|
easyJet PLC may receive a takeover approach from Brookfield Asset Management Inc’s Castelake, the Financial Times reported late Friday. Minneapolis, Minnesota-based Castlelake is majority-owned by New York-based private equity firm Brookfield. Castlelake on Friday said it was in the ‘early stages of considering a possible offer’ for the Luton, Bedforshire-based budget airline, but had not yet approached easyJet’s board, with no certainty that a firm offer will be made. Under UK regulations, it has until June 26 to declare its intention to make a firm offer. Earlier this year, Castlelake held talks concerning a possible offer for US-based Spirit Airlines Inc, though it did not move ahead with a deal. It had previously taken a stake in Scandinavian airline SAS, before selling the position to Air France-KLM SA. Castlelake has around $37 billion in assets under management. The potential deal comes during a turbulent period for easyJet, which in March was relegated to the FTSE250 index from its previous spot in the FTSE100. easyJet last month warned of a wider loss in its first half, due to the spike in fuel prices triggered by the US-Israeli war with Iran. The carrier estimated a headline pretax loss between £540 million and £560 million for the six months to the end of March, compared with a loss of £394 million loss the year prior. easyJet said its underlying first-half result was ‘broadly’ in line with expectations, with revenue and costs in line, excluding around £25 million of additional fuel costs in March linked to the Middle East conflict and a net £30 million rise in legal provisions. The airline also said it is 70% hedged for fuel in the second half, at $706 per metric tonne, with every $100 movement in fuel prices equating to around £40 million costs in the second half of the year. The company maintained that it was well positioned to manage volatility and lower forward visibility, though losses had widened even before Middle East conflict effects began to filter through. In January, easyJet reported a headline pretax loss of £93 million for the three months ended December 31, the first quarter of its financial year which runs to September, stretched from £61 million the year prior, and above £88 million Bloomberg consensus. Back in 2021, easyJet had rejected an unsolicited bid from Budapest-based peer Wizz Air Holdings PLC. easyJet shares closed 0.5% higher at 396.10 pence on Friday in London, but are down 31% over the past year. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
