EasyJet shares soar 10% as budget airline agrees to $7.3 billion Castlelake takeover

EasyJet (EJSA) shares jumped 10% Monday after the U.K. budget airline agreed in principle to a £5.5 billion ($7.3 billion) takeover offer from U.S. private equity firm Castlelake. The deal values one of Europe's largest low-cost carriers at a significant premium, marking Castlelake's largest European aviation acquisition to date.

The agreement follows months of pressure on European budget carriers navigating elevated fuel costs and uneven travel demand. EasyJet operates over 300 aircraft across more than 30 countries, making it the second-largest budget airline in Europe by fleet size. Castlelake, which manages approximately $20 billion in assets focused on aviation and transport infrastructure, sees the acquisition as a bet on continued recovery in European leisure travel.

The takeover remains subject to shareholder approval and regulatory clearance. EasyJet's board has unanimously recommended the offer, which represents a substantial premium to the carrier's recent trading levels. The deal would take the publicly traded airline private, removing it from the London Stock Exchange.