Low-cost carrier easyJet is set to leave the London Stock Exchange after accepting a £5.7bn takeover offer from US investment giant Apollo. But what will the deal mean for the airline, its passengers and thousands of cabin crew and other employees?
London Luton-based easyJet has agreed to a £5.7bn takeover by US investment group Apollo, bringing the curtain down on a closely fought battle for control of one of Europe’s largest low-cost airlines.
Under the recommended deal, announced on August 6, 2026, easyJet shareholders will be offered £7.15 in cash for each share they own. The price represents an 81% premium over the airline’s closing share price of £3.94 on May 28, immediately before takeover interest became public.
The acquisition will be made through Eagle Bidco Ltd, a company indirectly owned by investment funds managed by Apollo. easyJet’s board has unanimously recommended the cash offer, describing it as providing “immediate, certain and attractive value” for shareholders.
However, the takeover has not yet been completed. It remains subject to shareholder approval, court sanction and a lengthy list of aviation, competition and foreign-investment clearances. Completion is currently expected by the end of March 2027.
If approved, easyJet will be removed from the London Stock Exchange and re-registered as a private company, ending more than 25 years as a publicly traded business.
From Rejected Bids to a Takeover Battle
The deal follows several months of approaches from rival US investment manager Castlelake.
According to easyJet’s published takeover timeline, the airline rejected Castlelake’s first three proposals during May and June 2026. A fourth offer of £6.50 per share was rejected on June 25 because the board believed it continued to undervalue the carrier.
However, easyJet agreed to provide Castlelake with limited access to commercial information, opening the door to further discussions. Castlelake returned with a fifth proposal on July 4, offering £6.90 per share and valuing the airline at approximately £5.5bn.
The easyJet board initially indicated that it was prepared to recommend that proposal. Just three days later, however, Apollo entered the contest with its higher offer of £7.15 per share.
easyJet switched its support to Apollo on July 10, setting up a potential bidding war between two major US investors. Both firms were eventually given until August 7 to make binding offers or withdraw.
Castlelake ended the contest a day before the deadline, announcing that, “following careful consideration”, it would not proceed. The company did not explain its decision.
Apollo subsequently confirmed its firm offer, which is £200m higher than Castlelake’s abandoned proposal.
Why Does Apollo Want easyJet?
Apollo is one of the world’s largest alternative asset managers, with approximately $1.05trn under management as of June 30, 2026. It is also far from being a stranger to aviation.
Its previous investments have included Sun Country Airlines, Aeromexico, Atlas Air Worldwide, Swissport and Barnes Aerospace. Apollo has also provided financing to airlines including Air France-KLM, Virgin Atlantic, SAS and LATAM.
easyJet offers the investor a ready-made pan-European airline with an established brand, valuable slots at capacity-constrained airports and significant opportunities for further growth.
As of March 31, 2026, the carrier operated 356 aircraft. It serves 165 airports in 37 countries across 1,267 routes and carries more than 100 million passengers annually.
Apollo has also been attracted by the development of easyJet holidays, which launched in 2019 and has become an increasingly important and profitable part of the wider business.
In its formal takeover announcement, Apollo said private ownership would give easyJet greater access to capital and allow its management to make longer-term investments without the pressure of public-market reporting.
Potential areas for development include continuing the airline’s fleet renewal and move towards larger aircraft, improving ancillary revenues and loyalty products, optimising the route network and expanding easyJet holidays.
Apollo has also raised the possibility of introducing more premium and business-orientated products on selected routes, alongside new distribution partnerships, interline agreements and codeshares with other airlines.
easyJet CEO Kenton Jarvis welcomed Apollo’s commitment “to our business and our people”, adding that its aviation experience would make it a strong partner as the airline accelerates its growth plans.
What Could The Takeover Mean for easyJet Staff?
Apollo has said it does not intend to make any headcount reductions during the first 12 months following completion that would be material in the context of the wider easyJet Group.
The investor intends to retain key employees and work with the airline’s workforce and employee representative bodies during the transition. It has also said that existing contractual and statutory employment rights, terms and conditions and pension rights will be safeguarded in accordance with the law.
No changes are currently planned to the location or functions of easyJet’s UK headquarters or to its airline operating businesses and Air Operator Certificates in the UK, Austria and Switzerland. The carrier is expected to continue operating as a standalone company within Apollo’s wider investment portfolio.
However, Apollo acknowledged that a limited number of head-office positions connected with easyJet’s status as a publicly listed company could become unnecessary or be reduced after delisting.
The takeover document also makes clear that Apollo intends to conduct a detailed review of easyJet and its existing strategy during the first 12 months of ownership. Its statements concerning employment, locations and future strategy are described as intentions rather than formal post-offer undertakings under the UK Takeover Code.
Each of easyJet’s non-executive directors, including chairman Sir Stephen Hester, is expected to resign once the transaction becomes effective.
Stelios Backs Apollo But Keeps His Investment
Crucially, the takeover has received the support of easyJet founder Sir Stelios Haji-Ioannou and his family, who collectively control approximately 15.31% of the airline.
Rather than selling their entire holding for cash, the Haji-Ioannou family has committed to exchanging almost all its easyJet shares for unlisted shares in the new private holding company.
“Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition,” Sir Stelios said in a separate statement.
He added that the family intends to remain a long-term major shareholder during the next chapter of easyJet’s development.
The easyJet name will also remain in place. The brand belongs to Sir Stelios’ easyGroup rather than the airline itself, and Apollo has said it will retain the existing licensing agreement without alteration.
A Complicated Ownership Structure
One of the most significant hurdles facing the acquisition is the need to comply with European airline ownership and control rules.
easyJet operates through airlines registered in the UK, Austria and Switzerland. Its ability to operate services within the European Union depends upon easyJet Europe remaining majority-owned and effectively controlled by qualifying European interests.
The proposed structure would limit Apollo’s funds to a maximum of 49.9% of the new holding company. Existing shareholders choosing to remain invested, including the Haji-Ioannou family, are expected to hold between 45.1% and 49.9%, while an EU management trust would hold up to 5%.
The UK Civil Aviation Authority has already been engaging with the parties, while approval may also be required from aviation and competition regulators across several European markets.
This regulatory uncertainty helps explain why easyJet shares closed at £6.70 on August 6—below Apollo’s £7.15 offer price—despite gaining 2.7% following confirmation of the deal, according to Reuters.
For easyJet’s passengers and crews, nothing changes immediately. Flights, holidays and the airline’s day-to-day operations will continue as normal while the approval process runs its course.
But if the transaction clears its remaining hurdles, easyJet will enter one of the most significant chapters in its history: privately owned, backed by one of the world’s largest investment groups and no longer answerable to the public markets that helped finance its transformation from a small Luton-based airline into a major European carrier.
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