EasyJet agrees to surprise takeover bid as rival US firm swoops in

Image source, Getty ImagesByNick EdserBusiness reporter Published10 July 2026, 07:30 BSTUpdated 2 hours agoNo-frills airline EasyJet says it has agreed in principle to a £5.7bn takeover proposal from US firm Apollo Global Management - just days after accepting an offer from a rival suitor.

The carrier said Apollo's offer delivered "a superior outcome" to investors than the previous bid from US investment firm Castlelake that EasyJet had also agreed to in principle at the weekend.

EasyJet is one of Europe's largest airlines. It employs more than 19,000 people, and flies around 1,200 routes across 35 European countries.

It was founded by Sir Stelios Haji-Ioannou in 1995 to offer cheap air fares to Europe and, together with other carriers such as Ryanair, has transformed UK air travel.

Its first flights took off in November 1995 flying from Luton to Glasgow and Edinburgh, with its first international flights the following year.

Sir Stelios and the Haji-Ioannou family still own about a 15% stake in the airline.

EasyJet said Apollo's offer was worth £7.15 per share, compared with the £6.90 per share proposal from Castlelake which it said it was now "no longer minded" to accept. Castlelake declined to comment on the latest move.

Analysts say EasyJet is an attractive target as it is profitable, has a large fleet of aircraft, and has take-off and landing slots at major airports such as Gatwick and Paris Charles de Gaulle. The most popular slots can be worth tens of millions of pounds when traded between airlines.

Susannah Streeter, chief investment strategist at Wealth Club, said Apollo was focusing on EasyJet's potential.

"While the carrier has been buffeted recently by higher fuel costs and geopolitical turbulence, it has built a resilient European network, a strong balance sheet and, crucially, a fast-growing holidays business. That's likely to be one of Apollo's biggest attractions."

"Package holidays generate higher margins and more predictable revenues than airline tickets alone," she added.

"For passengers, it's very much business as usual for now, with flights, bookings and loyalty schemes unaffected while any deal works its way through the regulatory process."