H1 trading update 16 April 2020

Positioned well for a strong future

2

Very strong H1 trading performance – The easyJet model is working

easyJet has been decisive in meeting the challenges of Coronavirus to ensure we can ride out a prolonged grounding by:

1. Driving down costs,

2. Delivering vastly reduced capex while retaining excellent fleet flexibility

3. Securing c£2bn additional funding

Strong liquidity position, testimony to the strength of easyJet + its balance sheet

Set up to come through this period and be in a strong position when there is a return to flying

H1 key stats

3

H1 ‘20 H1 ’19 Change Favourable/(adverse)

Passengers (m) 38.6 41.6 (7.4)%

Load factor (%) 90.3% 90.1% 0.2ppts

Seats (m) 42.7 46.2 (7.6)%

Average sector length (km) 1,095 1,068 2.5%

Passenger revenue (£m) 1,833 1,824 0.5%

Ancillary revenue (£m) 549 519 5.7%

Total revenue (£m) 2,382 2,343 1.6%

Total airline revenue per seat (£) 55.60 50.71 9.6%

Total airline revenue per seat @ constant currency (£) 55.87 50.71 10.2%

Total airline headline CPS, ex-fuel @ constant currency (£) (47.80) (43.64) (9.5)%

Estimated Total Headline loss before tax £185m - £205m £275m

Estimated Total Reported loss before tax £360m - £390m* £272m

3 All figures subject to auditor review. * Includes an anticipated c.£175-185m loss related to ineffectiveness from over-hedge positions on fuel and FX

H1 Revenue performance

4

£0.55

£0.99

£4.20

FX

(£0.59)

H1 2019 Reported Thomas Cook Administration

Underlying Trading

£50.71

H1 2020 @ CC

£55.60

H1 2020 Reported

(£0.27)

Coronavirus

£55.87

Ancillary

RPS @ CC +10.2%

Reported RPS +9.6%

+1.1%

+2.0%

+8.1% -1.2%

-0.5%

c.20k Flights cancelled in

March due to Coronavirus

c.£0.2bn Impact on total

revenue

H1 Cost performance Headline

H1 2020 Reported

H1 2020 Constant currency

Cost per seat including fuel 5.5% Increase 7.2% Increase

Cost per seat excluding fuel 8.2% Increase 9.5% Increase

Expected underlying cost increase of c.5% : (in line with guidance)

• Lower capacity growth for the half

• Ongoing, regulatory and inflationary pressure in airports and ground handling, expected one-off maintenance charge, as discussed at Q1

• Ownership costs

• Crew pay agreements and higher retention levels

Offset by:

• Fall in navigation rates

• Lower marketing expenditure;

• Reduced airport charges

• Wet leasing costs.

5 Excludes easyJet holidays

Impact of coronavirus c.4.5%:

• Significant increases in disruption costs

• Full pilot and crew rosters through to March when many flights were being cancelled – furlough only starting after end of H1

• Lower seat capacity driven by cancellations

coronavirus update

easyJet response to coronavirus

7

Cost reductions &

payment terms Fleet deferrals

Additional funding

Maximise liquidity

Normal flyingprogramme

Postmanagement

action

Direct operating costs

Other operating costs

Hedges

Interest and tax

c.£30m - £40m

c.£120m - £130m

cost reductions & payment terms

8

Cost saving measures Operating cost cash burn running rate (per week)

Significant reduction in our other operating costs has been achieved through management actions including:

• Crew and head office furlough leave, voluntary redundancy and pay reduction, recruitment freeze

• Stopping discretionary spend on non-mandatory training, travel, contractors & consultancy etc

• Stopping non-essential project opex & IT expenditure

• No selling and marketing expenditure

• Non-essential maintenance deferred

Cash flow deferrals have also been achieved through:

• Payment term extensions negotiated with many of our major suppliers including airports, ground handlers and fuel providers

• All government tax payment schemes have been explored including ‘time to pay’ arrangements and reclaiming corporation tax payment on account

Fleet deferrals

9

Airbus deal

Amendment to deal provides vastly reduced capex and excellent fleet flexibility

Deferral of 24 aircraft deliveries:

• 10 aircraft deliveries from FY20

• 12 aircraft deliveries from FY21

• 2 aircraft deliveries from FY22

• 24 operating leases due for renewal providing further flexibility

Prior Max

Prior Min

New Plan Max

New Plan Min

Updated fleet plan

* 335 aircraft in 2020 new plan minimum is subject to the sale of 6 old aircraft

337

352 354

365

383

337

352

330

309 304

337 342 332

338

353

337

335

302 286

281

270

290

310

330

350

370

390

Current fleet 2020 2021 2022 2023

To

tal e

asy

Je

t fl

ee

t Total capex across FY’20, FY21, FY’22, including fleet,

maintenance and other projects will decrease by circa £1bn

*

Additional cash funding

10

Additional Cash Funding

£1.9bn

Cash position as @ 31 March

£1.4bn

£400m RCF – Drawn - Secured

£600m CCFF – Issued – Unsecured

£400m Term Loan – Agreed - Secured

£400m-£550m SLB’s

Notional cash position

c.£3.3bn Post these additional funding measures c.50% of

easyJet’s fleet will remain unencumbered

Scenario planning

11 * Includes cash burnt during the grounding period

Scenario assumptions:

• Refunds vs voucher/rebook ratios continue at a similar rate as those seen to date

• Crew and head office to remain on furlough leave until end May 2020

• FX and fuel rates based on spot price as at 6th April ’20

• Assumes no material change to card acquirer arrangements

• Minimal new booking revenues received - limited to 6 months prior to commencement of flying programme

Total cash burn scenarios

Further liquidity opportunities:

• Leveraging our remaining unencumbered aircraft (around half of the fleet)

• Further deferrals of our planned maintenance spend

• Seeking additional government support around extending furlough leave and tax relief

• Organisational and operational restructure

6 months grounding

3 months grounding

Revenue/refunds

AP/AR unwind

Capital

Operating costs

9 months grounding

£1.2bn £2.2bn

£3.0bn

Total Capex (Inc fleet, other , IFRS16 & maintenance )

summary

12 *based on the scenario planning assumptions outlined in previous slide

• Very strong H1 trading performance - easyJet model working well

• Meeting the challenges of Coronavirus, through cost cutting, vastly reducing capex, reshaping the fleet plan and securing additional funding

• Together with the £1.4bn starting cash position and the additional cash funding of £1.9bn easyJet can manage a prolonged grounding*

• Enhanced our liquidity position, testimony to strength of easyJet + its balance sheet

• We continue to interact with all stakeholders including governments & rating agencies to ensure they are appraised of our position

• Well set up to come through this period and be in a strong position when there is a return to flying