easyJet has agreed to a €6.6 billion takeover by US private equity firm Apollo Global Management, bringing to an end months of uncertainty over the future ownership of one of Europe’s largest low-cost airlines.
The deal comes after rival bidder Castlelake withdrew from the acquisition process, leaving Apollo’s offer of approximately €8.30 per share unchallenged. The transaction values the airline at around €6.6 billion and is expected to complete by the end of March 2027, subject to shareholder and regulatory approval.
Apollo said it supports easyJet’s existing strategy and does not intend to cut jobs during the first year following completion of the takeover. The investment firm has also committed to retaining the airline’s UK and EU headquarters while backing its long-term expansion plans.
Months-long bidding battle
The agreement marks the conclusion of a takeover saga that began in late May, when Castlelake launched a series of approaches to acquire the airline.
As Travel Tomorrow reported at the time, easyJet rejected Castlelake’s initial offer, describing it as “highly opportunistic” and accusing the US investment company of attempting to acquire the airline “on the cheap”. The carrier argued that its share price had been temporarily depressed by geopolitical tensions affecting travel demand.
Castlelake subsequently improved its proposals and, in early July, reached an agreement in principle with easyJet before Apollo entered the process with a higher bid. Faced with Apollo’s superior offer, Castlelake ultimately chose not to pursue a bidding war.
Founder remains a major shareholder
Under the agreed transaction, easyJet founder Sir Stelios Haji-Ioannou and his family, who own around 15% of the airline, will retain their investment.
“My family and I intend to remain invested as long-term major shareholders of easyJet for the next chapter in the company’s journey,” Sir Stelios said, adding that he supports Apollo’s plans to create further growth.
Shareholders will be able either to sell their shares or transfer part of their holdings into the new ownership structure, while Apollo will own no more than 49.9% of the airline.
To comply with European Union ownership rules governing airlines, an EU Trust will retain up to 5% of the shares, ensuring the carrier remains majority EU-owned. European legislation requires airlines operating within the bloc to remain under the effective ownership and control of EU nationals in order to preserve their traffic rights.
Apollo backs easyJet’s strategy
Apollo said it sees significant opportunities to accelerate easyJet’s commercial and operational ambitions while supporting the airline’s existing management team.
“easyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition, expansive network and strong brand,” said Alex van Hoek, Apollo’s European private equity lead.
The investment firm added that it supports easyJet’s role in enhancing connectivity across Europe and the United Kingdom.
easyJet Chair Stephen Hester said the board had carefully assessed Apollo’s proposal against the airline’s prospects as an independent business.
“While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders,” he said.
Chief Executive Kenton Jarvis welcomed Apollo’s commitment to the airline and its workforce.
“We welcome Apollo’s commitment to our business and our people, and believe that its experience in the aviation sector makes it a strong partner for easyJet as we accelerate our growth plans and continue to deliver great value and service for our customers,” he said.
One of Europe’s largest airlines
Founded in 1995, easyJet has grown into one of Europe’s leading low-cost carriers, employing more than 19,000 people and operating around 1,200 routes across 35 European countries.
The airline has increasingly diversified beyond low-cost flights in recent years through the expansion of easyJet Holidays while continuing to invest in fleet renewal and sustainability initiatives.
Although Apollo has indicated there will be no immediate operational changes, the acquisition still requires approval from shareholders, competition authorities and aviation regulators. The proposed ownership structure has been designed to ensure compliance with EU foreign ownership rules before the transaction is expected to complete by the end of March 2027.
