easyJet Stock

Welcome, everybody, to easyJet's half year presentation of the results to the 31st of March 2026. I'm joined today by our Chair, Stephen Hester, and the Management Board here on the front row. We've already released our full presentation to the website this morning. I don't know whether you've had a chance to have a look at it. But if you haven't, I will give a brief summary now before we go through to Q&A.

So starting with our performance for the first half. The underlying H1 results were consistent with expectations and were in line with what we put out in the April trading statement, there was a very limited impact from the Middle East in terms of trading, but obviously, there was a fuel impact with volatile fuel pricing in the month of March, which caused a GBP 25 million additional cost.

Now we clearly recognize that these winter losses are not where we plan them to be when we set out the 2023 targets. And it remains a focus for us to structurally improve our seasonal losses and bring them down over the course of the coming year, years. But what's important to recognize is that we've made some important investments. So over the last 3 consecutive winters, we've added 24% in terms of seat capacity, which is 33% in terms of ASKs flown. And that has given us a productivity benefit when it comes to crew. But importantly, it's also given us better aircraft utilization. And our aircraft utilization is now 20% higher than it was in 2023. And what that means is it's back and restored in terms of where it was pre-COVID. The good news there is that we can now moderate our growth as we look forward to the following winter and future winters because we've restored that kind of capacity, and we've restored the utilization, and that should allow our route investments to mature.

We also saw quite robust demand during the first half. So we saw 6% extra passengers come and fly with us on the airline. That was from 4% extra seat. So the load factor improved 2 percentage points to 90%. And easyJet Holidays continue to take share and grew by 22% when it came to passengers. The performance in the half for the airline was impacted by a number of things. The first was market oversupply on some thick, beach routes. This happened in part because most airlines pulled out of their routes into Tel Aviv and therefore, redeployed them on longer-leisurep beach flows. And that led to some market overcapacity. It was particularly the case in the London-Spain market.

We also had our first winter of operations following our investments in Italy, in Rome Fiumicino and in Milan Linate. We're expecting that to come at a cost because you don't pay the slots in Europe, you fly remedy routes, and we have experience of doing this in the past. And over time, those routes mature and we fully expect those two airports in Milan and Rome to be great catchment airports and to perform very well for us. And we also saw cost inflation weighted towards the first half.

We had annualized inflation from resilience measures we put in, which did work really well through the summer '25, but we carried some of that cost into the winter. We had some above-inflation airport fee increases like Schiphol, where we saw the airport fees go up 35%. We have got an ongoing investment in digitalization and there's a natural cost impact of 2% extra load factor when it comes to departing passengers. But we expect that to normalize as we did when we entered the winter season and looking forward to the summer we're expecting our CASK ex fuel to develop a low single-digit amount.

As I said, easyJet Holidays continue to grow with 22% extra passengers generating 39% extra profitability in the first half generating GBP 61 million PBT. And one of the most satisfying things was to see the on-time performance, which has already been substantially lifted compared with the '23, '24 years. We've got a further 1 point improvement on on-time performance and customer satisfaction coming one from that on-time performance, but also from better service features improved by a further 2 percentage points for the airline to 84% and 1% point for easyJet Holidays to 85%. So good resilience operations.

So if we look at the impact from the Middle East, the first thing to talk about is demand. I've obviously been watching the announcements that have been coming out. And it is the same picture for all that the booking window has shortened. We're seeing strong demand. We saw it strong in the month of April. We're seeing it strong as we run through May. But as you go further out, the consumer uncertainty is meaning that people are waiting before they make that booking. And you can see that if you look at the development of bookings since the April trading statement, for instance, when we did that just back in April, our Q3 was 2 percentage points in terms of deficit on load factor that's now 1. However, Q4 is still behind where it was last year. That will need a certain degree of price stimulation. But at the moment, we're holding prices above the level of last year.

And conversion is good. So it shows that it's really the searches that are down for that further out period. And when people come, they are buying. For Jet fuel, we're well hedged. We've got 72% covered at $726 a metric ton. That hedge actually goes forward. We've got over half of next winter covered at again, in the 700s, we've got almost 30% of the summer after that covered again in the 700s. So A lot of the hedging has been locked in pre-crisis, and we're actively managing the hedging as we move forward. But that allows -- that protects not only easyJet, but more importantly, protects our customers from that real volatility. But we should note that every $100 of fuel on the unhedged portion is the equivalent to GBP 35 million.

We have one of the best investment-grade balance sheets in European aviation, and that allows us to come in and manage this conflict and the impact on fuel prices from a position of strength, meaning we can take measured and disciplined response to the action. We have GBP 4.7 billion in liquidity, which sits over GBP 1 billion above our liquidity policy. We have a net cash position with GBP 434 million of net cash. And more -- and importantly, from the aircraft ownership side, 86% of the more valuable neos we have in ownership.

And when it comes to managing the near term uncertainty, we're being quite active in our hedging. We suspended the hedging in the near-term because it's extremely volatile. I think it's dropped 5% this morning. but it's been bouncing between 1,600 and 1,200. And therefore, we're coming in when we see the opportunity. But further out, we're continuing to layer on hedges because the curve, as you all know, is in backwardation. And therefore, if you're hedging 12 to 18 months out, the prices aren't materially different to where they were before. So we continue to build the hedge position, which is why we're 30% hedged for the summer in advance.

In March, we looked at how demand was being impacted following the outbreak of the conflict. And we reallocated about 400,000 seats from countries adjacent to the Gulf region being Turkey, being Cyprus, being Egypt and moved them into the Western Med or city flows or domestic flows. And we also trimmed some of the capacity in April and May on some of the thicker routes because of the elevated fuel prices. But when that was all swept through, that led to a 0.3% reduction of capacity in the summer.

We now plan no further changes to the schedule. As you know, airlines make more than the annual profit in the 12 weeks from July, August and September. And therefore, almost everything we fly is contribution positive. I'd say everything we fly is contribution positive. And therefore, we're not making any further changes to the schedule. Customers can book with confidence. We're not intending to do any fuel surcharges, and that's the message we'll be giving.

On supply itself, we have seen no issues at any of the 165 airports we fly in and out of across the U.K., Europe, North Africa. And what is -- and we stay in constant contact with airports, governments, fuel suppliers. And what they tell us is that fuel supply is being diversified. So yes, there was a lot coming through the Strait of Hormuz and coming out of the Gulf region, but now more production is coming out of the Americas, more production is coming out of places like West Africa, like Nigeria, Norway ramping up their production. And refineries are increasing productivity when it comes to jet fuel refining, which is probably not surprising given how expensive it is. So it's a good thing for them to be doing. And that is rebalancing the supply of Jet Fuel and that's why confidence is lifting that this summer will be uninterrupted when it comes to our flying program. Okay.

So looking forward, we remain very focused on the delivery of our strategy and our margin improvement to generate over GBP 1 billion in PBT. We're going to take a very disciplined or continue to take a very disciplined approach on allocation of capital. When it comes to putting new aircraft -- growth aircraft into bases, we're introducing a hurdle rate of GBP 2.5 million per aircraft, and that means that these bases will already be operating at or above that level, which is the level to be in the middle of the GBP 7 to GBP 10 per seat range to put it into context. As I said, now we've restored utilization levels to where they were pre COVID, we are able to moderate the growth in the future winters, which allows the routes to mature, and following all the delays we've seen from the OEMs, the good news is the upgauging now moves to the near term.

So we're saying next year, full year '27, the year after that, '28, we expect to see EUR 0.25 billion of P&L efficiencies come through our P&L. And that's really important because that has been one of the things moving to the right. So you'll see from the fleet slide, we still expect to receive the 17 aircraft this year. We still expect to receive 30 next year and 43 afterwards by the year after. Airbus are firming up on those deliveries. Yes, they're slipping a bit, but not structurally. They're slipping 1 or 2 months, and we're working through that to manage that in our schedule and working with Airbus on what that means, but the confidence has grown, and that's why we're now going to accelerate the retirement of our A319s and get them all out of the fleet by 2029 because we're taking this more disciplined approach on capital allocation.

When it comes to easyJet Holidays, we're still progressing well on our new target of GBP 450 million. We're going -- we're growing in the U.K. and taking market share in the U.K., and that will continue. In Europe, Garry is looking to turbocharge the growth in Europe. It's growing very well, but from a low base. And in Germany, we're signing up 500 travel agents in the Berlin catchment area, connecting to digitally way they distribute products. And that's important in Germany because still about 70% of the German travel market is booked offline. So that will make -- that's an important distribution channel, and that will be open to us from later this year.

And we're also introducing a new flight plus hotel proposition, which will embed in the airline book flow. At the moment, if you come into the app, you have to choose upfront, whether you're doing a flight search or you're going to do a holiday search, that would include city breaks. Now you can enter the airline flow, well, not yet, but that will be the case you'll be to enter the airline flow, secure the flight, securely ancillaries you need with it and then look at the accommodation offering, and it will be served in a place that I think is more like the way the customer wishes to search, and we're bolstering the inventory we have behind that.

So we're increasing our hotel inventory from 8,000 to 13,000, which means we'll have a richer offer for the consumer. And we're also going to introduce a new loyalty program from the start of next year. And there's been a lot of speculation. So we thought we'd put it on the slide, but that's where you're getting. There will be a seminar at the start of next year. It will complement the easyJet Plus program, and we expect it fully to drive engagement, drive repeat bookings and be accretive from a margin perspective. The aim is to leverage the group more efficiently to continue to build on the strength of the brand, which is improving the more we improve our operations and further improve the seamless customer experience. We're also looking to move to being a more leaner digital organization and have investments running through our P&L around automation, around data and around AI, which will help improve our cost position but also help streamline our operations.

So in summary, we are navigating this near-term volatility coming from the macroeconomic uncertainty from a position of strength when it comes to the balance sheet, when it comes to the hedges that we have in place for fuel. Our longer-term focus remains on executing against our strategy. And what we're doing is we're underpinning that by a real disciplined approach to capital allocation, only putting those aircraft in the bases where they perform the best. And our aim is to drive a tangible improvement in our margin performance as we move away from the current position into a more normalized environment. So our medium-term ambition remains unchanged. It remains to deliver GBP 1 billion in PBT and more, and we're very focused on that.

So I'll now move to Q&A. So if you have any questions for me, for Jan or the management team, then Adrian will organize the questions.

It's James Hollins from BNP Paribas. Thank you for that. Three, please. First one for Jan. On costs, I think you've alluded to in your [indiscernible] video earlier in the slide. There's kind of a doubling down on cost focus. Is there an official sort of cost program underway, making the most of a crisis? And ideally, if you can sort of quantify what you expect from that?

Second one for Garry. Just on holidays, my feedback to you from this morning, there wasn't much discussion in the MD&A around the Holiday side. So maybe we can hear from Garry on holidays bookings? And I guess specifically, whether that differs much to the chat around what you're seeing on the airline side.

And then finally, I'll come back to you, Kenton on jet fuel. Clearly, you and others have seen remarkably confident in no shortages certainly through the summer. Maybe if we look beyond that, maybe what scenario would drive some trimming of capacity beyond the summer and nearer term, do you think the message is now getting through from all that media scaremongering around shortages? Do you think the message is now getting through to consumers that they should be fine this summer.

All right. I think that's the first time, I'm getting the first question, thank you very much. Normally it is always for Kenton. Well, in terms of our cost focus, I think, first of all, it will never be a cost-only focus. It will be a margin focus. So there are a lot of domains where we can still improve. The first one and Kenton already alluded to it. is capital allocation. So we will be much more restrictive in terms of where we are putting capacity with our hurdle of GBP 2.5 million per aircraft, which means that we will grow only there or redeploying capacity where we're not making GBP 2.5 million profitability. That also means because very often, where we're not making profit is because the cost position is not the most optimal. So moving from more cost -- higher cost bases towards lower cost bases will improve our overall cost position.

The second one is definitely the biggest opportunity in terms of upgauging. And so as Kenton said, the application has been a little bit delayed versus what we have initially set out in our medium term targets. But now it's moving from the medium term or the near term. We still have 79 A319 aircraft in our fleet. And as already repeatedly said, a A319 burns 10% more fuel than the A320 and as the unit cost position, which is 24% more expensive. So just moving from the A319 to A320 will provide an important profit. We've now for the first time also quantified that. So we're expecting GBP 110 million cost improvement for that in 2027, GBP 140 in 2028 additional that means that by 2028 will be a GBP 250 million improvement. Now we've used this crisis to accelerate also that upgauging strategy. So decision taken out to get and all the 319s out of the fleet by 2029, so which means that next year 19 aircraft, which is 6 more than initially planned, then moving up to 35 and then 25, so they will all be gone. So that's an important one.

We will continue to focus also on asset productivity. Although as Kenton said, especially in the winter aircraft utilization already went up by 20% and back to pre-pandemic level. I think there are still further opportunities, opportunities in terms of further network optimization, although we will not be increasing stage length as much as we have done over the past winter, we will continue to increase just only this summer, increasing stage length by 3%. So we're still optimizing where we can. We're also investing in our scheduling process with the implementation of SkyMAX which will make that we will have a more efficient schedule, which will drive productivity. We're also investing quite a lot in our crew planning process, whether it's in teams, whether it's in process, whether in systems, which will make that we will be able to plan much more accurately and much more into the detail, which will kind of reduce the buffers we currently are having in our systems. So also that is helping.

And also focusing on turn improvement. And I think last time we said that we -- in 2025, we really reduced our turn by 4 minutes. We're targeting a next improvement of 2 minutes this year, and we are performing on that and that's happening to better coordination between our ground crew people or cabin crew people or cockpit people, but also digitizing the turn. So we're getting rid of all the paperwork, which improves the turn. But even doing investments like SmartStand in Gatwick, and so this will be AI-powered cameras, which are monitoring the turn, which are providing more accurate information on how the turn is going on. So that helps you to move faster.

So all those elements are helping asset productivity, which is great. And focusing on aircraft ownership. I mean last time we told you about the aircraft buybacks, we have not any planned this year to do, but as soon as we see opportunities, being able to switch the more expensive leasing towards cheaper finance aircrafts definitely. One specifically one is Leonardo-Fiumicino. So we are having, of course, a GBP 20 million loss in summary, the GBP 30 million loss this year, part of that loss is induced by the fact that we have a less-optimal wet-lease set up.

So we will be getting rid of that wet lease setup in as of next winter that should support. We are also investing at the moment in additional spare aircraft, spare engines and also LLPs. All of that helped to support disruption costs and disruption cost. Already we reduced the disruption costs by GBP 50 million last year, and that remains the focus. But also we kind of also decided to have a more moderate growth than initially foreseen. So already, next winter, we will be growing less. in next summer, we're also planning to grow less. Last year, we increased our peak line of flying by 10 aircraft approximately. Next year, we're planning to only increase by 5 aircraft.

That does mean that the investment costs we're doing in the winter will be lower, so that will also support. And finally, we are reinforcing our investment into digitalization and all tech investments with an objective to reduce cost, to improve customer service and improve operational resilience, and there is a whole bunch of projects which are currently ongoing, both in operational domain or commercial domain and in the general company environment. I can continue speaking on all the projects that you want.

Garry, go on how you're seeing holidays.

Yes. Yes, on the holidays, we -- I think we said earlier in the year we were expecting 15% growth year-on-year. I think given the crisis, that will be below that, but we're confident it will be only a couple of percent below that. I mean it will be probably 10%, 11%, 12% growth at least we're seeing very, very strong demand coming in, in the late, particularly 4 weeks out. And we do think that's been driven by customers just having the confidence that there will be enough fuel for 4 weeks, but thinking further out. So I think once they gain more confidence that the summer is going to be kind of safe from a fuel perspective, then we're very hopeful that can lift up. But when we look at that 4-week demand, it's very, very, very strong year-on-year. They're pulling a lot forward. And I think that's helped by the hoteliers have reacted very quickly with pricing. So they pulled the prices down in Turkey, in Egypt, in Tunis, Morocco, Cyprus pretty much when the crisis started, and we went from a negative position in Egypt to a very strong positive position year-on-year within a matter of a couple of weeks, just as those prices come down, and we're seeing that sticking. So that's looking good.

I think if we look at versus the competition and how we think we'll play out, I think we're in a bit of a sweet spot in some ways. And that if you look at the big legacy tour operators, we've got fixed capacity, fixed commitments in the hotels, they'll be really focusing on trying to fill those where that gives us an opportunity is that the other third-party hotels who maybe aren't getting that focus from them are pulling their prices down and we're able to pass that on to the customer. So we'll probably see a difference in mix in terms of where the customers go this year versus last year just based on that. But certainly, when the hotels are reacting, from a price point of view and we're then passing that on to the customers, then we're seeing really good demand in the rates.

And if that could just in the next few weeks, start to figure out kind of from the 4 weeks to the 6 weeks or 8 weeks, I think that would give us quite a lot of reassurance, but we're confident that our position at the end of this year will be a positive one and not too far from the guidance that we gave.

And the last question is around fuel supply and what it might mean going further out into the winter. I think the rising confidence for this summer is the success that the fuel suppliers have had on diversifying their sources of both oil and refining capacity, which has really stepped up in the absence of -- coming from the Gulf region. And governments have played a part in that to look to contingency planning to see how they could even bolster it further. So that is increasing the confidence and you have heard from most of the sector that, that confidence is rising for the summer.

When you go beyond winter and what it means for pricing, capacity and supply. On the supply side, let's see. The world is rebalancing. We saw the U.K. government green-lighting potentially. I'm unclear really on the sanctions, but potentially rationale being refined outside of Russia to support. So assuming the fuel supply remains uninterrupted beyond the summer because the Strait of Hormuz don't open, what we're seeing in pricing is the curve in backwardation. So people are expecting that fuel will come down. It's above where it was because now you're hit in the summer, you're inside that 12-month window. It's above where it would have been pre-crisis.

But as I said, we've got 53% hedged, an amazing rate of $714 a metric ton, so that puts us in a good starting position. Regarding capacity, as I said, we would anyway be looking to moderate our capacity next winter. We no longer need to -- we've added 24% in seats over the last 3 years. We don't need to grow at that level anymore. So we will be moderating the capacity we've seen the utilization benefits come back in.

As Jan said, we will obviously look for more, but that will come through network refinement, through use of technology like SkyMAX. We're also looking at the best way to optimize the network. Now cities and VFR flows are coming back. And we'll be thinking about the capacity we put on some of those sticker London-Spanish flows and looking to manage that as the reason mature.

So for us at any rate, I would expect a more moderated winter, but we've given ourselves a good strong position from a hedge, I think the others will -- I think it will be more moderated next winter actually.

Gerald Khoo from Panmure Liberum. Can I start with bookings?. You've obviously talked about some softness in bookings but closing being strong. Where is the crossover point in terms of weeks before departure. And why do you think Q4 bookings have so -- are sort of further behind than they were in the April update. And I think you talked about taking aircraft deliveries into ownership this year. What's your thoughts in what you would do to finance deliveries beyond this year, please? Okay.

Well, starting with bookings. The strength in month is a rolling strength. So now we'd be starting through the front half of June, strengthening and may remain strong. But it is really anything 6, 8 weeks out, you see that the customer is not booking. Our conversion is strong. So when they come to the website, they're converting. So it's not necessarily a price thing, which is why the price is slightly above actually where they were last year in terms of yield. However, it's a rolling caution.

Now whether that's been generated by unhelpful comments from energy ministers in Europe, saying there won't be any fuel by the middle of May. It's past that now. So it should have run out. But -- so there have been a lot of unhelpful comments. I think even as a sector which should reflect on the way we communicate because we've never had more than 4 weeks visibility. And communications back in March at A4E saying "it's the middle of March, we've got the usual visibility, which means we're fine to the end of April", created headlines of "it all runs out in May" as opposed to what was actually said, which was, "We're fine till the end of April". So that hasn't helped. And I think that is in the mindset. But people are booking -- the booking with strength in the late. Is it enough to make up for the loss forward bookings? Let's see -- and then if there's any color on what you're seeing destination-wise or shape within that.

What's interesting is where we initially saw a move away from the Eastern Med into the Western Med destinations. Actually, that's balanced out now because hoteliers in the Eastern Med offering really great deals, whereas the Western Med has oversupply in terms of airline seats actually hotel prices aren't so great. But we were already seeing -- and we saw it last summer, we saw quite a lot of softness into -- from U.K., Spain, and we talked about that, I think, at our full year results. In terms of what's happening in the lates and to give a bit more color on to that. I mean, if we were to look specifically at May trading as of the 23rd of February, we were 2% ahead in May in terms of overall in terms of load factor. That dropped to 0.7% behind when we're at the beginning of April and then by the 11th of May, that was only 0.2% behind. So as Kenton said, we might not necessarily make it all back, but you've definitely seen that strengthens the late. If we were to look ahead to August, we are currently 7% behind where we were in terms of bookings for August. So and I think that is all around confidence. People are just waiting to understand. And it's all about the fuel narrative, so it's really important that we're reemphasizing that. And then in terms of route mix, it's all down to capacity in the market really and what's driving where people are going. We have had questions about whether we're seeing any improvement from people not flying long haul, I think not yet, we're not really seeing that coming through.

But certainly, in terms of destinations and routes that are popular, it's a lot of the long leisure as well as city breaks that are coming through, particularly strongly, and in terms of our network mix that actually plays in our favor. And we're seeing more of a strength in Europe than we are from the U.K. So in terms of our network mix for H2, 17% of our network from Europe is on to leisure and 29% is nonleisure, so that's your cities and domestics. For U.K., our leisure is 25% and non leisure 29% from the U.K. So we actually have quite a broad mix of routes.

So we're not overexposed, but we are exposed to U.K., Spain and U.K. leisure. But that is, as Kenton said, that's coming in, in the late but it's very tight. So it comes in the last 4 to 6 weeks. And really, no 1 is booking yet for the summer holidays. I think we'll wait to see what happens after May half turn because normally that's an inflection point when people then come back after the half time start thinking about summer holidays. But I think the book with confidence message is the point we keep reinforcing to give people that confidence that we plan to operate the summer schedule we currently have on sale. We don't have any intentions to cut on capacity.

And Jan, on aircraft .

Yes. On the aircraft financing. So one, the number of aircraft we're expecting now to get delivery out in the next years or 17 this year, 30 next year and 43 and the year thereafter. So we're speaking about total CapEx of GBP 1.7 billion and moving to GBP 2.3 billion and GBP 3.3 billion. But that's assuming that we're taking 100% of those aircraft into ownership. I think the positive thing about easyJet is that we have a strong balance sheet, and that does allow us different options in terms of financing -- the most important one will be to find its true on cash. We have GBP 3.3 billion of cash currently on our balance sheet. And that means that the first option will be to finance through cash -- the second thing is a debt capital market. I mean we have 2 bonds currently. There is none of them which is maturing before 2028. Obviously, we can have access to the bond market. .

And thirdly, we have last year and also this year restarted with our JOLCO financing, Japanese operating lease with a call option, and that is something new, and it's probably -- it's a cheap way of financing, which we probably will continue to look for in the coming years. Of course, the market is limited, but at least what we can do, we will continue to do. Currently, we have 8 aircraft which have been financed through JOLCOs and then obviously, we have any asset-backed finance option, which is still available to us. But currently, 86% of our neo fleet is owned, total fleet is 59% of fleet, which is owned. So I think we have sufficient options to be able to finance ourselves. And next GBP 3.3 billion cash we also still have an RCF to our availability of $1.7 billion. So...

Jamie Rowbotham from Deutsche Bank. Two from me, potentially for Sophie. In terms of the thicker routes that you chose to trim in April and May. Looking at some of the scheduling data, it looked like it was Geneva to some of the Spanish destinations that was one of the most affected corridors. Does that resonate? And if so, any particular reason for trimming there? And then secondly, you say you won't cut anything more now for peak summer. It doesn't look like Ryanair or Wizz are cutting either. Its growth full steam ahead. Are you seeing any competitive capacity actions from maybe some of the smaller players that might mean a bit of an opportunity for easyJet in terms of market share?

So in terms of Geneva, I mean, Geneva is part of the mix that we did adjust for April and May, but that was -- I would say, what you saw in Spain was probably what you saw from most of the airports in terms of the trimming that we made. Actually, what we have been doing from Geneva is adjusting slightly some of the shorter sectors and growing more the longer leisure. So we did take some capacity out of Amsterdam out of Geneva into Paris as well. And we've redeployed that into Tangier and some of the new routes that we've launched. So we are about 1.5 percentage points down in seat capacity, but we're at 1.7% in ASKs. So there is kind of route optimization.

Now you'll see that in pockets across the network. We've done it also in Amsterdam. Predominantly in Amsterdam because the airport costs are so high. Actually, you can't cover the cost on a lot of the short sectors so have to reprofile a bit in Amsterdam. So Geneva seem something similar in terms of what we've done on reprofiling around the edges there. And then in terms of competitor capacity, I mean, the biggest noise came out with the Lufthansa announced sort of the 20,000 seats, but that was the CityLine operations, as you know. And actually, that doesn't really overlap with our network. That's a lot of the kind of short German sectors.

So there's not a massive amount coming out. We're not seeing, as you say, Wizz and Ryanair right now aren't really touching their capacity. We're seeing a little bit of moderated in Volotea but only a very small amount within France predominantly, but it's just kind of trimming around the edges, and we've not seen anything from jet2 or leisure either at the moment. So I do think -- I think peak summer, as Kenton said, most airlines make money in peak summer. So I think most will be reluctant to take significant amount, I think winter will be more interesting because it's much more marginal.

I think one of the interesting points to add is the DfT announced slot alleviation potentially to go through and be approved. Now the slot alleviation that they've announced is that you can get back 5% of your slots before the ninth of July and have full historical slot rights on those for the summer. And then beyond the month of July, you can nominate another 5% of slots and retain your historical rights. At the moment, easyJet doesn't have any plans to take advantage of that as a summer is where we make the money. Interestingly, that is also going to apply for the winter. And that is where we'll be looking and running some scenarios over the coming weeks in terms of what makes sense and with different signs of raised fuel prices essentially.

But winter is very much BAU because we always in sort of early July time, look at our winter schedule based on forward bookings and based on cost, and we always make moderation to our winter capacity. The slot alleviation is a new thing. But certainly, we understand other carriers won't be taking advantage of it. Some may, but certainly, we don't plan to.

It's Andrew from Barclays. Can I ask one -- sorry, back to Sophie, I think. How on earth -- maybe not, how do we do the revenue management in this environment when it's a game of chicken, I think, with the consumer isn't it? Because you don't want to see the loads for peak summer drop too low, down 7% sounds scary already for August. Yes, how are you thinking about managing the rev man?

Second question for Garry, I think James alluded to it in his early question, but you haven't given us very much detail or KPIs on selling prices and volumes for the summer. How -- what can you tell us about that? Or if you don't want to play with those some KPIs because perhaps they're not the best. What can you tell us about your ability to defend margin in the current environment, which is perhaps more important, and then if I dare a third question, what can you tell us about the MRO development? Because I think your planned acquisition in Slovenia has got a legal block. I know you've done Malta, but where are you going with the MRO development out there.

Great. I'll start then on the revenue management. I think one of the great things is we're fortunate to have our own in-house system. So actually, we can -- and we've got a great core data science team that are dedicated in the revenue management team. So they're able to make sure that the system is optimizing for the current scenario. Now if you left the system alone, what it would want to do is it would be low bookings coming in, and therefore, it would want to lower the fares because that's the way system naturally works. What we're doing is we're putting in an overlay that's not letting the system overreact to a drop in bookings. So we are adjusting what we call the rate of sale. So essentially, where you see lower bookings coming in, we're not letting the system drop below certain minimum levels. And -- but if bookings suddenly start to pick up, then it reacts more rapidly to that increase.

Now the way we're looking at something like August is because we know the traffic isn't coming in, we don't want the system to artificially pull down the fares, and so we are holding the system where it is. But what we are seeing is good conversion when people are looking for August. So searches for August, we were looking at it the other day. searches for August were down 15%. So people are not searching at the moment. But when they come in, the bookings are converting 13% up year-on-year. So that goes to illustrate that the demand isn't there at the moment because people aren't searching people are cautious. But actually when they're coming in, they are booking. And therefore, there's no reason to believe that we need to drop the fares anymore, but it's more about how we give people confidence to get people into the book flow in the first place. So -- so that's how we're adjusting the system, and that's how we're approaching revenue management for our Q4 is making sure that we are not letting the system overreact and we hold the fares where they are.

And the maintenance capacity. So we -- as you know, we bought our own heavy maintenance facility in Malta. We've been operating just over 4 days since we've got it. We're actually a very attractive employer in the area, and therefore, we've been attracting engineers and we're now able to open a fifth and sixth bay. So we will be increasing the capacity in our own maintenance facility there. Regards future plans, I'll let Jan talk to future plans, but Slovenia was an interesting one.

Yes. Well, I think the opportunity in Adria or in Slovenia was an interesting one. But as you're saying, we're currently waiting to be able to close that deal given that there is, at the moment, a litigation which is ongoing. But we can't really say anything additional to it. But so hopefully, that will be resolved because that will increase in the number of bays that we will be able to in-source moving from a 25% currently insourced heavy bay maintenance around 50%.

On holidays, -- there's such a lot of mix in what's being sold at the moment for H2 given the shift -- the initial shift away in demand from Turkey, Egypt, Cyprus and even Greece into Spain. And with that, when you look at that mix, then that does have a shift and a change in the margin. But as a kind of cost plus business, we will effectively take those reductions that hoteliers are giving us. We'll put the mark up on and we'll sell through. I mean what I can tell you is that the average selling price has come down for H2.

When we look at it versus some of the traditional players, clearly, where they've got the fixed costs within the accommodation and on the flights, they are really pulling the prices down to places like Spain, we're choosing not to go there. So we will maintain a base at which we will just not go to the kind of prices that they're going to. But we are confident by the end of the year that we will grow by kind of low double digits we won't go backwards on profitability. We will grow in profitability, and we will certainly take market share. So we're very, very happy at those kind of big KPI levels that we are ticking green boxes in that and doing very well. And that's what the model is there in order to be able to react. It can move with the demand that can move as a cost-plus business where the customer wants to go and where the pricing is.

It's Jarrod Castle from UBS. Three as well. On Slide 12, we show the base case fleet plan. I was just want to get an idea, does that incorporate the tariff backdrop or I am assuming that the current geopolitical backdrop improves? And what would it mean assuming if it doesn't incorporate that, what would it mean for the base case fleet plan, I mean, could we see deferrals or groundings, et cetera, to -- over the next 2, 3 years, I guess?

Secondly, any change in views on how you view the Middle East, let's say, again, this is behind us or rather Middle East exposed markets going forward, I guess, over the medium term, the current situations changed your medium-term plan?

And then just lastly on loyalty, can you give a bit of color what's changed your mind about having a loyalty program, maybe looking a little bit more like a full-service airline? And would you do anything else, maybe an airport lounge. I take it the answer is no. But just how you've evolved in terms of loyalty thinking.

Jan, do you want to start with the fleet question.

Yes. I hope I understood the question well. The sort of base fleet plan gives you a view of what the aircraft or what the fleet will be at the end of the year. And so having those 370 aircraft, for example, 2026 is the number of aircraft we're having at the end of the year. However, what we call it. I think the first time we called it out the peak lines of flying is really the number of aircraft that we have available at the peak moment, which, of course, what is driving your results. The difference between the base fleet plan and the peak lines of flying is linked to the timing of deliveries of the aircraft. We normally always hope to have those aircraft before the summer. But because of some of the delays we have experienced with Airbus, they are also coming after the peak summer into the winter as the main explanation.

Now within that base fleet plan, but even in the peak lines are flying, we do have some flexibility, flexibility in terms of one, timing of deliveries of the aircraft firstly. But secondly, also into the decision as to whether or not prolong some of the leases that we have. So we have both upward and downward flexibility if we would need some.

And on the other three questions, I don't think of what's happening in the Middle East a change for long-term structure in the aviation industry. I don't see this as -- we will never get oil out of that region. Clearly, this will be resolved at some point. It's just as important for Iran to be having oil passing through the Strait of Hormuz as any other country. So longer term, life will go back to there being sufficient oil supply coming from everywhere, and that will drive prices down over the longer term. Will they come back to where it was, I don't know. Is that the question?

I'm really talking more about the network...

We don't really go to the Middle East. So no, I mean what we're seeing is the Egyptian in particular and anywhere around North Africa are incredibly responsive when they see demand pattern shift. And there are some fantastic offers, which means having dropped in the first few weeks of the contract by 50%, 60%, 70%. They are now performing up year-on-year with amazing offers, very attractive, 5-star properties in Egypt being equivalent to 3-star properties in Spain. And when people really get out their maps and realize the Suez Canal isn't part of the Strait of Hormuz, they become more relaxed. And it's certainly doing really well in terms of searches, in terms of conversion, in terms of people traveling there.

So no, it will be the short answer. No, I don't see anything in our network that would change. The only thing we have done is when it comes to flying back to Tel Aviv, we prolong the decision not to reenter that market to give us clarity on planning next winter. So we won't be going back to Israel next winter just for clarity. On the loyalty program, change of mind, I never thought it was a bad idea. We just didn't have one. I don't think that can't change in mind. We have a 100 million customers, we are a very attractive airline from this marketplace. There's a white space in the market. We know that with British Airways becoming more of an elite program, points harder to get.

They're kind of really not rewarding the frequent flyers to them from Scotland anymore, there are just opportunities in this space, and we'll reveal more about the type of program that will be, but we're seeing a growing membership anyway for easyJet Plus customers.

Ruairi Cullinane, RBC. So first question on staff unit costs, up 11%. Can you break that down at all? And how should we expect that to evolve -- and then secondly, fuel may not be passed through to fares this summer in short haul, how do you see that playing out? Does it just come back and dependent on competitor capacity? Or how do you think about that?

Do you want to start with the CASK.

I'll take the CASK. So one, first of all, overall CASK increased by 5% to be almost not or in line with our expectations if you the exclude the additional fuel cost linked the Middle East crises of GBP 25 million also the legal provision, provisions that we've taken for some of the historic legal cases of GBP 32 million. If you look at CASK ex fuel that increased by 8%, obviously, higher than what we've experienced in the previous quarters and the previous years. It's not what we're expecting for the rest of the year. So for summer, we're expecting to come back to normality, which means on the CASK ex fuel, which will increase with a low single digit.

Now if you look at the CASK ex fuel increase of 8% was the reason for that. So partially, this is a bit linked to the one-offs, as I explained. So in the first half of 2026, we have those extra legal provisions of GBP 32 million, but also we didn't have the benefit that we had last year from the aircraft buybacks, which had a positive effect that's not returning. And secondly, we have been investing in additional resilience in summer, which has benefited our summer performance with disruption costs going down by GBP 50 million, and the additional resilience, which is coming through additional crew is, of course, a cost that you are -- that is continuing during the winter.

And the third element is linked to the load factor growth. So as Kenton mentioned earlier, our load factor grew by 2 percentage points. So that means that everything which is passenger-related cost is increasing. And fourthly, we also had an unfavorable foreign exchange movement with the euro evolving unfavorably versus the pound. And then finally, we have, of course, the above-inflation cost increase, especially in airports like Amsterdam, where cost increased by 34%, but also the general increase in terms of wages and salary. And all of that was not compensated sufficiently by the productivity increases that we've seen in terms of aircraft utilization but also crew productivity, and all the operational initiatives that we have seen.

But so I think it will be a onetime element, this first half. For the second half, we're expecting CASK ex fuel to go down again in the sense that it will only increase but in low digit -- low single-digit amount.

And back to the fares question and the ability to pass on the incremental fuel costs. Fares this summer are going to be dynamically priced the way low-cost carriers always do. So it will depend on the route, it will depend on the demand, it will depend on the timing of the route. At the moment, fares are slightly above where they were last year for peak season, but that will be dynamic. And if competitors are looking for fares to be flat or down, then there will be some elements of that driving the market will depend route by route what the situation is. When you look further out, -- we're in a more inelastic period for people booking in winter. That's why we have increased the minimum fare price to start reflecting the -- our outlook for fuel costs. And at the moment, obviously, that price is sticking, people are buying. Our load factor is marginally up for where it was this time last year for winter.

So it really is the concern of the rolling 4 weeks that has created the uncertainty and people are just leaving that decision later. But it's -- but we don't yet know what the fare environment would be for the lates in July, August and September.

Conroy Gaynor here from Bloomberg Intelligence. So just to pick up on an earlier point. I mean, what does this sort of 2H move away from the longer leisure flows towards more cities and domestic. What does it mean for your utilization? And to what extent does that actually play into your actual cost guidance? And then second one is on the demand side, while I can appreciate the geopolitical concerns and concerns around jet fuel and everything are contributing to the shorter booking window. What is your general sense on the underlying demand health of the consumer, given that things like higher energy bills will no doubt hit people in the pocket?

I'll start with the last question on demand health and then to Jan to talk about the CASK impact of some of those shorter leisure routes, although this isn't a wholesale move. So it's on the edges we're looking at here in terms of that. In terms of the demand health, I think you've got the world before the Middle East crisis and the world after. I mean before, the customer was there. We were growing. We saw a 6% increase in passengers. For the airline, we saw a 22% increase in passengers. The holidays, we know we've put a lot of investment in those in that capacity, and I'd expect those to mature over time. So people were definitely traveling, they were buying, demand was robust. As we look forward, it remains very strong in the month of departure. So people are traveling and they're traveling in -- their masses and searches really ramp up. I think what's hard to gauge is what's fully behind the uncertainty with so many factors? Is it the price of petrol at the pump? Is it the rumors that fuel is not going to be there, which hopefully will start abating as more of the conversation comes out that fuel supply looks good for the summer. Is it the impact of supermarket costs?

Really hard to put your finger on it. All we know is when it comes to the in-month window, people are booking, and they are booking strong. Hopefully, as these fuel concerns and supply start alleviating at least for this summer, we'll see people coming back earlier but there has been a watch-and-wait approach, but we haven't yet got into high season. We still got the majority of our seats to sell for Q4. So that's wait-and-see

Sophie, you can always -- or you want to answer or I can try it first. You start.

I'll start anyway, and you can always add on the CASK bit. I think what's interesting is, although we are adding cities and domestic but also having long leisure, so a lot more into non-EU. So on the net balance is actually our ASKs are still growing. So seat capacity for the second half is up 2%, but our ASKs are going to be up 3%. So -- or sorry, the ASK is actual up 5% but the sector length is up 3%. So what you'll see in that mix is kind of rebalancing of what you have in your kind of core leisure beach. You've got some more long leisure coming in, so we've got Egypt, we've got a lot more into North Africa. And then you're balancing that with more cities and domestics. And net-net, you're still going to see capacity growth greater than your seat growth in the market. So it's a bit of a mix effect taking a bit of remixing that leisure.

And that's also on the back of easyJet holidays and some of the success we've had there with some of that long leisure as well.

Yes. And I think adding to that, first of all, growing a little bit more on cities in domestic is not necessarily a wrong thing, because if we look at our current RASK development, we do see that sales and domestics are more resilient than currently more leisure destinations, first of all. And secondly, I think the growth in cities and domestic is probably more focused on U.K. and more specifically on London and in winter because if you would look today at the repartition in terms of seat capacity cities versus leisure or non-European and especially out of the U.K., the amount of seats on cities have gone down in proportion.

So we feel that there is an opportunity to rebuild at the future proposition, especially on winter out of London. And that does mean that it will also drive your aircraft utilization because currently, our productivity in winter out of London is probably not the highest. So that should have also a positive cost benefit.

It's Harry Gowers from JPMorgan. The first question, I wanted to ask about the kind of market oversupply on beach routes, which you mentioned during winter, and I think maybe a little bit into summer, especially U.K. beach. Are you starting to see that kind of change in any way, whether it's summer or looking early out to winter? And is that just completely relying on Tel Aviv or Israel reopening?

I guess you could argue structurally some capacity will -- might never go back to that kind of adjacent region. And then just going back on the Q4 kind of holding on to the higher yields at the moment in revenue management. Is the aim at the moment to be flat on load factor year-over-year when we get there? Or would you take lower loads but higher prices?. So would you be happy with the current mix once we get into properly into Q4?

And then just final one. You do have this new GBP 250 million cost benefit number from the phasing out of the A319s over '27 and '28. Just to confirm, that's basically a pull forward of upgauging. It's not completely incremental to the GBP 1 billion PBT number, medium term? And I guess for us, kind of simple analysts, should we just add GBP 250 million to our numbers for '27 and '28 or not?

I'll start with the last question. It was a pretty interesting one, isn't it? I mean the GBP 250 million is saying, if in '28, we flew the program that we flew in '26 with those 28 aircraft, that will be the cost benefit. It burns less fuel when you have a neo flying on an A319 route. And therefore, if you have the same capacity and you remixed it with those aircraft, then the fuel savings, the pilot savings, the cabin crew savings would land through a GBP 0.25 billion. So that's the cost benefit.

And okay, if you do it on '28 capacity, you also get the scaling benefits of having more seats on the planes, and that's when the fixed costs come through as well, which is why there's a delta between cash and fixed costs. The impact...

But to make it very clear, they are part of our medium-term targets. So you can't add that additionally.

I mean, always part of the medium-term targets was the profit improvement in holidays, which is coming through. The upgauging, which is unfortunately since 2023 moved to the right and then hard to get your fingers on. What we're saying now is -- coming in the next 2 years, a large chunk of that will come. So that's what's coming -- the update is coming near term. It was always part of the medium-term targets.

We always said it's about GBP 3 per seat. How much we then trade off with revenue dilution from filling the actual seats we'll learn more. It hasn't -- we haven't seen much from the -- going from 100 A319s through to 80, but this is all 80 going effectively in the next 3 years. but that will be on the thickest routes. It will be in slot-constrained airports. You don't need to put a new routes in play, so it's not proving out new routes, whereas the 24% increase in CACs that we've done over the last 3 winters, our gauge is very moved. So that is new routes, aircraft flying new places that needs maturing.

This doesn't need maturing to be for the same way. Oversupply on U.K. beach, Sophie, do you want to pick that up?

Yes. I mean there is more capacity on U.K. beach even this summer, 8% up in Italy, Portugal and Spain. So all of those seen more capacity. I mean, interestingly is where that's coming from. From our own perspective, our growth has only been on the Newcastle base opening for this summer. So that's where a lot of that beach growth has come from us. If you look at somewhere like Gatwick, 53.7% of our capacity in H2 in Gatwick is on cities and domestics. And to my earlier point, that is where we are growing more. So adding H2 capacity on cities and domestics at Gatwick this Summer, hup by 3.1% versus last year, compared with removing 0.3% on beach routes.

So we are, as we said earlier, that's part of the network optimization. So for us, it's routes like adding a Newquay, which we see as a great opportunity for the summer, those sorts of things that just make sense. And then building back more into places like Dusseldorf, Madrid, Porto, Berlin and so on from Gatwick. So yes, we're seeing -- still seeing pressure, I think, on U.K. leisure more broadly. The benefit we've got is the fact we have easyJet Holidays, that gives us an advantage over many other airlines and the fact we've got flexibility with the easyJet Holidays model, that means we're not fixed to certain destinations. So if the Egyptian hoteliers put on great deals, we'll just sell more holidays to Egypt and less -- and if the Spanish hoteliers keep their prices up, we'll just see less conversion there, but will still see them on flight seat only.

So that's kind of what we're seeing. I don't think Tel Aviv would make a significant difference kind of longer term in terms of capacity from the U.K. versus the leisure market. And then on your point around Q4 yields, load factor and where that balance is and where we get that right. I mean ultimately, we get -- we aim for the balance to get the best net profit. So whether that means that we don't take the full load factor. In terms of load factor objectives, we want to continue to achieve the load factors we have done historically. And we want to be realistic, but we're not going to go for that load factor at any cost. So obviously, load factor for us, we benefit then from ancillary sales. And ancillary sales continue to be strong for us. And therefore, we take the balance of both ancillary plus ticket when we're making a decision on overall final load factors.

So we will still aim to get the load factor, but we're not going to do any cost in terms of ticket yields. And there will be certain routes where you're right, where actually, if we don't see the demand coming in, it makes sense just to take the yields you can on the people are coming in and you'll keep the yields high. But generally, for Q4, most will be demand led in terms of bookings and pricing.

Well, thank you very much for all the questions. Thank you for coming today, and we will be around for a few minutes if anyone wants any kind of one-on-one questions afterwards, please come forward. Myself, Jan, and the team will be here.

Hello, and welcome to easyJet's half year results presentation for the period ending 31st of March 2026.

Let me start with our performance in the first half. Operationally, on-time performance has further improved to 78%, with both the airline and easyJet Holidays continuing to deliver strong customer satisfaction scores. Underlying H1 2026 results were consistent with our expectations and in line with the trading statement in April. However, we recognize that winter losses remain above where we planned when setting out our medium-term targets. Our focus is on delivering sustainable improvement in winter performance over the coming years as capacity investment matures and growth normalizes. Jan will take you through the detail of our first half financial performance shortly.

The Middle East conflict has introduced near-term volatility for the business, particularly around fuel prices and the short-term demand environment. Importantly, we are managing this volatility from a position of strength. Our investment-grade balance sheet provides us with the resilience to enable a rational and disciplined response and our fuel hedge position allows us to protect customers from the near-term price volatility this summer.

While we navigate this uncertainty, we remain focused on our clear strategy to deliver medium-term margin improvement. We believe the actions we are taking now will drive tangible performance improvements as we return to a more normalized operating environment. Today, I will provide a strategy update, including how we're accelerating upgauging, driving cost efficiencies and continuing to grow easyJet Holidays alongside other asset-light margin-enhancing initiatives.

Turning to the detail on how we're managing the current near-term uncertainty. From a demand perspective, as you'd expect, we have seen softness in forward bookings. However, March saw a strong late booking environment for in-month departures, a trend that has continued through April and into May.

For the summer, forward load factors for both Q3 and Q4 are currently below prior year levels, having been ahead year-on-year prior to the start of the conflict. Strong late booking trends have improved Q3 load factors by 1 percentage point since the April trading statement.

From a jet fuel perspective, we currently have 72% of our fuel requirements hedged at $726 a metric tonne. That said, there remains volatility around the unhedged proportion, which we'll need to purchase at prevailing spot rates.

Our investment-grade balance sheet provides both financial and operational flexibility. We have strong liquidity of nearly GBP 4.7 billion and a net cash position of GBP 434 million.

Following the start of the Middle East conflict, we temporarily suspended regular short-term hedging. We've been actively managing forward hedging where we continue to layer in hedges for the outer months where the forward curve has remained in backwardation. In response to this uncertainty, in March, we also reviewed our summer network and redeployed around 400,000 seats away from countries adjacent to the conflict into domestic and city routes across the wider easyJet network.

In addition, we trimmed some thick flows in the shoulder season of April and May as a result of the elevated fuel prices. This resulted in a net reduction in seats of 0.3%. No further changes are anticipated, and it's our intention to operate the full summer schedule on sale. We see no fuel supply impact and continue to operate our schedule as planned. We remain in close contact with our fuel suppliers and airport partners to manage supply.

Overall, we continue to respond to the current environment in a disciplined manner and actively review all areas of the business. We have a clear strategy to deliver medium-term margin improvement and deliver more than GBP 1 billion of group PBT.

At the core is a disciplined execution of our low-cost airline. We're allocating capital where returns are highest with a hurdle rate of GBP 2.5 million of PBT per aircraft, deploying growth into proven bases alongside the opening of new bases. As we look ahead, capacity growth moderates from winter 2027, while fleet upgauging will drive around GBP 250 million of cost efficiencies across the next 2 years.

Alongside this, we're focused on capital-light growth. easyJet Holidays continues to scale, reinforced by retail expansion in Germany and a new flight plus hotel book flow. We'll also launch a new loyalty program for the group in 2027, creating value enhancement. Our aim is to leverage the group more effectively, continuing to build on the strength of our brand while delivering a consistent, seamless customer experience. We're moving to being a leaner, more digital organization with current investments in automation, data and AI driving simplification.

Now I'll hand over to Jan.

Thanks, Kenton. Let me start with a summary of our H1 2026 financial performance.

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

The airline losses before interest and taxes reflected the first year of winter operations of our new base in Milan Linate and Rome Fiumicino, which negatively impacted the results by GBP 30 million, as previously communicated, alongside our continued strategic capacity investments in the rest of the network during winter to drive asset utilization in that period.

The airline financial performance was additionally impacted by competitive overcapacity in certain beach markets and market-wide cost inflation, which was weighted towards the first half on top of the previously mentioned additional fuel costs and legal provisions. As a partial offset, we did see encouraging demand with load factors being up 2 percentage points year-on-year. As a result, airline losses before interest and taxes reached GBP 581 million, an increase of GBP 180 million year-on-year.

easyJet Holidays performed strongly with earnings before interest and taxes increasing 50% to GBP 48 million. This was driven by both customer growth and margin improvements.

From a financial position perspective, we continue to strengthen our balance sheet position. Liquidity remained strong at GBP 4.7 billion. Net cash increased to GBP 434 million. Even though underlying H1 2026 results were in line with our expectations, we're obviously not happy with such level of winter losses as this increases the reliance on a strong summer to make our full year results. The focus to gradually reduce these winter losses in the coming years after 3 years of investments is hence high on our agenda.

Moving on to our key performance indicators. In H1 2026, we flew 8% more ASKs and grew seats by 4% with our destination mix further evolving, resulting in average sector length increasing by 4%. This ASK growth firstly resulted from a moderated increase of our fleet by 1 aircraft to 356 aircraft as we have retired 3 A319 aircraft and taken delivery of 4 new A320neo family aircraft since H1 2025. This also led to a gauge increase of 1% to 182 seats.

More importantly, and in line with our strategy to increase asset utilization and productivity during winter, we flew more with the assets at hand, leading to an overall 6% increased aircraft utilization. This means our aircraft operated at an average of 9.1 hours per day through the winter, which is a 20% increase over the past 3 years. This is now broadly back in line with pre-pandemic utilization levels.

Our balanced and attractive network continued to develop with non-European destinations seeing ASK growth of 27% year-on-year, now accounting for 18% of the total network ASKs. However, only 8% of the seats, reflecting the longer sector length. Beach and city ASKs grew slightly below the network average at 7% and 5%, respectively, resulting in a modest reduction in their overall share of network capacity. In contrast, domestic ASKs declined by 4%, driven primarily by reductions in French and Italian domestic routes.

Turning to airline revenue. Total airline revenue increased by 10%. This reflects on one side, the continued strong demand at our primary airports as passengers grew by 6% ahead of the growth of the seat growth with load factors increasing by 2 percentage points to 90%. On the other side, this was also realized through higher yields, primarily due to the increased sector length flying more further afield leisure destinations.

As a result, total RASK for the half was up 1.3% despite a 2% natural dilution from increased sector length as well as an adverse impact from the one-off releases of aged ticket liabilities in the prior year. Foreign exchange provided a favorable impact of approximately 2%, while the earlier timing of Easter this year also supported RASK.

Aside that, we saw evidence of underlying revenue improvement from the first model benefits of route maturity, particularly in the second quarter, although this was partially offset by continued oversupply in specific beach markets through the winter. Looking ahead, as the operating environment normalizes, we expect to see continued revenue benefits as our capacity investments mature over the coming years.

Turning now to the CASK bridge. Headline CASK increased by 5% year-on-year with CASK excluding fuel, up 8%. Fuel CASK improved by 5%, slightly supported by fleet modernization and a year-on-year more favorable fuel price. This more than offset the phaseout of free ETS allowances, higher SAF mandates in the U.K. and the fuel price spike experienced in March.

It's important to highlight that the increase in CASK excluding fuel in 2026 is skewed towards H1 2026. We expect cost performance to moderate in the second half, with H2 2026 headline CASK, excluding fuel, increasing by low single digits.

Now in H1, we achieved a 6% benefit to CASK ex fuel from increased aircraft utilization. This was offset by inflation and foreign exchange headwinds, which together drove around a 6% increase in CASK, excluding fuel. Higher passenger load factors also increased certain per passenger costs, primarily in airport and ground handling, reflecting the impact of per passenger charges.

CASK also increased due to strategic investments, including the annualization of resilience measures implemented to support Summer 2025, the investments in digitalization and marketing as well as the wet lease costs associated with our new Italian bases, which will end next year. The remaining increase contains one-off items, including GBP 32 million of net increased legal provisions and a GBP 10 million adverse impact from the absence of prior year lease buyback gains.

Turning now to easyJet Holidays. easyJet Holidays delivered a further strong profit growth in H1 2026 with profit before tax increasing by 39% to GBP 61 million, supported by customer growth of 22%, alongside a 1 percentage point improvement in margins to 9%. The modest margin benefit primarily reflects lower selling and distribution costs in March due to the summer demand impact following the start of the conflict in the Middle East.

The attachment rate increased to 6.3% across beach and city flights and customer numbers grew to 1.3 million. Our European customer base increased by 66% year-on-year, albeit from a relatively small base, highlighting increasing brand awareness in our European source markets and a significant opportunity ahead.

Looking forward, easyJet Holidays remains on track to deliver low double-digit customer growth in full year '26, although second half growth will be impacted by -- relative to original expectations due to the current demand environment.

Turning to the balance sheet. Over the past years, easyJet has successfully built a strong balance sheet to be able to support future CapEx, but also to navigate through turbulent times if they would occur. We're happy in this uncertain context to benefit from an investment-grade balance sheet, which is critical in providing both operational and financial flexibility.

The net book value of owned assets increased to GBP 5 billion, reflecting the addition of 4 aircraft into ownership compared to last year, alongside 9 new engines. We now have 86% of our neo fleet in ownership, well above our 75% target, providing flexibility for the upcoming fleet renewals. We remain on track for the net book value of owned assets to exceed GBP 7.5 billion by full year '28.

Our net cash position increased by GBP 107 million year-on-year to GBP 434 million as at 31st of March 2026. The value of our derivative financial instruments increased by GBP 932 million during the year, driven by higher fuel prices. The fair value of our hedge position now stands at GBP 799 million.

Unearned revenue remained broadly flat year-on-year despite planned capacity growth of 2% in H2 and continued growth in easyJet Holidays, reflecting the recent later booking trends. Total liquidity stood at GBP 4.7 billion, representing GBP 1.1 billion in excess of our policy requirement to hold liquidity equivalent to unearned revenues plus GBP 500 million. Finally, our financing position remains strong with no bond maturities due until full year 2028.

Our delivery profile remains consistent with what we've previously set out, with the remaining 14 aircraft due for delivery this year, all of which are planned to be taken directly into ownership. This will increase our new ownership to 87%. These deliveries, alongside the accelerated retirement of our A319 sub-fleet will drive our upgauging journey over the coming years.

The end of year base fleet plan differs to the peak line of flying as shown on the slide, due to having 14 standby aircraft as well as the timing of deliveries. In full year '27 and full year '28, in-year delivery delays from Airbus will result in some deliveries being expected post the peak summer season. We're still working with Airbus to finance aircraft deliveries for full year '29, but I expect that all the remaining A319s will be retired by the end of 2029.

The increase in gross capital expenditure over the coming years reflects the high level of aircraft deliveries. However, it's important to note that gross CapEx does not reflect the potential financing options available to us through sale and leasebacks, JOLCO structures and access to debt markets.

Elevated aircraft deliveries over the coming years will expand the fleet to 389 aircraft by full year '28. At a steady state level, maintaining the fleet would require deliveries of around 17 aircraft per year, equating to a true cycle gross annual CapEx of approximately GBP 1.6 billion. We remain focused on driving stronger earnings and cash generation over the coming years, which will support sustainable through-cycle free cash flow generation.

Moving on to the unique fleet upgauging and modernization opportunity, which is ahead of us, which will drive material cost efficiencies over the coming years. By replacing our A319 sub-fleet with more efficient A320neo family aircraft, we are structurally improving return across the business. We are bringing these benefits forward by accelerating the retirement of the A319 fleet. All A319 aircraft will now exit the fleet by the end of 2029 with an additional 6 aircraft leaving in full year '28 compared with the schedule we previously outlined.

The fuel economics are compelling, particularly in the context of elevated fuel prices. An A320neo delivers a 24% reduction in fuel burn per seat compared to an A319, increasing to around 30% from an A321. Beyond fuel, upgauging also delivers unit cost savings across the income statement.

Across 2027 to 2028, we expect to realize just under GBP 3 of unit cost efficiencies, including benefits of fixed cost scaling, translating into around GBP 250 million of incremental annual operational and fuel cost efficiencies across the 2 years. This is based on the normalized fuel price.

We already operate multiple aircraft types on a number of routes where those operate in similar commercial conditions, same time of day and same days of week, we see limited revenue dilution. That gives us confidence that the majority of these benefits will flow directly into margin improvement. Over this period, the average number of seats per aircraft will increase from 182 to 192.

Capital discipline remains central to our strategy. We remain fully focused on maximizing returns on our invested capital. We allocate capacity selectively using detailed financial data, prioritizing bases where we can generate the highest return or where there's a clear line of sight to do so.

In full year 2026, all aircraft were allocated to existing bases, delivering returns above our profitability threshold of GBP 2.5 million per aircraft, equating to circa GBP 8.5 per seat, as illustrated in the chart with the green bars highlighting where new capital has been deployed. New bases such as Milan Linate and Rome Fiumicino are currently our most significant underperformers, reflecting around GBP 20 million of losses in the first summer season and an additional GBP 30 million of losses in the first winter season.

We have clear improvement plans in place across all underperforming bases, and we will continue to take action on capacity allocation where return thresholds are not met, or where the pathway to improvement is insufficiently clear.

Looking ahead, as fleet modernization accelerates and fleet growth moderates, we expect the majority of capacity growth in full year '27 and full year '28 to come from up-gauging.

Alongside this, we continue to invest selectively in strategic capabilities that we believe are critical for the future, including the investment in our heavy base maintenance facility in Malta, where we are expanding the capacity from 4.5 base to 6 base. Finally, we continue to invest in our digital capabilities, supporting the digitalization of key commercial, operational and enterprise processes.

Turning to the outlook. There remains significant uncertainty on the full year results due to the current macroeconomic environment with fuel prices remaining volatile as well as the lower visibility of future bookings.

For H2 2026, every $100 per metric tonne movement in fuel prices equates to GBP 35 million. The full year result is also highly sensitive to the year-on-year RASK differential with every percentage point worth GBP 26 million for Q3 and GBP 33 million for Q4.

easyJet remains well positioned with our investment-grade balance sheet to navigate the current environment. We are focused on executing our self-help initiatives, which will enable easyJet to better monetize its strong position over the coming years as we progress towards delivering our financial ambitions.

Thank you for your attention, and I will now hand back to Kenton.

Thanks, Jan. We remain committed to our strategy, which you'll be familiar with. Our purpose remains the same, making low-cost travel easy and is underpinned by 4 strategic pillars. Ultimately, progress on these strategic priorities will drive the delivery of improved financial performance and help us navigate the current environment.

I spoke earlier about how we're focused on executing and delivering against our strategy, which will support us in making further progress towards achieving our medium-term targets when the operating environment normalizes. We set out the key building blocks for these targets in full year '23, and these remain the same, albeit with evolving time lines for delivery and contribution levels from each of the key levers.

Firstly, easyJet Holidays has outperformed against our initial expectations and met the target of GBP 250 million PBT within 2 years. We, therefore, upgraded the target to GBP 450 million PBT by full year '30, with further growth initiatives progressing well.

Secondly, the time line for upgauging was moved to the right as a result of Airbus delays. These benefits are now becoming near-term opportunities as we accelerate A319 retirements and step up neo deliveries over the coming 2 years with GBP 250 million of incremental annual cost efficiencies expected across full year '27 and full year '28.

Thirdly, as I've said, we recognize that winter losses remain above where we planned when setting our medium-term targets. Capacity investments over the past 3 years have driven a 20% increase in aircraft utilization, and we're now broadly back on historic levels. Route maturity and sequential improvement of Rome Fiumicino and Milan Linate are now expected in the coming years.

Fourthly, within other, we remain focused on being a lean digital organization to enhance merchandising capabilities and the customer experience while simplifying and automating processes to improve fixed cost efficiency. And finally, all of this is underpinned by disciplined capital allocation and the GBP 2.5 million PBT per aircraft target, which is equivalent to the middle of the GBP 7 to GBP 10 per seat range.

Delivering up to 1,900 flights a day simply wouldn't be possible without our people, whose professionalism and commitment continue to set easyJet apart. I'd like to thank all my colleagues for their hard work and the passion they bring every day. I'm fortunate to see this firsthand as I travel across the network.

Once again, we've been recognized by Glassdoor as a Best Place to Work, and we're the only airline to feature in the top 50. We continue to retain and engage great talent across the group, supported by high levels of colleague engagement with our latest score at 74%, trending positively and ahead of the global benchmark.

For our customers, our people-led service strategy enabled by technology is delivering clear results. In the first half, airline customer satisfaction increased by 2 percentage points to 84%, with easyJet Holidays increasing 1 point to 85%. We've continued to invest in frontline delivery, launching the next stage of our enhanced trading program for ground staff, while further rolling out our internal app, which provides real-time information to ground staff, customer service teams and crew.

At the same time, we're simplifying and digitalizing the customer journey. Since last summer, we've made significant enhancements to our mobile app, including proactive flight notifications, automated disruption handling and the introduction of passport scanning for faster online check-in. Our sustained focus on operational delivery and customer experience over recent years continues to differentiate our brand.

We benefit from a loyal customer base with 71% of bookings coming from returning customers and a growing membership of our easyJet Plus subscription product. To complement this, we'll be launching a new loyalty program in full year '27. We'll host a seminar on the new rewards proposition early next year, which will leverage the strength of our brand and further enhance our differentiated customer offering.

Our focus continues to be on disciplined targeted growth, deployed where returns are strongest. Ahead of the summer, we opened 2 new bases in Newcastle and Marrakech, each with 3 aircraft and added a further 7 aircraft to bases performing above our 2.5 million per aircraft target. We continue to deploy additional capacity only where we expect to deliver superior returns. Newcastle is performing in line with expectations with particularly strong demand for easyJet Holidays, which already accounts for 38% of total beach bookings from the base.

The launch of our Marrakech base, our first outside Europe, represents an important strategic milestone. It allows us to broaden our market reach for this popular destination while continuing to serve our established European customer base. We're now entering the second season for our new bases at Milan Linate and Rome Fiumicino. Prior to the impact from the conflict in the Middle East, we saw early signs of route maturity, including year-on-year improvements in forward bookings and stronger contributions. We expect sequential improvements as these routes continue to mature.

As the graph shows, we have a proven track record of improving returns following strategic capacity investments that include the award of remedy slots. In this example, while returns were initially diluted, they improved meaningfully as routes matured over the subsequent 2 years. We have seen this pattern repeated consistently across the network as capacity investments mature.

Starting with easyJet Holidays, our digitally delivered proposition continues to perform strongly. It's delivering performance that is outpacing peers as we continue to gain market share profitably in a competitive market with a number of growth initiatives still to come. Later this year, we plan to launch a new flight-plus-hotel proposition ready for the upcoming winter season. This will allow customers to book city breaks without leaving the airline book flow, improving conversion and enhancing the overall city break booking experience.

As part of this, we're also expanding our hotel inventory across European city destinations to provide our customers with a fantastic choice of city hotels alongside our existing range of beach hotels. Beyond the U.K., we continue to make progress in other European source markets. In Germany, this will be further supported through launching 500 high street travel agents in the Berlin catchment area, who will begin selling easyJet Holidays in H1 '27. Building these relationships is an important step given around 70% of package holiday sales in Germany are made offline.

Turning to the airline. We remain focused on continuous improvement across both the customer proposition and our digital capabilities, particularly through our fully owned app. We've launched the new smart bundles, which combine bags, seat selection and speedy boarding, and these have been well received with attachment rates increasing since launch. This summer also marks the first time we're offering customers a Flex Pass, allowing ticket changes without a fee. Demand has been strong, and the product is generating incremental returns for the airline.

In-flight retail continues to grow with profit per seat up 9% in the first half. We've introduced a new summer range, which we expect to further enhance the customer proposition.

Finally, our app remains a key differentiator. We've seen a 5% increase in customers citing the app as a reason to book easyJet alongside a significant 10 percentage point improvement in app booking experience scores. This is driving higher conversion and greater brand loyalty with the app now our fastest-growing booking channel, accounting for 38% of direct airline bookings and 31% of direct holiday bookings.

Delivering ease and reliability remains critical for easyJet. We're increasingly leveraging data and technology to drive efficiency across the business, resulting in a smoother and more reliable end-to-end journey for our customers.

Over the past 2 years, we've made significant progress in transforming how customers interact with our contact center. Generative AI has played a key role, enabling us to shift the primary channel from voice to live chat whilst automating e-mails and claim processing. This has led to a faster, more efficient service for our customers, and the journey is ongoing as we continue to unlock further efficiencies and cost savings.

We've also expanded our automated service recovery tool, which is now available to nearly all passengers experiencing disruption, including on the day of travel. Customers can view their best option within minutes and action it in just 2 clicks. As a result, 87% of customers now self-serve, a 15 percentage point increase year-on-year with around 1/3 using the 2-click resolution option.

I'd like to highlight a few practical examples where technology is delivering operational efficiencies. At Gatwick, we're reducing turnaround times through the use of remote smart stands, which also improves safety and protect assets and enable more accurate prediction of pushback times. By combining real-time stand monitoring with remote coordination of key arrival activities, we anticipate improved operational resilience and reduced delays, particularly during busy summer periods.

Smart stands represent a major modernization of ground handling processes that have remained largely unchanged for decades. Onboard, our crew using new digital tools, including electronic cabin logs and reports alongside an advanced weather app that helps predict and avoid turbulence, improving both efficiency and the customer experience.

Looking ahead, next year's schedule is being built using SkyMax, which now incorporates profit and operational optimization, further strengthening our ability to deploy capacity effectively and unlock further productivity gains. We'll continue to develop tools that automate processes across the business, allowing us to respond more quickly and make both cost and customer optimal decisions.

Together, these examples demonstrate how our targeted technology investments are starting to deliver tangible efficiency benefits. While we're still at an early stage, we expect these benefits to continue to build over the coming years.

As you know, we remain fully committed to delivering low-cost travel, and this is even more important in the current operating climate. Over the past 2 years, we've actively embedded a number of resilience measures, which have helped to substantially reduce disruption-related costs and improve operational stability. The additional capacity added over the last 2 winters has enabled annual aircraft utilization levels to return to above 10 hours per day. Following these investments, growth over the coming winter periods will return to normalized levels.

As I mentioned earlier, we've also been driving efficiencies across the business through greater use of technology, integration and automation. These initiatives are already delivering benefits, and we expect a step up in efficiency and cost savings in future years. That said, we recognize there is still more to do and further cost actions are now underway, as I outlined in the margin initiatives at the start.

So in summary, we are navigating a period of near-term volatility due to the current macroeconomic environment, which we continue to actively manage from a position of strength. Our investment-grade balance sheet provides both operational and financial flexibility.

Our longer-term focus remains firmly on executing against our strategy, supported by a disciplined approach to capital allocation. We remain focused on actions that will drive tangible performance improvement as we return to a more normalized operating environment.

Our medium-term financial ambition remains unchanged with a target to generate over GBP 1 billion of profit before tax, delivering attractive shareholder returns over the medium term.

Thank you for listening to this presentation of easyJet's Half Year 2026 Results.

Well, hello, everybody, and welcome to easyJet's Full Year Presentation for the period ending 30th of September 2025. I'm joined today by my full management Board on the front row here. So please feel free to ask them questions either after the event or in the Q&A session that we'll have. We also loaded a presentation first thing this morning on to the website. Hopefully, you've had a chance to look at that presentation. But if you haven't, I will give you the key highlights of it now, and then we'll go straight to Q&A, so we have a good amount of time for your questions.

So we're very pleased to announce our third consecutive year of earnings growth. From a PBT perspective, that was a 9% increase to GBP 665 million. But actually from an operational performance before financing, so EBIT, we saw an 18% improvement with GBP 56 million of that improvement in EBIT coming from holidays and GBP 50 million of that improvement coming from the airline.

On holidays, we had a very successful year for holidays. We were able to reach the GBP 250 million medium-term target that we set just 2 years ago, and we did that ahead of schedule. There was strong customer growth. We saw a 20% increase in packaged holiday customers. We also had a 32% increase in profit due to the very low fixed overhead base of that business.

We were also really pleased with the proactive actions that we took when it came to resilience measures. to set up for the busy summer. We knew air traffic control was a problem. We knew it would be a bigger problem over French airspace, which we're particularly exposed to. And therefore, we wanted to get in front of that and did a lot of measures to do that, and we're very pleased with the performance. We saw a 3% increase in on-time performance and even more pleasing, a 4% increase in customer satisfaction. And at 80%, that's the highest level that we have had in over a decade. So a very strong performance despite the problems that still existed over French airspace.

Moving on to the balance sheet. Our owned asset position has increased to GBP 4.8 billion now in terms of owned aircraft, and we expect that to increase to over GBP 7.5 billion by full year '28 as we see the neo aircraft family deliveries really ramp up. When it comes to net cash, we improved our net cash position to GBP 602 million. And that really is important along with the enhanced liquidity that we carry because that will help prefinance a lot of these aircraft orders that we're going to be getting over the next 3 years.

I'd also like to highlight that our return on capital employed reached 18% from just 13% when we set the target. So now we're operating in the range that we were seeking to do as a high-teen return on capital. So that moved nicely for us.

And following the success, we know that the upgauging journey is still in front of us. We started full year '25 with 82 A319s, and we finished with 82 A319s, but because we only had 9 deliveries and we took those into growth. So we're now looking forward to those increased Airbus deliveries, 17 next year, 30 the year after and 43 the year after that, so we can really start moving and upgauging the fleet and retiring the older less fuel-efficient A319s. And we would expect about 60% of those to go over the next 3 years by full year '28, and that will deliver the majority of the GBP 3 per seat benefit that we've been talking about.

And following the success of easyJet holidays, we've upgraded that target to GBP 450 million by full year '30. And Garry and his management team are going to be holding a seminar in Luton head office in Capability Green on Friday, where they'll unpack how they're going to do that. But I'm sure you'll have a couple of questions anyway for Gary at the end of this presentation.

As we look forward to winter, we have to admit that we're finding the reduction of winter losses more challenging than we originally hoped. We put a lot of capacity and productivity into this winter, and that did yield cost benefits. Our unit costs came down. We saw aircraft productivity utilization increased 5%. We saw crew productivity increase 6%. But what we have to remember is when we put those new routes on and we put that capacity on, that is an investment that the airline is making, and that takes typically 2 to 3 years to mature, which is what it's probably going to take because it's a slightly lower demand position in the winter.

The other factor, which is why it's a little slower than we anticipated, is the fact that there are still 2 wars happening in our network. That means that in the Middle East, we haven't returned to Tel Aviv. We're no longer flying to Jordan, for instance. And many carriers have substantially reduced their capacity in those areas, which has put more capacity into the old favorites like the Canaries and Mainland Spain, Malaga, Alicante and therefore, more competition. But we really expect that to mature as we go forward.

We saw a maturing of our domestic routes after we increased capacity following the reduction in domestic APD in 2023. Margins suffered a little bit, but now we have a very well-performing domestic program, and we're seeing some of that profitability return to cities as well. But that cost of investment sits with the airline. Obviously, from holidays, they benefit from the increased winter sun destinations. They benefit from a better schedule into cities for city breaks and immediately start selling into that, immediately start making profit because of their cost-plus business model. The airline, however, whilst we get the cost benefits upfront, it takes a little longer to get the revenue maturity benefits, but we're confident they come through.

And the other thing we're mindful of for the winter ahead is our investment in Linate and Fiumicino. We're really happy to be able to get these slots in Linate. They don't come up very often. They've only come about because of the acquisition of the Lufthansa Group of ITA. And we placed 5 aircraft there and 3 in Fiumicino, which is a popular destination for us. But we know that it will take time for that to mature. We're having to fly the remedy routes that came along with that, and we know that the new routes will take time to mature, but we're very confident that we expect Linate to have the same profit characteristics as someone like Orly, which does very well in our network, but will take 2 to 3 years to mature to deliver that.

So with all of that in mind, we still remain very confident of our ability to deliver to the GBP 1 billion target. And now 2 years ago, we were making that statement from a GBP 427 million profit base. Now we're making that statement from a GBP 665 million profit base.

If we step back and look over the last couple of years since we set the medium-term targets, this is a slide I naturally love. It shows the progress we've made on every front. When it comes to our product range, we've had 13% more routes, and that is attracting customers and allowing us to grow. where more customers are choosing easyJet Holidays as their package provider. Originally, that was mainly coming from the airline. Now more and more, we're winning those customers from competitors, and you can see that in the competitor data.

You can also see that in our growth of market share from 5% to 10%. And the focus on resilience measures really came through with almost more than I was hoping for a real tangible benefit in terms of the customer satisfaction scores, and that's so important for the brand going forward. So all of these key measures will help strengthen the long-term success for easyJet.

So in summary, we're well positioned to capture the growth opportunities that lie in the years ahead. We're confident that if we execute well on our strategy alongside a continued disciplined approach on capital allocation that, that will drive us towards the medium-term targets and then beyond. Our asset-light easyJet holidays model is now going into a second phase of its development. We're looking to increase that U.K. beach market share from 10% and challenge the #1 and #2 in the market. We're starting to work much harder on the European expansion, and we're seeing good early signs of that. The city proposition is coming through nicely.

So Gary can talk about all the activities that underpin the confidence that we can increase our targets up to GBP 450 million. And the neos are coming. We've seen a consistency from Airbus. The supply chain difficulties seem to be unblocking a bit. And last year, we said we're expecting 9 aircraft in full year '25. We got them. And we said then it goes GBP 17, 30, 43. A year later, we're still saying GBP 17, 30, 43. So Airbus haven't moved that schedule. So we're growing in confidence that upgauging will come through.

And we know from the aircraft that we have replaced so far that, that is a GBP 10 benefit when a 320neo replaces a 319 or a GBP 16 per seat benefit when a 321 replaces a 319. And obviously, when you're making profit of GBP 6.40 roughly, those are big numbers in terms of a reduction in the cost for those aircraft we're flying. With all these levers and with one of the strongest balance sheet, investment-grade balance sheets in the industry, I think we're well positioned to push forward. And we firmly believe as a management team, if we focus on this execution, then over the medium and long term, we will provide very attractive shareholder returns.

So many opportunities in front, very excited about the future and the potential for easyJet, and we'll go open to questions, Adrian?

It's James Hollins from BNP Paribas. I'll save any holidays questions to visiting Gary Wilson Towers on Friday. So 3, if I may. First of all, on kind of holidays the airlines, it's quite sort of noteworthy that airlines was, I think, flattish PBT, all the growth is coming from holidays. Maybe sort of run us through kind of the airline-specific headwinds. And I think more importantly, how that plays out as we look at full year '26 before the upgauge story kicks in for the airline? Secondly, Jan, on your little video there earlier, you clearly noticed some cost efficiencies targets or cost efficiencies program. Maybe run us through in a bit more detail how you're seeing a potential cost program? Any quantification timing? Or am I just overstating it? And then thirdly, I think probably for you as well, Jan, any sort of -- is there any lease repurchase gains being incorporated into your full year '26 unit cost guidance?

Okay. Well, I'll take the first one and then Jan can take the second 2. When it comes to profitability and airline versus holidays, as you put it, I think the first thing to say is we very much think of ourselves as a group, and it's a group target that we're all focused on pursuing. So we have a group target to deliver GBP 1 billion in profit before tax. We've seen good progression for the last 2 years. I probably leave it on that slide, shouldn't I -- there we go. We've seen good progression for the last 2 years, and we're confident we can keep progressing.

Now it's fair to say that the PBT development, which was an improvement of GBP 55 million was GBP 60 million airline and GBP 5 million negative for the -- sorry, GBP 5 million negative for the airline and GBP 60 million for holidays. But when you look at it at an EBIT level, you can see a much more even spread. We increased our EBIT by GBP 106 million, GBP 56 million was holidays, GBP 50 million the airline. And what you've got to remember is, as a group, the airline bears the cost of the expansion. When we establish a new route, it's the airline that will get the productivity benefits. But equally, it's the airline will have to wait for the route maturity. EasyJet Holidays gets to sell straight into that additional capacity, especially if we've been putting it in regional U.K., which we have.

And when we look at the interest costs, which are then the financing costs, which is the delta between the PBT development and the EBIT development, there's 3 main reasons there. Firstly, the GBP 3 billion, GBP 3.5 billion of cash we're carrying, the interest rate environment is lowered. So we're getting less income on the monies we're carrying there. Secondly, we retired of GBP 0.5 billion bond during the year. That was taken out many years ago at very low interest rates and the cash we had on deposit was earning greater interest rates than the bond that we're servicing, but we retired that. So that had an impact.

And the third reason is we anniversaried the bond we took out in March '24 and therefore, had the impact of that. There also any FX exchange rate on the balance sheet, I think that was a hit this year of GBP 13 million, GBP 14 million year-on-year. That goes through that financing line as well. So the actual underlying performance moved forward for both airlines and holidays. Also, I'd point out that the opportunities in front of us Gary will talk you through the many opportunities he sees for holidays, but the upgauging is a great opportunity for the airline because that will allow us to deliver -- have a lower cost of production, which will sit in the airline that benefit as that comes through.

Equally, the opportunity to fly back into the Middle East, which we're hoping to start up again in kind of this summer from certain destinations. It won't be anything like the volume it once was until that builds progressively over time, but that is a good destination in the winter. Jordan is a good destination in the winter. And not only will that be a profitable destination for us, but it will also take some of the pressure off the canaries, which have been taking -- which has been the alternate for so many destination choices, which are currently removed with 2 wars in the network right now.

And hopefully, as French air traffic controllers get finally recruited, we'll see an improvement in that air traffic control space. We will maintain our investment in that space for as long as we need to. But then there should be some unwinding over time as we see a naturally improved performance. We haven't seen that yet, so we're going to keep the customer experience as high as we can until such a time comes. But that's really -- so I don't really see a big delta between the performance because underlying performance increased nicely for both. Jan?

All right. Well, on the cost performance, I think, first of all, I think we had a good cost performance in 2025, which CASK going down 3%, of course, benefited by positive fuel throughout the year, but ex fuel CASK was down 1%. That was made possible because of increased productivity, especially through more winter flying on longer sectors, but also a very good operational performance with lower disruption costs and overall increased frequency efficiencies. That, of course, was offsetting the inflation that we're experiencing like any airline is currently experiencing.

For next year, we expect CASK to moderately grow as we will benefit from lower fuel costs, which will then be offset by further productivity gains, but offset, of course, by the continued high inflation throughout the year. We will continue to invest also in additional resilience measures because we don't expect really a substantial impact of further improvement of ATC delays. And that does not take into account any potential benefit of any upgauging. Like Kenton said, we are only retiring 3 aircraft next year. So that means if you look at the GBP 3 per seat improvement that we're expecting over time, only GBP 0.25 has been realized so far, and we're still GBP 2.75 ahead beyond 2027.

So if you look at cost actions for the future and what we're expecting, well, I think, firstly, I do expect further cost improvements possible. One, the upgauging definitely is the most important one, not in 2026, but rather beyond 2027. Ownership costs will definitely go down. I'll come back to that. But linked to the aircraft buybacks that we have done in 2025, we've done that because the ownership costs will go down. And if new opportunities will arise, we'll obviously work on them.

Thirdly, we're further improving productivity, and there is work ongoing to see how we can further improve productivity by improving our network schedule, improving seasonality, looking at day of week improvements and just also improvement in our way of working and investing in new tools to make sure that we are more efficient. And we are also continuing to invest in all potential capabilities, whether it's operational, commercial or just enterprise IT investments, just making sure that we are more efficient in everything that we do. And to be honest, we are a low-cost company. And I think when we had a fire chat with Stelios, he said one of the things we should never lose is our low-cost DNA. And so continuing to tighten the screws everywhere is something that we're doing every day. So I think still opportunities to reduce cost and focusing on that every day. So that's on that.

Your second question is whether or not we expect further ownership costs linked to potential buybacks. So first of all, we do expect cost reductions linked to the buybacks. So next to the 9 aircraft that we took -- the new aircraft that we took into ownership this year through cash, we had the opportunity to buy back 8 newer -- well, 8 neos and newer ceos throughout the year. The reason why we've done that is that this provides a unique opportunity to get back those assets which were sold and leased back through the pandemic. It gives us better access and better control on strategic assets, first of all, which is important in a tight supply market.

But secondly, it also allows you to reduce the ownership costs going forward. Now the flip side of that is that it does have a one-off release of the maintenance provisions given that we are not now the aircraft are under ownership, and we're not provisioning for future maintenance costs given that we take those costs when they occur. But the key benefit of it is that we are keeping those assets under own control and it does release or improve our ownership going forward. So for next year, so the reduction of that ownership cost has been taken into account. However, what we do not take into account is potential future buybacks. If ever there would be future opportunities, we will obviously look at them, but only if they have a positive impact in future ownership cost.

Gerald Khoo from Panmure Liberum. Three, if I can. I think others in the market have commented about a bias towards late bookings. Are you seeing anything similar? And are you seeing any sort of impact on booking behavior from the U.K. budget? Secondly, on the holidays, I think you managed a 5% improvement in average selling price. I was just wondering whether you could break that down in terms of what's going on between accommodation mix, duration and price. I think in the past, you talked about the push into city being dilutive to average selling price. And obviously, you're up 5%. I was just wondering where that's going. And finally, on the topic of lease buybacks, I can understand the benefits to easyJet. Why are the leasing companies willing to park company with lot of good assets and with a good airline?

I'll take the first one and then start handing them out. We do see a strong late booking trend. We have -- I don't think it's to do with the budget. To be honest, it's been running for about a year now. As we enter the late, it's been a strong booking period. The only time we didn't really see it was during our second quarter of this year. But all other months, we've seen a stronger late booking trend. However, we also see a strong early booking trend. So it's becoming a little bit polarized. So people are going out, securing what they want early, but people are also comfortable taking their -- booking their trips later.

And you can see that in our Q1, where we're 81% sold, but 2 percentage points ahead year-on-year in Q2 earlier, but 26% sold and again, 1% ahead. easyJet Holidays, an impressive 20% growth last year, looking like a -- we're forecasting a 15% growth this year, but H1 is already 80% sold for the whole of the first half with good growth. So we still see the consumer there. We still see the consumer buying.

In terms of the pricing, we're seeing it kind of starting to sequentially improve. So our fourth quarter pricing was probably about minus 2%. We're looking at the first quarter of minus 1%, maybe slightly better. And then as we go into Q2, pricing is ahead year-on-year. So we're starting to see that steady sequential improvement. And then we delivered a very strong summer this year, another record summer ironically. And so we look to continue to build because summer keeps showing the characteristics of a market with less demand than supply -- sorry, less supply than demand, even though we saw a bit of a heat wave in the actual summer months, it still yielded a very positive summer. So it looks again like demand sits firmly above supply when it comes to the summer for airlines.

So let's go to Gary for holiday pricing and any mix that he sees.

Yes, on the holidays pricing, the 5%, how we break it down, we saw a lot more activity in the late market and particularly from the traditional operators who clearly had committed to too much capacity. So there was a real aggression in the late market where they were pulling prices down. Now one of the benefits that gave us being fully variable is that the hoteliers who didn't have those committed beds were really active in reducing their prices because they were seeing that was hitting their occupancy.

So we actually did quite well in terms of moving our margin from 12% to 13% while still having a 5% increase. And that would probably drive the number of 20% volume increase, which we talked about 25% some months before that, but we took the conscious decision that where we could get enhanced margins, we were better doing that than try and participate in some of the kind of crazy activity that some of our competitors were doing in the market. So we're really happy with how that played out.

And why are people leasing back?

Well, first of all, so far, as I know, I'm not working for leasing companies, so I can't really tell you what they are thinking about, but I'll try to put myself in their shoes. Well, first of all, important to note is that the partners we're working with, these are long-term partners so that we are really working with them on the long term and not on the short term. Two, I think over the past years that they had a good run on the leasings that we have with them would be the second reason.

The third one is given that now the leases are getting closer to the end, I think probably for leasing companies, easier or better to have certainty about what's going to happen with the assets rather than having the uncertainty for the coming years. And finally, I suppose it also generates or liberates a part of the cash that they probably can reuse to invest in something else would be my GBP 0.50 not working for a leasing company.

But yes, I mean, Gerald, in the pandemic, it was 2020 that these were taken out. The majority were 10-year leases. So it has been a good run, 6 years under the belt, but they're starting to think, well, they probably won't maintain them at that lease rate. I don't know if you remember when I first started, I talked about the amount those costs have gone up by. It was quite breathtaking. So it's been a good run, and we're getting them back and seeing a forward benefit in the P&L.

It's Harry Gowers from JPMorgan. A couple of questions. Ken, you talked about some of the route maturity benefits from the capacity growth maybe taking a little bit longer than anticipated. Is that referring to Linate and Rome as well? And has the investment there been a little bit steeper maybe than you had previously expected? Second question, what sort of number or range should we be thinking about at the moment for the winter PBT losses? And then the last one, just thoughts on the Jet2 entry into Gatwick. Do you think this will need any kind of competitive response at all from easyJet on the airlines or the holidays side?

I'll take 2 and 3 and let Sophie take one, but I'll take them in that order. So Sophie can have a think about the route maturity. But yes, it would involve Linate and Fiumicino. Jet2 entering London Gatwick, I mean, we are very happy competing with Jet2 and do so right throughout the regional U.K. So in every airport in regional U.K. outside of Gatwick, we compete with Jet2. And that competition has seen us go from nothing to GBP 0.25 billion of profit for holidays, growing steadily and taking now 10% of the market share. So very happy to have them as a competitor.

When it comes to London Gatwick, they will represent 2.8% share of that airport. We represent 44% share of that airport. So our frequency, our destination choice, the duration to which you'll be able to holiday over will obviously be far greater with easyJet, we also have a scale and a cost benefit in terms of operating out of London Gatwick. So again, hopefully, it will promote holidays even more in the area. But you got to remember, too, we have been there quite some time and with that kind of presence and some. And therefore, I think that will probably be a more natural battle than with easyJet, who have 44% market share. So comfortable with that.

When it comes to the upcoming winter, I think what I'd say there is for the second quarter, we expect the RASK to improve, like I said, from minus 2% to just under or about minus 1% in the -- sorry, that's in the first quarter. In the second quarter, I would expect a sequential improvement on that. I'd expect actually RASK to improve year-on-year because we're seeing more strength, but it's very early. So 26% booked. We're not really guiding to that. But what we have said is we expect the investment in Linate and Fiumicino to be about GBP 30 million in the winter. It was about GBP 20 million in our first summer and thereafter, sequential improvement and within a number of years, expect that to be a highly profitable base because that has all the characteristics, but we're having to fly the remedy routes from the ITA Lufthansa acquisition. So think about 30 in terms of that Linate for material investment for winter.

But in general, how are you seeing the route maturity across the network?

Yes. I would say that overall route maturity is probably in line with expectations, to be honest. I think we've just got to recognize we put a lot of new capacity in for this winter that's coming into its first winter. So Rome Linate, we put on sale quite late for the summer. So it had a very short selling window because the easy decision came through very late, and we had to action it straight away. As Kenton said, a lot of that capacity is on remedy slots. So we have to operate those slots, those routes specific for 3 years. And so that's coming into its first winter.

We've also got brand-new capacity in Southend, so that comes into its first winter as well. So where you're putting new capacity into completely new routes or new routes for easyJet, that generally takes longer than when you're adding frequencies to existing routes. So the majority of our winter growth on the fleet that we added this summer is on routes that is adding frequency into routes. But we do have to recognize we've got 8 aircraft on the Linate Rome remedy slots and 3 aircraft in Southend, and they're coming into their first winter, so that will take time to mature overall.

And then just to pick up on the Jet2 point, Kenton talked about the market share. In terms of route network and reaction from us, I mean, their most frequent routes will be Palma, which will be daily from Gatwick. We do 6 a day from Gatwick. They do -- it will be 2 a week, we do 3 a day. So in terms of us taking any kind of action against that in terms of our own network, I don't think we need to because we already have such a huge amount of frequency on those routes versus Jet2. So I don't think we need to be too concerned about that. And as Kenton said, it's a very small amount of capacity versus the frequencies that we have in there.

Yes. And for this winter, we still won't be flying into Jordan and Tel Aviv. But we fully expect the winter after to have the network shape back in place.

It's Andrew from Barclays. Can I ask a little bit more coming back to Rome and Milan? Can you give us some color, you're talking about GBP 50 million losses here. I mean, how much of the losses are from the remedy routes? And how strong are the non-remedy routes? Or how are the non-remedy routes trending relative to your other basis or something, just so we can have the confidence that once you rid of these blessed remedy routes, how lovely can it be?

Second question might come to the unit costs. I'm sure you've done the math. I'm sure I could do the math if I had a brain. But how much of your small increase in total unit costs, how does that unpack to nonfuel unit costs and the nonfuel unit costs, excluding the share aircraft buyback gains. And then, yes, so what's the real underlying ex-fuel unit cost for next year? And then just a final question, how are those engines on the neos behaving? Are they still troublesome? Or have you got the new clever bits retrofitted so they're behaving better for you already? Have they got some fancy retrofit, haven't they?

Thank you, Andrew. We'll take them in the order. I don't know whether David wants to take the engine question. But we'll start with Sophie on Linate and Fiumicino.

Yes. So in terms of the capacity, I would say the non-remedy routes are definitely performing better. A lot of the non-remedy routes, some of them we were already operating actually previously inbound. So some of the routes like we're operating Gatwick and Manchester Linate. So that's just building the capacity from an outbound market perspective. So those obviously are maturing anyway and those are performing well. When we were comparing routes that we operate out of Malpensa versus ones that we're operating out of Linate on a like-for-like route basis pre the acquisition of the additional slots. Linate did get a premium over and above what we were able to get from Malpensa, which was the reason why we saw this as a great opportunity to get into a very completely slot-constrained airport in Linate.

So I would say it is the remedy routes that are the investment, and that's we're investing in, but we know that there's a price at the end of the tunnel because what we can see on the routes that aren't remedy routes and what we were historically operating in Linate were very strong performing routes. So we see that as the opportunity. And in Europe, it's worth mentioning, you can't buy from other airlines, whereas in the U.K., you can buy slots. So someone like Heathrow, I think historically, a slot pair at Heathrow would go for something like GBP 25 million or higher, Andrew's home now. But that's the sort of investment you'd have to make in the U.K. In Europe, you have to make the investment through remedy slots.

So we see this as an equivalent remedy slot investment to be able to get capacity into a completely slot-constrained airport like Linate, where you can't purchase the slots, which we obviously record on a different line if we were purchasing them. So the investment is through the route growth and the remedy routes, which will, longer term, after 3 years, we can operate whatever we like on those routes. That's the opportunity that we're investing in now.

Thank you, Sophie. On the cost front, I'll hand over to Jan. But I mean, what we're signaling at the top level of a modest increase in unit cost is what I'm seeing every airline signal. But I'll pass over to Jan. And remember, we don't get much in terms of upgauging next year. We only get 3 retirements of those 2 A319s.

Yes. So on the CASK level, so we're expecting for next year a moderate CASK increase where we will be benefiting from a lower fuel cost, especially in H1, less pronounced in H2, which means that the ex-fuel CASK will go up. And coming to your question, how much will ownership costs reduce or how much is the one-off cost in 2025 impacting 2026? So first of all, the GBP 54 million release of maintenance provision in the total cost of GBP 9 billion, I would say, is marginal, first of all.

Secondly, that GBP 54 million has been partially offset by other one-off costs like, for example, the ETS cost that we have had or lower supplier contribution throughout the year. So that's for 2025. So they partially match themselves out. For 2026, now the reason why we're doing those aircraft buybacks is that these will reduce going forward, the ownership cost. So that will be partially offsetting the positive result in 2025 going forward. But so in the bigger scheme of things on a CASK basis, it's really marginal.

On the LEAP engine troubles, I don't think we've been impacted any more than the kind of industry on the LEAP situation. And in many ways, we probably benefited in a couple of areas. We have a very good predictive maintenance system through Skywise. So this is an AI-driven predictive maintenance system that sort of monitor stuff all the time, changes components before they actually fail. And then on the modification, I think you're probably referring to the reverse bleed system modification. We've got the advantage of having our own MRO facility in Malta, which is about sort of 25% of our heavy maintenance, and they have the capability of doing that modification. They've done that modification on our engines. So I think we're probably slightly better placed than most on that.

But I think as part of our resilience measures, one of the things we're doing is we're buying more spare engines. So we have increased our spare engines, both for CFM56 engines as also for the LEAP engines.

It's Conroy Gaynor from Bloomberg Intelligence. So just on your winter loss reduction, I mean, I appreciate you've said it's perhaps a bit more difficult than anticipated. Should we think of this as just a delay that will unwind when larger planes get delivered or the routes that you've strategically invested in mature? Or are there other more structural things in there that could make this more difficult in absolute terms? And then second, just to perhaps get in a quick appetizer for Friday. How important is the non-U.K. source markets in your new medium-term plans for the holiday business?

Okay. I'll do winter and then let Gary decide how much of a reveal he wants to give in advance of his big Jazz hands presentation on Friday. For winter, it really is a story of 2 quarters for us. So we've said we believe that Q1 can be a profitable quarter. I believe it can be. It won't be next year, but I believe it can be. October is proving to be an increasingly attractive late summer month. Now this October is going to see the kind of -- obviously, we're going to have the slight roll on from the summer, but we still expect a decent October performance. November will always be a bit sticky. And then the festive periods of Christmas and the interesting routes that you can fly to festive markets give Christmas are real peak quality.

So as a team, I think getting that quarter to breakeven is something we will continue to work with. And when Tel Aviv and other more interesting winter destinations come online, then that will help. You've got to remember, we started flying to Cape Verde recently. That takes some time to mature, but it's doing very well, particularly out of Portugal and parts of the U.K. Egypt continues to do well and build. Morocco, we're opening a new base next year in Marrakech, that will help obviously with year-round performance. The second quarter is just a traditionally loss-making one for airlines. We invested quite heavily in the one just gone for resilience measures, but we really saw that pay back in the summer because while we saw some AT&C improvements in some of the regions through Europe, the French didn't get any better. So they met our expectations on that front. But they will, over time, they are recruiting. They are aware of their very poor performance compared with every European neighbor. And we are exposed to a lot of French airspace either overflying it or flying into it.

And we will roll that back over time, but cautiously when we see that opportunity exists. It is when we do all the maintenance. The larger the fleet becomes to peak summer profit, the more maintenance you'll be doing in that schedule, and we have 25% of our heavy maintenance capabilities inside. If we see an opportunity, we will take it to increase that in-house heavy maintenance. But I see the seasonal loss in Q2 remaining stubborn and I see the opportunity to improve Q1. And that's how we think to winter really. But upgauging will naturally help because it will give a cost advantage through year for this business.

And then Gary, sorry.

I'll just try and dampen down your euphoric enthusiasm for Friday. We'll try and make as exciting as possible. But Wilson Towers and Capability Green is nothing to the financial institutions that we visit when we come and see you. We feel a bit like Tiny Tim from a Christmas Carol when we go into your places. So maybe bring some sandwiches and a flask when you come on Friday.

On Europe, when we look at the GBP 450 million, we've built in about 10% will come from Europe. And that's a dead cert given our current network and current plans. But I think the Europe opportunity could potentially be huge if we think about it a bit differently. When you look at Germany, it's a bigger market than the U.K. for package holidays. So there is an opportunity in Germany that we're really thinking about how we could execute on that. Switzerland is a small market, but we're very well served there. So it's how we can maximize in Switzerland with the current network. And in France, that really is a North Africa story really in France, how we can get the right product for the right customer and distribute that in the right way.

So I would say think about it as 10%. But through that kind of 3- to 5-year period, as and when we see any opportunities that could be maybe structurally different in how we would go about executing in Europe, then we'll look to take those. One example I'll give you on Friday will be working with travel agents. The vast majority of sales in Germany for holidays is through travel agents. We don't currently do that. So by working with travel agents, we should see a big kick up just by doing that. So it's things like that, that we'll be looking at.

And we still see a great potential in cities. So we'll see how that progresses. It's growing nicely.

Ruairi Cullinane, RBC. Firstly, can the holiday's PBT margin improvement be sustained into full year '26? And secondly, how are you seeing the competitor capacity backdrop on easyJet routes this winter?

Okay. Well, Gary, are you comfortable doing the first one, and then Sophie can talk about what we're seeing in the wider -- in our network in terms of probably '25 as well, how you saw capacity build and what the relativity was and then '26 afterwards?

Yes. So we grew the PBT margin from 12% to 13% for this year. And I don't anticipate we would maintain at that level simply because when you look at European expansion, it's at a lower margin than the U.K. beach margin. When you look at city breaks are at a lower margin. So when we're looking at that growth, whilst the PBT growth, we're confident of in terms of how that margin will look, there will probably be a conscious dilution of that margin in order to get there. But that doesn't mean that we won't be looking at any big opportunities within that beach area to really enhance the margin. So I'll talk a bit on Friday about luxury. That's got a really high margin is doing well for us. So if there's other products that we could look to launch in the meantime that would maintain that margin at those levels, then that's what we'll do.

Yes. So on a capacity basis, this summer then, let's take our Q4 as an example, we saw at a total market level around 3% growth and on our head-to-heads around 2% growth overall. What was interesting though, if we look at the airlines, some of the airlines that are growing the most, we had Ryanair who grew 2% in Q4, but only negative 1% on our head-to-head. So they took capacity out on our routes. Wizz grew 12% overall, but we were negative 8% on our routes, again, reducing their head-to-head capacity with us.

Where we did see growth on our network was Jet2. They launched Luton this year as a new base for them. And a similar picture to the numbers at Gatwick, but not quite the same delta, but they have 5 aircraft based in Luton versus our 25 aircraft. And again, we have a lot more frequencies. We saw Jet2's results and what happened on yield on flight only. So London is definitely more of a flight only market. So it will be interesting to see kind of the growth and something we're looking at from a holiday perspective as well how we help to grow the package holiday market in London overall. So that's what we saw in terms of competitor capacity really across the network.

As we look forward into winter, we're seeing a continuation of that picture really. If I look at Wizz's capacity and Ryanair's capacity on head-to-head routes with Ryanair this winter, for example, are adding 1 million seats actually that are head-to-head with us, but their overall growth is another 3 million on routes that are not easyJet operated routes. And Wizz are actually reducing taking another 700,000 seats out of head-to-head routes with us, and they're growing about 4.6 million on routes that aren't easyJet routes. So that gives you a bit of a flavor in terms of what we're seeing.

And we're not seeing a big amount of growth from any of the legacy carriers. They're kind of flat, up 1%. We're seeing a bit of movement from Air France into Transavia because they're moving some of their capacity into the kind of lower-cost operating model. And similarly, we're seeing Eurowings growth as a transfer, I think majority is transfer across from Lufthansa. So a bit of transfer, but at a market level, you're not seeing a big dip growth overall in capacity.

Dudley Shanley from Goodbody. Two questions, if I may. First of all, the current booking patterns of early and strong late trends. What do you think that tells you about the consumer? And then second of all, thinking very long term, I think you have a power by their contract with GE and GE have been telling people they won't be signing those contracts at least at those rates again. Do you need to start thinking about engine shops into the future? I think as the LEAP engines start to come due for heavy maintenance?

Thank you. Well, on the booking patterns being strong early and strong late, what does that tell us? Well, we're still seeing growth. So we flew 3.7 million passengers customers more as an airline in full year '25. We've got 1.4 million already booked more for Q1. easyJet holidays grew 20% last year, expects 15%, but that's a kind of similar growth number in absolute terms year-on-year as the base is getting bigger. So we still see people continuing to come towards easyJet for their holidays.

Our repeat booking statistics are improving. So 71% now rebook within a 2-year period. Customer satisfaction is going up, which is really important for the long-term strength of the brand. So hard to know what to really read into the polarization of early and late other than we're ahead of where we were this time last year on all the seasons, on all the quarters that we have on sale. Engine shop, setting up our own engine shop. Well, we progressively in-sourced maintenance. We first did all our line maintenance then did the heavy base -- did the regular base maintenance and established the base maintenance facility in Berlin, for instance, to take on a lot of the European base maintenance.

And we set up our first heavy maintenance facility in Malta that we got from SR Technics. And that does up to about 25% of our requirements. We would, as I said, look for more opportunities there. I think 50% is about right. So we can buy from the market 50% of the time, produce ourselves, do our own maintenance 50% of the time. You can then have much better conversations with the market about rates you would like. Otherwise you do it yourself. Engines, we have an attractive power by the hour. We're one of the last airlines to sign that because we did a well-timed order book, if you remember, 15 aircraft on order. So we placed an order for a lot of engines and a lot of spares in December '23 and secured a power by the hour agreement at that point.

So we have more buffer into the future than I would argue almost every airline. It's not an unsensible thing to do. It is quite a leap that you're going to find the engineers and find the skills to do it, and you're still going to have to be buying the life limited parts and the parts of the OEMs anyway, but just competing with them in the engine shop maintenance. So it's not our priority. Our priority is to control heavy base maintenance first to the level that we want to control it, continue to work on the efficiencies.

We only just bought and operated 1 year of the maintenance facility in Malta. So we want to get that really sharp in terms of its performance. And then it's something we can think about. But you're right, we have the power by the hour agreement, which does protect us for a little longer than most airlines.

Well, thank you very much for coming here today. If you want to stay and have a coffee outside, I'm sure we'll be able to be hanging around if you had any other questions you wanted. But thanks very much. Appreciate it. Bye now.

Hello, and welcome to easyJet's full year results presentation for the period ending 30th September 2025. Full year '25 has been another year of positive progress for easyJet, both financially and operationally. We achieved a profit before tax of GBP 665 million, which is a 9% increase year-on-year, building further on the last 2 years of improved profits. At an EBIT level, it was an 18% improvement. As a result of proactive investments into resilience across the business, we're able to achieve strong operational performance and improved punctuality despite a continued challenging external operational environment, particularly across French airspace.

This improvement has, in turn, helped strengthen our brand through enhanced customer satisfaction, currently at the highest level in over a decade, with 71% of our customers now returning to travel with easyJet within 2 years. This investment in resilience has also driven disruption costs to be materially reduced year-on-year. Our owned asset book value has grown by over GBP 0.5 billion in the year and is set to further increase as we continue to build and modernize our fleet.

EasyJet holidays has delivered earlier on its ambitious target set just 2 years ago and now enters its next phase of growth with a new target of GBP 450 million profit before tax by full year '30 launched today. Our focus on capital allocation has meant that we've achieved a ROCE of 18%, a 2 percentage points improvement year-on-year, in line with our medium-term target of high-teen returns on capital. Critically, many of the key levers for achieving even stronger returns are ahead of us, and I remain confident in our ability to deliver over GBP 1 billion in profit before tax in the medium term.

I'd like to take this opportunity to step back and look at the significant progress we've made over the last 2 years since setting our medium-term targets. We've expanded our network and now provide more route choices for our customers, flying them to more places and further than ever before. Increasingly, our customers are choosing easyJet as their package holiday provider alongside attracting new customers from competitors, demonstrated through doubling our U.K. market share from 5% to 10% over the last 2 years. We've also increased customer satisfaction to record levels and are building brand loyalty over the long term through our continued focus and targeted actions to provide an easy and efficient customer experience.

Financially, over the last 2 years, we've made strong steps forward in terms of our profitability with EBIT improving 48%, driving return on capital employed to be in line with our medium-term targets whilst also strengthening our owned asset value to GBP 4.8 billion. So I'm pleased with the improved performance we've achieved over the last 2 years, but also remain extremely focused on capitalizing on the unique opportunities we have ahead of us. Now I will hand over to Jan to take you through the full year '25 financial performance in detail.

Thanks, Kenton. I'm very happy to present to you all for the first time in my 10 months at easyJet, the full year results of the company. Let me start with a summary of the full year '25 financial results. As mentioned by Kenton, 2025 was marked by the third consecutive profit growth of the company post pandemic and marks another step towards our medium-term target of reaching a profit before tax of more than GBP 1 billion.

Group headline EBIT reached GBP 703 million, 18% up versus prior year, with the airline going forward by GBP 50 million and holidays going forward by GBP 56 million. Group headline PBT amounted to GBP 665 million, an increase of GBP 55 million versus prior year, which is an increase of 9% versus prior year. The increase in PBT was less pronounced at the EBIT increase as the airline saw lower interest income on its cash balance with interest rates falling and higher net finance charges due to the annualization of the GBP 850 million bond issued in March 2024 and a settlement of a GBP 500 million bond, which had a lower interest rate payable than the cash deposits used to repay it. This was alongside increased lease interest and an adverse balance sheet revaluation movement year-on-year.

Group PBT per seat increased by 5% to GBP 6.39, getting closer to the GBP 7 to GBP 10 per seat range targets we set 2 years ago. As a result, our return on capital employed improved 2 percent points to 18%, in line with our medium-term target of high-teen ROCE. Next to that, 2025 saw a further strengthening of easyJet balance sheet with net cash position increasing by GBP 420 million versus prior year to GBP 602 million and owned assets on the balance sheet increasing by GBP 506 million to GBP 4.8 billion.

In 2025, we continued with our disciplined capacity growth, increasing our fleet by 9 aircraft to 356, which is up 3% versus prior year. As we focused on schedule optimizations and flying longer sectors, especially in winter, we were able to increase aircraft utilization by 3% year-on-year to an average of 10 hours per day. Gauge increased only slightly as there were no A319 retirements this year, with biggest part of the up-gauging still being ahead of us.

Resulting seat capacity grew by 4%, which combined with our focus on longer sectors, saw ASKs increased by 9% year-on-year. Our network remains balanced with 55% of our ASKs being attributed to leisure destinations, up 2 percent points versus past year, the remaining 45% to city and domestic destinations. Capacity growth this year was mainly focused on longer leisure destinations, mostly during the winter season with beach destinations growing 12% and non-European destinations even 36%, supporting the continued growth of easyJet holidays. City destinations with a 37% share remains an important part of our network, growing 5% year-on-year, gradually progressing back towards pre-COVID levels. Domestic routes saw an 8% reduction in capacity following 2 years of investments, resulting in positive unit revenue trends this year.

Moving on to airline revenue. Demand for our primary airport network remained positive. We carried 4% more passengers year-on-year with a load factor of 89.8%, improving by 0.5 percentage points. Total airline revenue increased by 6%, ahead of seat capacity growth. Total RASK was 3% lower for the financial year, with H1 down 6% and H2 down 1%. The reduction in RASK includes a circa 3 percentage point impact from the sector length increase as we naturally see some dilution on an ASK basis from flying further with corresponding efficiencies seen within CASK.

RASK decrease of 3% in the year was also impacted by the winter capacity investments recovering from the capacity gap versus 2019 created since the COVID pandemic. Given the size of the capacity growth, this required some price stimulation impacting RASK. We expect to see revenue benefits over the coming years as these investments embed themselves into our route network and mature as we have seen this year following the rationalization of domestic capacity.

Now let's move on to the CASK bridge. We saw strong cost performance over the financial year with total CASK reducing 3% year-on-year. Fuel CASK improved by 7%, thanks to fuel efficiencies as well as favorable effective U.S. dollar and jet fuel prices. These positive factors more than mitigate the impact of the free ETS allowances that are being phased out and the introduction of SAF mandates.

Our CASK ex Fuel has improved by 1%, which is positive achievement given the current inflationary cost environment. Solid CASK results were achieved as asset productivity increased, thanks to flying longer sectors, the positive effect of the proactive resilience measures put in place, delivering a significant step forward in reducing disruption costs as well as through our continued focus on cost efficiencies, leveraging technology and automation across the business.

Alongside taking 9 new NEO aircraft into ownership, we also had the opportunity during the year to repurchase eight young leased aircraft, taking them back into ownership, giving us more control on these strategic assets. This will deliver structural cost efficiencies going forward through reduced ownership costs. This resulted in a non-cash accounting release of GBP 54 million, mainly within ownership costs. This one-off benefit is partially offset by other one-off items and FX balance sheet revaluations. Further details are included in the appendix alongside a slide, which provides further detail by line item. Having been here now for 10 months, I can only say I'm convinced there are further cost efficiencies to be achieved at easyJet as we are catching up from the lower investments over the last decade in both the fleet and in our digital capabilities, leveraging our low-cost DNA, which has been a core element in the existence of easyJet since 30 years.

Moving on to easyJet holidays. I must say it has been impressive to see the progress made by easyJet holidays over the last years. After the successful growth of these last years, easyJet holidays grew its profit even further by an additional 32%, reaching a PBT of GBP 250 million, delivering already now its medium-term target launched only 2 years ago. This was driven by a 20% customer growth and continued healthy margins, delivering a PBT margin of 13%, up 1 percent point versus prior year. Attachment rate increased to 7% across all beach and city flights, leading to a market share of 10% in the U.K. We still see an important opportunity to grow PBT going forward, considering the still overall low attachment rate, the relative small size of the city offering into the holidays overall results as well as a still limited revenues generated outside of the U.K. With the early delivery of our medium-term target, the easyJet holiday target has been upgraded to GBP 450 million PBT achievable by full year 2030.

Cash generation throughout the year remained strong with cash balance at the year-end amounting to GBP 3.5 billion, an increase of GBP 67 million, whilst making important aircraft purchases and debt reimbursements throughout the year. The positive cash movement in the year was mainly driven by the GBP 1.4 billion EBITDA as well as positive unearned revenue movements. This inflow exceeded the GBP 1.3 billion gross CapEx, which includes lease payments, predelivery payments, the final delivery payments for 9 new A320 family aircraft and the repurchase of eight leased aircraft during the year. At the same time, the company fulfilled the repayment of a EUR 500 million bond and paid out a full year '24 dividend of GBP 91 million.

Now moving to the balance sheet. In 2025, easyJet's investment-grade balance sheet further strengthened. Net book value of owned assets increased to GBP 4.8 billion, driven by 17 aircraft coming into ownership with 85% of the NEO aircraft now owned. The net book value of owned assets is set to increase to greater than GBP 7.5 billion by full year 2028. Our net cash position, including leases, was GBP 602 million, an increase of GBP 421 million versus prior year. Our current liquidity balance stands at GBP 4.8 billion, representing GBP 2.3 billion in excess of our policy to hold liquidity to the value of unearned revenue plus GBP 500 million. This excess derisks future capital expenditure, prefunding over 30% for the next 3 years or over 50% of the next 2 years.

EasyJet has one of the best investment-grade credit ratings in the global aviation industry. Standard & Poor's upgraded our rating to BBB+ with a stable outlook, and Moody's continues to rate as a Baa2 with a stable outlook. Our fleet contains 356 Airbus A320 family aircraft, all powered by CFM engines. We have an order book to 2034, comprising an additional 219 A320neo family aircraft plus a further 100 purchase rights. Our future aircraft deliveries will drive our up-gauging journey and enhance cost efficiencies as we move from our current average gauge of 181 to 191 for 2028.

The future delivery schedule and our base fleet plan remains aligned with our guidance of last year and at half year. All 17 aircraft scheduled for delivery in full year 2026 are expected to be delivered according to that plan and taken directly into ownership. This will take our NEO ownership percentage to 87%. Confidence in the Airbus update delivery profile is growing, helping to integrate time lines for up-gauging efficiencies into our plans. The rise in our gross capital expenditure over the coming years is driven by increasing aircraft deliveries as we retire the less efficient A319 aircraft to structurally improve long-term returns.

It's important to note that the gross CapEx doesn't account for any potential financing options available to us. While currently 85% of our neos are owned, above our target of remaining NEO ownership at over 75%, we have sufficient financing flexibility in the future via sale leasebacks, JOLCO s as well as the debt markets. We anticipate an elevated aircraft deliveries over the coming years, driven by our fleet modernization program. This will expand our fleet to 395 aircraft by full year 2028.

At a steady state level, maintaining the fleet would require delivery of approximately 17 aircraft per year. This steady-state renewal rate implies a gross annual CapEx of approximately GBP 1.5 billion, which is below the GBP 1.7 billion operational cash generated in the year, excluding CapEx. We also retain flexibility in financing to lower net CapEx, if needed, for example, through the use of the debt market, JOLCO financing structures and the use of sale leasebacks. We remain focused on driving stronger earnings and cash generation in coming years, which will support future attractive through cycle-free cash flow generation.

Capital discipline remains central to our strategy, and we are focused on maximizing the return on our capital reflected through the 18% ROCE we delivered this year. Our capital allocation focus firstly goes to the investments in our fleet, focusing on a disciplined capacity growth of up to 5% in the coming years, whilst at the same time, modernizing the fleet, which will deliver the up-gauging fuel efficiency and sustainability benefits as well as lower ownership cost. We remain, however, cautious keeping sufficient flexibility in our fleet sizing in case of a potential downside.

Secondly, towards remaining disciplined when it comes to allocating capacity to those bases where highest profits are or can be made. We continue to be, however, strict when it comes to closing bases that are not delivering the required profitability or don't have enough perspective to increase their profitability. The chart on the right gives an anonymized view of the profitability of our bases in 2024 and reflects our capacity allocation decisions. The bars in red represent our Venice & Toulouse bases, which were closed given they were loss-making and had no perspective of delivering profit. The bars in green show where we have allocated both the capacity of the closed bases and the additional aircraft that entered the fleet.

Aircraft were allocated to those bases already delivering highest return or to those with strong prospects of delivering profitable growth. These capacity allocation decisions taken for 2025 were done alongside the decision to open our 3 new bases, Southend, Linate and Fiumicino. A similar process was followed in 2025 for the allocation of new capacity in 2026. We're continually reviewing the financial and operational performance of our bases, and we implement improvement plans for those not delivering the required return on capital. At the same time, we look to drive further enhancements to those that are already delivering strong returns, making them even stronger.

Our third focus goes to investment into capabilities we believe are strategic for the future. For instance, last year, we purchased our first maintenance facility in Malta, in-sourcing approximately 25% of our heavy base maintenance needs. In the coming months and years, we will continue to look out for further opportunities to in-source the maintenance capabilities or any other capability we deem to be of a strategic nature or that could support the further improvement of easyJet's results.

Finally, we continue to invest in our digital capabilities, further developing the Holidays platform as well as investing in the future digitalization of key commercial, operational and enterprise processes.

Turning to outlook. EasyJet continues to be well positioned to capture growth opportunities over the coming years as we progress towards our medium-term targets. EasyJet holidays still have significant growth ahead. Visibility and confidence over our aircraft delivery profile is improving, helping to firm up time lines for the up-gauging benefits that are ahead of us. Although winter losses reductions has been somewhat more challenging to improve than initially anticipated, our actions have been the right ones as they drive productivity and utilization benefits while ensuring that the airline is well prepared for the key summer season.

We need, however, to be mindful that this is the first winter season operating the remedy routes out of Milan Linate and Rome Fiumicino, which will require a circa GBP 30 million investment on top of the GBP 20 million investment already incurred this summer. We are confident that revenue will mature over the coming years as these investments embed themselves into our route network.

Looking to the detailed guidance for full year 2026. Seat capacity is expected to grow by circa 3% and ASKs by around 7%, with more growth in H1 and H2 as our investment in Fiumicino and Linate will year out in winter, alongside continuing to look to improve asset utilization over winter with some further winter maturity needed on new routes. EasyJet holidays has entered its next phase, and we expect to see customer growth of up to 15% in full year '26 with city customers having a lower absolute margin.

Our forward booking position is slightly up versus last year, and we expect Q1 RASK to continue the trend seen over H2 2025. Full year CASK is expected to be modestly up year-on-year as market-wide inflationary pressures continue, partially offset by continued efficiency and fuel benefits.

Now I will hand back to Kenton.

Thanks, Jan. We remain committed to our strategy, which you'll be very familiar with. Our purpose of making low-cost travel easy is underpinned by 4 strategic pillars: building Europe's best network, strengthening revenue, delivering ease and reliability and driving our low-cost model. Ultimately, progress on these strategic priorities will drive the delivery of our medium-term targets. None of this is possible without our people. Their warmth and professionalism truly sets us apart.

We employ nearly 20,000 people and over 80% of them interact with our customers every day, delivering a great travel experience. We have high engagement levels and our attrition rate continues to decrease, reflecting the commitment and caliber of our people who are essential to providing excellent customer service. EasyJet and easyJet holidays have been named as the top workplace by Glassdoor and The Sunday Times for the second and third year running, respectively. Both are great accolades to our people who are collectively creating Europe's most loved place to work.

We've invested in both our people and technology to ensure that we're providing the warmest welcome in travel. These investments have delivered a 4 percentage point improvement in our overall airline customer satisfaction score, reaching 80%, which is the highest level we've achieved in over a decade. Over 5,000 of our ground staff have completed a new enhanced training program focused around delivering great customer service. And we've rolled out real-time operational information tools powered by AI to ensure they can easily access the right information to enable fast and accurate real-time responses to customers to solve queries in the moment.

This focus on customer service on the ground has resulted in a 5 percentage point year-on-year improvement in boarding and backdrop CSAT scores. When disruption does occur, we're continuing to enhance how we support our customers through these situations. We communicate through our informed frontline staff and the airport customer experience specialists.

Due to our new ground crew app, they are now more able to provide on the spot assistance and a more personalized service for our customers throughout the airport. This supports our leading self-service disruption management tool embedded within the app. 78% of our customers now self-serve in times of disruption, and we'll continue to enhance the ease of self-service management over the coming months and years.

We are the #1 low-cost carrier for experience across our key markets, and we continue to drive loyalty and brand awareness with 71% of our bookings this year made by returning customers. We've continued to make progress on our targets this year. We're moving towards our goal of a PBT per seat of GBP 7 to GBP 10, having reached GBP 6.39, an increase of 30% from the GBP 4.91, since we first set these targets in full year '23. It's also pleasing to have delivered an 18% ROCE, up from 13% in full year '23, in line with our medium-term target. There are still many key opportunities ahead of us, which will drive our financial performance and are unique to easyJet. We are focused on driving productivity and utilization during the winter period, having made important strategic investments, which we are confident we will see route maturity over the coming years as they embed.

Our airline profit performance, particularly over winter, has been harder to improve at the rate we wanted. We're working hard to reposition our route network and deliver a multitude of detailed improvements to revenues, costs and capabilities to support our future growth ambitions. We're also mindful that this coming winter is the first operating out of Linate and Fiumicino, a great long-term opportunity. However, there will be a further investment of around GBP 30 million this winter.

Nearly all of the GBP 3 per seat cost savings that will be realized from up-gauging are ahead of us as aircraft deliveries ramp up over the next 3 years. The average gauge will increase from 181 as at the end of this financial year into the low 190s by full year '28. And there are significant growth opportunities to come within easyJet holidays as our new target illustrates. Garry and the holidays team will provide full details of this next phase of growth in the seminar on the 28th of November. As well as these key levers that are unique to easyJet, we also have many other initiatives across the business that we're continuing to focus on to drive customer loyalty, optimize revenue and to continue to deliver cost efficiencies.

With constrained slot-haul capacity growth continuing to be seen across Europe as both OEMs remain sold out until the early 2030s, we remain focused on adding targeted growth where we see the best returns and demand is strongest. We opened bases in Milan Linate and Rome Fiumicino, which have excellent profit and growth potential and demonstrates our focus on taking advantage of strategic opportunities as they arrive. This summer was impacted by a GBP 20 million investment as we were late to market due to the delayed timing of the European Commission approval alongside the time needed to mature both remedy and new routes.

We will see this investment continuing into the first winter of operation with sequential improvements expected thereafter. Our base in Southend performed really well in its first summer of operation, already in line with the network average returns. This is underpinned by particularly high demand for easyJet holidays, which accounted for 19% of the passengers. In addition to closing underperforming bases in Venice & Toulouse, we've also been optimizing the network by adapting our routes with 13% amended for the summer '25 season.

Looking ahead to next year, 2 new bases will open for summer '26, Newcastle and Marrakesh. Newcastle is expected to be another strong performer with over 100,000 customers already booked for full year '26. Marrakesh will be our first base in North Africa, opening in summer '26. It is currently our largest network point without based aircraft. So the new base will enable us to better serve existing markets and customers. We will continue our focus on network optimization and expect about 10% of this summer's routes to be further optimized moving into summer '26.

Starting with easyJet holidays. Our unique business model of providing brilliant holidays digitally delivered at unbeatable prices has seen another year of significant growth. The early delivery of the target of GBP 250 million profit before tax is a great achievement, and we've upgraded our target, which is now set at GBP 450 million profit by full year '30. Significant growth opportunities remain, including increasing our attachment rate on core UK beach routes, EU expansion via growing in Germany, Switzerland and France and transforming our city breaks through our new flight plus hotel proposition. Additionally, we recently launched the luxury collection, which comprises around 100 high-end hotels. Booking to dates have been positive with an average booking value of greater than GBP 5,700.

Moving on to the airline. Now we have full ownership of our app, we are able to develop its capabilities at speed to drive enhanced conversion as well as delivering new service features and commercial products. We also launched a new ancillary product for the airline called Flex pass. This add-on enabled customers to change a flight up to 2 hours before departure without a fee. We continue to focus on enhancing our pricing algorithms. For example, we started to group some routes by behavior types as opposed to the traditional route type profile.

As we celebrate our 30th birthday this month, ease and reliability remains as core to our brand and our purpose as it did 30 years ago. We've already touched on the improvements in customer satisfaction, but I want to reiterate that improvements have been made across all touch points of the customer journey, thanks to the fantastic efforts that our people have made throughout the business. On-time performance has improved 3 percentage points over the year, and we improved our turn time by 9%, which is a significant step change. This shows that the action we've put in place and the use of data insights are paying off.

Our customers are now better informed as a result of enhancements to our app. An example is a home and lock screen widget that provides passengers with check-in and gate information to help them navigate their journey. We've also recently launched an enhanced automated service recovery for passengers who experience disruption to their flights. The initial use will be for preemptive cancellations, but once fully implemented, we will be able to serve customers with a recommended solution, which can be accepted in just 2 clicks. These enhancements make our service smoother and more dependable for our customers.

As you know, we're fully committed to delivering low-cost travel. And while our cost advantage on primary airport networks is clear, the gap has widened due to easyJet achieving a flat CASK ex Fuel for the past 2 years. We've been driving efficiencies across the business with the use of advanced technology integration and automation. For example, our AI-enabled customer communication tools have enabled us to respond to our customers much quicker, delivering a 39% productivity uplift and a 29% cost reduction as well as delivering a strong increase in customer satisfaction scores.

We've rolled out multiple initiatives on fuel efficiencies this year, such as lightweight paint, FANS-C data to optimize flight path as well as the ongoing integration of the NEO fleet. The whole business remains focused on driving further cost efficiencies in the years to come.

So in summary, we're confident that executing on our strategy, supported by our disciplined approach to capital allocation will provide attractive shareholder returns. Our investment-grade balance sheet is one of the best in the industry, and we will continue to increase ownership levels as our fleet modernization program accelerates over the next few years. This fleet renewal will deliver the material up-gauging benefits, which are crucial lever to improving operational efficiency, generating higher operational cash flow and enhancing margins alongside further sustainability benefits.

The asset-light easyJet holidays model remains another key driver of earnings growth for the group with an upgraded financial target to deliver profits of GBP 450 million as it enters its next phase of growth. The actions taken this year mean easyJet is in a structurally stronger position for the future, and we remain resolutely focused on our target of delivering sustainable profits of greater than GBP 1 billion.

Thank you for watching this presentation of our full year 2025 results.