EasyJet ‘could be sold off to US firm’ amid flight price hikes and fuel crisis | UK | News
Budget airline easyJet could be the target of a cut-rate takeover bid after a turbulent year that saw its share price fall and fuel costs rise. The Luton-based airline is facing increasing pressure as geopolitical tensions continue to drive up the cost of aviation fuel, leading it to hike ticket prices and warn of a major financial hit.
US investment company Castlelake confirmed on Friday (29 May) that it was considering a possible bid for easyJet, but stressed that no formal approach had yet been made to the airline’s board. Under takeover rules, the firm, which manages $36 billion (£27 billion) in assets, has until 5pm on June 26 to decide whether to proceed with the bid. This development comes at a difficult time for easyJet, whose market value has fallen sharply following a prolonged decline in its share price.
Shares have fallen 22.9% since January and have lost 53% in the last five years, leaving the company valued at just £3bn; The smallest of Europe’s five largest airlines. The airline also recently reported a half-year pre-tax loss of £552 million, down from £401 million the previous year, and warned that higher fuel prices could add around £175 million to its costs in the summer.
Iran’s closure of the Strait of Hormuz, a vital shipping route, has caused jet fuel prices to rise more than 80 percent since late February and disrupted nearly 20 percent of the world’s entire oil supply.
Chief Executive Kenton Jarvis said the airline continues to see strong travel demand but acknowledged high operating costs were creating significant challenges to the industry.
The closure of key shipping routes in the Middle East has significantly increased fuel prices, put pressure on airlines across Europe and raised concerns that passengers could face higher fares in the coming months. easyJet has increased the minimum price for its winter 2026/27 flights by “two to three pounds” to claw back some of its costs, but Mr Jarvis insisted fares remain “incredibly attractive” this summer. It also hedged or pre-fixed more than 70% of its fuel needs through September.
Meanwhile, the airline said summer bookings remained below last year’s levels as anxious households put off purchasing flights.
Any potential takeover would face close scrutiny from investors, including easyJet founder Sir Stelios Haji-Ioannou and his family, who are among the airline’s largest shareholders. After founding the airline in 1995, he left the board in 2010 following a row over the company’s future direction. But his family still owns a 15% stake, making them the single largest shareholder group.
Express has contacted easyJet for comment.
