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EasyJet shares jumped on Monday after the British low-cost airline said it had reached an agreement in principle with US investment firm Castlelake on the key financial terms of a potential takeover valuing the carrier at more than £5 billion (€5.84bn).
This follows a month of successively higher proposals from Castlelake and negotiations between the two companies.
However, Castlelake has not yet made a legally binding firm offer.
In a statement released on Sunday, easyJet said its board and Castlelake had agreed on the price and key financial terms of a potential takeover.
The latest proposal, Castlelake’s fifth, was submitted to easyJet’s board on 4 July 2026 and values easyJet at £6.90 per share in cash. Castlelake is seeking “to acquire the entire issued and to be issued ordinary share capital of easyJet not already held by Castlelake for £6.90 per share in cash, including a partial unlisted share alternative”.
EasyJet shares were trading at around £6.19 at 10.30 CEST on Monday, up more than 10%.
The airline’s board said it would be minded to recommend an offer to shareholders at that price if Castlelake announces a firm intention to make an offer and the remaining terms and conditions are agreed.
The development follows a series of approaches from Castlelake. easyJet had previously rejected several proposals, including an offer of £6.25 per share.
Castlelake first publicly confirmed at the end of May that it was considering a possible offer for easyJet. The airline responded on 1 June, saying its board had not held discussions with Castlelake and had received no approach or proposal at that stage, indicating that the process began as an unsolicited expression of interest.
The potential takeover comes at a challenging time for the aviation industry, which is facing higher jet fuel costs.
A change in ownership could also raise questions about easyJet’s future strategy, employment and ticket prices.
According to the statement, “Castlelake has emphasised its tremendous respect for easyJet and its people, along with its intention to support its future growth and transformation to a stronger, more resilient European airline for the benefit of all stakeholders if the transaction proceeds to completion”. The investment firm added that it supported easyJet’s fleet modernisation programme, which “it regards as central to the Company’s long-term competitiveness, efficiency and sustainability objectives”.
The possible offer remains subject to several pre-conditions, including satisfactory due diligence and agreement on definitive transaction documentation.
Castlelake now has until 5 pm on Monday, 3 August 2026, to either announce a firm intention to make an offer for easyJet or confirm that it does not intend to proceed.
Castlelake has also confirmed that it would agree to a “best endeavours” commitment in any cooperation agreement to obtain the regulatory clearances and approvals required to complete the transaction.