EasyJet's board has formally agreed in principle to a £5.7 billion takeover offer from US investment giant Apollo, withdrawing its recommendation for a previous bid from rival firm Castlelake. The decision marks a significant development in the battle for control of the popular UK low-cost airline, which has been a staple of British air travel for over three decades.
The agreement with Apollo values EasyJet shares at £7.15 each, a notable increase on the £6.90 per share proposed by Castlelake. This initial offer from Castlelake had valued the airline's fully diluted share capital at approximately £5.5 billion. EasyJet’s board stated that Apollo’s offer “delivers a superior outcome” for shareholders due to its higher cash value, leading them to no longer recommend the Castlelake proposal.
Apollo's bid, which will be financed through a combination of equity and debt, reportedly includes commitments to EasyJet's existing staff and the preservation of its brand, with no current intentions for significant operational changes. Apollo now has until August 7, 2026, to formalise its offer, a crucial deadline for the deal's progression.
EasyJet, founded by Sir Stelios Haji-Ioannou in 1995, revolutionised budget air travel in the UK with its inaugural flight from Luton to Glasgow. The airline, which floated on the London Stock Exchange in November 2000 with an initial valuation of £777 million, has grown into one of Europe's largest carriers. In the year to September 2025, EasyJet carried 93.4 million passengers across nearly 576,000 flights, operating 1,207 routes to 164 airports in 38 countries.
The airline's extensive network serves around 20 UK airports, facilitating travel for approximately 50 million passengers annually. Its model of affordable airfares, originally advertised as comparable to the price of a pair of jeans, opened up foreign holiday destinations to millions of British travellers, fundamentally changing the landscape of European tourism.