Aviation News – easyJet has agreed in principle to an improved takeover proposal from U.S. investment firm Castlelake, valuing the British low-cost airline at up to £5.5 billion. The proposed acquisition could significantly reshape the European aviation market if the deal proceeds.
The revised offer values easyJet at £6.90 per share, representing a 73% premium over the airline’s closing share price on May 29, when Castlelake first revealed its interest. The investment firm had previously submitted a £4.93 billion proposal, which was rejected by the airline. Following further negotiations, the improved offer has now received agreement in principle, although the transaction remains subject to additional steps before becoming binding. Castlelake has until August 3 to submit a firm offer.
The proposed acquisition marks one of the most significant potential airline deals in Europe this year. Investors reacted positively after Castlelake’s initial interest became public, pushing easyJet’s share price sharply higher. The transaction highlights continued private equity interest in the aviation sector as airlines strengthen their financial positions following years of recovery and growing passenger demand.
If completed, the acquisition would place one of Europe’s largest low-cost carriers under private ownership. Castlelake would gain control of an airline with an extensive European network, while easyJet could benefit from long-term investment outside the pressures of public markets. The move may also influence future competition, fleet investment, and strategic expansion across the region.
A company spokesperson said the improved proposal “reflects the significant value of easyJet and provides an attractive opportunity for shareholders while discussions continue.”
Should the takeover receive regulatory approval and shareholder backing, it could become one of the most notable aviation transactions of 2026. Market observers will closely watch Castlelake’s next steps ahead of the August 3 deadline, as well as any competing interest that may emerge.
The proposed deal underlines growing confidence in the aviation industry’s long-term outlook. While several approvals are still required, the agreement in principle represents a major milestone in the negotiations. If finalised, the acquisition could reshape easyJet’s future strategy and strengthen Castlelake’s presence in the global aviation sector.