EasyJet Board Shifts to Apollo's £5.7 Billion Bid Over Castlelake

EasyJet shareholders now face a higher cash offer from Apollo Global Management that values the airline at £5.7 billion, or £7.15 per share, after the board withdrew its earlier support for a lower proposal from Castlelake. The shift came on 10 July 2026 when EasyJet stated that Apollo's terms deliver superior value and an attractive mix of strategic alignment and long-term stewardship. Shares rose between 13 and 15 percent on the London market that day, closing near 673 pence.

The sequence began when Castlelake raised its cash bid five times to £6.90 per share, or roughly £5.2-5.5 billion, prompting EasyJet to agree in principle the previous weekend. Apollo then entered with the improved all-cash price plus a stub-equity option that would let existing holders retain voting rights in the post-deal vehicle. EasyJet set Apollo a deadline of 17:00 on 7 August to table a firm offer; Castlelake must act by 3 August or withdraw.

Founder Stelios Haji-Ioannou and his family hold about 15 percent of the shares and would receive roughly £855 million if they accept the Apollo price. Apollo has said it will keep the existing brand-licence agreement that pays royalties to Haji-Ioannou and will back current strategy, including fleet renewal and growth of the holidays business. Both bidders have pledged to satisfy EU rules that require majority ownership by European citizens; Castlelake has already named two Irish partners, while Apollo stated it will take all necessary steps.

The contest occurs against a backdrop of rising fuel costs linked to the U.S.-Iran conflict and wider industry pressure. EasyJet reported a widened pre-tax loss of £552 million for the first half of 2026. Analysts at Bernstein noted that the Apollo price would require stronger cost cuts and earnings growth than currently forecast. For passengers and staff the immediate position remains unchanged while regulatory review proceeds.