easyJet has agreed to a £5.7 billion takeover by U.S. private equity firm Apollo Global Management, setting up one of the biggest changes in the airline’s 30-year history and potentially taking one of Europe’s best-known low-cost carriers off the public market.
The recommended cash deal values easyJet shares at £7.15 each and is expected to close by the end of the first quarter of 2027, subject to shareholder and regulatory approvals. Rival bidder Castlelake withdrew from the contest after deciding not to improve its competing proposal, clearing the way for Apollo.
easyJet’s board said Apollo’s offer provides attractive and certain value for shareholders while giving the airline a partner with extensive aviation experience. Apollo manages more than $1 trillion in assets and has investments connected to Aeromexico, Sun Country Airlines and Atlas Air. It has also provided financing to Air France-KLM and Virgin Atlantic.
The ownership structure will be more complicated than a conventional private equity takeover because European and UK airline rules restrict foreign control. Apollo’s stake will therefore be capped at 49.9%, while an EU trust can hold up to 5%. Founder Stelios Haji-Ioannou and his family, who own roughly 15% of easyJet, plan to remain invested through the new holding company.
The family’s continued involvement is significant. Haji-Ioannou founded easyJet in 1995 as a no-frills challenger to traditional European airlines. Its first routes connected London Luton with Glasgow and Edinburgh, followed by international services to Amsterdam, Nice and Barcelona in 1996. The airline has since grown into one of Europe’s largest carriers, operating more than 300 aircraft and employing over 19,000 people.
Apollo has indicated that easyJet’s headquarters will remain in Luton. The buyer has also promised not to cut jobs for at least a year, offering some short-term reassurance to employees as the airline prepares for the ownership transition.
The deal arrives at a challenging time for European aviation. easyJet recently reported a sharp fall in quarterly profit as conflict in the Middle East pushed jet fuel costs higher. Profit before tax fell 70% year over year to £85 million during the April-to-June quarter.
Despite that pressure, Apollo is betting on easyJet’s network, airport positions and established position in European leisure travel. CEO Kenton Jarvis described Apollo as a strong partner with relevant aviation experience, while Apollo said it sees easyJet as one of the most attractive businesses in global aviation.
If completed, the transaction will end easyJet’s decades as an independently listed airline while keeping its founding family involved. The bigger question will be whether private ownership gives easyJet more flexibility to invest and grow without changing the low-cost model that made the orange airline one of Europe’s most recognizable travel brands.
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