A leading investment company has announced its consideration of a potential acquisition bid for easyJet. Castlelake, based in the US, revealed that it is in the early stages of evaluating the option to make an offer for the budget airline following recent speculation.
Castlelake emphasized that no formal approach has been made to easyJet’s Board yet and cautioned that there is no guarantee that a bid will materialize. The company is required to either declare a firm intention to bid or withdraw by June 26 under takeover regulations.
This move comes shortly after easyJet reaffirmed its commitment to maintaining its full summer flight schedule despite concerns over aviation fuel supplies due to the Iran conflict. EasyJet’s CEO, Kenton Jarvis, stated that the airline has not encountered any fuel supply issues at UK and European airports.
Jarvis assured that although there is a reduction in oil supply from the Gulf region, fuel suppliers have diversified production, with increased output from Norway, West Africa, and the Americas. Additionally, jet fuel refining capacity outside the Gulf region has significantly risen.
Despite reporting losses of £552 million for the first half of the financial year, easyJet noted a 40% increase compared to the previous year. The airline highlighted strong demand for summer holiday bookings, particularly with travelers booking closer to their departure dates.
Jarvis mentioned that while there is robust demand in the last-minute booking market, customers are more cautious about making advance bookings. The airline has also experienced disruptions due to the EU’s new biometric border checks, with Jarvis criticizing the delays caused by the entry-exit system as unacceptable.
He urged European countries to utilize the flexibility granted by the European Commission to phase in the new border checks to avoid congestion during peak times and revert to traditional border control procedures if necessary.
