Baggage Claim: Apollo’s $7.7 Billion Bid to Acquire easyJet

Apollo Global Management has offered £5.7 billion ($7.7 billion) in cash to acquire easyJet (EJKA), sparking a 46% rally in the airline's shares. The private equity giant is betting European budget aviation is mispriced in a cyclical downturn, not facing structural collapse, despite rising fuel costs and geopolitical headwinds pressuring the sector.

The deal marks one of the largest private equity bids for a European airline and hinges on Apollo's plan to boost profitability through expanded ancillary revenues and growth in easyJet's package holiday division. The acquisition faces an August 7, 2026 regulatory deadline and must clear EU foreign ownership restrictions that limit non-European control of airlines operating intra-EU routes.

The premium reflects Apollo's view that current airline valuations discount a worst-case scenario. EasyJet shares had been trading below pre-pandemic levels before the bid, making it an attractive target for a firm known for opportunistic cyclical plays.