EasyJet faces £5.7bn Apollo takeover and profit plunge

EasyJet is undergoing significant financial and structural shifts as US investment firm Apollo Global Management pursues a £5.7 billion takeover. The deal, which values the airline at approximately £7 per share, aims to transition EasyJet from a traditional low-cost carrier toward a more conventional airline model. This strategy includes fleet renewal with larger aircraft and potential commercial partnerships with carriers like Virgin Atlantic to offer long-haul connections.

The takeover faces regulatory scrutiny, as Apollo may limit its stake to 49.9% to comply with EU rules requiring majority European ownership. Additionally, Moody's has placed EasyJet's Baa2 credit rating under review, warning that the acquisition could significantly increase the company's debt burden.

Financially, EasyJet has recently faced pressure from soaring jet fuel costs, which contributed to a 70% plunge in second-quarter pre-tax profits to £85 million. Amidst this volatility, the airline is also implementing digital transformations, such as the eHandshake platform, to optimize fuel ordering and reduce CO2 emissions.