EasyJet is set to be acquired by US private equity firm Apollo in a £5.7 billion takeover, winning the backing of the airline’s founder, Sir Stelios Haji-Ioannou. The entrepreneur, who launched easyJet in 1995 and took it public on the London Stock Exchange in 2000, confirmed he will support the deal and retain a long-term investment by rolling over his £900 million stake into the new ownership structure.

This development comes after rival bidder Castlelake, a Minneapolis-based investment firm, withdrew from the competitive process. Castlelake initially made several offers to acquire EasyJet, including a £5.2 billion proposal in July. Despite a bidding war that pushed easyJet’s share prices to their highest levels since the pandemic, all of Castlelake’s offers were ultimately rejected by the airline, which described the bids as “opportunistic” and undervaluing the company.

EasyJet’s chief executive, Kenton Jarvis, highlighted Apollo’s aviation sector expertise as a key factor in selecting the firm as a partner, expressing confidence that the deal would foster new growth opportunities. Sir Stelios echoed this optimism, stating the acquisition “aims to create more growth” for the airline following a challenging period that saw its shares fall below £4—a low attributed largely to rising fuel costs amid geopolitical tensions in the Middle East.

Sir Stelios and his family, who previously held a 34 percent stake, currently own 15 percent of the carrier. He noted that the success of the easyJet brand, alongside other “easy” ventures such as hotels and gyms, has provided a steady income stream for his philanthropic activities through the Stelios Philanthropic Foundation.

Meanwhile, the broader airline industry continues to face significant headwinds. Wizz Air, another London-listed low-cost carrier, reported a €198 million loss for the quarter ending in June, a sharp reversal from a €38.4 million profit in the same period last year. The company cited surging jet fuel prices—up 31.5 percent on average and resulting in a 39 percent increase in fuel costs—as a primary driver of the downturn. Despite a 25.1 percent increase in passenger numbers to 21.2 million and a 5.5 percent rise in total revenue to €1.5 billion, Wizz Air’s revenue per available seat kilometre fell by 8.1 percent amid volatile market conditions linked to the ongoing conflict in the Middle East.

The EasyJet acquisition marks a significant shift for the carrier as it aims to navigate the complex economic environment and position itself for future expansion under new private ownership.