Susannah Streeter, chief investment strategist at Wealth Club, emphasized Apollo’s strategic focus on EasyJet’s growth potential.
“While the airline has faced pressure from rising fuel costs and ongoing geopolitical instability, it has maintained a resilient European network, a robust financial position, and a rapidly expanding holiday segment. This growth in package holidays is likely a key attraction for Apollo,” she observed.
“The holiday package sector offers higher profit margins and more stable revenue streams compared to standalone airline tickets,” Streeter added.
For travelers, operations will continue uninterrupted as any acquisition undergoes regulatory review, with bookings, flights, and loyalty programs remaining unaffected during the process.
EasyJet clarified that no final agreement exists yet, noting Apollo must decide by 17:00 GMT on August 7 whether to submit a binding offer or withdraw. Meanwhile, Castlelake’s deadline for a firm proposal is August 3.
Apollo’s bid follows Castlelake’s prior approaches to EasyJet, which the airline had rejected after accusing the U.S. firm of attempting acquisition “at a discount.” On Sunday, EasyJet announced preliminary agreement in principle with Castlelake for a £5.2 billion takeover offer.
EU ownership regulations pose a critical challenge, requiring EasyJet to maintain majority European citizen control. Castlelake proposed partnering with EU-based businessmen Peter Bellew and Mark Breen to establish an EU-controlled entity overseeing the airline. Apollo has pledged to “take all necessary steps” to comply with any EU conditions attached to the deal.
Apollo’s offer represents an 81% premium over EasyJet’s share price of £3.94 on May 28, the last trading day before Castlelake’s takeover interest was disclosed. Previously, EasyJet criticized Castlelake’s bids as “highly opportunistic,” arguing its share price had been “temporarily depressed” partly due to the Iran conflict’s impact on global travel markets.