EasyJet shares rose more than 13% after Apollo Global Management tabled a new $7.7 billion takeover offer for the British low-cost airline, intensifying a private equity bidding battle for the carrier.
The US investor said it had offered 7.15 pounds, or $9.61, in cash for each EasyJet share, valuing the company at about 5.7 billion pounds, or $7.66 billion. EasyJet said the proposal offered shareholders a more attractive value than rival bidder Castlelake’s offer.
The airline said Apollo’s proposal provided an appealing mix of value, strategic fit and long-term management of the business. Apollo also offered shareholders an alternative to cash, allowing them to roll their existing shares into a new structure set up for its EasyJet investment and remain indirect investors in the company.
The approach comes as private equity firms compete for one of Europe’s best-known budget airlines at a time of rising costs across the global aviation industry. EasyJet has been under pressure from higher fuel prices and weaker demand linked to tensions in the Middle East, which it said had affected its outlook.
EasyJet said earlier this week that it had made a pre-tax loss of 552 million pounds in the first half of 2026, widening from 394 million pounds in the same period a year earlier. Bernstein analysts said an Apollo deal could support EasyJet’s growth plans, but warned the price would need substantial cost savings and stronger profitability to make economic sense.
Castlelake, which had been considering its own approach for EasyJet, had offered $6.90 per share and was given until 3 August to submit a final bid. EasyJet’s board said it was no longer inclined to support that proposal after Apollo’s higher offer.
Apollo’s bid is about 22% above EasyJet’s closing price on Thursday. It also values the airline around 81% above the 28 May closing price, before Castlelake’s interest became public.
EasyJet shares closed Thursday at 5.88 pounds and rose to as high as 677 pence in Friday trading, a gain of about 15%. The stock is up roughly 15% so far this year.
The takeover contest is taking place against a wider backdrop of pressure on airline earnings. Fuel costs have risen across the sector, and carriers are facing uncertainty over demand and supply chains after the conflict involving the United States and Iran tightened jet fuel supply.
