EasyJet shares reached a 52-week high on Monday.
The budget airline has agreed in principle to a revised takeover offer from the US private equity firm Castlelake.
In pre-market trading Monday, shares of the British low-cost carrier surged after it agreed in principle to a £5.5 billion (approximately $7.3 billion) takeover proposal from the US private equity management company Castlelake.
Shortly after 8:15 a.m. London time (3:15 a.m. ET), the airline's stock jumped 10.5%, hitting a new 52-week peak.
The agreement on Castlelake's improved plan to take the company private was reached Sunday, following the airline's rejection last month of the private equity firm's £4.93 billion proposal. Castlelake has made a total of five offers for EasyJet.
The new proposal equates to a cash offer of $6.90 per share. Castlelake now has until August 3 to either make a formal offer or walk away from the deal.
This takeover bid comes at a time of global pressure on the aviation industry, with airlines grappling with tight supplies of jet fuel due to conflicts in the Middle East. The International Air Transport Association warned last month that global airline profits could halve this year due to rising jet fuel costs, which are forecast to be up approximately 70% year-on-year.
In its latest half-year results released on May 21, EasyJet reported a pre-tax loss of £552 million for the six months ended March 31, despite a 12% jump in half-year revenue to £4 billion, while also warning of rising ticket prices and a slowdown in booking momentum.
In a joint statement on Sunday, EasyJet and Castlelake said: "During their discussions, Castlelake has emphasized its great respect for EasyJet and its employees and has indicated its intention, should the transaction proceed, to support EasyJet's future growth and transformation into a stronger, more resilient European airline for the benefit of all stakeholders."
"Castlelake supports EasyJet's fleet modernization plan as critical to the company's long-term competitiveness, efficiency, and sustainability goals."