EasyJet is expected to be acquired by US-based private equity firm Apollo for 715p per share, with the deal likely to be completed in early 2027. This acquisition follows a period of significant pressure on the airline industry.
The sector has faced multiple challenges, including the Covid pandemic, Russia’s invasion of Ukraine, and the US/Israeli conflict with Iran. The latter led to the closure of the Strait of Hormuz, contributing to increased jet fuel costs and global inflation.
Lale Akoner, a global market strategist at eToro, stated that high oil prices are making the coming winter a "stress test for airlines." She noted that rising fuel and labour costs, combined with geopolitical disruption and household budget pressures, make it difficult for airlines to pass on these expenses through higher fares.
The International Air Transport Association warned in June that global airline profits are projected to halve in 2026 due to increased fuel costs. The NYSE Arca Airline Index, which tracks US-listed airlines, declined by 11.9% in 2026 up to 10 September, while the STOXX Europe Total Market Airlines Index, comprising European-listed airlines, fell by 12.8% over the same period.