easyJet orders more A320s

In light of the continued strong financial performance of easyJet and confidence in the future, the Board has decided to increase the payout ratio for the ordinary dividend from one third of profit after tax to 40% of profit after tax from the financial year ending 30 September 2014. Additionally easyJet has reached agreement with Airbus to exercise existing purchase rights over 27 current generation A320 aircraft for delivery between 2015 and 2018. This provides easyJet with the flexibility to continue to execute its proven strategy of disciplined growth and to take advantage of profitable market opportunities. The additional aircraft will augment easyJet’s highly cash generative model and the Board will continue to keep the balance sheet under review and intends to make further returns of capital to shareholders in the coming years. In addition, they will continue to improve easyJet’s cost advantage as a current generation A320 aircraft delivers a cost per seat improvement of between 7% and 8% compared to a current generation A319 aircraft. These aircraft are subject to a very substantial price discount from the list price and are expected to be funded through a combination of easyJet’s internal resources, cashflow, sale and leaseback transactions and debt.