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Easyjet agreed to a £5.7 billion takeover by US investment firm Apollo Global Management, according to the companies. Apollo said it will grow Easyjet and has no plans for job cuts in the first year after completion, expected in March 2027. UK reports suggest limited near-term changes to services. Easyjet operates routes across Europe.

Apollo Global agreed to acquire easyJet, valuing the airline at about £5.70 billion (US$7.7 billion), after rival bidder Castlelake ended its pursuit. easyJet’s board unanimously recommended Apollo’s £7.15 per share offer, an ~81% premium to £3.94. easyJet shares rose; Apollo expects founder Stelios Haji-Ioannou’s family and others to retain 45.1% to 49.9% via the vehicle.

Unions filed a strike notice for all easyJet France cabin crew, citing deteriorating work conditions, including unstable schedules and lack of protective measures. The notice covers Aug 7 to Sept 2, with 48 hours’ notice required for key dates. easyJet said it is disappointed and urged unions to cancel, citing planned September negotiations.

The European Commission announced amended EU hand luggage rules requiring airlines to include a small cabin bag allowance in displayed air fares by default. From 2027, passengers can bring a 40cm x 30cm x 15cm hand luggage item on board free of charge, alongside an under-seat personal item. Airlines must notify and respond to delay compensation claims within set timelines.

The EU will review airline ownership rules to prevent foreign investors from gaining effective control of carriers, which could affect U.S. bids for easyJet. The review, expected in autumn, may clarify allowed structures. After Reuters reported it, easyJet shares fell up to 15%. easyJet backs Apollo’s £5.7bn offer over Castlelake’s £5.5bn bid.

The European Commission introduced new EU rules on carry-on bag charges, effective in 2027. Airlines including Ryanair, easyJet and Wizz will be required to include a small carry-on bag in the ticket price and cannot charge separately for it. Other changes include limits on ticket-spelling charges and disability compensation. Which? says adding a bag can quadruple costs.

EasyJet (EJTTF) received a surprise takeover offer from Apollo Global Management (APO) at 715 pence per share, valuing the airline at about 5.7 billion on a fully diluted basis. This raises pressure on Castlelake, which has made five approaches, including a latest 690 pence bid. Castlelake must decide by Aug. 3. Bernstein estimates EasyJet’s assets could be worth about 7.8 billion.

Apollo Global Management made a higher cash bid for easyJet, offering £7.15 per share (about AU$14.78), valuing the airline at £5.2 billion. easyJet said its board withdrew support for Castlelake after concluding Apollo’s terms are superior to Castlelake’s £6.90 offer. Apollo must act by Aug 7 under UK rules.

The FTSE 100 closed up 0.24% at 10,497.29, helped by Vodafone shares rising nearly 13% after Xavier Niel agreed to buy Emirates Telecommunications Group’s stake, and by easyJet jumping more than 13% on Apollo Global Management’s £7.15 per share offer valuing the deal at about £5.7bn. AstraZeneca fell as much as 3.5% to 6.2% after Wainua trial results.

Apollo Global Management made a higher bid for EasyJet Plc, offering 715 pence per share and valuing the airline at about £5.7 billion, after Castlelake LP’s earlier 690 pence offer. EasyJet’s board withdrew support for Castlelake and said it would consider Apollo’s proposal. EasyJet shares rose 13% on the news.