US private credit firm Castlelake has revealed it is considering a takeover bid for budget airline EasyJet, potentially making it the latest UK-listed company to be removed from the stock market.
Castlelake confirmed on Friday that it was in the “early stages of considering a possible offer” for EasyJet, but said it had not yet approached the airline’s board.
The firm, which is majority owned by Brookfield Asset Management, also cautioned that there was no certainty it would ultimately make a formal bid.
Under UK takeover regulations, Castlelake faces a deadline of June 26 to either make a firm offer or walk away from the process entirely.
Castlelake manages roughly $36bn in assets and has built a substantial presence in the aviation industry over the past two decades.
The firm has leased planes to carriers including Delta and Qatar Airways, establishing itself as a significant financial player in global aviation.
Castlelake also took a significant stake in Scandinavian airline group SAS following its Chapter 11 bankruptcy in 2023, alongside Air France-KLM, before later selling that holding.
The firm held talks with Spirit Airlines earlier this year as the US budget carrier sought a buyer before entering bankruptcy, but Castlelake ultimately declined to proceed with a deal.
EasyJet has struggled in recent years, with its share price suffering as customers shifted towards rival budget carriers including Ryanair and Wizzair.
Shares in the Luton-based airline have fallen by more than a third over the past year and lost more than half their value over the last five years.
The stock closed on Friday at 398p, giving EasyJet a market value of roughly £3bn, making it a potentially attractive target for a well-capitalised acquirer.
The airline is also navigating a particularly difficult trading environment, with jet fuel prices doubling following US strikes on oil fields in the Gulf.
Oil prices were further pushed higher after Iranian forces closed the Strait of Hormuz, disrupting a fifth of the world’s oil supply.
In April, EasyJet said it expected to lose between £540m and £560m for the six months to the end of March, compared with a £394m loss for the same period a year earlier.