British low-cost carrier easyJet announced on Sunday that it has agreed in principle to a takeover offer from US private equity firm Castlelake at 690 pence per share, valuing the 31-year-old airline at approximately 5.5 billion pounds (around 7.3 billion US dollars). Following the news, easyJet shares surged over 10% in early Monday trading, hitting a new 52-week high.

The acquisition process involved multiple rounds of negotiation. Since Castlelake first approached easyJet on May 29th, it has raised its offer five times, gradually increasing from an initial 560 pence per share to the current 690 pence, representing a premium of up to 73% compared to the price when the initial interest was disclosed. easyJet had previously rejected proposals of 625 pence and 650 pence per share, citing them as "highly opportunistic."

This deal arrives at a time when the global aviation industry is facing significant headwinds. Impacted by the Middle East conflict, jet fuel prices have risen sharply. easyJet reported a pre-tax loss of 552 million pounds for the first half of its 2026 fiscal year, and its share price had fallen as much as 35% from its peak earlier in the year. Analysts note that the depressed share price provided Castlelake with a window for a lower-cost acquisition. easyJet possesses a modern fleet of Airbus A320 aircraft and valuable take-off and landing slots at major European airports such as London Gatwick, Paris Charles de Gaulle, Milan, and Geneva. Its holiday business, easyJet Holidays, has also shown rapid growth in recent years.

To comply with EU regulations requiring airlines to be majority-owned and controlled by nationals of EU member states, Castlelake plans to hold only a 49% stake in the acquisition vehicle. The remaining 51% will be held by two EU-based aviation executives, including Peter Bellew, the former Chief Operating Officer of easyJet. In a statement, Castlelake expressed support for easyJet's fleet modernization plans and a commitment to driving the company's long-term growth.

Castlelake must submit a formal offer or walk away from the deal by August 3rd. The board of easyJet has indicated it is willing to recommend the offer to shareholders. If the transaction is finalized, it would become one of the largest privatization deals in the European aviation sector in recent years.