (2018: £56 million) were recognised within other costs. Wet leases are fundamentally different
to regular, long-term lease commitments as they are short-term in nature (with terms of less than one year) and they relate to the
provision of aircraft, crew, maintenance and insurance (‘ACMI’).
AUDITORS’ REMUNERATION
During the year easyJet incurred fees payable for the audit of the Group and individual accounts from easyJet’s auditors and their
associates (including foreign partners) totalling £0.4 million (2018: £0.4 million). In addition, easyJet incurred fees in respect of audit
related non-audit services totalling £123,500 (2018: audit related fees of £122,600) from its auditors. This includes the fee in respect
of the half year review performed.
4. EMPLOYEES
The average monthly number of people employed by easyJet was:
2019 2018
Number Number
Flight and ground operations 13,839 12,391
Sales, marketing and administration 912 713
14,751 13,104
Employee costs for easyJet were:
2019 2018
Wages and salaries 743 669
Social security costs 95 86
Pension costs 87 75
Share-based payments 19 17
944 847
Key management compensation was:
2019 2018
Short-term employee benefits 6 9
Termination payments – 2
9 13
The Directors of easyJet plc and the other members of the Airline Management Board are easyJet's key management as they
have collective authority and responsibility for planning, directing and controlling the business.
Share-based payment charges arising during the prior year in respect of grants to key management personnel were offset by credits
recognised on certain forfeitures arising from bad leavers and from downward revisions to some LTIP forecast vesting percentages.
Emoluments paid or payable to the Directors of easyJet plc was:
2019 2018
Remuneration 3 4
3 4
Details of Directors' remuneration are disclosed in the Directors' remuneration report on pages 96 to 115.
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5. NON-HEADLINE ITEMS
An analysis of the amounts presented as non-headline is given below:
2019 2018
Commercial IT platform (credit)/charge (2) 65
Tegel Integration – 40
Sale and leaseback (gain)/charge (2) 19
Brexit-related costs 4 7
Organisational review – 1
Recognised in operating profit – 132
Fair value adjustment (1) 1
Balance sheet foreign exchange gain (2) –
Total non-headline charge/(credit) before tax (3) 133
Tax on non-headline items 3 (25)
Total non-headline charge/(credit) after tax – 108
COMMERCIAL IT PLATFORM CREDIT

At the end of 2018, a one-off charge of £65 million was recognised in relation to our IT commercial platform. This charge included
a £60 million write down of costs previously capitalised, along with an additional £5 million accrual for close down costs.
During 2019, only £3 million of the close down accrual was utilised, mainly due to staff being redeployed and anticipated compromise
agreements not being required. Therefore the remaining £2 million has been released back to the income statement.
TEGEL INTEGRATION
There were no further one-off integration costs in relation to the operations in Tegel classified as non-headline in 2019. In 2018, the
main drivers of the £40 million integration expenses were from engineering costs, dry leasing and transaction costs.
SALE AND LEASEBACK (GAIN)/CHARGE
During the year, easyJet completed the sale and leaseback of 10 A319 aircraft (2018: 10). The net income statement impact of the
10 sale and leasebacks was a £2 million gain (2018: £19 million loss).
In 2018 (before the adoption of IFRS 16), the charge was split between a loss on disposal of £11 million and a maintenance provision
catch-up of £8 million. Under IFRS 16, the maintenance provision catch-up is now capitalised within the right of use asset rather than
being recognised as part of the gain or loss on disposal. As the 2019 aircraft were sold at mid-life, there was no maintenance provision
catch-up required.
BREXIT-RELATED COSTS
Following the UK’s referendum vote to leave the EU easyJet has established a multi AOC structure, helping to secure flying rights for
the portion of our network that remains wholly within and between EU states, excluding the UK.
In 2019 easyJet incurred further expenses of £4 million (2018: £7 million), with the primary drivers being re-registering aircraft and pilot
licences, as well as legal costs.
ORGANISATIONAL REVIEW
There were no further organisational review costs classified as non-headline during 2019 as the project ceased in 2018.
FAIR VALUE ADJUSTMENT
This relates to hedge accounting ineffectiveness for items held in fair value and cash flow hedge relationships.
This arises as the value of hedged items are adjusted for changes in fair value attributable to the hedged risks, which are not perfectly
offset by the fair value change on the hedging instruments due to factors such as in counterparty credit risk, cash flow timing or
amount changes.
Hedge ineffectiveness causes temporary volatility to the income statement; over the life of the contract it nets out to zero and has
no cash flow impact. Therefore, it is presented as a ‘non-headline’ item.
BALANCE SHEET FOREIGN EXCHANGE (GAIN)/LOSS
This relates to foreign exchange gains or losses arising from the re-translation of monetary assets and liabilities held in the statement
of financial position.
The (gain)/loss from balance sheet revaluations fluctuates each month, being driven by exchange rate movements which are unrelated
to the trend in the underlying performance of our ongoing business, so are excluded from headline costs.
148 2019
6. TAX CHARGE

Tax on profit on ordinary activities:
2019 2018
Current tax
United Kingdom corporation tax 16 57
Foreign tax 9 7
Adjustments in respect of prior years – (16)
Total current tax charge 25 48
Deferred tax
Temporary differences relating to property, plant and equipment 49 39
Other temporary differences 7 (20)
Adjustments in respect of prior years – 20
Total deferred tax charge 56 39
Total tax charge 81 87
Effective tax rate 18.9% 19.7%
RECONCILIATION OF THE TOTAL TAX CHARGE

The tax for the year is lower than (2018: higher than) the standard rate of corporation tax in the UK as set out below:
2019 2018
Profit before tax 430 445
Tax charge at 19.0% (2018: 19.5%) 82 85

Income not chargeable for tax purposes (1) (1)
Expenses not deductible for tax purposes 1 1
Adjustments in respect of prior years – current tax – (16)
Adjustments in respect of prior years – deferred tax – 20
Difference in applicable rates for current and deferred tax (6) (5)
Attributable to rates other than standard UK rate 1 1
Early adoption of accounting standards not impacting taxation 1 –
81 87
Current tax recoverable at 30 September 2019 amounted to £24 million (2018: current tax payable £9 million). This related to £29 million
of tax recoverable in the UK (2018: tax payable £12 million) and £5 million (2018: £3 million) of tax payable in other European jurisdictions.
During the year ended 30 September 2019, net cash tax paid amounted to £58 million (2018: £74 million).
TAX ON ITEMS RECOGNISED DIRECTLY IN OTHER COMPREHENSIVE INCOME OR SHAREHOLDERS' EQUITY
2019 2018
Charge to other comprehensive income
Deferred tax on change in fair value of cash flow hedges 69 (60)
Deferred tax on post-employment benefit 3 –
www.easyJet.com 149
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6. TAX CHARGE CONTINUED

DEFERRED TAX
The net deferred tax liability in the statement of financial position is as follows:
Post-
Accelerated Short-term employment
capital timing Fair value Share-based benefit
allowances differences gains/(losses) payments obligation Total
As at 30 September 2018 259 14 83 (8) (5) 343
Adjustments arising on adoption of IFRS 15 and 16 – (22) – – – (22)
At 1 October 2018 259 (8) 83 (8) (5) 321
Charged to income statement 49 7 – – – 56
Charged to other comprehensive income – – (69) – (3) (72)
At 30 September 2019 308 (1) 14 (8) (8) 305
Post-
Accelerated Short-term employment
capital timing Fair value Share-based benefit
allowances differences gains/(losses) payments obligation Total
At 1 October 2017 199 33 23 (6) (5) 244
Charged to income statement 60 (19) – (2) – 39
Credited to other comprehensive income – – 60 – – 60
At 30 September 2018 259 14 83 (8) (5) 343
It is estimated that deferred tax assets of approximately £6 million (2018: deferred tax assets of £6 million) will reverse during the next
financial year.
It is estimated that deferred tax liabilities of approximately £3 million (2018: deferred tax liabilities of £5 million) will reverse during the
next financial year.
7. EARNINGS PER SHARE
Basic earnings per share has been calculated by dividing the total profit for the year by the weighted average number of shares in issue
during the year after adjusting for shares held in employee benefit trusts.
To calculate diluted earnings per share, the weighted average number of ordinary shares in issue is 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:
2019 2018
Headline profit for the year 349 466
Total profit for the year 349 358
2019 2018
million million
Weighted average number of ordinary shares used to calculate basic earnings per share 393 394
Weighted average number of dilutive potential shares 4 3
Weighted average number of ordinary shares used to calculate diluted earnings per share 397 397
2019 2018
Earnings per share pence pence
Basic 88.6 90.9
Diluted 87.8 90.2
2019 2018
Headline earnings per share pence pence
Basic 88.7 118.3
Diluted 87.8 117.4
150 2019
8. DIVIDENDS

An ordinary dividend in respect of the year ended 30 September 2019 of 43.9 pence per share, or £174 million, based on headline
profit after tax, is to be proposed at the forthcoming Annual General Meeting. These accounts do not reflect this proposed dividend.
An ordinary dividend of 58.6 pence per share, or £233 million, in respect of the year ended 30 September 2018 was paid in the year
ending 30 September 2019. An ordinary dividend of 40.9 pence per share, or £162 million, in respect of the year ended 30 September
2017 was paid in the year ended 30 September 2018.
9. GOODWILL AND OTHER INTANGIBLE ASSETS
Other intangible assets
Landing Computer
Goodwill Rights software Total
£ million £ million £ million £ million
Cost
At 1 October 2018 365 129 86 215
Additions – 3 27 30
Disposals – – (13) (13)
At 30 September 2019 365 132 100 232
Amortisation
At 1 October 2018 – – 34 34
Charge for the year – – 15 15
Disposals – – (13) (13)
At 30 September 2019 – – 36 36
Net book value
At 30 September 2019 365 132 64 196
At 1 October 2018 365 129 52 181
Other intangible assets

Landing Computer
Goodwill rights software Total
Cost
At 1 October 2017 365 94 115 209
Additions – 35 46 81
Disposals – – (75) (75)
At 30 September 2018 365 129 86 215
Amortisation
At 1 October 2017 – – 30 30
Charge for the year – – 15 15
Disposals – – (11) (11)
At 30 September 2018 – – 34 34
Net book value
At 30 September 2018 365 129 52 181
At 1 October 2017 365 94 85 179
easyJet has one cash generating unit, being its route network. The recoverable amount of goodwill and other assets with indefinite
expected useful lives has been determined based on value in use calculations of the route network.
Pre-tax cash flow projections have been derived from the strategic plan presented to the Board for the period up to 2024, using
the following key assumptions:
Pre-tax discount rate (derived from weighted average cost of capital) 7.2%
Fuel price (US dollars per metric tonne) 650
Long-term economic growth rate 2.0%
Exchange rates:
US dollar 1.30
Euro 1.13
Swiss franc 1.30
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9. GOODWILL AND OTHER INTANGIBLE ASSETS CONTINUED

Both fuel price and exchange rates are volatile in nature, and the assumptions used represent management's view of reasonable
average rates. Operating margins are sensitive to significant changes in these rates.
Cash flow projections beyond the forecast period have been extrapolated using an estimated average of long-term economic
growth rates for the principal countries in which easyJet operates. The impairment model is sensitive to a sustained significant
adverse movement in foreign currency exchange rates.
No reasonably possible combination of changes to the key assumptions above, including spot rates as at 30 September 2019 for
fuel and foreign exchange, would result in the carrying value of the cash-generating unit exceeding its recoverable amount.
10. PROPERTY, PLANT AND EQUIPMENT
Assets held as Right of use assets held under
finance leases leasing arrangements under
Owned assets under IAS 17 IFRS 16 Total
Aircraft and Land and Aircraft and Aircraft and
spares buildings Other spares spares Other Total
£ million £million £ million £ million £ million £ million £ million
Cost
At 30 September 2018 4,964 – 67 103 – – 5,134
Recognised on adoption of IFRS 16 – – – (103) 1,125 32 1,054
At 1 October 2018 4,964 – 67 – 1,125 32 6,188
Additions 905 34 15 – 125 2 1,081
Aircraft sold and leased back (149) – – – 48 – (101)
Disposals – – (6) – – – (6)
At 30 September 2019 5,720 34 76 – 1,298 34 7,162
Depreciation
At 30 September 2018 946 – 18 30 – – 994
Recognised on adoption of IFRS 16 – – – (30) 575 12 527
At 1 October 2018 946 – 18 – 575 12 1,551
Charge for the year 232 – 5 – 243 4 484
Aircraft sold and leased back (31) – – – – – (31)
Disposals – – (5) – – – (5)
At 30 September 2019 1,147 – 18 – 818 16 1,999
Net book value
At 30 September 2019 4,573 34 58 – 480 18 5,163
At 1 October 2018 4,018 – 49 – 550 20 4,637
At 30 September 2018 4,018 – 49 73 – – 4,140
Aircraft and
spares Other Total
Cost
At 1 October 2017 4,345 60 4,405
Additions 919 12 931
Aircraft sold and leased back under operating leases (184) – (184)
Disposals (13) (5) (18)
At 30 September 2018 5,067 67 5,134
Depreciation
At 1 October 2017 861 19 880
Charge for the year 195 4 199
Aircraft sold and leased back under operating leases (67) – (67)
Disposals (13) (5) (18)
At 30 September 2018 976 18 994
Net book value
At 30 September 2018 4,091 49 4,140
At 1 October 2017 3,484 41 3,525
152 2019
Information presented for the comparative period ended 30 September 2018, is presented in accordance with IAS 17. Information

presented for the current period ended 30 September 2019, is presented in accordance with IFRS 16.
The net book value of aircraft includes £286 million (2018: 283 million) relating to advance and option payments for future deliveries.
This amount is not depreciated.
Aircraft with a net book value of £71 million (2018: £73 million) which were classified as finance leases in 2018 are now included within
the right of use asset created on adoption of IFRS 16 as at 1 October 2018. Right of use assets with a net book value of £497 million
were recognised as at that date which were previously treated as operating leases.
easyJet is contractually committed to the acquisition of 110 (2018: 115) Airbus A320 family aircraft, with a total list price* of US$13.0 billion
(2018: US$13.2 billion) before escalations and discounts for delivery in financial years 2020 (22 aircraft), in 2021 (26 aircraft), in 2022
(27 aircraft) and in 2023 (35 aircraft).
The ‘Other’ categories comprise of leasehold improvements, computer hardware, leasehold property and fixtures, fittings and equipment.
During the 2019 financial year we purchased land in Luton, UK with the intention to build a new head office.
* Airbus no longer publishes list prices. The estimated list price is based on the last available list price published in January 2018
and escalated by Airbus’ standard escalation from January 2018 to January 2019 of 3.7%.
11. OTHER NON-CURRENT ASSETS

2019 2018
Lessor maintenance contributions 107 88
Deferred consideration and deposits held by aircraft lessors 25 25
Recoverable supplemental rent (pledged as collateral) 9 7
Other 1 2
142 122
Lessor maintenance contribution assets arise to compensate easyJet for the delivery of a mid-life aircraft, where a lessor has agreed
to make a contribution to easyJet’s maintenance costs to reflect the cycles already flown by the aircraft at the point it is delivered to
easyJet. Depending on the contract terms, payment will be made either at the maintenance event date or at the lease return date.
12. TRADE AND OTHER RECEIVABLES
2019 2018
Trade receivables 80 112
Less provision for loss allowance (1) (1)
79 111
Prepayments and accrued income 247 215
Recoverable supplemental rent (pledged as collateral) 1 24
Other receivables 45 56
372 406
With respect to trade receivables that are neither impaired nor past due, there are no indications at the reporting date that the payment
obligations will not be met. Amounts due from trade receivables are short-term in nature and largely comprise credit card receivables
due from highly rated financial institutions and, accordingly, the possibility of significant default is considered to be unlikely.
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13. CASH AND MONEY MARKET DEPOSITS

2019 2018
Cash and cash equivalents (original maturity less than three months) 1,285 1,025
Money market deposits (original maturity more than three months) 291 348
Non-current restricted cash 4 11
1,580 1,384
Interest rates on money market deposits and restricted cash are repriced within 365 days based on prevailing market rates of interest.
Carrying value is not significantly different from fair value.
2019 2018
Restricted cash comprises: £ million £ million
Aircraft operating lease deposits – 7
Amount held in escrow accounts for legal cases 4 4
4 11
14. TRADE AND OTHER PAYABLES

2019 2018
Trade payables 339 329
Accruals 598 574
Leased aircraft – surplus on sale and leaseback – 7
Taxes and social security 27 26
Other payables 86 87
1,050 1,023
15. BORROWINGS AND LEASE LIABILITIES

Current Non-current Total
At 30 September 2019
Eurobond – 1,324 1,324
Lease liabilities arising under IFRS 16 219 359 578
219 1,683 1,902
Current Non-current Total

Eurobond – 879 879
Finance lease liabilities arising under IAS 17 9 89 98
9 968 977
Information presented for the comparative period ended 30 September 2018, is presented in accordance with IAS 17 Leases. Information
presented for the current period ended 30 September 2019, is presented in accordance with IFRS 16 Leases.
Finance lease obligations relate to aircraft and bear interest partly at fixed rates and partly at variable rates linked to USD LIBOR.
The maturity profile of borrowings is set out in note 27.
On 7 January 2016, the UK Listing Authority approved a prospectus relating to the establishment of a £3,000 million Euro Medium
Term Note Programme of easyJet plc. The prospectus under this programme has subsequently been updated with the latest version
being issues on 5 February 2019. Under this programme, on 9 February 2016 easyJet plc issued notes amounting to €500 million for
a seven-year term with a fixed annual coupon rate of 1.750%. On 18 October 2016 easyJet plc issued additional notes amounting to
€500 million for a seven-year term with a fixed annual coupon rate of 1.125%. On 11 June 2019 easyJet plc issued additional notes
amounting to €500 million for a six-year term with a fixed annual coupon rate of 0.875%.
The €500 million Eurobond issued on 9 February 2016 was designated as the hedged item in an effective fair value hedging
relationship. The Group used cross-currency interest rate swaps to convert the fixed rate Eurobond to a Sterling floating rate exposure.
The cross-currency interest rate swaps have the same maturity and common terms as the Eurobond that they are hedging. The carrying
value of the fixed rate Eurobond net of cross-currency interest rate swaps at 30 September 2019 was £378 million. See note 27 for
additional details.
The €500 million Eurobond issued on 18 October 2016 was designated as the hedged item in an effective cash flow value hedging
relationship. The Group used cross-currency interest rate swaps to convert the fixed rate Eurobond to a Sterling fixed rate exposure.
The cross-currency interest rate swaps have the same maturity and common terms as the Eurobond that they are hedging. The
carrying value of the fixed rate Eurobond net of cross-currency interest rate swaps at 30 September 2019 was £446 million. See
note 27 for additional details.
The €500 million Eurobond issued on 11 June 2019 was designated as the hedged item in an effective cash flow value hedging
relationship. The Group used cross-currency interest rate swaps to convert the fixed rate Eurobond to a Sterling fixed rate exposure.
The cross-currency interest rate swaps have the same maturity and common terms as the Eurobond that they are hedging. The carrying
value of the fixed rate Eurobond net of cross-currency interest rate swaps at 30 September 2019 was £448 million. See note 27 for
additional details.
154 2019
On 10 February 2015 easyJet signed a $500 million revolving credit facility with a minimum five-year term. The facility is due to mature

in February 2022.
On 1 August 2018 easyJet signed a £250 million revolving credit facility with a two-year term. This facility was cancelled in June 2019
following the bond issue in the same month.
16. LEASES
Information presented in this note is in respect of the current period ended 30 September 2019 and is presented in accordance with
IFRS 16. Information in respect of the comparative period ended 30 September 2018 is presented in accordance with IAS 17.
easyJet holds aircraft under leasing arrangements that are recognised as right of use assets and lease liabilities, with remaining lease
terms ranging up to eight 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 and cycles operated. Further details are given in note 1.
Information in respect of right of use assets, including the carrying amount, additions and depreciation, are set out in note 10 to
these financial statements. Information in respect of the carrying value and interest arising on lease liabilities is set out in note 24
and note 2 respectively. A maturity analysis of lease liabilities is set out below.
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 period in relation to these leases is disclosed in note 3.
The weighted average incremental borrowing rate applied to the lease liabilities in the statement of financial position at the initial
adoption on 1 October 2018 was 4.38%.
30 September 2019
Amounts recognised in the statement of cash flows £ million
Repayment of capital element of leases (174)
As at 1 October 2018
Reconciliation to prior year operating lease commitment £ million
Operating lease commitments as disclosed at 30 September 2018 601
Reconciling items:
Effect of discounting (at incremental borrowing rate as at 1 October 2018) (84)
Adjustment for options reasonably certain to be exercised 14
Finance lease liabilities recognised as at 30 September 2018 under IAS 17 98
Lease liabilities as at 1 October 2018 629
30 September 2019
Lease liabilities £ million
Maturity analysis – contractual undiscounted cash flows
Less than one year (230)
One to five years (343)
More than five years (64)
(637)
30 September 2019
Lease liabilities included in the statement of financial position £ million
Current (219)
Non-current (359)
Total (578)
30 September 2019
Amounts recognised in income statement £ million
Interest on lease liabilities adopted under IFRS 16 26
Expenses relating to short-term and low value leases (excluding wet leases) 11
Expenses relating to short-term wet leases 22
59
17. NON-CURRENT DEFERRED INCOME

The balance for the comparative period ending 30 September 2018 principally comprised the non-current surplus of sale proceeds
over fair value of aircraft that have been sold and leased back under operating leases. Following the adoption of IFRS 16, the surplus
should be recognised as additional financing provided by the lessor and has therefore been reclassified to lease liabilities within the
opening balances.
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18. PROVISIONS FOR LIABILITIES AND CHARGES

Provisions for
Maintenance customer Other
provision claims provisions Total provision
At 30 September 2018 392 61 – 453
Recognised on adoption of IFRS 16 20 – – 20
At 1 October 2018 412 61 – 473
Exchange adjustments 23 – – 23
Charged to income statement 90 141 13 244
Unwinding of discount 19 – – 19
Utilised (18) (152) – (170)
At 30 September 2019 526 50 13 589
Provisions for customer claims comprise amounts payable to customers who make claims in respect of flight delays and cancellations,
and refunds of air passenger duty or similar charges. Other provisions include amounts in respect of potential liabilities for employee-
related matters.
2019 2018
Current 192 118
Non-current 397 335
589 453
Maintenance provisions are expected to be utilised within ten years. Provisions for customer claims and other provisions are expected
to be utilised within one year.
19. PENSIONS
Due to the minimum guarantees in place under Swiss law, the Swiss pension plan meets IAS 19 requirements to be treated as a defined
benefit plan under IAS 19 despite the scheme having many attributes akin to a defined contribution scheme. The Swiss Federal Council
requires that a guaranteed minimum interest rate must be achieved (currently 1%), plus a guaranteed minimum conversion rate to be
applied to accumulated pension on retirement (currently 6.8%). These guarantees mean that the scheme is accounted for as a defined
benefit scheme under IAS 19. The scheme remains open to new employees.
The easyJet portion of the current service costs and the net interest cost are charged to the consolidated income statement in the year
in which they relate. Net interest is determined by multiplying the net defined benefit liability by the discount rate at the start of the
annual reporting period, adjusted for any contributions and benefit payments in the period. Actuarial gains and losses are recognised
in the consolidated statement of comprehensive income and the consolidated balance reflects the net surplus or deficit at the balance
sheet date.
The defined benefit obligation is calculated using the projected unit credit method. This reflects service rendered by employees to the
dates of valuation and incorporates actuarial assumptions including discount rates used in determining the present value of benefits,
projected rates of remuneration growth and mortality rates. The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using yields of high-quality corporate bonds. Management base the discount rate
on the bond yield on the Swiss bond market over 15 to 20 years, reflecting the currency in which the benefits will be paid, and
maturity terms approximating to the terms of the related pension obligation.
The key financial assumptions used to calculate the Swiss scheme liabilities under IAS 19 as at 30 September were:
2019 2018
Discount rate 0.05% 1.10%
Salary increase 1.00% 1.00%
Demographic assumptions BVG 2015 GT BVG 2015 GT
156 2019
DEMOGRAPHIC ASSUMPTIONS

The demographic assumptions including mortality assumptions used for the liability calculation are based on the most recent BVG 2015
tables. These tables are based on the experience during the period 2010 to 2014 on 15 of the largest autonomous Swiss pension plans
and are considered to be the best estimate available to management.
SENSITIVITIES
The scheme asset values are sensitive to market conditions. The scheme liabilities are sensitive to actuarial assumptions used to
determine the scheme obligations. Changes in these assumptions could have a material impact on the consolidated statement of
financial position. The main assumptions are the discount rate, the rate of salary increase and the life expectancy rate. The following
table provides an estimate of the potential impact on the pension scheme of changing these assumptions:
Increase/(decrease) in defined
benefit obligation
2019 2018
Discount rate +0.5% (7.6%) (7.0%)
-0.5% 8.8% 8.0%
Salary increase +0.5% 1.2% 0.7%
-0.5% (1.1%) (0.6%)
Life expectancy +1 year 0.6% 0.4%
-1 year (0.7%) (0.4%)
easyJet has an affiliation contract with Swiss Life Collective BVG Foundation. The assets of all affiliated companies are pooled which
diversifies the associated risk and the scheme assets represent the share in this Collection Foundation. The Collective controls the
asset management, is exposed to the risk and guarantees the savings capitals under the contract in place. The Board of Trustees
with the elected employees’ and employers’ representatives decide the investment strategy. The current agreement is “fully insured”
by Swiss Life, which means that all underfunding, investment and longevity risks are transferred from easyJet to Swiss Life over the
term of the policy i.e. over the term of the policy when members retire, all payments are the liability of the pension scheme.
The amounts recognised in the consolidated income statement are as follows:
2019 2018
Current service costs – defined benefit 7 7
Interest cost on net defined benefit obligation 1 1
Interest income on defined benefit asset (1) (1)
Administration cost – –
Net defined benefit cost recognised in income statement 7 7
Amounts recognised in other comprehensive income:
2019 2018
Actuarial loss/(gain) 18 2
(Return) on plan assets (1) –
Recognised in the statement of other comprehensive income 17 2
Movement in net deficit in the year:
Net deficit of the plan at 1 October 29 27
Net defined benefit cost recognised in income statement 7 7
Net defined benefit cost/(gain)recognised in OCI 17 2
Company contributions (7) (7)
Foreign exchange 1 –
Statement of financial position net deficit at 30 September 47 29
The net deficit recognised in the statement of financial position includes a prepayment for cash paid over to Swiss Life in advance and
not yet utilised in the pension scheme.
Expected employer cash contribution from the company in 2020 financial year is expected to be CHF 8 million.
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19. PENSIONS CONTINUED

Changes in the present value of the defined benefit obligation are as follows:
2019 2018
Present value of obligation at 1 October 118 106
Current service cost 7 7
Administration costs – –
Member contributions 4 3
Interest costs on defined benefit obligation 1 1
Contributions paid by plan participants 2 6
Benefit payments from scheme assets (6) (7)
Actuarial (gain)/loss arising from financial adjustments 16 2
Actuarial (gain)/loss arising from experience adjustments 2 –
Present value of obligation at 30 September 147 118
Changes in the fair value of the scheme assets are as follows:
2019 2018
Fair value of the scheme asset as at 1 October 89 79
Interest income on the defined benefit plan assets 1 1
Contributions paid by company 7 7
Contributions paid by employees 4 3
Contributions paid by plan participants 2 6
Benefits paid from plan assets (6) (7)
Return on plan assets 1 –
Fair value of the scheme asset as at 30 September 100 89
2019 2018
Number of active participants 1,067 950
Average age of active insured members in years 38 38
Average time remaining before active employees reach final age in years 10 10
Average active life expectancy in years 55 55
Average years of service in years 8 8
The weighted average duration of the defined benefit obligation of the Swiss pension scheme is 16 years (2018: 15 years).
MATURITY PROFILE OF DEFINED BENEFIT OBLIGATION
Expected benefit payments during financial year ending 30 September 2019 plus:
£m
1 year 7
2 years 6
3 years 8
4 years 8
5 years 7
6 up to 10 years 38
158 2019
20. SHARE CAPITAL

Number Nominal value
2019 2018 2019 2018
million million £ million £ million
Authorised
At 30 September 2019 and 30 September 2018
Ordinary shares of 27 2/7 pence each 458 458 125 125
Allotted, called up and fully paid
At 30 September 2019 and 30 September 2018 397 397 108 108
There was no new share capital issued in the year.
easyJet’s employee benefit trusts hold the following shares. The cost of these has been deducted from retained earnings:
2019 2018
Number of shares (million) 2 2
Cost (£ million) 30 26
Market value at year end (£ million) 27 23
21. SHARE INCENTIVE SCHEMES

easyJet operates the following share incentive schemes, all of which are equity settled. The change in the number of awards outstanding
and weighted average exercise prices during the year, and the number exercisable at each year end were as follows:
30 September
Forfeited Exercised 2019
Grant date 1 October 2018 Granted million million million
Long Term Incentive Plan
17 December 2013 0.1 – – – 0.1
19 December 2014 0.1 – – – 0.1
18 December 2015 0.3 – (0.3) – –
19 December 2016 0.6 – (0.2) – 0.4
19 December 2017 0.8 – (0.2) – 0.6
19 December 2018 – 1.4 (0.1) – 1.3
Restricted Share Plan
19 December 2016 0.1 – – – 0.1
Save As You Earn scheme
1 July 2015 0.2 – (0.1) – 0.1
1 July 2016 0.6 – (0.1) – 0.5
1 July 2017 2.2 – (0.7) – 1.5
1 July 2018 0.9 – (0.5) – 0.4
1 July 2019 – 4.5 (0.1) – 4.4
Share Incentive Plans 3.8 1.9 (0.2) (0.4) 5.1
9.7 7.8 (2.5) (0.4) 14.6
Weighted average exercise prices are as follows:
30 September
1 October 2018 Granted Forfeited Exercised 2019
Save As You Earn scheme 11.20 8.02 11.38 – 9.09

The exercise price of all awards save those disclosed in the above table is £nil.
The number of awards exercisable at each year end and their weighted average exercise price is as follows:
Price Number
£ million
2019 2018 2019 2018

Long Term Incentive Plan – – 0.2 0.2
Restricted Share Plan – – 0.1 –
Save As You Earn scheme 11.98 13.23 0.6 0.2
0.9 0.4
The weighted average remaining contractual life for each class of share award at 30 September 2019 is as follows:
Years
Long Term Incentive Plan 8.3
Restricted Share Plan 7.2
Save As You Earn scheme 2.6
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21. SHARE INCENTIVE SCHEMES CONTINUED

LONG TERM INCENTIVE PLAN
The plan is open, by invitation, to Executive Directors and Senior Management, and provides for annual awards of Performance Shares
worth up to 250% of salary each year. The vesting of these shares is dependent on return on capital employed (ROCE), earnings per
share (EPS) and total shareholder return (TSR) targets compared to FTSE-ranked companies at the start of the performance period.
All awards have a three-year vesting period. 2019 awards are assessed on performance conditions measured over the three financial
years ended 30 September 2021.
RESTRICTED SHARE PLAN
Granted in December 2016, the plan is open by invitation, to certain senior managers. The vesting of these shares is dependent on
remaining in employment for a period of two years.
SAVE AS YOU EARN SCHEME
The scheme is open to all employees on the UK payroll. Participants may elect to save up to £500 per month under a three year savings
contract. An option is granted by the Company to buy shares at a discount of 20% from market price at the time of the grant. At the
end of the savings period, the option becomes exercisable for a period of six months. Employees who are not paid through the UK
payroll may participate in the scheme under similar terms and conditions, albeit without the same tax benefits.
SHARE INCENTIVE PLAN
The plan is open to all employees on the UK payroll. Participants may invest up to £1,800 of their pre-tax salary each year to purchase
partnership shares in easyJet. For each partnership share acquired, easyJet purchases a matching share up to a maximum value of
£1,500 per annum. Employees must remain with easyJet for three years from the date of purchase of each partnership share in order
to qualify for the matching share, and for five years for the shares to be transferred to them tax free. The employee is entitled to
dividends on shares purchased, and to vote at shareholder meetings.
Subject to Company performance, easyJet also issues free shares to UK employees under an approved share incentive plan of up
to £3,000 per annum in value. There is a similar unapproved free shares scheme for international employees.
160 2019
The fair value of grants under the Save As You Earn scheme are calculated by applying the Binomial Lattice option pricing model.

The fair value of grants under the TSR based Long Term Incentive Plan is estimated under the Stochastic model (also known as the
Monte Carlo model). The fair value of grants under all other schemes is the share price on the date of grant. The following assumptions
are used:
Share Exercise| Expected Option Risk-free Fair
price price volatility life interest rate value
Grant date £ £ % years % £
Long Term Incentive Plan
18 December 2012 – ROCE 7.37 – – – – 6.92
18 December 2012 – TSR 7.37 – 33% 3.0 0.44% 5.16
17 December 2013 – ROCE 14.99 – – – – 14.99
17 December 2013 – TSR 14.99 – 31% 3.0 0.76% 9.83
19 December 2014 – ROCE 16.52 – – – – 16.52
19 December 2014 – TSR 16.52 – 29% 3.0 0.78% 11.65
18 December 2015 – ROCE 17.13 – – – – 17.13
18 December 2015 – TSR 17.13 – 29% 3.0 0.81% 9.69
19 December 2016 – ROCE 10.43 – – – – 10.43
19 December 2016 – TSR 10.43 – 35% 3.0 1.40% 5.21
19 December 2017 – ROCE 13.77 – – – – 13.77
19 December 2017 – EPS 13.77 – – – – 13.77
19 December 2017 – TSR 13.77 – 34% 3.0 1.15% 6.89
19 December 2018 – ROCE 10.78 – – – – 10.78
19 December 2018 – EPS 10.78 – – – – 10.78
19 December 2018 – TSR 10.78 – 47% 3.0 1.27% 5.39
Restricted Share Plan
19 December 2016 10.43 – – – – 10.43
Save As You Earn scheme
1 July 2014 16.62 13.30 33% 3.5 1.64% 5.03
1 July 2015 16.54 13.23 31% 3.5 0.95% 4.42
1 July 2016 14.98 11.98 35% 3.5 0.20% 4.28
1 July 2017 12.11 9.69 31% 3.5 0.42% 2.84
1 July 2018 17.43 13.94 30% 3.5 0.88% 4.41
1 July 2019 10.03 8.02 33% 3.5 0.67% 2.70
Share price for LTIPs is the closing share price from the last working day prior to the date of grant.
Exercise price for the Save As You Earn scheme is set at a 20% discount from the share price at grant date.
Expected volatility is based on historical volatility over a period comparable to the expected life of each type of option.
Levels of early exercises and forfeitures are estimated using historical averages.
The weighted average fair value of matching shares granted under the Share Incentive Plan during the year was £10.97 (2018: £15.44).
For grants under the Save As You Earn scheme, the dividend yield assumption is calculated based on the actual yield at the
date of grant. For the options granted in 2019, the dividend yield assumption was 4.5% (2018: 3.2%; 2017: 4.2%; 2016: 3.5%;
2015: 2.75%; 2014: 2%).
The total share-based payment expense recognised for the year was £19 million (2018: £17 million).
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22. RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS

2019 2018
Operating profit 466 463
Adjustments for non-cash items:

Depreciation 484 199
Loss on disposal on intangibles – 4
Commercial IT platform (credit)/charge (2) 60
(Gain)/loss on sale and leaseback (2) 11
Amortisation of intangible assets 15 15
Changes in working capital and other items of an operating nature:

Decrease/(increase) in trade and other receivables 37 (130)
Increase in trade and other payables 43 303
Increase in unearned revenue 105 150
(Decrease)/increase in provisions (3) 121
Increase in other non-current assets (20) (48)
(Decrease)/increase in derivative financial instruments (32) 57
Decrease in non-current deferred income (12) (7)
Cash generated from operations 1,098 1,215
23. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET CASH

Loan issue
Fair value and costs
IFRS 16 foreign capitalised and Net 30 September
1 October 2018 implementation exchange lease changes1 cash flow 2019
Cash and cash equivalents 1,025 – 50 – 210 1,285
Money market deposits 348 – (5) – (52) 291
1,373 – 45 – 158 1,576
Eurobond (879) – (8) 6 (443) (1,324)

Finance lease obligations under IAS 17 (98) 98 – – – –
Lease liabilities arising under IFRS 16 – (629) (43) (80) 174 (578)
(977) (531) (51) (74) (269) (1,902)
Net cash/(debt) 396 (531) (6) (74) (111) (326)

1. Lease changes includes new sale and leasebacks and lease extensions during the year
162 2019
24. FINANCIAL INSTRUMENTS

CLASSIFICATION AND MEASUREMENT
Under IAS 39 ‘Financial Instruments: Recognition and Measurement’ easyJet previously classified and measured its financial instruments
as follows:
• Derivative financial instruments: classified and measured at fair value through profit or loss;
• All other financial assets: classified as loans and receivables and measured at amortised cost; and
• All other financial liabilities: classified as other liabilities and measured at amortised cost.
Under IFRS 9 easyJet’s basis for classifying and measuring derivative financial instruments and other financial liabilities has remained
unchanged.
In accordance with IFRS 9 easyJet has performed an assessment on its non-derivative financial assets to ascertain the appropriate
accounting treatment. Under this assessment all such financial assets, with the exception of money market funds and other equity
instruments, have been assessed as being held under the ‘hold to collect’ business model, and the related cash flows have been
assessed as representing ‘solely payments of principal and interest’ (‘SPPI’). On this basis, this group of financial assets have continued
to be classified and measured at amortised cost on adoption of IFRS 9. Whilst there has been no change in the measurement
classification of these instruments, a measurement difference has arisen on adoption of IFRS 9, primarily due to the enhanced
impairment requirements of IFRS 9 versus IAS 39.
Under IFRS 9 money market funds have been classified and measured at fair value through profit or loss. easyJet’s assessment of the
instruments concluded that whilst these are also ‘hold to collect’ financial assets, they fail the SPPI test due to the fact the underlying
short-term debt investments within the funds can be sold at the funds discretion. On adoption of IFRS 9, money market funds have
therefore been reclassified out of the amortised cost classification and into the fair value through profit or loss classification. However,
due to the short-term, highly liquid nature of these instruments, their previous carrying values, under IAS 39, is considered to be materially
the same as their fair value. As such, no measurement difference has arisen on adoption of IFRS 9.
Other equity investments are non-derivative financial assets of unlisted investments, excluding interests in associates. On initial
recognition, these equity investments have been designated as measured at fair value through other comprehensive income.
These equity investments did not previously require recognition under IAS 39.
A summary of the changes to the classification and measurement bases of non-derivative financial assets under IFRS 9 is set out below:
Effect on
IAS 39 carrying IFRS 9 carrying retained
amount at 30 amount at earnings at
September 2018 Re-classifications Remeasurements 1 October 2018 1 October 2018
£ million £ million £ million £ million £ million
Amortised cost:
Other non-current assets 122 – – 122 –
Trade and other receivables 406 – – 406 –
Restricted cash 11 – – 11 –
Money market deposits 348 – – 348 –
Cash and cash equivalents 1,025 (665) – 360 –
Fair value:
Cash and cash equivalents – 665 – 665 –
Equity investments – – 54 54 54
The effect of adoption of IFRS 9 on the statement of financial position in the current period to 30 September 2019 is set out in note 1.
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24. FINANCIAL INSTRUMENTS CONTINUED

CARRYING VALUE AND FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
The fair values of financial assets and liabilities, together with the carrying value at each reporting date, are as follows:
Amortised cost Held at fair value
Financial Financial Fair value Cash flow Other financial Carrying Fair
assets liabilities hedges hedges instruments Other1 value value
At 30 September 2019 £ million £ million £ million £ million £ million £ million £ million £ million
Other non-current assets 141 – – – – 1 142 142
Trade and other receivables 209 – – – – 163 372 372
Trade and other payables – (919) – – – (131) (1,050) (1,050)
Derivative financial instruments – – 73 (30) 20 – 63 63
Restricted cash 4 – – – – – 4 4
Money market deposits 291 – – – – – 291 291
Cash and cash equivalents 872 – – – 413 – 1,285 1,285
Eurobonds3 – (1,324) – – – – (1,324) (1368)
Lease liabilities – (578) – – – – (578) (580)
Equity investments2 – – – – 48 – 48 48
Amortised cost Held at fair value

Financial Financial Fair value Cash flow Other financial Carrying Fair
assets liabilities hedges hedges instruments Other1 value value
At 30 September 2018 £ million £ million £ million £ million £ million £ million £ million £ million
Other non-current assets 120 – – – – 2 122 122
Trade and other receivables 240 – – – – 166 406 406
Trade and other payables – (894) – – – (129) (1,023) (1,023)
Derivative financial instruments – – 64 300 – – 364 364
Restricted cash 11 – – – – – 11 11
Money market deposits 348 – – – – – 348 348
Cash and cash equivalents 1,025 – – – – – 1,025 1,025
Eurobonds3 – (879) – – – – (879) (908)
Finance lease obligations – (98) – – – – (98) (100)
Information presented for the comparative period ended 30 September 2018, is presented in accordance with IAS 39 and IFRS 7 Financial Instruments.
Disclosures, as applicable to IAS 39. Information presented for the current period ended 30 September 2019, is presented in accordance with IFRS 9
and IFRS 7, as modified by IFRS 9.
1. Amounts disclosed in the 'Other' column are items that do not meet the definition of a financial instrument. They are disclosed to facilitate reconciliation
of the carrying values of financial instruments to line items presented in the statement of financial position.
2. The equity investment of £48 million represents a 13.2% shareholding in a non‐listed entity, The Airline Group Limited. Valuation movements are
designated as being fair valued through other comprehensive income due to the nature of the investment being held for strategic purposes.
A dividend of £3 million (2018: £3 million) was received during the year.
3. For further information see Capital, Financing and Interest risk management section in note 27.
164 2019
FAIR VALUE CALCULATION METHODOLOGY

Where available the fair values of derivatives and financial instruments have been determined by reference to observable market prices
where the instruments are traded. Where market prices are not available, the fair value has been estimated by discounting expected
future cash flows at prevailing interest rates and by applying year end exchange rates (excluding the Airline Group Limited equity
investment).
The fair values of the three Eurobonds are classified as level 1 of the IFRS 13 Fair Value Measurement hierarchy (valuations
taken as the closing market trade price for each respective Eurobond as at 30 September 2019). Apart from the equity investment,
the remaining financial instruments for which fair value is disclosed in the table above, and derivative financial instruments, are classified
as level 2.
The equity investment is classified as level 3 due to the use of forecast cash flows which are discounted to present value. Though there
are other level 2 inputs to the valuation, the discounted cash flow is a significant input which is not based on observable market data.
The fair value is assessed at each reporting date based on the discounted cash flows and two other valuations calculated using a market
approach and level 2 inputs. If the level 3 forecast cash flows were 10% higher or lower the fair value would not increase/decrease by
a significant amount.
The equity investment was recognised on adoption of IFRS 9 at 1 October 2018 at £54 million based on an external valuation. Using the
same methodology management performed the calculation as at 30 September 2019 resulting in a fair value reduction of £6 million
which was recognised in other comprehensive income.
The fair value measurement hierarchy levels have been defined as follows;
• Level 1, fair value of financial instruments based on quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2, fair value of financial instruments in an active market (for example, over the counter derivatives) which are determined using
valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.
• Level 3, fair value of financial instruments that are not based on observable market data (i.e. unobservable inputs).
FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS

Non-current Current Current Non-current
Quantity assets assets liabilities liabilities Total
At 30 September 2019 million £ million £ million £ million £ million £ million
Designated as cash flow hedges
US dollar 2,740 43 108 – (2) 149
Euro 2,338 4 15 (11) (3) 5
Swiss franc 492 1 – (9) (5) (13)
South African Rand 134 – 2 – – 2
Jet fuel 3 – 7 (118) (55) (166)
Cross-currency interest rate swaps 888 – – – (7) (7)
Designated as fair value hedges

Cross-currency interest rate swaps 379 73 – – – 73
Designated as fair value through profit or loss

US dollar 345 5 15 – – 20
126 147 (138) (72) 63
Non-current Current Current Non-current
Quantity assets assets liabilities liabilities Total
At 30 September 2018 million £ million £ million £ million £ million £ million
Designated as cash flow hedges
US dollar 2,627 25 22 (11) (1) 35
Euro 2,020 1 9 (12) (2) (4)
Swiss franc 429 – 5 (1) (4) –
South African Rand 237 2 1 – – 3
Jet fuel 3 83 183 – – 266
Cross-currency interest rate swaps 445 – – – – –
Designated as fair value hedges

Cross-currency interest rate swaps 379 64 – – – 64
175 220 (24) (7) 364
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24. FINANCIAL INSTRUMENTS CONTINUED

For foreign currency forward exchange contracts and exchange swap contracts, quantity represents the gross nominal value of currency
contracts held, disclosed in the contract currency. The cross-currency interest rate swap contracts are presented at the sterling notional.
For jet fuel forward contracts quantity represents contracted metric tonnes.
The majority of hedged foreign exchange and jet fuel transactions are expected to occur on various dates within the next 24 months.
Accumulated gains and losses resulting from these transactions are deferred in the hedging reserve. They will be recognised in the
income statement in the periods that the hedged transactions impact the income statement. Where the gain or loss is included in the
initial amount recognised following the purchase of an aircraft, recognition in the income statement is over a period of up to 23 years
in the form of depreciation of the purchased asset.
Amounts related to USD foreign exchange derivatives held at fair value through profit or loss (e.g. not held in a hedge accounting
relationship) form part of the Group’s balance sheet retranslation risk management strategy. Fair valuation movements on these
derivatives are recognised in the income statement and offset foreign exchange movements on the corresponding notional amount
of balance sheet liabilities held in USD. These trades are all expected to occur on various dates within the next 24 months.
The Group maintains cross-currency interest rate swap contracts on fixed rate debt issuance as part of the approach to currency and
interest rate risk management. The cross-currency interest rate swap contracts are designated and qualify as either fair value or cash
flow hedges to minimise volatility in the income statement.
The following derivative financial instruments are subject to offsetting, enforceable master netting agreements:
Gross Amount Net
amount not set off amount
At 30 September 2019 £ million £ million £ million
Derivative financial instruments
Assets 273 (143) 130
Liabilities (210) 143 (67)
63 – 63
Gross Amount Net
amount not set off amount
At 30 September 2018 £ million £ million £ million
Derivative financial instruments
Assets 395 (31) 364
Liabilities (31) 31 –
364 – 364
All financial assets and liabilities are presented gross on the face of the statement of financial position as the conditions for netting off, as
specified in IAS32 'Financial Instruments: Presentation' are not met.
25. GUARANTEES AND CONTINGENT LIABILITIES
The Group has given a formal undertaking to Hotelopia Holidays S.L.U, the Civil Aviation Authority (CAA) and the Trustees of the Air
Travel Trust that it will guarantee easyJet bookings made on its behalf by Hotelopia. In the event the CAA publishes a notice of failure
in respect of Hotelopia, the Group will honour all easyJet related bookings or enter into alternative arrangements for the bookings to
be fulfilled or compensated.
easyJet is involved in a number of disputes and litigation which arose in the normal course of business. The likely outcome of these
disputes and litigation cannot be predicted, and in complex cases reliable estimates of any potential obligation may not be possible.
Having reviewed the information currently available, management considers that the ultimate resolution of these disputes and litigation
is unlikely to have a material adverse effect on easyJet’s results, cash flows or financial position.
As at 30 September 2019 easyJet had no agreements with third parties for which fees were contingent upon the completion of
acquisition activities (2018: nil).
At 30 September 2019 easyJet had outstanding letters of credit and performance bonds totalling £34 million (2018: £33 million),
of which £7 million (2018: £12 million) expire 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.
166 2019
26. GEOGRAPHICAL REVENUE ANALYSIS

2019 2018
United Kingdom 2,546 2,577
Southern Europe 2,169 1,837
Northern Europe 1,558 1,395
Other 112 89
6,385 5,898
Southern Europe comprises countries lying wholly or mainly south of the border between Italy and Switzerland, plus France.
easyJet’s non-current assets principally comprise its fleet of 232 owned (2018: 220) and 99 leased aircraft (2018: 95), giving a total fleet
of 331 at 30 September 2019 (2018: 315). 28 aircraft (2018: 26) are registered in Switzerland, 136 (2018: 113) are registered in Austria and
the remaining 167 (2018: 176) are registered in the United Kingdom.
27. FINANCIAL RISK AND CAPITAL MANAGEMENT
easyJet is exposed to financial risks including fluctuations in exchange rates, jet fuel prices and interest rates. Financial risk management
aims to limit these market risks with selected derivative hedging instruments being used for this purpose. easyJet's policy is not to
speculatively trade derivatives but use the instruments to hedge anticipated exposure and gain cash flow certainty. As such, easyJet
is not exposed to market risk by using derivatives as any gains and losses arising are offset by the outcome of the underlying exposure
being hedged. In addition to market risks, easyJet is exposed to credit and liquidity risk.
The Board is responsible for setting financial risk and capital management policies and objectives which are implemented by the treasury
function on a day to day basis. The policy outlines the approach to risk management and also states the instruments and time periods
which the treasury function is authorised to use in managing financial risks. The policy is regularly reviewed to ensure best practice.
No significant changes were made during the current year with the exception of an update to take account of the financial risk arising
from FX translations of lease liabilities (predominantly in USD) following the adoption of IFRS 16.
CAPITAL EMPLOYED
Capital employed comprises shareholders' equity, borrowings (including amounts related to IFRS 16 lease liability), cash and money
market deposits (excluding restricted cash).
Consequently, the capital employed at the end of the current and prior year and the return earned during those years were as follows:
2019 2018 (restated)
Headline Non-headline Total Headline Non-headline Total
Shareholders' equity 2,985 – 2,985 3,233 – 3,233
Borrowings 1,324 – 1,324 977 – 977
Lease liabilities 578 – 578 – – –
Cash and money market deposits (excluding
restricted cash) (1,576) – (1,576) (1,373) – (1,373)
Reported capital employed 3,311 – 3,311 2,837 – 2,837
Operating lease adjustment – – – 1,134 – 1,134
Capital employed 3,311 – 3,311 3,971 – 3,971
Reported operating profit 466 – 466 594 (132) 462

Implied interest in operating lease costs – – – 51 3 54
Adjusted operating profit 466 – 466 645 (129) 516
Tax rate 19% 19%
Adjusted operating profit after tax 377 – 377 522 (104) 418
Return on capital employed 11.4% 11.4% 14.6% 11.7%
Return on capital employed is calculated by dividing the adjusted operating profit after tax by the average of the opening and closing
capital employed.
2018 is calculated using an operating lease adjustment applied under IAS 17 before the adoption of IFRS 16.
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LIQUIDITY RISK MANAGEMENT
The objective of easyJet's liquidity risk management is to ensure sufficient cash is available to meet future liabilities as they fall due
and ensure access to cost effective funding in various markets.
easyJet continues to hold significant cash and liquid funds to mitigate the impact of potential business disruption events as well as
having access to a revolving credit facility of $500 million. The $500 million revolving credit facility was agreed on 10 February 2015
and was undrawn at 30 September 2019.
On 1 December 2017 easyJet also entered into a bespoke Business Interruption Insurance product that pays out up to £150 million in
the event of specific liquidity stress scenarios (with standard insurance exclusions).
easyJet has a target minimum liquidity requirement to cover peak unearned revenue with a minimum of £2.6 million per 100 seats
in the fleet. In assessing this liquidity metric, both revolving credit facilities and Business Interruption Insurance need to be taken into
consideration. Total cash (excluding restricted cash) and money market deposits at 30 September 2019 was £1,576 million (2018:
£1,373 million). Surplus funds are invested in high quality short-term liquid instruments, mainly money market funds, bank deposits
and tri-party repos.
The maturity profile of financial liabilities based on undiscounted cash flows and contractual maturities is as follows:
Within 1 year 1-2 years 2-5 years Over 5 years
At 30 September 2019 £ million £ million £ million £ million
Borrowings 17 17 929 447
Trade and other payables 919 – – –
Lease liabilities 230 195 148 64
FX and jet derivative contracts – receipts (3,344) (1,577) (82) –
FX and jet derivative contracts – payments 3,292 1,523 80 –
Cross-currency swap contracts – receipts (17) (17) (929) (447)
Cross-currency swap contracts – payments 32 32 898 453
Within 1 year 1-2 years 2-5 years Over 5 years

Borrowings 26 32 558 450
Trade and other payables 894 – – –
FX and jet derivative contracts – receipts (3,184) (1,282) (68) –
FX and jet derivative contracts – payments 3,161 1,228 65 –
Cross-currency swap contracts – receipts (13) (13) (484) (450)
Cross-currency swap contracts – payments 22 22 439 450
The maturity profile has been calculated based on spot rates for the US dollar, Euro, Swiss franc, South African rand and jet fuel at close
of business on 30 September each year.
168 2019
CREDIT RISK MANAGEMENT

easyJet is exposed to credit risk arising from cash and money market deposits, derivative financial instruments and trade and other
receivables. Credit risk management aims to reduce the risk of default by setting limits on credit exposure to counterparties based
on their respective credit ratings. Credit ratings also determine the maximum period of investment when placing funds on deposit.
The maximum exposure to credit risk at the reporting date is equal to the carrying value of its financial assets, excluding tri-party
repo, which are securitised by high quality, investment grade financial assets.
Counterparties for cash investments and derivatives contracts are required to have a long-term credit rating of A- or better at
contract inception from either Moody’s, Standard & Poor’s or Fitch rating agencies (except where there is a specific regulatory,
contractual requirement or a bank guarantee from an A- rated entity). Exposures to these counterparties are regularly reviewed
and, if the long-term credit rating falls below A- management will make a decision on remedial action to be taken.
The credit rating of counterparties that easyJet holds financial assets with are as follows:
A- and above Below A- Other Total
Financial Assets
Trade receivables – – 372 372
Other non-current assets – – 142 142
Derivative financial instruments 130 – – 130
Restricted cash 4 – – 4
Money market deposits 291 – – 291
Cash and cash equivalents 1,282 3 – 1,285
Total 1,707 3 514 2,224
A- and above Below A- Other Total

Financial Assets
Trade receivables – – 406 406
Other non-current assets – – 122 122
Derivative financial instruments 364 – – 364
Restricted cash 11 – – 11
Money market deposits 348 – – 348
Cash and cash equivalents 1,022 3 – 1,025
Total 1,745 3 528 2,276
At the end of each reporting date easyJet recognises a loss allowance for expected credit losses on financial assets measured at
amortised cost. In establishing the appropriate amount of loss allowance to be recognised, easyJet applies either the general approach
or the simplified approach, depending on the nature of the underlying group of financial assets.
The general approach is applied to the impairment assessment of refundable lease deposits and other refundable lease contributions,
restricted cash, money market deposits and cash and cash equivalents.
Under the general approach easyJet recognises a loss allowance for a financial asset at an amount equal to the 12-month expected
credit losses, unless the credit risk on the financial asset has increased significantly since initial recognition, in which case a loss allowance
is recognised at an amount equal to the lifetime expected credit losses.
At 30 September 2019 this was considered immaterial. This is due to easyJet’s strict policy of investing only with counterparties
who hold a high, investment grade credit standing (except in specific circumstances) as detailed in the tables above.
The simplified approach is applied to the impairment assessment of trade and other receivables.
Under the simplified approach easyJet always recognises a loss allowance for a financial asset at an amount equal to the lifetime
expected credit losses using the historic loss methodology to calculating an impairment provision.
At 30 September 2019 this was considered immaterial. The exposure to individual customer’s credit risk is reduced as no individual
customer accounts for a substantial proportion of the total revenue and most payments are collected in advance of the service
being provided.
FOREIGN CURRENCY RISK MANAGEMENT
The majority of easyJet's exposure to currency arises from fluctuations in the US dollar, Euro and Swiss franc exchange rates which
can significantly impact easyJet's financial results and cash flows. The aim of the foreign currency risk management is to reduce the
impact of these exchange rate fluctuations.
Significant currency exposures in the income statement are managed through the use of currency forward contracts entered into
a cash flow hedge relationships, in line with the board approved policy. The policy states that easyJet hedges between 65% - 85% of
the next 12 months forecast surplus operating cash flows on a rolling basis, and 45% - 65% of the following 12 months forecast surplus
operating cash flows on a rolling basis.
Significant currency exposures relating to the acquisition cost or sale proceeds of aircraft are also managed through the use of currency
forward contracts and FX swap contracts where up to 90% of the next 18 months forecast requirement is hedged. In addition, easyJet
has substantial borrowings and other monetary liabilities denominated in US dollars and Euros, which are largely offset by holding US
dollar and Euro cash and money market deposits.
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27. FINANCIAL RISK AND CAPITAL MANAGEMENT CONTINUED

Significant currency exposures relating to foreign currency denominated debt issuances are managed through the use of cross-currency
interest rate swap contracts, where deemed appropriate. These hedges are designated as either fair value hedges or cash flow hedges.
During the year easyJet entered into FX forward contracts for the purposes of managing the foreign exchange risk created as a result
of the adoption of the IFRS 16: As part of the new standard the Group has recognised £578 million in lease liabilities, the majority of which
are denominated in USD. Lease liability amounts are classified as monetary financial instruments, with retranslation amounts resulting
from movements in foreign exchange rates in the period (into the functional currency of GBP) going through the income statement.
FX forward contracts classified as fair value through profit or loss (e.g. not designated in a hedge relationship) are used as part of the
Group’s risk management strategy to reduce this foreign exchange risk in the income statement.
Management may take action to hedge other currency exposures as deemed appropriate.
The volume of transactions in a hedge relationship that occurred during the financial year to manage the foreign currency risk were
as follows:
• USD – £1,614 million
• EURO – £1,434 million
• CHF – £269 million
• ZAR – £103 million
The gains and losses that arose from these hedge transactions during the year were as follows:
• USD – £57 million gain
• EURO – £9 million loss
• CHF – £4 million gain
• ZAR – £2 million gain
CAPITAL, FINANCING AND INTEREST RATE RISK MANAGEMENT

The objective of capital management is to ensure that easyJet is able to continue as a going concern whilst delivering shareholder
expectations of a strong capital base as well as returning benefits for other stakeholders.
On 30 September 2019, easyJet held long-term corporate credit ratings from both Standard & Poor's (BBB+) and Moody's (Baa1).
easyJet plc established a £3,000 million Euro Medium Term Note programme on 7 January 2016, with any debt issuances under this
scheme being guaranteed by easyJet Airline Company Limited. Subsequently easyJet plc has issued three bonds under this programme.
In February 2016, easyJet plc issued a €500 million bond guaranteed by easyJet Airline Company Limited. The Eurobond pays an annual
fixed coupon of 1.750%. At the same time the Group entered into three cross-currency interest rate swaps to convert the entire €500
million fixed rate Eurobond to a Sterling floating rate exposure. All three swaps pay floating interest (three-month LIBOR plus a margin)
quarterly, receive fixed interest annually, and have maturities matching the Eurobond. The Group designated all three cross-currency
interest rate swaps as a fair value hedge of the interest rate and currency risks on the €500 million Eurobond. The swaps are measured
at fair value through profit or loss with any gains or losses being taken immediately to the income statement (except where related
to timing differences related to cross-currency basis amortisation). The carrying value of the Eurobond is adjusted for changes in fair
value attributable to the risks being hedged. This net carrying value differs to the swap’s fair value depending on movements in the
Group's credit risk and cross-currency basis. The carrying value of the fixed rate Eurobond net of the cross-currency interest rate
swap at 30 September 2019 was £378 million. This value does not include capitalised set-up costs incurred in the issuing of the bond.
The lifetime fair value adjustment to the bond hedging instrument on the statement of financial position was £(72) million. During the
year fair value adjustments totalled £(10) million which were offset by materially equal and opposite movements on the hedging
instruments. Movements related to the hedging of foreign exchange in the year were £2 million with the remaining fair value movements
relating to the hedging of interest risk.
In October 2016 easyJet plc issued a €500 million bond under the £3,000 million Euro Medium Term Note Programme guaranteed by
easyJet Airline Company Limited. The Eurobond pays an annual fixed coupon of 1.125%. Shortly after the issuance of the €500 million
bond the Group entered into three cross-currency interest rate swaps to convert the entire €500 million fixed rate Eurobond to a
Sterling fixed rate exposure. The cross-currency interest rate swaps were executed on 8 November 2016 with settlement and notional
exchange occurring on 14 November 2016. All three swaps pay fixed interest semi-annually, receive fixed interest annually, and have
maturities matching the Eurobond. The Group designated all three cross-currency interest rate swaps as a cash flow hedge of the
currency risk on the €500 million Eurobond. The cross-currency interest rate swaps are measured at fair value with the effective
portion taken through the statement of comprehensive income. The element of the fair value generated by the change in the spot
rate is recycled to the income statement from the statement of comprehensive income to offset the revaluation of the Eurobond.
The carrying value of the fixed rate Eurobond net of the cross-currency interest rate swap at 30 September 2019 was £446 million.
This value does not include capitalised set-up costs incurred in the issuing of the bond.
In June 2019 easyJet plc issued a €500 million bond guaranteed by easyJet Airline Company Limited. The Eurobond pays an annual fixed
coupon of 0.875%. At the same time the Group entered into three cross-currency interest rate swaps to convert the entire €500 million
fixed rate Eurobond to a Sterling fixed rate exposure. All three swaps pay fixed interest semi-annually, receive fixed interest annually,
and have maturities matching the Eurobond. The Group designated all three cross-currency interest rate swaps as a cash flow hedge
of the currency risk on the €500 million Eurobond. The cross-currency interest rate swaps are measured at fair value with the effective
portion taken through the statement of comprehensive income. The element of the fair value generated by the change in the spot
rate is recycled to the income statement from the statement of comprehensive income to offset the revaluation of the Eurobond.
The carrying value of the fixed rate Eurobond net of the cross-currency interest rate swap at 30 September 2019 was £448 million.
This value does not include capitalised set-up costs incurred in the issuing of the bond.
170 2019
The weighted average interest GBP interest rate hedged for the three bonds was 2.55% with a weighted average GBP/EUR foreign

exchange hedge rate of 1.19.
Interest rate cash flow risk arises on floating rate borrowings and cash investments.
Interest rate risk management policy aims to provide certainty in a proportion of financing while retaining the opportunity to benefit from
interest rate reductions. Borrowings are issued at either fixed or floating interest rates repricing every three to six months. A significant
proportion of the US dollar liabilities are matched with US dollar cash assets by value. Aircraft leases are a mix of fixed and floating rates.
Of the 99 aircraft leases in place at 30 September 2019 (2018: 95), 83% were based on fixed interest rates and 17% were based on
floating interest rates (2018: 82% fixed, 18% floating).
COMMODITY PRICE RISK MANAGEMENT
The Group is exposed to commodity risk in the form of jet fuel and Carbon EU Emissions Trading System (ETS) price risk.
The objective of the fuel price risk management policy is to provide protection against sudden and significant increases in jet fuel prices,
thus mitigating volatility in the income statement in the short-term. In order to manage the risk exposure, forward contracts are used
in line with the Board approved policy to hedge between 65% and 85% of estimated exposures up to 12 months in advance, and to
hedge between 45% and 65% of estimated exposures from 13 up to 24 months in advance. Jet fuel derivatives are entered into a
cash flow hedge relationship against the future forecasted jet fuel usage. Specific decisions may require consideration of a longer
term approach. Treasury strategies and actions will be driven by the need to meet treasury, financial and corporate objectives.
The Group has a regulatory requirement to surrender ETS carbon allowances on an annual basis to the relevant environmental agencies,
relative to the amount of carbon emissions in the period. easyJet is required to purchase ETS allowances on the open market to fulfil
this requirement and is exposed to price movements that can introduce volatility to the income statement. To mitigate this exposure,
forward contracts are used in line with board approved policy to hedge up to 95% of anticipated exposure up to 24 months out.
These contracts are not classified as a financial instruments as they fall within the own use provision under IFRS 9.
The volume of hedge transactions that occurred during the financial year to manage the jet commodity price risk was 3 million
metric tonnes. This resulted in a £97 million gain in the income statement.
MARKET RISK SENSITIVITY ANALYSIS
Financial assets and liabilities affected by market risk include borrowings, lease liabilities, deposits, trade and other receivables, trade
and other payables and derivative financial instruments. The following analysis illustrates the sensitivity of changes in relevant foreign
exchange rates, interest rates and fuel prices. It should be noted that the analysis reflects the impact on profit or loss after tax for
the year and other comprehensive income on financial instruments in a cash flow hedge relationship held at the reporting date. The
sensitivities are calculated based on all other variables remaining constant. The analysis is considered representative of easyJet's
exposure over the next 12-month period.
The sensitivity analysis is based on easyJet's financial assets and liabilities and financial instruments held as at 30 September 2019.
The currency exchange rate analysis assumes a +/-10% change in both US dollar and Euro exchange rates.
The interest rate analysis assumes a 1% increase in interest rates over the next 12 months.
The fuel price analysis assumes a 10% increase in fuel price over the next 12 month.
Currency rates
US dollar US dollar Euro Euro Interest rates Fuel price 10%
+10%1 -10%2 +10%1 -10%2 1% increase increase
At 30 September 2019 £ million £ million £ million £ million £ million £ million
Income statement impact: gain/(loss) 87 (71) 5 (4) 11 –
Impact on other comprehensive income:
increase/(decrease) 180 (147) 4 (3) – 136
Currency rates
US dollar US dollar Euro Euro Interest rates Fuel price 10%
+10%1 -10%2 +10%1 -10%2 1% increase increase
At 30 September 2018 £ million £ million £ million £ million £ million £ million
Income statement impact: gain/(loss) 33 (27) 7 (6) 8 –
Impact on other comprehensive income:
increase/(decrease) 191 (156) 20 (16) – 134
1. GBP weakened.
2. GBP strengthened.
The market risk sensitivity analysis has been calculated on spot rates for the US dollar, Euro and jet fuel at close of business on 30 September each year.
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27. FINANCIAL RISK AND CAPITAL MANAGEMENT CONTINUED

APPLICATION OF HEDGE ACCOUNTING
On adoption of IFRS 9 easyJet has elected to separate changes in the value of cross-currency interest rate swaps arising as a result of
foreign currency basis spread, when designating the swap as a hedging instrument. Changes in value relating to foreign currency basis
spread no longer form part of the designated hedging instrument, and are instead recognised through other comprehensive income,
held in a separate cost of hedging reserve, and are subsequently amortised on a rational basis. This has resulted in a reclassification
of £4 million between the hedging reserve and the cost of hedging reserve on 1 October 2018.
IMPACT ON THE FINANCIAL STATEMENTS DURING THE PERIOD ENDED 30 SEPTEMBER 2019
The effect of adoption of IFRS 9 on the statement of financial position in the current period to 30 September 2019 is set out in note 1.
Details of major hedging arrangement at the reporting date are set out below broken down by the notional maturity of hedge
instruments and average rates in local currency.
Greater than
Hedge instrument (notional in millions) Within one year one year
Jet fuel hedged notional 2 1
Average hedge rate 655 640
USD foreign exchange hedged notional 1,529 1,211
Average hedge rate 1.36 1.30
EUR foreign exchange hedged notional 1,865 473
CHF foreign exchange hedged notional 296 196
ZAR foreign exchange hedged notional 108 26
HEDGE EFFECTIVENESS
Hedge effectiveness testing on all relationships is performed at each reporting date. Whilst the critical terms matching of the Group’s
hedge relationships means that any ineffectiveness should be minimal it can be driven by factors such as material changes in credit risk,
changes in the timings or amounts of the hedged items. During the year fair value movements of £214 million held in a cash flow hedge
relationship was materially the same as movements in hedge instrument hypotheticals.
Hedge ineffectiveness of £1 million was recognised through the income statement in the period relating to cross-currency interest rate
swaps and timing differences on foreign exchange forward hedges. This was recognised within interest payable and other finance
charges, as a non-headline item.
172 2019
28. RELATED PARTY TRANSACTIONS

The Company licenses 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 33% of the
issued share capital of easyJet plc as at 30 September 2019.
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 for a minimum term of 10 years. The full term of
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. Beyond the first £1.1 million
of costs, easyJet can commit up to an aggregate £5.5 million annually to meet brand protection costs, with easyGroup continuing to
meet its share of costs on a 10:1 ratio. easyJet must meet 100% of any brand protection costs it wishes to incur above this limit.
A side letter to the Brand Licence was entered with easyGroup, dated 29 September 2016, under which, in return for easyGroup
consenting to easyJet acquiring a portion of the equity share capital in Founders Factory Limited, easyJet made a payment of £1.
The amounts included in the income statement, within Other costs, for these items were as follows:
2019 2018
Annual royalty 16 15
Brand protection (legal fees paid through easyGroup to third parties) 1 1
17 16
At 30 September 2019, £0.9 million (2018: £3 million) of the above aggregate amount was included in trade and other payables.
29. EVENTS AFTER THE REPORTING PERIOD

easyJet acquired Thomas Cook's slots at Gatwick Airport (12 summer slot pairs and eight winter slot pairs) and Bristol Airport
(six summer slot pairs and one winter slot pair) for £36 million. Contractual terms have concluded and the slots have been
awarded to easyJet.
www.easyJet.com 173
COMPANY STATEMENT OF FINANCIAL POSITION
30 September
30 September 2018 1 October 2017
2019 (restated) (restated)
Notes £ million £ million £ million
Non-current assets
Investments in subsidiary undertakings c 945 927 910
Derivative financial instruments with subsidiary undertakings d 73 63 62
Deferred tax asset 1 – –
1,019 990 972
Current assets
Amounts due from subsidiary undertakings 1,854 1,626 1,582
Current tax asset – – 2
1,854 1,626 1,584
Current liabilities
Amounts due to subsidiary undertakings (3) (1) (2)
Current tax payable (2) (5) –
(5) (6) (2)
Net current assets 1,849 1,620 1,582
Borrowings e (1,324) (879) (870)
Derivative financial instruments with subsidiary undertakings d (8) – (8)
(1,332) (879) (878)
Net assets 1,536 1,731 1,676
Share capital 108 108 108
Share premium 659 659 659
Hedging reserve (15) (1) (3)
Cost of hedging reserve 8 – –
Retained earnings 776 965 912
1,536 1,731 1,676
In accordance with Section 408 of the Companies Act 2006, the Company is exempt from the requirement to present its own income
statement and statement of comprehensive income. The Company’s profit for the year was £25 million (2018: £198 million). Included
in this amount are dividends received of £15 million (2018: £177 million), which are recognised when the right to receive payment is
established. The Company recognised no other income or expenses in either the current or prior year, other than the profit for each year.
The accounts on pages 174 to 178 were approved by the Board of Directors and authorised for issue on 18 November 2019 and signed
on behalf of the Board.

Director Director
174 2019
COMPANY STATEMENT OF CHANGES IN EQUITY
Share Share Hedging Cost of hedging Retained
reserve
FINANCIAL STATEMENTS COMPANY ACCOUNTS

capital premium reserve earnings Total
At 30 September 2018 108 659 (1) – 965 1,731
Recognition on adoption of IFRS 9 – – (5) 4 1 –
At 1 October 2018 108 659 (6) 4 966 1,731
Total comprehensive income – – (9) 4 25 20
Dividends paid – – – – (233) (233)
Movement in reserves for employee share schemes – – – – 18 18
At 30 September 2019 108 659 (15) 8 776 1,536
Share Share Hedging Cost of hedging Retained

capital premium reserve reserve earnings Total
At 1 October 2017 108 659 (3) – 912 1,679
Total comprehensive income – – 2 – 198 200
Dividends paid – – – – (162) (162)
Movement in reserves for employee share schemes – – – – 17 17
At 30 September 2018 108 659 (1) – 965 1,731
An ordinary dividend in respect of the year ended 30 September 2019 of 43.9 pence per share or £174 million, based on headline
profit after tax, is to be proposed at the forthcoming Annual General Meeting. These accounts do not reflect this proposed dividend.
An ordinary dividend of 58.6 pence per share, or £233 million in respect of the year ended 30 September 2018 was paid in the year
ended 30 September 2019. An ordinary dividend of 40.9 pence per share, or £162 million, in respect of the year ended 30 September
2017 was paid in the year ended 30 September 2018.
The disclosures required in respect of share capital are shown in note 20 to the consolidated accounts.
COMPANY STATEMENT OF CASH FLOWS Year ended Year ended

2019 2018
Cash used by operations (excluding dividends) f 223 (26)
Interest received 36 40
Interest paid (34) (29)
Dividends received 15 177
Dividends paid (233) (162)
Tax paid (7) –
Net cash used by operating activities – –
Cash flows from financing activities

Proceeds from drawdown of bank loans and other borrowings 443 –
Movement in loans with subsidiary undertakings (443) –
Net movement in cash and cash equivalents – –
Cash and cash equivalents at beginning and end of year – –
www.easyJet.com 175
Notes to the company accounts
A) SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the preparation of these Company accounts are the same as those set out in note
1 to the consolidated accounts with the addition of the following:
INVESTMENTS
Investments in subsidiaries are stated at cost, less any provision for impairment. Where subsidiary undertakings incur charges for
share-based payments in respect of share options and awards granted by the Company, a capital contribution in the same amount
is recognised as an investment in subsidiary undertakings with a corresponding credit to shareholders’ equity.
PRIOR YEAR ADJUSTMENT
A prior period adjustment has been made to the Derivative Financial Instruments with Subsidiary classification to align with the treatment
of these line items within the Group accounts within the statement of financial position. Previously these amounts were classified
as current assets on a net basis due to the amounts being related to inter-company cross currency interest rate swaps with a sole
subsidiary (easyJet Airline Company Limited). These cross currency interest rate swaps are used to manage foreign currency and
interest rate risks on Eurobond debt items and are held within hedge accounting relationships. The Eurobond items are non-current
in nature and the external interest rate swaps align and should be presented as non-current.
The impact of this restatement on the statement of financial position as at 30 September 2018 has resulted in £63 million being
reclassified from current assets to non-current assets. There was no impact on net assets or retained earnings.
B) INCOME STATEMENT AND STATEMENT OF TOTAL COMPREHENSIVE INCOME
In accordance with Section 408 of the Companies Act 2006, the Company is exempt from the requirement to present its own income
statement and statement of comprehensive income. The Company’s profit for the year was £25 million (2018: £198 million). Included
in this amount are dividends received of £15 million (2018: £177 million), which are recognised when the right to receive payment is
established. The Company recognised no other income or expenses in either the current or prior year, other than the profit for each year.
The Company has eight employees at 30 September 2019 (2018: seven). These employees are the Non-Executive Directors of easyJet
plc; their remuneration is paid by easyJet Airline Company Limited. The Executive Directors of easyJet plc are employed and paid by
easyJet Airline Company Limited. Details of Directors' remuneration are disclosed in note 4 to the consolidated accounts and in the
Directors' remuneration report on pages 96 to 115.
C) INVESTMENTS IN SUBSIDIARY UNDERTAKINGS
Investments in subsidiary undertakings were as follows:
2019 2018
At 1 October 927 910
Capital contributions to subsidiaries 18 17
At 30 September 945 927
A full list of Group companies are detailed below.
Percentage of
ordinary
Country of incorporation Principal activity shares held
easyJet Airline Company Limited2 England and Wales Airline operator 100
easyJet Switzerland S.A.3 Switzerland Airline operator 49
Dawn Licensing Holdings Limited4 Malta Holding company 100
Dawn Licensing Limited4 Malta Graphic design 100
easyJet Sterling Limited1, 5 Cayman Islands Aircraft trading and leasing 100
easyJet Leasing Limited1, 5 Cayman Islands Aircraft trading and leasing 100
easyJet UK Limited2 England and Wales Air transport 100
easyJet Holidays Holdings Limited2 England and Wales Holding company 100
easyJet Holidays Limited2 England and Wales Tour operator 100
easyJet Holidays Transport Limited2 England and Wales Air transport 100
easyJet Europe Airline GmbH6 Austria Airline operator 100
SALEM Beteiligungsverwaltungachtundachtzigste GmbH6 Austria Holding company 100
1. Although these companies are Cayman Islands incorporated they have always been, and continue to be, UK tax resident.
2. Hangar 89, London Luton Airport, Luton, Bedfordshire, LU2 9PF.
3. Route de l’Aeroport, Meyrin, CH-1215 Geneve 15, Switzerland.
4. Sterling Buildings, The Penthouse, Enrico Mizzi Street, Ta’ Xbiex, XBX 1453, Malta.
5. Governor’s Square, West Bay Road, Lime Tree Bay Road, UNIT # 2-105 , PO Box 1982, Grand Cayman KY1-1104, Cayman Islands.
6. Wagramer Straße 19, 11.Stock IZD Tower, 1220 Wien, Austria.
176 2019
The Company has a 49% interest in easyJet Switzerland S.A. with an option to acquire the remaining 51%. The option is automatically
FINANCIAL STATEMENTS NOTES TO THE COMPANY ACCOUNTS

extended for a further year on a rolling basis, unless the option is terminated by written agreement prior to the automatic renewal date.
easyJet Switzerland S.A. is a subsidiary on the basis that the Company exercises a dominant influence over the undertaking. A non-
controlling interest has not been reflected in the consolidated accounts on the basis that holders of the remaining 51% of the shares
have no entitlement to any dividends from that holding and the Company has an option to acquire those shares for a predetermined
minimal consideration.
D) FINANCIAL INSTRUMENTS
In February 2016, easyJet plc issued a €500 million bond under the £3,000 million Euro Medium Term Note Programme guaranteed
by easyJet Airline Company Limited. The Eurobond pays an annual fixed coupon of 1.750%. At the same time the Group entered into
three cross-currency interest rate swaps to convert the entire €500 million fixed rate Eurobond to a floating rate Sterling exposure.
In October 2016 easyJet plc issued €500 million bond under the £3,000 million Euro Medium Term Note Programme guaranteed
by easyJet Airline Company Limited. The Eurobond pays an annual fixed coupon of 1.125%. At the same time the Group entered into
three cross-currency interest rate swaps to convert the entire €500 million fixed rate Eurobond to a Sterling fixed rate exposure.
In June 2019 easyJet plc issued €500 million a bond under the £3,000 million Euro Medium Term Note Programme guaranteed by
easyJet Airline Company Limited. The Eurobond pays an annual fixed coupon of 0.875%. At the same time the Group entered into
three cross-currency interest rate swaps to convert the entire €500 million fixed rate Eurobond to a fixed rate Sterling exposure.
For further details please refer to note 27 of the consolidated accounts.
E) BORROWINGS
Non-current Total
Eurobond 1,324 1,324
Non-current Total
Eurobond 879 879
On 1 August 2018 easyJet signed a £250 million revolving credit facility with a two-year term. The facility was cancelled in June 2019
following the bond issue.
For further details please see the disclosures shown in note 15 to the consolidated accounts.
F) RECONCILIATION OF PROFIT FOR THE YEAR TO CASH GENERATED FROM OPERATIONS
2019 2018
Profit for the year 25 198
Adjustments for:
Finance and other similar income (9) (12)
Unrealised foreign exchange differences (3) (11)
Tax charge 2 5
Dividends received (15) (177)
Operating cash flows before movement in working capital – 3
Changes in working capital and other items of an operating nature:

Decrease/(increase) in amounts due from subsidiary undertakings 220 (29)
Increase/(decrease) in amounts due to subsidiary undertakings 1 (1)
Increase in derivative financial instruments 2 1
223 (26)
www.easyJet.com 177
N OTE S TO THE
NOTES T HE COMPANY
COM PA NY A CCOU N TS C
ACCOUNTS ONTI NU ED
CONTINUED
G) GUARANTEES AND CONTINGENT LIABILITIES

The Company has given a formal undertaking to the Civil Aviation Authority to guarantee the payment and discharge of all liabilities
of easyJet UK Limited, a subsidiary of the Company. The guarantee is required for that company to maintain its operating licence
under Regulation 3 of the Licensing of Air Carriers Regulations 1992.
The Company has issued a guarantee in favour of easyJet Airline Company Limited, a subsidiary undertaking, in relation to the
processing of credit card transactions, and also in respect of hedging transactions carried out according to treasury policy.
The Company has guaranteed the contractual obligations of easyJet Airline Company Limited and easyJet Leasing Limited,
both subsidiary undertakings, in respect of its contractual obligations to Airbus SAS in respect of the supply of Airbus 320 family aircraft.
The company has guaranteed the contractual obligations of easyJet Holidays Limited, a subsidiary undertaking, with regards to payment
obligations to Atcore Technology Limited.
The Company has guaranteed the repayment of borrowings that financed the acquisition of aircraft by subsidiary undertakings. The
Company has also guaranteed the payment obligations for the lease of aircraft by subsidiary undertakings.
The Company has guaranteed certain letters of credit issued on behalf of subsidiary undertakings.
The company has guaranteed the contractual obligations of easyJet Airline Company Limited, a subsidiary undertaking, in respect of a
$500 million revolving credit facility. The revolving credit facility was agreed during the year ended 30 September 2015, for a minimum
of five years, and was undrawn at 30 September 2019 and 30 September 2018. The facility is currently due to mature in February 2022.
No amount is recognised on the Company statement of financial position in respect to any of these guarantees as it is not probable
that there will be an outflow of resources.
H) RELATED PARTY TRANSACTIONS
Transactions with subsidiary undertakings, which principally relate to the provision of funding within the Group, are carried out on
an arm's length basis. Outstanding balances are placed on intercompany accounts with no specified credit period, are unsecured,
and bear market rates of interest. Amounts due from subsidiaries are repayable on demand.
During the financial year the Company received a dividend from easyJet Switzerland of £15 million (2018: £15 million).
For full details of transactions and arrangements with easyJet’s largest shareholder, see note 28 of the consolidated accounts.
178 2019
Five-year summary
20181 20172 20162 20153
2019 (restated) (as reported) (restated) (as reported)
FINANCIAL STATEMENTS FIVE-YEAR SUMMARY

£ million £ million £ million £ million £ million
Income statement
Revenue 6,385 5,898 5,047 4,669 4,686
Total EBITDAR 970 839 709 770 940
Headline EBITDAR 970 961 733 764
Total operating profit 466 463 404 510 688
Headline operating profit 466 595 428 504
Total profit before tax 430 445 385 507 686
Headline profit before tax 427 578 408 494
Total profit after tax 349 358 305 437 548
Headline profit after tax 349 466 325 427
Basic total earnings per share – pence 88.6 90.9 77.4 110.9 139.1
Basic headline earnings per share – pence 88.7 118.3 82.5 108.4
Diluted total earnings per share – pence 87.8 90.2 76.8 110.1 138
Diluted headline earnings per share – pence 87.8 117.4 81.9 107.6
Ordinary dividend per share – pence 43.9 58.6 40.9 53.8 55.2
Statement of financial position

Non-current assets 6,044 4,994 4,237 4,042 3,549
Current assets 2,119 1,999 1,734 1,442 1,279
Current liabilities (2,668) (2,060) (1,670) (1,569) (1,768)
Non-current liabilities (2,510) (1,700) (1,499) (1,221) (811)
Net assets 2,985 3,233 2,802 2,694 2,249
Net cash
Operating activities 761 961 663 387 609
Investing activities (863) (906) (515) (586) (532)
Financing activities (excluding movements in
borrowings and money market deposits) (9) (21) (10) (16) (70)
Loan issue costs 6 (1) 6 1 –
Fair value and foreign exchange gains/(losses) (86) 6 – (8) 6
Net increase/(decrease) in net cash (191) 39 144 (222) 13
Key performance indicators

Headline return on capital employed 11.4% 14.6% 11.9% 15.0% 22.2%
Net cash/(debt) (£million) (326) 396 357 213 435
Total profit before tax per seat (£) 4.10 4.68 4.45 6.35 9.15
Headline profit before tax per seat (£) 4.07 6.07 4.71 6.18
Revenue per seat (£) 60.81 61.94 58.23 58.46 62.48
Total cost per seat (£) 56.71 57.26 53.78 52.11 53.33
Headline cost per seat (£) 56.74 55.87 53.52 52.28
Total cost per seat excluding fuel (£) 43.23 44.82 41.53 38.16 37.55
Headline cost per seat excluding fuel (£) 43.26 43.43 41.27 38.33
Seats flown (million) 105.0 95.2 86.7 79.9 75.0
1. See note 1 to the financial statements for details of the change in accounting policy.
2. See note 1 to the 2017 financial statements for details of the change in accounting policy.
3. The performance metrics for 2015 above have not been restated to reflect the change in accounting policies detailed in note 1 to the 2017 financial
statements.
www.easyJet.com 179
GLOSSARY
Adjusted capital employed Capital employed plus seven times operating lease costs incurred in the year.
Adjusted net cash/debt Net cash/debt less seven times operating lease costs incurred in the year.
Aircraft dry/wet leasing Payments to lessors under dry leasing arrangements relate solely to the provision of an aircraft.
Payments to lessors under wet leasing arrangements relate to the provision of aircraft, crew,
maintenance and insurance.
Aircraft owned/leased at end of year Number of aircraft owned or on lease arrangements of over one month’s duration at the end
of the period.
Ancillary Revenue Includes revenue from the provision of checked baggage, allocated seating, change fees and
commissions.
AOC Air Operator Certificate.
Available seat kilometres (ASK) Seats flown multiplied by the number of kilometres flown.
Average adjusted capital employed The average of opening and closing capital employed.
Block hours Hours of service for aircraft, measured from the time that the aircraft leaves the terminal
at the departure airport to the time that it arrives at the terminal at the destination airport.
Capital employed Shareholders’ equity less net cash/debt.
Cost per ASK Revenue less profit before tax, divided by available seat kilometres.
Cost per seat Revenue less profit before tax, divided by seats flown.
Cost per seat, excluding fuel Revenue, less profit before tax, plus fuel costs, divided by seats flown.
Customer Satisfaction (CSAT) Customer satisfaction index, based on results of a customer satisfaction survey which measures
how satisfied the customer was with their most recent flight.
EBITDAR Earnings before interest, taxes, depreciation, amortisation, aircraft dry leasing costs, and profit
or loss on disposal of aircraft held for sale.
Gearing Adjusted net cash/debt divided by the sum of shareholders’ equity and adjusted net cash/debt.
Headline A measure of underlying performance which is not impacted by material non-recurring items
or items which are not considered to be reflective of the trading performance of the business.
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. (Cash includes money market deposits but excludes
restricted cash).
Non-headline Material non-recurring items or items which are not considered to be reflective of the trading
performance of the business.
Normalised operating profit after tax Reported operating profit adjusted for one-third of operating lease costs incurred in the year,
less tax at the prevailing UK corporation tax rate at the end of the financial year.
On-time performance (OTP) Percentage of flights which arrive within 15 minutes of scheduled arrival time.
Operated aircraft utilisation Average number of block hours per day per aircraft operated.
Other costs Administrative and operational costs not reported elsewhere, including some employee costs,
compensation paid to passengers, exchange gains and losses and the profit or loss on the
disposal of property plant and equipment.
Other income Includes insurance receipts, compensation and dividends received.
Passengers Number of earned seats flown. Earned seats comprises seats sold to passengers (including no-
shows), seats provided for promotional purposes and seats provided to staff for business travel.
Profit before tax per seat Profit before tax divided by seats flown.
Revenue The sum of seat revenue and non-seat revenue.
Revenue passenger kilometres (RPK) Number of passengers multiplied by the number of kilometres those passengers were flown.
Revenue per ASK Revenue divided by available seat kilometres.
Revenue per seat Revenue divided by seats flown.
Return on capital employed (ROCE) Operating profit, less tax at the prevailing UK corporation tax rate at the end of the financial
year, divided by average capital employed.
ROCE (including lease adjustments) Normalised operating profit after tax divided by average adjusted capital employed. Applicable
to 2018 under IAS17.
Seats flown Seats available for passengers.
Sector A one-way revenue flight
180 2019
SHAREHOLDER INFORMATION
shareholder information
FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

MANAGING YOUR SHARES AND SHAREHOLDER AUDITOR
COMMUNICATION PricewaterhouseCoopers LLP
The Company’s share register is maintained by our Registrar, Embankment Place
Equiniti. Shareholders with queries relating to their shareholding London
should contact Equiniti directly using one of the methods listed WC2N 6KH
below:
COMPANY’S REGISTERED OFFICE
Equiniti Limited
Hangar 89
Aspect House
London Luton Airport
Spencer Road
Luton
Lancing
Bedfordshire
West Sussex
LU2 9PF
BN99 6DA
Telephone: 01582 525252
Telephone: 0371 384 2091
Telephone number outside UK : +44 121 415 7567 Registered in England & Wales under number 03959649
Online: help.shareview.co.uk CORPORATE WEBSITE
Website: www.shareview.co.uk
You can access the corporate website at corporate.easyjet.com.
Lines are open Monday to Friday 8.30am to 5.30pm; excluding The corporate website provides useful information including
bank holidays. annual reports, results announcements and share price data, as
Shareholders can manage their holdings online or elect to receive well as background information about the Company. Shareholders
shareholder documentation in electronic form by registering at are encouraged to sign up to receive email notification of results
www.shareview.co.uk. Some of the benefits of having a Shareview and press announcements as they are released by registering at
portfolio are: corporate.easyjet.com/investors
• Track share price and recent performance SHARE PRICE INFORMATION

• View and manage all of your shareholdings in one place Details of our share price data and other share price tools are
• Buy and sell shares instantly online with the share dealing available at corporate.easyjet.com/investors.
service
DIVIDENDS
• Find comprehensive shareholder information and forms
Dividends can be paid quickly and securely directly into your bank
• Update your records following a change of address account instead of being dispatched to you by cheque. You may
• Have dividends paid into your bank account also choose to have your dividends reinvested in further shares of
• Vote in advance of Company general meetings the Company through our Dividend Reinvestment Plan (DRIP)
(terms and conditions apply). To arrange either of these options,
Should shareholders who have elected for electronic simply call Equiniti on the number provided. Alternatively, you can
communication require a paper copy of any of the Company’s manage your dividend payment choices by registering with
shareholder documentation, or wish to change their instructions, Shareview at www.shareview.co.uk.
they should contact Equiniti.
SHARE GIFT
ANNUAL GENERAL MEETING Shareholders who only have a small number of shares whose
This year’s Annual General Meeting (AGM) will be held on valuation makes it uneconomic to sell them may wish to consider
6 February 2020 at the offices of easyJet plc, Hangar 89, London donating them to charity through ShareGift, the independent
Luton Airport, Luton, Bedfordshire, LU2 9PF. The Notice convening charity share donation scheme (registered charity no.1052686).
the AGM will be available for download from the Company’s Further information may be obtained from ShareGift on
corporate website at corporate.easyjet.com/investors/shareholder- 0207 930 3737 or at sharegift.org.
services/agm
SHAREHOLDER FRAUD
KEY DATES Fraud is on the increase and many shareholders are targeted
27 February 2020 Ex-dividend date every year. If you have any reason to believe that you may have
28 February 2020 Record date been the target of a fraud or attempted fraud in relation to your
6 February 2020 Annual General Meeting shareholding, please contact Equiniti immediately.
20 March 2020 Final dividend payment date
www.easyJet.com 181
NOTES

FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
183
www.easyJet.com
NOTES

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Thank you
We’d like to thank everyone who
has helped to produce this report:
Sruti Bajoria, Michael Barker, Ella Bennett, Meena Bhatia-Ahir, Mita Bhattacharjee, Lis Blair,
Matthew Callaghan, Louise Cardani, Robert Carey, Maaike de Bie, Rob Denham, Claire
Dickinson, Alex Field, Andrew Findlay, James Fisher, Jeremy Fletcher, Matt Garner, Holly
Grainger, Mike Hirst, Flic Howard-Allen, Sadie Holness, Emma Knowler, Matt Landsman,
Alex Larkin, Johan Lundgren, Ben Matthews, Tom Minion, Matthew Newman, Mark
Ramsden, Sarahjane Robertson, Zarina Sabir, Ryan Simmons, Ben Souter, Julie Southern,
Adrian Talbot, Mario Yiannopoulos and all of our employees across the network.
Hangar 89
London Luton Airport
Luton
Bedfordshire
LU2 9PF
www.easyJet.com

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resilient

‘Our Promise’ is that we will be:

SAFE AND ON OUR IN IT ALWAYS FORWARD

our pLAN PAGE ACCOUNTS

our value creation

OUR BUSINESS PURPOSE-DRIVEN,

OUR STRATEGY OUR PLAN

DETAILS CAN BE FOUND ON PAGE 19

OUR SUSTAINABILITY OUR SUSTAINABILITY STRATEGY

DETAILS CAN BE FOUND ON PAGE 15

2 easyJet plc Annual Report and Accounts 2019

STRATEGIC REPORT CHAIRMAN’S LETTER

4 easyJet plc Annual Report and Accounts 2019

OUR CEO REVIEW CONTAINS FURTHER INFORMATION

“WE HAVE THE

6 easyJet plc Annual Report and Accounts 2019

FURTHER INFORMATION ON OUR

8 easyJet plc Annual Report and Accounts 2019

TOTAL PROFIT BEFORE TAX HEADLINE PROFIT BEFORE

2019 430 2019 427 2019 6,385

TOTAL ANCILLARY BASIC TOTAL EARNINGS PER BASIC HEADLINE EARNINGS

2019 1,376 2019 88.6 2019 88.7

LOAD FACTOR SEATS FLOWN DIVIDEND PER SHARE​

1. Headline performance measures were implemented from 2016 onwards

10 easyJet plc Annual Report and Accounts 2019

STRATEGIC REPORT HIGHLIGHTS

unparalleled low-cost strong

customer value by driving

no.1 or 2 2018: 14.6%

our business model

OUR PURPOSE: OUR RESOURCES:

FINANCIAL CAPITAL CREDIT RATING

SLOTS AND BRAND

TECHNOLOGY AND DATA

1. Based on share price of £11.50 at 30 September 2019

12 easyJet plc Annual Report and Accounts 2019

1. Based on sectors flown, as reported by OAG as at September 2019

DEMAND HOW WE ARE RESPONDING

FUEL HOW WE ARE RESPONDING

ENVIRONMENTAL AND SOCIAL HOW WE ARE RESPONDING

SUPPLY AND AIRSPACE MANAGEMENT HOW WE ARE RESPONDING

FOREIGN EXCHANGE HOW WE ARE RESPONDING

14 easyJet plc Annual Report and Accounts 2019

STRATEGIC REPORT STAKEHOLDER

SUPPLIERS • We aim to have an open, constructive and effective

EMPLOYEES • In addition to Peakon, our employee engagement

COMMUNITIES • Community engagement is typically coordinated by

SHAREHOLDERS • We have an active engagement programme with institutional

our plan for

OVERVIEW decreased by 1.8% to £60.81 (2018: £61.94), reflecting economic

16 easyJet plc Annual Report and Accounts 2019

STRATEGIC REPORT CHIEF EXECUTIVE’S REVIEW

• Annualisation of previously agreed crew pay deals FLEET

FLEET AS AT 30 SEPTEMBER 2019:

STRATEGIC REPORT OUR STRATEGY

NUMBER ONE WINNING VALUE THE INNOVATING

number two in two more airports, taking the total to 27.

STRATEGIC REPORT CHIEF EXECUTIVE’S REVIEW

loyalty one tonne less in the atmosphere – whether by reducing CO2 by

LOAD FACTOR SEATS FLOWN DIVIDEND PER SHARE

RETURNING CUSTOMERS HOLIDAYS

Links to Our Plan

Links to Our Plan