easyJet Agrees in Principle to £5.23 Billion Castlelake Takeover Offer

easyJet has agreed in principle to a takeover proposal from private credit firm Castlelake that values the UK low-cost airline at approximately £5.23 billion, according to a Reuters report.

Castlelake’s latest offer of £6.90 per share is its fifth and highest bid since first approaching easyJet on May 29. The Minneapolis-based investment firm initially offered 560 pence per share before steadily increasing its proposal to 690 pence. The final offer represents a premium of roughly 20% compared with easyJet’s closing share price of 558.2 pence on Friday.

The companies have also agreed to extend the "put up or shut up" deadline to 5:00 p.m. London time on August 3, giving Castlelake additional time to finalize a formal offer, according to Bloomberg, citing a joint statement.

Castlelake is working alongside aviation executives Mark Breen and former easyJet executive Peter Bellew, who left the airline in 2022. The investment firm said it plans to back easyJet’s long-term growth strategy, including continued fleet modernization and operational expansion.

EasyJet remains one of Europe’s leading budget airlines, operating a modern Airbus A320-family fleet and holding valuable airport slots at major hubs including London, Milan, and Geneva. These strategic assets have made the airline an attractive acquisition target despite recent financial challenges.

The carrier’s first-half fiscal 2026 earnings highlighted ongoing pressure on profitability. EasyJet reported earnings per share of negative £0.501, falling short of analysts’ expectations of negative £0.4345 by more than 15%. Higher jet fuel prices linked to geopolitical tensions involving Iran, combined with weaker summer travel bookings, weighed on margins during the period.

The Haji-Ioannou family, founded by easyJet founder Stelios Haji-Ioannou, remains the airline’s largest shareholder with a 15.3% ownership stake. Investors will now closely watch whether Castlelake submits a binding offer before the extended August 3 deadline, as the proposed acquisition could reshape the future of one of Europe’s best-known low-cost carriers.