Trading Statement

easyJet PLC
24 September 2001

                 easyJet plc statement relating to US events

The thoughts of everybody at easyJet are with those affected by the tragic
events in the United States a fortnight ago.

These are very early days and all airlines are still learning about the
changed European environment. easyJet is cautious about the trading
environment, but it believes that its business model is robust and able to
operate within whatever security regime is in place in Europe. Furthermore, in
the current environment, easyJet believes that low-cost airlines will be more
resilient than many flag carriers, particularly if the low-cost carriers fly
point-to-point within Europe.

easyJet makes the following observations.

Airline operations in Europe

easyJet believes that aviation within Europe is undergoing a two-phase change
process.

First, there is short-term disruption as airports, airlines and passengers
learn to live with the increased security measures. With the current security
procedures, easyJet flew yesterday's schedule (Sunday) with 83% of its flights
arriving within 15 minutes of the scheduled time.

Second, there will be a new long-term security regime within Europe. As
easyJet can not predict what this will be, it is unable to forecast what
impact it will have on European airlines. However, easyJet believes that
although there may be changes to the way in which passengers are processed
through terminals, the re-engineering of check-in, security and embarkation
processes should not affect aircraft utilisation. However, passenger check-in
times may increase.

Immediate impact on easyJet's operations

For the period prior to the attacks, easyJet had been pleased with its
performance: revenue has been firm, with year-on-year increases in both yield
and load-factor; costs have been on track; and growth has occurred as planned.

Immediately following the attacks, easyJet rigorously applied the UK
Government's increased security levels to all easyJet flights, both in the UK
and elsewhere in Europe. Although not mandatory in countries outside the UK,
easyJet implemented a 'no comply, no fly' policy where, for example, 100%
baggage screening could not be guaranteed. Due to a lack of preparedness at
some airports, some flight cancellations occurred in early days.

The airline is now operating its full flying programme.

On the morning after the attacks, bookings fell by 26%, but quickly recovered
and have grown steadily over recent days. Seat sales have recovered to normal
levels and easyJet expects to report an average seat factor of over 80% for
September.

The profit impact of the attacks notwithstanding, easyJet expects to report a
full-year profit, for the year ended 30 September 2001, that is in line with
market expectations.



Furthermore, as all aircraft deliveries during the financial year occurred as
planned and have been financed by operating leases, cash holdings have
increased.

easyJet expects there will be a softness in yield over the next few months. As
with disruptions in earlier times, easyJet will use promotions to stimulate
sales.

European propensity to travel

easyJet has softened yields and has held a seat sale over the last weekend.
The market has responded well to both initiatives. In the seven days to 23rd
September, easyJet sold 188,089 seats. This compares to an average of 146,467
seats per week over the 26 weeks to 10th September. This has confirmed
easyJet's belief that the leisure traveller in Europe will respond when the
right price is offered.

Also, easyJet believes it is in a strong position to capitalise on the
downsizing of other carriers' networks. Its business model has been built on
high frequency between major cities, creating credible alternatives for the
business traveller. In addition, if the global economy slows, easyJet expects
that business travellers will seek low cost alternatives and will migrate from
the full-fare carriers.

Medium-term to long-term environment

Although easyJet is not in a position to anticipate future developments, there
are some issues that easyJet can comment on.


  * easyJet's belief is that the revised security regime within Europe will
    have minimal impact on its high-utilisation network. The changes primarily
    affect passenger processing within terminals.

  * easyJet flies point-to-point within Europe. easyJet's belief is that
    this sector of the industry will be more robust than other parts of the
    aviation business.

  * If a recession occurs, easyJet believes that travellers will migrate
    from high-cost to low-cost alternatives.

  * As easyJet flies with frequent services on a number of business routes,
    the expected rationalisation of capacity by other carriers will leave
    easyJet well placed.

  * easyJet's risk profile is different from many carriers: easyJet does not
    fly North Atlantic routes.

  * There will be additional costs relating to security and insurance, but
    these will apply to ALL airlines. As a consequence, easyJet's view is that
    these are likely to be passed to the consumer. It should be noted, even at
    the new rates being proposed, insurance costs will still only be less than
    3% of easyJet's operating cost.


    It should be noted that there has been lobbying by UK airlines for the UK
    Government to assist them.

    In easyJet's view this is inappropriate. Governments should not support
    inefficient airlines. Government aid should be confined to the necessary
    provision of war insurance and investment in assets (primarily in
    airports) that may be required to enhance security. easyJet believes that,
    if the industry is to be assisted by Government, a level playing field
    approach would be to abolish Airport Departure Tax.


  *

  * easyJet flies to many major airports. This is an advantage, as they
    typically have the resources and equipment to undertake the new security
    measures. Also, they have a larger number of passengers across which costs
    can be spread.


  * Operating to major airports provides easyJet with an opportunity to gain
    market share as weaker carriers contract services.

  * Although easyJet has previously had a 'no hedging' policy, due to the
    exceptional circumstances now affecting the industry, easyJet has now
    capped its Jet A1 fuel price at a strike price of approximately 95 US
    cents per gallon for 90% of its requirements over the next six months. The
    cost is minimal and it limits down-side exposure.

  * easyJet has three new aircraft deliveries from Boeing during the
    remainder of this calendar year and a further nine during calendar year
    2002. Current planning is for these deliveries to proceed. Operating lease
    financing is in place for the next four aircraft deliveries.

  * easyJet currently plans to take delivery of all 26 of its B737-700s on
    firm order between now and May 2004. Discussions will begin in the New
    Year on delivery dates for an additional 30 aircraft on which easyJet has
    price protection.

  * easyJet has a strong balance sheet. At 31 March 2001, easyJet had £229m
    of cash. This cash holding equates to over seven months of operating
    costs. The cash position has strengthened since March, as the second half
    of the year has been profitable and all new aircraft deliveries have been
    financed via operating leases.

easyJet as a low-cost intra-European carrier

easyJet is genetically engineered to be low-cost and flexible. It believes
that its business model is robust and will able to operate within the
tightened security regime in Europe.

Although global demand will be affected, easyJet believes that low-cost
airlines will be more resilient, particularly if they fly point-to-point
within Europe. In comparison with most flag carriers, the low-cost
point-to-point European airlines should prosper.

The industry will experience some short-term pain, but easyJet expects that
the contraction of the industry is likely to provide a range of unique slot
and airport opportunities. Also, growth opportunities will be aided by the
availability of cheaper aircraft and a larger pool of pilots.

While some other airlines are announcing job losses and fleet capacity
reductions, easyJet looks forward to hiring additional staff to deliver
planned growth.

For further details please contact:
Toby Nicol      +44 - (0)1582 525 339

There will be a conference call for fund managers and analysts at 14.00 BST.
For further details, please contact Catherine Segrave at UBS Warburg on:

[phone].