US investment firm sets sights on easyJet

A US investment firm previously involved with Virgin Atlantic and SAS has revealed an interest in easyJet.

 

Minneapolis-based Castlelake confirmed on Friday that it was in “the early stages of considering a possible offer” for the UK budget carrier.

 

However, the firm added: “No approach has been made to the board of easyJet. There can be no certainty that any offer will be made, nor as to the terms of any offer.”

 

Under City takeover rules, Castlelake has until 5pm on June 26 to either announce a firm intention to make an offer or walk away.

 

“A further announcement will be made as and when appropriate,” Castlelake added.

 

Castlelake subsequently revealed that it holds 2.14% of easyJet’s issued ordinary share capital and it would be required to make an offer at no less than 403.23 pence per share.

 

In response, easyJet said it “notes the announcement made by Castlelake on Friday, 29 May 2026, that it is in the early stages of considering a possible offer for easyJet.

 

“The board of easyJet has not had any discussions with, nor received any approach or proposal from Castlelake.

 

“The board is clear in its duty of aiming to maximise shareholder value and will consider any proposal, should one be made. In any assessment, the board will be especially mindful of its valuation and deliverability.”

 

The airline added that the board “notes the highly opportunistic timing when easyJet’s share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices”.

 

It also pointed out the “considerable regulatory, financial and other execution challenges associated with a potential takeover of easyJet”.

 

The statement to the London Stock Exchange added: “EasyJet is in a position of strength, underpinned by an investment grade balance sheet with a net cash position, alongside strong customer satisfaction and high employee engagement. 

 

“The board remains highly confident in easyJet’s strategy and its ability to deliver attractive long-term value for shareholders. The company remains focused on executing its medium-term target of delivering greater than £1 billion profit before tax.

 

“There can be no certainty that an offer will be made, nor as to the terms on which any offer might be made.”

 

Castlelake, described as a global alternative investment manager with more than 20 years of experience in aircraft investing, leasing and servicing, provided a loan to Virgin Atlantic in January 2025 secured by $400 million in assets, including one Airbus A350-1000 aircraft and nine Rolls Royce Trent engines.

 

Chris Buckley, partner and aviation chief commercial officer, said at the time: “As the airline industry continues to see increased demand, Castlelake looks forward to remaining an active investor and providing attractive capital solutions to businesses across the sector.

 

“We are pleased to grow our partnership with Virgin Atlantic and provide financing options to support their continued momentum.” 

 

Castlelake agreed to sell a stake in SAS to Air France-KLM last July after it helped bring the Scandinavian carrier out of Chapter 11 bankruptcy protection as part of a consortium.

 

Since its inception in 2005, Castlelake has invested more than $21 billion in “aviation opportunities”, acquired more than 650 aircraft and developed relationships with 200 airlines. 

 

Castlelake secured a $1 billion long-term aviation financing facility in 2024 to support a “continued investment in and acquisition of in-demand aviation assets”.

 

The easyJet group reported a pre-tax loss of £552 million in the half-year to March 31 compared to a headline loss of £394 million the previous winter as it faced £25 million in unexpected extra fuel costs triggered by the Middle East conflict.   

 

EasyJet discounted selected peak summer flights by 15% for five days from 8am on May 29 until 8am on June 3 to give lead-in single fares of £19.99.

 

In-house tour operator easyJet holidays is offering £50 off packages departing before July 31 and £20 from city breaks departing before August 31 as part of the promotion.