US investment firm Castlelake has received in-principle backing from easyJet's board for a sweetened takeover bid valuing the airline at up to £5.5bn (€6.4bn), as reported by the Irish Examiner.

The proposal is backed by two prominent Irish aviation executives, former Malaysia Airlines CEO Peter Bellew and Mark Breen, currently CEO of Dublin-based Oneiros Aerospace. Bellew previously served as chief operating officer at easyJet from 2020 to 2022, having left Ryanair to join the carrier in a move that prompted a non-compete challenge that subsequently failed.

The revised offer of £6.90 per share represents a 73% premium to easyJet's closing price on 29 May, when Castlelake first disclosed its interest to British regulators. EasyJet had rejected an earlier £4.93bn proposal from Castlelake in June but granted the private equity firm limited access to commercial data, signalling an interest in continuing negotiations.

EasyJet's board said the latest bid was at a value it would be minded to recommend to shareholders, though stipulated that Castlelake must submit a firm intention to make an offer by 3 August.

The deal would take the 31-year-old airline private. Analysts had raised questions about whether Castlelake could meet EU regulations requiring airlines operating in the bloc to be majority owned and controlled by EU nationals. It is understood that Bellew and Breen would own 51% of the bidding vehicle, with Castlelake holding 49%, satisfying the ownership threshold.

EasyJet operates 355 aircraft across more than 1,200 routes in 38 European countries. The airline has faced sustained operating pressure since the pandemic, compounded more recently by sharply higher fuel prices and profit headwinds linked to the Iran conflict.

The carrier's valuable landing slots at London Gatwick, Paris, and Geneva have long made it an attractive acquisition target. Its package holidays business and Airbus fleet have been identified as key strengths within an otherwise challenging trading environment.

Stelios Haji-Ioannou, who founded easyJet in 1995 and retains approximately a 15% stake alongside his family, has a history of public clashes with management over strategic direction, a dynamic that may bear on the shareholder approval process.

The bid arrives as the British mergers and acquisitions market is on course to set a record in 2026, with weaker valuations among London-listed companies drawing increased buyer interest.