EasyJet shareholders back £.5.7bil US takeover
EasyJet shareholders on Wednesday overwhelmingly backed a takeover by US private equity firm Apollo, as the British airline’s boss insisted its fares would remain “affordable” amid soaring fuel costs.
A total 97 % of voting shareholders were in favour of the £5.7-billion (US$7.6-billion) takeover, no-frills carrier EasyJet said in a statement.
The takeover, which the companies hope to finalise in early 2027, must still be approved by regulators.
Speaking following Wednesday’s vote, EasyJet chief executive Kenton Jarvis told an industry event in London: “When we think about our strategy and our purpose of making low-cost travel easy, affordable and accessible for as many people as possible, then that will remain the purpose of EasyJet.
“Our customers expect good value,” he added.
Apollo had been in a bidding war with US investment group Castlelake earlier this year for EasyJet, which flies mainly across Europe.
EasyJet’s latest earnings show its profit tumbled in its third quarter as the Middle East war sent jet fuel prices surging.
Profit before tax slumped 70 percent to £85 million in the three months to the end of June, compared to one year earlier.
The airline publishes its full-year results later this month.
Speaking also at Airlines 2026, Wednesday’s industry event, Britain’s transport minister Heidi Alexander said “airlines are facing arguably the most challenging year since the pandemic”.
The Middle East conflict has massively pushed up the cost of jet fuel, hurting carriers even if many secured plenty of their kerosene before the start of the US-Iran war when prices were much lower.
EasyJet rival Ryanair last week said it would launch a cost-cutting drive and hike fares next year to help offset the impact of soaring jet fuel prices.
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