So I assume, reading comments on this thread, that under UK law it is perfectly legit to walk away from a binding contract if you are an airline?
What a lot of folks do not understand is that Reg. 261/04/EU sets minimum standards and offers specific remedies (such as no-fault compensation), but is by no means exclusive or exhaustive when it comes to passenger rights. All other principles of law still apply, such as breach of contract, non-performance etc. Whether airlines can do away with that in their T&C is, again, a question of general contract law, in this case on unfair terms standards. My guess is that what easyJet does in unlawful, but as inly a few passengers will take them to court over this, it will still make them tons of money.