easyJet has agreed in principle to an improved takeover proposal from U.S. investment firm Castlelake, in a deal that could value the British low-cost carrier at up to £5.5 billion, or around $7.34 billion, on a fully diluted basis. According to Reuters, the latest proposal values easyJet at £6.90 per share.

The agreement follows several earlier attempts by Castlelake to acquire the airline. In June, easyJet rejected previous proposals, including a £4.93 billion offer, saying the valuation was too low. However, the airline later granted Castlelake limited access to its commercial data, leaving the door open for further talks.

The latest offer represents a significant premium to easyJet’s share price before Castlelake’s interest became public. Reuters reports that the £6.90-per-share proposal is 73 percent above the airline’s closing share price on May 29, 2026, the date on which Castlelake disclosed its interest to British regulators.

easyJet’s board has said that, at the current valuation, it would be minded to recommend the proposal to shareholders. The deal is not yet final, however. Castlelake now has until August 3, 2026, to submit a formal and binding offer.

If completed, the transaction would take easyJet private. It would also represent one of the most significant ownership changes in European aviation in recent years, at a time when airlines continue to face pressure from higher fuel costs, geopolitical disruption and fluctuating demand.

Castlelake is not a newcomer to aviation. The investment firm has a strong background in aircraft financing and leasing. Reuters reports that Castlelake has leased aircraft to around 200 airlines, which helps explain why the interest in easyJet is coming not from another airline, but from a financial investor familiar with the value of fleets, aircraft orders and airport slots.

Those slots are one of easyJet’s most valuable assets. The airline has a strong position at London Gatwick, as well as an important presence in Paris, Geneva and other European airports. According to Reuters, easyJet operates in 38 European countries, has a fleet of 355 aircraft and serves more than 1,200 routes.

A particularly important part of the group’s recent performance has been easyJet Holidays, the package holiday business launched in 2019. While the core low-cost airline model has faced cost and competitive pressure, the holiday division has become a major contributor to group profitability.

The deal will not be judged on price alone. One of the key issues will be compliance with European airline ownership and control rules. Airlines operating in the European Union must be majority owned and effectively controlled by EU nationals. Reuters notes that Castlelake had previously proposed a structure under which the U.S. investor would hold 49 percent of the bidding vehicle, while the majority would be held by EU nationals Peter Bellew and Mark Breen. Bellew is a former chief operating officer of easyJet.

The market has so far shown some caution. MarketWatch reported that easyJet shares rose around 10 percent after the announcement, but continued to trade below the proposed 690 pence offer price, suggesting that investors still see execution risks around the deal.

If Castlelake submits a formal offer by August 3 and secures the necessary shareholder and regulatory approvals, easyJet could enter a new phase of development away from public market pressure. For Europe’s low-cost aviation market, it could be a major turning point, giving one of the region’s largest carriers a new owner, a new capital structure and potentially a different growth strategy.