A month after Spirit Airlines‘ collapse, the global budget carrier industry is in the news again due to the talks around a possible takeover of the British airline easyJet by the US investment firm Castlelake.
While easyJet has called the timing of Castlelake’s offer “highly opportunistic”, analysts say the company’s low valuation, slots at key airports and stable fleet make it a prime takeover target, as it has struggled to boost its market capitalisation since the COVID-19 pandemic.
While Castlelake said that it was in the early stages of considering a takeover of easyJet that would be over 403.23 pence per share, no formal approach has been made.
Under British takeover rules, the American investment firm has time until June 26 to make a firm bid or walk away. As per a report from Italian daily Corriere della Sera, Castlelake is looking at MSC, the world’s largest shipping group, as a partner in a consortium for the potential takeover bid.
Switzerland-based MSC, run by Italian billionaire Gianluigi Aponte, is a global group spanning container shipping, logistics, terminal and inland transport operations, and passenger cruises. MSC also owns a 49% stake in Italian high-speed rail operator Italo.
As per the Corriere della Sera, a combination with easyJet would allow MSC to control the entire leisure travel chain, from flights to cruise ships, in a model similar to German travel group TUI.
Talking about the rumoured takeover, Chris Beauchamp, chief market analyst at trading platform IG, told Reuters, “Few people can resist a bargain.”
As per Deutsche Bank analyst Jaime Rowbotham, the fact that easyJet’s stocks have been chronic underperformers, compared to industry peers like Ryanair, makes the budget carrier an attractive takeover target to potential suitors.
“EasyJet has ‘looked cheap’ for some time. This latest bid speculation will likely see a boost again to the easyJet share price,” Rowbotham wrote in a note, adding that other possible attractions for Castlelake could be the carrier’s airline fleet, room to boost margins and efficiency, and the airport slots it commands.
Despite successful holiday business and an efficient Airbus fleet bolstering its results, easyJet has been a known struggler when it comes to growing passenger numbers from its position between low-cost and traditional rivals like British Airways operator AIG. EasyJet, however, has no direct exposure to the Middle East, where flights have been disrupted by the ongoing Iran war.
While easyJet has drawn deal speculation for years due to its slots at airport hubs in London, Paris and Geneva, that makes it an interesting takeover target for larger aviation players looking to expand their operational footprint.
Barclays’ analyst Andrew Lobbenberg has also cautioned that demand in Europe’s short-haul leisure market has been significantly affected by the Iran war. With easyJet’s fairly low margins and valuation, tough external factors are likely hitting the venture’s profits hard.
Lobbenberg added that while easyJet is Europe’s worst-performing airline stock in 2026, its assets, including its fleet, slots and holiday business, were undervalued. He estimated them to be worth over 11 pounds per share.