Hello, and welcome to the easyJet analyst call. My name is Molly, and I'll be your coordinator for today's event. Please note that this call is being recorded, and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question at any time. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand you over to your host, Johan Lundgren, to begin today's conference. Thank you. Thank you very much for that. Good morning, everyone. Thank you for joining us to discuss the easyJet Q3 2021 trading update. With me on the call are Kenton Jarvis, our CFO, as well as Michael from our IR team, and Peter and Sophie, who's joining as well. You should have been sent a statement, along with the slides, which are also available on our corporate website. I will talk through the presentation. Then follow up with time for your questions. Starting on slide two, easyJet has delivered in-line Q3 financials with cash burn for the period ahead of expectations. Cash burn is improving, with only GBP 55 million total cash burn in the third quarter. Our liquidity balance remains strong at circa GBP 2.9 billion. This means that the net debt is stable at GBP 2 billion. Our GBP 500 million cost program for full year 2021 is delivering, with full year 2022 actions underway. Our navigation through the pandemic has been strong. We have raised GBP 5.5 billion in liquidity, driven down costs, and kept a relentless focus on positive contribution flying. We have proven ourselves adept at responding to rapidly changing market conditions, adding new capacity and pivoting our schedule to capitalize on shifts in demand. As a result, easyJet is emerging from the pandemic as a transformed airline. Our cost program is delivering around GBP 500 million of saving this year, with almost half being sustainable, and cost actions as assessed for 2022 are well underway. We built in unprecedented levels of scheduling flexibility, which is allowing us to optimize our network for current trends, such as allocating more routes to Continental Europe and British domestic flying, as well as launching new routes to Greek islands and capitalizing on continued strength across those markets. We're very pleased to see the easing of restrictions right across Continental Europe, as well as the successful introduction of the EU Digital COVID Certificate to help simplify our customers' travel plans. The flexibility we have built into our schedule is industry- leading, and since the start of June, we have launched double the number of new routes compared to Ryanair or Wizz. That's more new routes than both Ryanair and Wizz combined. Our new ancillary products are driving a positive impact on margins for the future, and easyJet holidays continues to gain momentum and is taking market share. In summary, our efficiency program, with sustainable cost reductions baked in, combined with our fleet flexibility, strong positions at Europe's leading airports, and agility to respond to this dynamic market, means we are very well-placed to emerge from the pandemic with renewed strength. While we know the recovery from the pandemic isn't going to be a straight line, I can't wait, and so it's the same for my colleagues in this organization, to compete using all these newfound strengths. With that, I will hand you over to Kenton, who will walk you through the financials. Thank you, Johan. Starting on slide three, let's have a look at some of the key performance indicators for the quarter. In Q3, we flew 4.5 million seats compared to just 132,000 seats in the same quarter last year, when the first lockdown was being imposed and when easyJet's fleet was grounded for all but two weeks. The 4.5 million seats flown in Q3 is equivalent to 17% of the Q3 2019 program, and slightly ahead of our expectations. This demonstrates that our capacity forecasting has been accurate and disciplined throughout the pandemic, and this has allowed us to deliver strong cost control. Passenger numbers increased to just under 3 million, with load factors improving throughout the quarter, from 52% in April to 68% in May, and then 72% in June. The load factors have been strongest in Continental Europe and on domestic U.K. routes, with U.K. international loads suffering from late changes in restrictions. Total revenue increased to GBP 213 million. The group headline costs increased to GBP 531 million as staff came off furlough and operations were ramped up in preparation for the summer. The group headline loss before tax was reduced by 8% year-on-year to GBP 318 million. As previously highlighted at H1, we've reclassified the foreign exchange gains or losses arising from retranslating balance sheet positions, as well as fair value movements our hedges have been marked as discontinued from non-headline to headline. For comparability, the group headline loss for Q3 2020 has also been restated with a further GBP 22 million in costs. This is a pure reclassification from non-headline to headline; there's no change to the total loss reported in Q3 2020. At H1, there was no reclassification made as the impact was immaterial for the prior year. Moving on to slide four. We've remained focused on cash-generative flying throughout the pandemic, shifting capacity to match demand. RPS has seen positive momentum through the quarter, with Q3 revenue per seat at constant currency showing an increase versus the previous quarter of 27% to GBP 45.89. This has been partly driven by the improving load factor from 60% in Q2 to an average 66% for Q3. Ancillary revenue is performing well, and it's driven by the take-up for Standard Plus bundled fare product and the new cabin bag policy, which was launched in February this year. Phase 2 of the cabin bag policy will be implemented later this year. Our scheduling agility is allowing us to capture demand across the network, despite the constantly changing travel restrictions. On the cost side, cash burn in the quarter has been reduced and is ahead of expectations, with easyJet's cost-out program having delivered savings throughout the period. Q3 cost per seat, excluding fuel at constant currency, showed a sequential improvement versus Q2 '21 of 30% to GBP 97.04. Moving on to cash management, then on slide five. easyJet has maintained a disciplined approach to capacity, focusing flying on cash-contributing routes, and also on cash management, having achieved material savings from its major cost-out program. Cash out on a fixed cost plus CapEx basis was GBP 34 million per week in the third quarter. This has been reduced from GBP 38 million a week in Q2 and the GBP 39 million a week in Q1, and is better than our guidance of GBP 40 million per week. It should be noted that this Q3 rate is not the weekly run rate to project forward for Q4, as this will vary with the profile of capital expenditure, the timing of maintenance events, and the ramp-up of crew. As such, we'll maintain the previous guidance of GBP 40 million per week going forward. Working capital movements were positive in the quarter as booking momentum returned, particularly in continental Europe, with unearned revenue growing to GBP 955 million, which is GBP 293 million above the balance at Q2. Capital expenditure in the quarter was GBP 79 million, primarily driven by lease payments and maintenance events. Cash refunds paid to customers during the third quarter totaled GBP 122 million. We continue to process all refunds in under seven days. Unlike many of our competitors, easyJet sought to offer its customers industry-leading flexibility and options during the pandemic, including the choice of refunds and vouchers and the ability to move flights without fees up to two hours ahead of departure. The amount of flight vouchers currently in issuance is relatively low, with a value of approximately GBP 230 million. Total cash burn for the third quarter reduced to GBP 55 million, and that compares to GBP 469 million in Q2 and GBP 969 million in Q1. We finished the period with GBP 2.9 billion of available liquidity and GBP 2 billion of net debt, both of which are broadly unchanged from H1. Moving on to our fleet on slide six. We retain flexibility within the current fleet plan to expand or contract the fleet based on our expectations of future demand. Just to explain the graph, the top dotted line on this chart illustrates the current maximum arrangements with Airbus as well as with the current lessors. We will not exercise an option to request early delivery of aircraft in full year 2023 now that we've optimized the network with the removal of 17 aircraft from Berlin and right- sizing the less profitable regional bases in France and Italy. The lower gray line represents the contractual minimum fleet size, and the solid orange line represents our base plan and shows our fleet growing to 317 aircraft by full year 2022. This growth will enable easyJet to meet the high level of pent-up demand we expect in summer 2022 and also provide the flexibility to take advantage of opportunities to strengthen our network in a post-pandemic market. It should be noted that the chart does not include any future potential opportunistic lease additions to the fleet. easyJet is going to take delivery of eight new aircraft in full year 2022, seven in full year 2023, and 18 in full year 2024. These are all A320neo family aircraft, which burn 15% less fuel and generate 15% less carbon emissions than the aircraft they replace. In addition to generating 50% less noise footprint on takeoff and landing. In total, we have an order book of 101 neos at attractive pricing, with purchase orders for a further 20 aircraft and unexercised purchase rights for another 58. We retain ownership of 56% of the total fleet, and 41% are unencumbered. I'll now hand you back to Johan. Thank you, Kenton, moving on to slide seven now. While it's been an extremely difficult period for all businesses, none more than airlines, I couldn't be prouder of how we have responded to the challenges that we've been facing. Not only have we navigated the airline through the immediate crisis, reducing cash burn and bolstering liquidity, but the very way we have approached the challenges that face us mean we have adapted and built back stronger for the future. We didn't let the pandemic happen to us. We controlled and adapted, and navigated the course throughout this. We did it through responding in ways our competitors don't or can't. Providing customers with the most flexible policies better than any other airlines, leading the industry, sticking up for our customers on key issues like the cost of testing. Becoming very adept at adding capacity, adding 3.8 million seats, often in a matter of hours, launching, for this summer, 160 new routes, building our holiday business and taking market shares. We also use our existing strengths, like our network, with a renewed purpose, shifting capacity to Europe, where we are seeing the strongest demand. Don't forget that all of this is resting upon our proven business model with low fares, unrivaled network, and brand trust, which will be crucial in the recovery. Our brilliant people are getting back to what they do best, which is giving customers a great experience. Everything we have done will leave a long-term positive imprint on the airline, transformed, ready for the post-pandemic era. On to slide eight. The uneven pace of COVID travel restrictions being eased by various government means that we're seeing a distinct pattern in our markets where Europe is leading the way. This is a great example of using easyJet's existing strengths, like our network, with renewed purpose. Whilst in normal times, our network is split roughly 50/50 between the U.K. and Europe. We're currently operating around 60% of our flights in continental Europe, having shifted capacity to the markets with the strongest demands. Around 2/3 of our current bookings are coming from continental Europe. Travel throughout much of continental Europe has reopened, and in some markets, such as the Netherlands, we are already back to flying capacity levels above those of 2019. That demand can be seen clearly in our forward bookings in Europe, as we are around 53% sold for Q4 in 2021. For Q4, we're expected to fly up to 60% of 2019 levels, and this is a significant ramp-up from the 23% of 2019 capacity, which we flew in June, and we expect it to build throughout the quarter we are in. In terms of forward bookings at a network level and a group level, we are currently 49% sold for Q4, compared to 65% at this point in 2019. Moving on to slide nine. The actions we have taken are delivering a transformed cost base. We have achieved a 30% reduction in crew costs and agreed a wholesale new part-time and seasonal contract to better match our cost base to the seasonality in our revenues. The destination bases we've opened take this one step further. We will effectively increase the fleet size by 1.7% next summer by releasing spare aircraft, which we've freed up through efficiencies in our engineering and our maintenance practices. The new lower cost sustainable contracts we've signed with our ground handling partner are also delivering more value, quickly generating additional ancillary revenue. Ancillary revenues will see a step change in the coming years. Our cabin bag policy was successfully implemented in February, and the second phase of that project will launch later this year. Our bundled fare, Standard Plus, is also performing very well. The flexibility we have built into our schedule is industry-leading, with more routes launched since the start of June than both Ryanair and Wizz combined as an example. Crucially, the scale and flexibility of our network provide us with the opportunity to realign capacity to take advantage of changes in the competitive landscape. We are pivoting capacity towards popular routes showing rising customer demand in order to capitalize on the strong passenger flows in continental Europe. We've added further seats to our continental European network, including increased flying from Berlin and Amsterdam to beach destinations in southern Europe, shifting flying from our destination bases from the U.K. to the most popular routes in Europe with the strongest demand and bolstering our domestic flying in France and Italy, as well as topping up capacity on 74 U.K. and amber routes and maintaining our strong slot portfolios in Greece. We've also further built our U.K. domestic leisure portfolio, including backfilling some of the capacity left by the failure of Stobart Air on the 12th of June. Our easyJet holidays business is in a prime position to appeal to customers who, as a result of the pandemic, are seeking more protection for their holiday arrangements and turning to package holidays. With a highly variable cost base of circa 95%, we can quickly and easily adapt our business model to react to changes in demand. We also maintain a continuous and sharp focus on costs to ensure that the same holidays are cheaper with easyJet holidays 70% of the time on a like-to-like search basis versus our competitors. Flexibility and choice are key, which is why we have the most flexible custom policies in the market. We also have holidays on sale up until October 2022. This year, we've been able to retain circa 60% of customers who've been affected by travel restrictions and increase the number of directly contracted hotels that were previously exclusive with other competitors, which now account for nearly 70% of our bookings to date and offer significantly enhanced margins. Moving on to slide 10 and the outlook. Based on the current travel restrictions in the markets where we operate, we expect to fly up to 60% of our 2019 capacity levels in Q4. Late announcements of changes to travel restrictions will impact load factors due to the late capacity additions to meet surges in demand or cancellations when restrictions are added, driving an even later booking behavior. Inter-European flying represents 60% of current scheduled capacity. easyJet remains focused on cash-generative flying, as has been the case throughout the pandemic. easyJet's cost-out program is expected to generate circa GBP 500 million savings in full year 2021, of which over half is sustainable and which will help to offset the expected headwinds in ownership costs and navigation charges, as well as help to grow our margins. At this stage, given the continued level of short-term uncertainty, it would not be appropriate to provide any further financial guidance for the 2021 financial year. Customers are booking closer to departure, and visibility remains limited. In summary, on slide 11. We've delivered Q3 financials in line with management expectations. Our liquidity balance remains strong at circa GBP 2.9 billion. Cash burn is improving, with only GBP 55 million total cash burn in the third quarter. We have a stable net debt and an investment-grade balance sheet. We've successfully navigated our way through the pandemic, having raised GBP 5.5 billion of liquidity, having delivered sustainable cost savings, keeping a relentless focus on positive contribution flying. We've shown ourselves to be adept at responding to rapidly changing market conditions, having developed industry-leading agility to add new capacity and pivoting our schedule to capitalize on shifts in demand. As always, we've kept our customers at the heart of everything we do, from allowing fee-free changes up to two hours prior to departure, through to upholding all our commitments on sustainability throughout the pandemic. As a result, easyJet is emerging from the pandemic as a transformed airline. Our cost program is delivering on GBP 500 million, cost actions are way underway also for 2022. We've built in unprecedented levels of scheduling agility, which is allowing us to optimize our network for the current trends, such as the shift from the U.K. to Europe, with industry-leading flexibility. Ancillary revenues will see a step change in coming years with the successful launch of our cabin bag policy and the second phase of that project launching later this year, as well as the strong performance of our Standard Plus fare model. easyJet holidays continued to surpass our expectations and grow momentum in taking market share. We're the most sustainable airline in European aviation. In summary, our efficiency program, together with sustainable cost reductions baked in, combined with our fleet flexibility, strong positions at Europe's leading airports, and agility to respond to this dynamic market, means we are very well placed to emerge from the pandemic with renewed strength. We always said that the road on the recovery from the pandemic wasn't going to be a straight line, but we will come out of this transformed and ready to capitalize on the opportunities that will come our way. With that, thank you for listening, and we are now ready to take questions you may have. Thank you. As a reminder, if you would like to ask a question, please press star one on your telephone keypad. Please ensure that your line is unmuted locally. You'll then be advised once we're ahead with your question. Please note we will only take two questions per participant. The first question today comes from the line of Daniel Roeska, calling from Bernstein Research. Please go ahead. Morning, gentlemen. Two from me. First one for Kenton, please. It looks possible to break even on cash during Q4. How are you thinking about what lies beyond? Your H1 '22, what's the required liquidity level? Are you comfortable with liquidity going into winter? What would prompt you to engage in some additional financing actions here? Then maybe Johan, some longer-term thoughts on your ancillaries and the ancillary targets, because of course, you've implemented a whole bunch of new products driving ancillaries, maybe compared to where you were pre-pandemic. Do you also have a feeling for the mix change in your current numbers? Are there just more passengers taking bags on your flights right now? What's the plus and minus if we were to think about where that ancillary level settles once we're out of this mess? Thanks. Okay. Daniel, thank you very much. In terms of the Q3 cash burn, we were pleased with cash burn at GBP 55 million for the quarter because it enabled us to maintain access to liquidity at GBP 2.9 billion and also the net debt at GBP 2 billion. The cost program is delivering well, and that will give us GBP 500 million of benefits this year, almost half of which will be sustainable going forward. We're, as I said at H1, undertaking a balance sheet review, and it's going well. We're basically modeling a number of three to five-year plan scenarios going forward, looking at the liquidity levels we want to maintain post-pandemic and factoring in the fleet plan, the Airbus order, and looking at how that impacts our debt levels and gearing ratios going forward. As I said at 1:30 P.M., we'll be complete by the year-end, and we'll come back with the full picture. I think, unfortunately, summer hasn't helped rebuild the balance sheet. As I said, I'm pleased that the liquidity's been maintained and the net debt's been maintained. We'll have to wait to see how Q4 plays forward, because obviously we still have some uncertainty, particularly in the U.K., although continental Europe is progressing better. Yeah. Daniel, on that ancillary, there's a really interesting piece as well. We are clearly seeing that the share of the total price the customer pays of ancillary is going up. We've been in that area around that 20%, and that is increasing as we speak and driven mostly by the cabin bag proposition as well. We're getting good pickup on that, and it delivers also operationally into the fact that our on-time performance is quite remarkable, I think. On one hand, you might say, well, your on-time performance should be great because there's less flying and the load factors are getting less. We see it now where we have really high load factors that would be similar to the pre-pandemic levels. In addition to all the checks. As you know, Daniel, we have to do prior to the boarding to check with the COVID document as well. In many cases, Peter, we had yesterday, like in Gatwick, 100% on time performance. Part of that is also driven by the proposition of the cabin bag. We will look also to make sure that there are more options coming out for our customers. You are likely to expect to see that that share of the total price paid on ancillaries being greater going forward. Phase 2 of the cabin bags goes live in the autumn, that'll give more opportunities for premium seat revenue as well. We've a lot of work taking place on in-flight retail propositions right now at the moment that'll kick in for next summer. We're also picking up a lot of more airport revenue at the moment than we expected. That's ahead of budget. Just to add to Peter's comment, that phase 2 of the cabin bag means that you actually can buy this as a separate product and a standalone product, which will be very welcome. Great. Thanks. The next question comes from the line of James Hollins calling from Exane BNP Paribas. Please go ahead. Yeah. Morning, everyone. Just first up on the cost headwinds, Kenton you, I think it's in the statement as well. Maybe just remind me or remind us of some of the detail on the cost headwinds, ideally quantify them. Obviously, ideally, also what you're doing to sort of counter those direct cost headwinds. Secondly, just digging a bit deeper on these ancillaries, I think it's a pretty critical part of your margin story. If I frame Daniel's question slightly differently, it looks like relative to sort of pre-COVID, you've seen about GBP 6 per passenger increase in ancillaries, Q3 '21 versus pre-COVID, from GBP 14- GBP 20 or so. I'm just wondering, I guess similar to Daniel's question, looking for quantification, how much of that potentially you could hold into post-COVID, effectively splitting out what is maybe an exception on what is holdable into the long term. Any more detail would be lovely. Thanks. Let me start with the last question. We're not giving any specific guidance on what this could be, but you're absolutely right. The opportunities are there. There's a number of things that we hadn't been able to introduce previously for various reasons, systems being one, and with the fact that we now can do the cabin bag, which is a big part. You would've seen what cabin bags is, the effect that has had also on margins for other airlines. This is just as much as also that it operationally also helps us to increase on-time performance, which reduces the cost and improve the customer experience. That when we're looking through the pipeline, and Peter mentioned one of them, we're doing a big overhaul of the whole in-flight proposition as well. That we also know it's going to yield benefit for ourself and also for the customer. I feel very passionate and strong and excited about the product that we have in pipeline going forward for the next few years. Like I said, we haven't given any specific guidance on it. Okay. Yeah. Thanks, James. On the headwinds, the majority of these are COVID-driven impacts. I guess first would be the financing cost. Obviously, we're going to have an increase in interest payable from the GBP 5.5 billion of funding we've raised. Although our net debt's GBP 2 billion, our gross debt sits at GBP 4.3 billion, and that's what you've got to service because there's not a lot of interest in from the cash we're holding. That's financing costs. On ownership costs when it comes to aircraft, there are two impacts that you have to be mindful of. The first is the increase that we have in the mix of our leased aircraft. We did the 58 aircraft sale and lease program, which raised a lot of valuable liquidity through the last year. As we said at half one, has added about GBP 140 million to our headline cost. The second impact is around the depreciation effect on our owned aircraft. Obviously, this is non-cash accounting. Effectively, as the fleet ages with the deferral of the order book, so the depreciation increases. To give you an example, when we capitalize our aircraft, we then depreciate them over 23 years down to their residual value. As you come to the major maintenance events, then you capitalize those, like engine shop visits, and depreciate those going forward. The average age of our A320s is now about seven years, and typically the CFM engines on the A320s last eight to nine years on wing before the major shop visit comes along. That means that a good proportion of our fleet will now be coming to their first shop visit in the next two to four years, that those have been capitalized and then depreciated going forward. The final headwind that everyone has coming out of COVID in the industry will be the impact on navigation charges when EUROCONTROL seek to recover some of their lost revenues in 2020 and 2021. That will be faced by all European airlines, and we will all resist that as much as we're able to. It'll be a similar surcharge that all airlines will get. On the cost program, it's developing very well to offset all this. On track to deliver the GBP 500 million for this year, nearly half of which will be sustainable. The big parts of that are around crewing, where the negotiations are going very well with the trade unions, and they're completed everywhere with the exception of Italy. A lot of right-sizing of establishment. Peter and the team have introduced a lot of seasonal and part-time contracts, which gives us more flexibility. Productivity improvements on crewing levels. Essentially, a 30% reduction in crew with a 6% reduction in aircraft. We've seen through engineering and maintenance efficiencies that the management of spare aircraft will lead to more capacity in the system, about 1.7%, which is equivalent to five, six aircraft. I don't know, Peter, do you want to add anything around ground handling and other things that have been progressing well? Yes, I think it is all about the execution on the ground handling. We have renegotiated the contracts that impact about 80% of our customers. Part of that actually is to incentivize the collection of the ancillary revenue, and that is all about execution for this year and next year. Overall, that has led us to a pretty good operational position at the moment, where I think we are seeing progressively the cost coming out, and it is about putting in the discipline, the detail around that. Really, we are seeking everywhere across the business, on every cost line. If we can get GBP 0.05 out over 100 million passengers, it is another 5 million, and that is where we are seeking it. There are a lot of people traveling at the moment. We had booked yesterday nearly 140,000 people on 1,000 flights. We had 87% on-time performance across the network, and actually 100% in Gatwick. If you believe sometimes what you read, you think there's nothing happening, but there's a hell of a lot of people on the move now. We'll be up to over 1,400 flights a day in August, and there's a lot of people booking very quickly. We'd 40,000 this weekend at Gatwick alone. It's really starting to rock and roll then. Just to talk about just on that cost side as well, because it's an absolute focus on line by line. It's not like it's okay, we got one project here or two, three projects in here. These are hundreds of initiatives that's been happening within throughout the whole of the company. Peter has been talking about some of them as well. This is what I mean when we are looking to come out of this transformed. These are things that, to some extent, we've said was previously a structural disadvantage in terms of some of the steps that have been changed. If you're then taking a look at the opportunities we continue to have on there and then also back to the ancillaries, that's what I mean when we talk about this being actually a transformed airline coming out of this pandemic. Appreciate it. Thanks for the detail there, Johan, Kenton and Peter. Thanks, James. The next question comes from the line of Mark Simpson, please. Caller from Goodbody. Hi, good morning. I have two questions. First off, I just wanted to pick out the potential for an extended summer season. In the statement under forward bookings, you talked about being confident about demand for travel this summer and into autumn. If you look at, you were talking about 95% of your crew being operational from mid-July, bearing in mind that crew numbers are down circa 30%. That kind of suggests that the crewing is about 66.5% of your kind of comparative quarter. You're talking about 60% of capacity against the comparative quarter. You're either kind of overcrewed, and there's been some cost in that, or you're actually thinking that demand there is some scope to surprise to the upside and extend into the October season. I wonder if you can talk around that. The other question is around, obviously, we had recently the EU Fit for 55 proposals. I'm wondering if you could give us any feel for the assessed impact of that, on the assumption those proposals were actually sort of agreed unanimously by the European members. Kind of a short- term summer and crewing sort of giving an indication of maybe surprise to the upside, and then the longer term implication of sort of carbon costs and tax on fuel. Yeah. Starting on the summer, first of all, we do think that there is an opportunity for positive surprises if you compare to normalize here on the relatively scale the end of the summer, so like September and October as an example. We know that there's a lot of people who've been waiting to book and book further out as vaccination levels are increasing in Europe, and they get more clarity on what the situation is. It is true that we can see, and there is an opportunity to be positively surprised on where that's going to come. It's still limited visibility. That's why we can't give any further guidance on that whole thing. I think that's something that we would be looking forward to do and watch that almost every minute in terms of the sales and the trends, how things are coming in, and that is something we would be keen to accommodate, of course. Peter, on the crewing. On the crewing, Mark, we're availing of the furlough schemes in every country except the Netherlands, where actually we've got more flights operating at the moment than we had in 2019. Some of those furlough schemes run now through to March 2022, and actually one country through to May 2023. We're getting all the crew back current trained in place for what I think actually will be a bumper 2022. We really needed to get everybody back trained. We can offset the amount. For example, in Gatwick, we have pilots from Gatwick who are on furlough now for the whole month of August, but might be back flying again for the month of September and so forth. I think on that Fit for 55, as you know, we've been supportive in the aim of the plans that's been presented on that in its totality. I do think that the views we've had, I've written in to sort of [audio distortion] and Frans Timmermans on the proposal, that what it needs to do is to make sure that any taxation that is coming its way needs to make sure that it really follows the principle of polluter pays, i.e., that the more efficient you are, the less you pay, and the more you emit, the more you pay. That it also needs to take into account, of course, long-haul travel. I think it's an appalling suggestion that long-haul travel would be excluded. Long-haul travel consists of single digits in terms of its flights, but over half of the total carbon emissions that's being emitted. That is number one. We're also calling out for, as you would expect, that the carbon offsetting to the highest quality schemes that easyJet introduced as the first major in the world. We've had since followers throughout the world who could do the same thing. That also needs to be recognized. We're clearly supportive of the road of decarbonizing aviation. We believe that we're leading this, and that nobody else is doing more than we're doing. Also, don't forget about the recognition that I think we need to make that, whatever taxation policies will be in place, that those revenues would, in majority, go to projects to decarbonize aviation, in contrary to what many of the local taxes that are in place, APD being 1, as an example, in the U.K., is happening. We're in a very close dialogue with them. Like I said, we've been supportive of the overall aim of this whole thing, but we need to make sure that following the principle of the polluter pays, that needs to be recognized in a level playing field, really across the market, with no exceptions on transfer passengers and long-haul, as an example. That's great. Very helpful. Thanks. Thank you. The next question comes from the line of Neil Glynn, calling from Credit Suisse. Please go ahead. Morning, everybody. I'll also take two, please. The one on cash flow and specifically CapEx. Your nine- month CapEx is actually only about half your full- year guidance. Just interested, are you likely to spend half of your full year guidance on CapEx in the Q4? Is there the potential for us to see quite a lower level of CapEx for the year than guided? Then a second question, looking towards 2022, and you're obviously quite confident in the summer for 2022. Can you give us some sense as to the scale that easyJet holidays may operate at in 2022? I don't know if Gary's on the call, some kind of a scale in terms of the amount of passengers, for example, you would expect to be booking holidays with you or something else substantive that helps us think about whether holidays plays a meaningful role in second half 2022 PBT. Yeah. Thanks for that. I'll take the holidays question. I don't know if you got Gary able to speak on the call, Michael. Okay. Well, you got it separately. Look, we haven't given any guidance out on the specific numbers on that. What is true is that as we're going through the pandemic, what we see is that our market share has an increase. The way we look at that is just looking at the basic [audio distortion] numbers. We've been increasing our share more than I think anybody else has been doing in the U.K. The other thing why we're saying that we're building this and it's going better than we expected it to do is, of course, that we've been able to now get access to a lot more of the exclusivity properties that we know are so well in demand and that also generate really good margins to ourselves. That's something that we feel very pleased about. I think we're also going to come back, I'm looking at Michael right now, to perhaps to do a day where we spend more time also to talk about holidays in detail, to give you a little bit more in-depth color on the opportunities that we have. I'm sure you're going to be just as excited as we are as well, because this is, once again, as I said before as well, it's a very, very low-risk proposition that you just benefit from Europe's largest leisure network built on a well-known brand across Europe. If I say across Europe, you recognize that our ambitions is greater than only the U.K., as an example. We're looking for this to be one of the biggest pan-European players here as we're coming out of the pandemic into the next few years. Like I said, we'll come back and do a day on that or whether it's more than in more detail. Gentlemen, Kenton? On CapEx. Thanks, Neil. We're not making any change to the CapEx guidance. The CapEx is driven by mainly our leased aircraft costs and maintenance. We continue to focus on reducing all spend as we see the opportunity, but no change to guidance. The next question comes from the line of Muneeba Kayani, calling from Bank of America. Please go ahead. Good morning, everyone. First question around 4Q expectations in terms of pricing and load levels. How do you think we should be thinking about pricing, and kind of at what load level would you look to add or kind of reduce the capacity plans from the 60% that you've currently scheduled? Secondly, just on the kind of longer term, Johan, I think you said that cost savings will help to grow margins. When you say that, kind of margin improvement compared to what period? If you're talking about higher carbon costs and jet fuel taxes, could those be passed on in ticket prices? Thank you. Let's start on this, and especially part of the question, perhaps I didn't answer on the cost of the carbon as well. I mean, the whole point why we are supportive of the principle of the polluter pays is one it makes sense. That's number one. Also, remember that easyJet is one of the most fuel-efficient airlines in Europe overall. Together with the possible also recognition that what we're doing on the carbon offsetting schemes, we will have an advantage from a cost perspective, we believe, versus the majority of our competitors, the legacy airlines that are flying primarily 2/3 from head-to-head competition on where we are operating. That makes absolute sense to do. That's number one. I think that there's still fluctuations into the carbon pricing, and it's also yet to be determined on what actually the cost of this will be. As we've been arguing, that any taxation on carbon that is going to be imposed throughout Europe would also mean that we would ask for and request that local taxes in the name of sustainables will need to be removed. It becomes a question of double taxation. That is an argument that is well understood, I think, by the decision makers. It represents a challenge, as you know, for everybody, for politicians to remove a tax once it's been introduced. The whole principle of the polluter pays makes sense for us. We think we're going to have a competitive advantage out of that one, which we should do because of our efficiencies on the emissions per passenger kilometer and the fuel burn, and then also the carbon offsetting scheme that we have. Remember, when you're looking at CORSIA as an example, that is in fact an offset program. We are well set and well positioned within the context of that. On the pricing, just remember that our whole point was always to fly and operate capacity that was generating a positive contribution for the company. That was the key thing, and we have some very advanced and good metrics around how we do that. I think if you compare ourselves to competitors, we've probably been the most accurate in estimating and telling you what level of capacity we will fly and what we actually are delivering as well. The load factor and the yield is a combination of those two things. I think we've proven that we established very good processes and accuracy around that. Kenton, do you want to add anything? No, I mean, the ticket yield is slightly softer than full year 2019. We're seeing some, as we discussed, good growth in the ancillary uptake and the yields we're getting from that. As Johan said, it's really a combination of yield and load factor. The load factor built through Q3 up to about 72% in June. Any late changes in advice obviously didn't help the load factor build, and the customers are booking closer too. In terms of margin growth, yeah, we're looking to build the EBITDA margin growth moving forward. Yeah, that's where we see the growth. To clarify, is that versus 2019 margins? Yeah, over time to move forward from 2019 margins. That's right. Thank you. The next question comes from the line of Jarrod Castle, calling from UBS. Please go ahead. Thank you. Good morning, everyone. Firstly, just on the CapEx profile, you've revised the fleet numbers down, certainly from the upside case. For instance, 2023, you had 355 planes. It's now looking about 10% lower, give or take, by then, and obviously in 2024 as well. You're talking about all the costs coming out, the opportunity to take market share. Yes, you'll be upgauging, but the fleet profile is still at best in line with 2019 levels. Why are you revising it down, firstly? Then just secondly, coming out of Q4 or going into your Q1, any indications from your business travel relationships with the corporates, what they're thinking as they go into Q4? Thanks. On the fleet. I think what we're growing to, the outline we've given is to go to 317 for next summer. We took out 16 aircraft out of Berlin. They weren't making the return we needed. We closed Stansted, Southend. That was 11 aircraft and three in Newcastle. There's a [audio distortion] of 30 gone, and they just weren't making a return. When you reverse it back out, that takes you down to around about 302, really. We've opened very successfully the new bases in Malaga and Faro. They're kind of no-brainers. We go back up to 317. I'd say we're moving to, for next summer, to easyJet's greatest hits, volume one, and I think it'll go really well. I think we've got a great opportunity to make some serious money out of that. I think on that one, it makes perfect sense. To add to that. Thanks, Peter. That's right. Obviously, you've got the upgauging as A319s retire and the A320s and A321s come in. I think Peter's mentioned the efficiency in engineering and maintenance, which means we get the equivalent of five to six aircraft extra flying ability through the summer, which is about 1.7% extra seats. We should remember that market aircraft are available at attractive prices. We're not bound by the duos. Should we see that great return of demand. Remember, it's one of the things when we talk about flexibility, we mean flexibility. We mean that we're going to take every opportunity that we see that makes a return for us to grow, and we see plenty of them. That's why we need to have the flexibility to do so. It's also fair to say that nobody You know exactly how and when this recovery is going to play out. Just look at our network right now. We have, in Holland, a situation where we're flying more than we did in 2019, as an example. We have a situation in the U.K. that is not in the same place because of the restrictions that have been put in place. Given the fact that we can see that it's moving in the right direction, and perhaps even more rapidly so, we're definitely on the journey to that recovery. Our order book on the fleet we got 101 aircraft on order. We got 78 rights and options on our way, and that should be noted. When you hear other people scream about how many aircraft they're going to order and what they're going to do, let's look at some facts behind this. We well placed on this. We launched more routes than Wizz Air, Ryanair in combined since June, and we're going to be ready to take that opportunity also coming our way. We've taken the opportunity to increase our presence in Italy. In Gatwick w e compete with head-to-head. We've seen other low-cost carriers retract and cancel frequencies of flying where we meet up to them, and that's what you can expect going forward from ourselves. I'm so excited about that topic. There was another question that I missed. Did I cover it? It was just about business travel, if there's any indications when you're engaging with your corporate. Yes, exactly. Yes, absolutely. Yes, we do see that whilst it is down, and whilst there's nothing changes to the view that we've had earlier about business travel coming back one to two years later, we definitely see that we are increasing our shares and we're getting companies to travel with us because they are not allowed to travel in business class on short-haul anymore, and they'll be looking for two things, value and also sustainability. The carbon offsetting program that we have is something that is really attractive and playing a part on how corporates now are choosing to fly with companies. That is one thing that we feel very good about. That's the same trend that we've seen in previous downturns as well. The carbon offsetting program is something that corporates really are attracted to. Great. Thanks, Johan. The next question comes from the line of Sathish Sivakumar, calling from Citigroup. Please go ahead. Thank you. I got a couple of questions here. Firstly, in terms of the trends within your network, are you seeing any meaningful impact on booking from the Delta variant? Is there any market that you actually had to stimulate demand through aggressive pricing? That's on the first one. Sathish, sorry, it's Michael here. Can you just speak up a little bit more? We can't really hear you very well. Okay. In terms of the trends within your network, are we seeing any meaningful impact on the bookings because of the Delta variant? Within your network, is there any market that you actually had to stimulate demand through aggressive pricing? On the capacity side, say, assuming that if you had to ramp up more than 60% of your capacity, how should one think about the ramp-up cost associated with that additional capacity coming in Q4? On the network, there's no specific evidence that you link demand towards the Delta variant. The Delta variant is clearly the most prevalent here in the U.K., which has then led, I think more to the more important point about the restrictions that have been imposed by the U.K. government, that we don't believe is correct. We see no reason whatsoever that you can freely, as of now, go into a hugely crowded nightclub without any face masks, no vaccination, and no testing requirement. You can't fly down to a low-risk destination and lie on the beach. That just doesn't make any sense at all. It's not linked into the Delta variant in itself. I think, as an example, if you look at the inconsistency and the difficulties to understand it from a transparency point of view on what U.K. is introducing with this latest change to France, where they are quoting the Beta variant. That is prevalent in La Reunion down in the Indian Ocean, which is about 6,000 miles away from the French mainland, and difficult to see the link, how prevalence of that in that island there is going to impact on hospitalization. U.K. remains with the highest cases of infections per population per 100,000 in the world. You could have most of Europe coming onto that green list, and we would then also argue that science will back it up, that you don't need to have any restrictions at all for vaccinated people if you're onto that green list as well. The reason why I go on about this is to say that there have been changes. There will continue, I'm sure, to be changes. We are prepared for them, and that's why it's so important to have the flexibility in terms of what we are doing. I don't think that there is a need anywhere for us to stimulate the demand to that effect. The restrictions that are in the countries play a much broader part. It's not like people ultimately think to say, "Well, I will go if this costs me GBP 10 or EUR 10, but I won't go if it costs me GBP 50." It's more down to the fact that, look, what are the restrictions? Are there quarantines? Are there testing requirements that adds a lot of costs to that as well? The pricing really across the market continues to be dynamic. Yes, we do see that there's very low fares going around in certain parts of Europe, and we're competing with some of them. Primarily, the objective for us is to look at a positive contribution to all the flying that we're doing. Yes. Thank you. In terms of the ramp-up cost. Sorry? In terms of the second question, around the ramp-up cost. Assuming that if you had to go beyond 60% of capacity in Q4. No, really, the only main difference is really on variable costs and taking people off furlough. It's very marginal. We're able to adjust at very short notice. I think we've executed quite well over the last 18 months on these things. It's just we can actually put on, with a few days' notice, extra capacity. We may well do that at times in Gatwick on peak routes during the month of August. It's been actually one of the key components when we looked at how to fly lines of flying that are generating a positive contribution to the company. I think now, if you look at the total cash burn, which was GBP 55 million for the quarter, the equivalent cash burn in last year's quarter would have been GBP 774 million. It's a massive improvement. That also comes back to the fact that even if we only flew 17% of the 2019 capacity in the quarter years gone by, that we've been quite accurate to predict what is the optimal level of flying to make sure that the costs are matched up and optimized towards the demand and the revenues we're seeing. Got it. Yeah. Thanks very much. That's super helpful. Thank you. The next question comes from the line of Andrew Lobbenberg, calling from HSBC. Please go ahead. Morning, guys. Can I ask on the data leak? Obviously, I think there's been a settlement with the British Airways data leak, and at least according to the stuff in the press, it sounds like the lawyers are all enthusiastically chasing yours, and I can't log on to Twitter without seeing a lawyer advertising me to approach them to try and get money out of you. Can you say a little bit about what's going on with that and remind us perhaps what has been provided for in the context of that? A second question, I guess, would be around the political rule- making. Obviously, sat here in the U.K., we're watching what happens with deep frustration, as I know you are. Conversely, how successfully is the digital COVID certificate working across Europe? To what extent are you concerned about member states trying to impose tighter restrictions within the EU as we occasionally see noises out of Germany trying to restrict Spain and the like. Yeah, a bit more of the positive, perhaps views of policy making in Europe as compared to here. No. Okay. Hi, Andrew. I'll start with the data leak. First of all, we continue to, of course, be in contact with ICO, and that's an ongoing discussion we're having with them. There's nothing new to report on that. In terms of our ability to keep lawyers busy on things like this, as you mentioned, I think it's fair to say that it's very different from the BA. We've had a breach where travel information was compromised, but very, very little financial information. It was just, if I can remember the numbers right now, 2,208 customers whose credit card information, financial information could have possibly been compromised. That's very, very different numbers from what we've seen. There's no evidence from what we have seen that nobody has been at a disadvantage of this as well. This is, first of all, we're engaging with the ICO on this whole thing, and then we just have to deal with the things as they come along. It's a very different story from British Airways. There's no provision in the books for at this time. On the digital COVID Certificate, Andrew, I think it's worked extremely well. In fact, I think the Europeans have done a great job on that, and the execution by the government has been great. It's very easy for us operationally to look at it and scan it at the airport. That's been a great success. As has the NHS App, actually, which has been widely accepted by governments right across Europe. Border Force at the airports where we're at have done a really good job. They have automated the gates at a large number of locations, and even at the desks, they've managed to automate the scanning of your data coming in on the forms, which are linked. We're seeing transaction times of less than one minute at many airports. We want to say congratulations to them. All of this adds up to, we carried 40,000 people through Gatwick at the weekend, 92% of them were on time, and that's even with all the checking. I don't think people should be deterred from traveling, and I think we'll see more demand build up, and people will see that it is possible to travel, and it's not as big a hassle as you may think. That's great, guys. Thank you, and yeah, good luck for the big summer. Thanks, Andrew. Thanks. The final question today comes from the line of Carolina Dores, calling from Morgan Stanley. Please go ahead. Hi. Good morning, everyone. My first question is, what has been the strategy on CO2 credits, given that you probably used less in 2020 and produced less in 2021 that you have in inventory? Have you sold these credits or hold on to them so you could use in 2022, 2023? My second question, it's a bit more on competitive environment that you're seeing this summer. We are hearing from some airlines that they are trying to stimulate demand on lower yield. I guess you guys have done a good job on keeping yields high. What are you seeing in your key markets such as France, U.K., in terms of behavior of different competitors? Do you think that has changed since pre-COVID times? Should I start with me on the carbon credits? Obviously, each year we get a number of free allowances, and then we have a rolling hedging profile where we buy throughout the year. Due to the volume of flying, we will be carrying forward a number of carbon credits. We haven't sold any, so we'll be carrying those forward, which you can do. Yeah. On the competitive landscape, it's clearly moving, and it's slightly different from market to market. In general, you could say that legacy carriers are very clear that they are retrenching. They're removing capacity from a number of routes. We are watching this from a really route-by-route basis, and we have taken the opportunity also to grow our presence and will continue to do so. Our strategy is crystal clear, leading positions at the primary airport. With the reset that we've had of the cost base, our advantages that we've had has increased. We're looking forward to compete with them. That also includes any legacy airlines' so-called low-cost subsidiaries. We feel confident that our cost program is giving us further advantage there. It also is reducing the gap to one or two other players that where we might not have a cost advantage on as well. That was always what we wanted to do to make sure that we can come closer to the ones who possibly have lower costs than we have based on their models. That, as far as we can tell, is happening. There are some aggressive moves being made in certain parts of the market. Italy, as an example, we have been part of that and responded on that, and we've seen retrenchment and cancellation from some of the low-cost carriers and routes that we've been doing. We will continue to do a combination of defend where it's necessary to do so, improve we can do that, and then also be aggressive when it makes sense for us to do so. Overall, we will continue with the focus to do flying that generates a positive contribution. We're also thinking about this in the mid to long term, that we are creating position for us that will just strengthen our overall network. That's I think the summary of that. Thank you. That was it. Okay. Listen, thank you all so much for joining us here today. Look after yourselves, and keep safe in the heat, and look forward to seeing you on an easyJet plane soon, I hope. Thank you all. Thank you for joining today's call. You may now disconnect your lines. Hosts, please stay connected.