A US investment firm is on the verge of buying easyJet, Britain's biggest low-cost airline, for roughly £5.2 billion. After rejecting four earlier approaches, the airline's board has agreed in principle to an offer of £6.90 per share from Castlelake, a private equity firm based in Minneapolis, Minnesota. The deal would take Luton-based easyJet private, meaning its shares would no longer trade on the London Stock Exchange. But the takeover is not yet certain: Castlelake must secure regulatory approvals, including compliance with an EU rule requiring European airlines to be majority-owned by European investors. The firm has until 3 August 2026 to make a firm offer or walk away.
EasyJet was founded in 1995 by Stelios Haji-Ioannou and has grown into one of Europe's largest airlines, flying around 1,200 routes across 35 European countries and employing more than 19,000 people. It had been considered vulnerable to a takeover after issuing two profit warnings in spring 2026 and seeing its share price fall by more than 30% in the previous year, partly because the US-Israel war with Iran hurt travel demand and pushed up fuel costs. Castlelake, which manages $36bn (£27.3bn) in assets, already owned a small 2.14% stake in easyJet through its funds. The firm specialises in asset-based lending and leasing planes to airlines, leading some analysts to speculate it could combine easyJet's fleet with its leasing business or spin off the airline's holidays arm.
“Explains the proposed Castlelake takeover of easyJet, the regulatory hurdles, and what it means for UK travellers.”
For UK readers, this takeover matters for several reasons. First, if it goes through, one of Britain's most recognisable brands would be owned by a foreign private equity company, raising questions about jobs, fares, and the airline's long-term strategy. The parties have not yet detailed plans for easyJet's 19,000 employees. Second, the deal highlights a trend of British companies leaving the London stock market: easyJet would join a growing list of blue-chip firms that have announced plans to quit the London Stock Exchange. Third, the regulatory hurdle is unique to European aviation: under EU rules, an EU airline must be more than 50% owned by EU nationals. Castlelake is a US firm, so it must find a way to comply—possibly by keeping a European majority shareholder structure. The European Commission and UK authorities (easyJet is a European company even after Brexit) will have to approve the arrangement.
Q: Will easyJet still fly from UK airports after the takeover? Yes. EasyJet is based at Luton Airport and operates across Europe. The takeover would not change its operating licence or routes immediately. Any future decisions about bases or job cuts would depend on Castlelake's plans, which have not been announced.
Q: Why does easyJet have to be majority-owned by Europeans? EU regulations require that European airlines be owned and controlled by EU nationals. This rule aims to protect the single aviation market from foreign takeovers that might affect traffic rights. Even though the UK has left the EU, easyJet holds an EU operating licence and must comply to keep flying within Europe.
Q: Will my easyJet flights be affected? Not in the short term. The takeover process could take months, and flights will continue as normal. If the deal closes, Castlelake has said it supports easyJet's "future growth and transformation" but has given no details on fares, routes, or service changes.
What happens next: Castlelake has until 17:00 BST on 3 August 2026 to announce a firm intention to make an offer or to say it will not. If it makes a firm offer, easyJet shareholders (including founder Stelios Haji-Ioannou, who holds more than 15%) will vote on it. The company must also secure regulatory clearances from EU and possibly UK authorities. If the deal fails, easyJet will remain a listed company and could face further takeover attempts.