easyJet
Website:
easyJet
Index:
FTSE 100
EPIC: EZJ
Supersector:
Travel and Leisure
Sector:
Travel and Leisure
Subsector:
Airlines
Market Cap:
£2.89B
Payout Frequency: Annual
easyJet Dividend Analysis and Summary
Key dividend details
- Declared dividend: 13.2p per share (ordinary) for FY25 (vs 12.1p in FY24)
- Payout ratio: 20% of headline profit after tax (policy-based)
- Total cash outlay: ~£100m (subject to AGM approval)
- Record date: 20/02/2026
- Ex-dividend date: 19/02/2026
- Payment date: 27/03/2026
Policy and cover
- Dividend policy: maintain an ordinary dividend of 20% of headline PAT; additional “excess capital” returns to be assessed based on market conditions, capex and progress vs medium-term targets.
- Earnings cover: headline EPS 66.4p vs DPS 13.2p ? ~5.0x cover; cash dividend equals ~£100m vs headline PAT of ~£499m.
- Year-on-year growth: DPS up ~9% (13.2p vs 12.1p), aligned with earnings growth and unchanged payout formula.
Short, focused analysis
- Sustainability: Strong balance sheet with £602m net cash and £4.8bn liquidity supports the ordinary dividend. High cover (~5x) and investment-grade ratings (BBB+/Baa2) underpin capacity to pay under the 20% policy.
- Growth trajectory: DPS growth (~9%) mirrors improved FY25 performance (headline PBT +9%). Medium-term ambitions (>£1bn PBT; holidays PBT target upgraded to £450m by FY30) imply scope for dividend growth if delivered, given the fixed 20% payout.
- Financial and capital allocation support: FY25 headline PBT £665m, ROCE 18%, and continued cost discipline bolster distributions. However, capital allocation is clearly prioritising fleet modernisation and upgauging, with heavy capex guidance: FY26 c.£1.7bn, FY27 c.£2.3bn, FY28 c.£3.3bn. The 20% payout framework is conservative and should remain serviceable through this capex cycle, but leaves limited headroom for specials/buybacks near term.
Structural or strategic items relevant to future dividends
- Network/base changes: new bases (Milan Linate, Rome Fiumicino, London Southend) and closures (Toulouse, Venice); further base openings in FY26 (Newcastle, Marrakech). Near-term drag from route maturity and first winter at new Italian bases noted; longer term expected to enhance utilisation and returns.
- Fleet actions: repurchase of eight leased aircraft into ownership and ongoing A320neo deliveries (17 in FY26; 30 in FY27; 43 in FY28) support structural cost efficiencies but elevate capex in the medium term.
- Financing: New undrawn $1.7bn RCF to 2030 and repayment of a €500m Eurobond improve flexibility; supports dividend resilience under the current 20% policy.
Risks and flags to dividend stability
- Execution/cycle risks: Airline RASK down 3% and winter improvement slower than planned; ongoing investments to mature new routes may weigh on near-term airline profitability.
- Cost inflation and regulation: Market-wide inflation across navigation, airport charges, maintenance, wages; rising environmental costs (ETS free allowances phasing out, SAF mandates) could pressure margins.
- Fuel and FX volatility: Despite hedging (FY26 H1 fuel ~80% at ~$717/mt; USD hedges in place), movements can affect earnings and hence the dividend quantum under the 20% policy.
- Operational/geopolitical disruption: ATC issues, geopolitical events and disruption costs remain structural risks for airlines.
- Legal/regulatory: Ongoing litigation and the Spanish consumer fine appeal (c.€29m)—no provision recorded—represent potential downside, albeit not currently cash-relevant per company stance.
Read more
easyJet Annual Dividend Yield - 21.01%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 26/02/2014 |
21/03/2014 |
Special |
44.10p |
GBX |
| 26/02/2014 |
21/03/2014 |
Final |
33.50p |
GBX |
Total (Annual Dividends Per Share):
77.60p
Dividend Yield =
Annual Dividends Per Share (77.60p)
÷ Share Price (369.4p)
= 21.01%
easyJet Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 19/02/2026 |
27/03/2026 |
Final |
13.2000p |
GBX |
| 20/02/2025 |
21/03/2025 |
Final |
12.10p |
GBX |
| 22/02/2024 |
22/03/2024 |
Final |
4.50p |
GBX |
| 27/02/2020 |
20/03/2020 |
Final |
43.90p |
GBX |
| 28/02/2019 |
22/03/2019 |
Final |
58.60p |
GBX |
| 01/03/2018 |
23/03/2018 |
Final |
40.90p |
GBX |
| 23/02/2017 |
17/03/2017 |
Final |
53.80p |
GBX |
| 25/02/2016 |
18/03/2016 |
Final |
55.20p |
GBX |
| 26/02/2015 |
20/03/2015 |
Final |
45.40p |
GBX |
| 26/02/2014 |
21/03/2014 |
Special |
44.10p |
GBX |
| 26/02/2014 |
21/03/2014 |
Final |
33.50p |
GBX |
| 28/02/2013 |
22/03/2013 |
Final |
21.5p |
GBX |
| 01/03/2012 |
23/03/2012 |
Final |
10.5p |
GBX |
| 01/03/2012 |
23/03/2012 |
Special |
34.9p |
GBX |
| Year |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
12.100 |
|
GBX |
12.100 |
168.880 |
| 2023 |
4.500 |
|
GBX |
4.500 |
-89.740 |
| 2019 |
43.900 |
|
GBX |
43.900 |
-25.080 |
| 2018 |
58.600 |
|
GBX |
58.600 |
43.270 |
| 2017 |
40.900 |
|
GBX |
40.900 |
-23.970 |
| 2016 |
53.800 |
|
GBX |
53.800 |
-2.530 |
| 2015 |
55.200 |
|
GBX |
55.200 |
-38.320 |
| 2014 |
45.400 |
44.100 |
GBX |
89.500 |
167.160 |
| 2013 |
33.500 |
|
GBX |
33.500 |
|
easyJet Dividend Calculator
easyJet Dividend Growth
| Dividend Growth (1Y) |
9.09%
|
| Dividend CAGR (5Y) |
24.01%
|
| Years of Growth |
1
|
| Payout Ratio |
18.42%
|
| Buyback Yield |
-0.66%
|
| Shareholder Yield |
2.66%
|
| P/E Ratio (TTM) | 5.89 |
|---|
| Forward P/E | 5.8 |
|---|
| P/FCF | 3.54 |
|---|
| Earnings Yield | 17.35% |
|---|
| FCF Yield | 28.24% |
|---|
| ROE | 15.27% |
|---|
| ROCE | 9.56% |
|---|
| Profit Margin | 4.89% |
|---|
| Operating Margin | 6.96% |
|---|
| Gross Margin | 34.73% |
|---|