EasyJet’s board and its investors push back against the private‑credit group Castlelake’s £4.7 bn bid, demanding a higher valuation. The airline argues the offer undervalues its assets and future earnings, seeking at least £7 per share. This stance follows a 2023 audit that highlighted declining profitability amid rising fuel costs and investor confidence remains critical for the airline.

Castlelake, which has pledged £600 mn of new capital to build a larger fund, argues its valuation reflects the airline’s growth prospects and the broader recovery in air travel. Investors weigh the £4.7 bn offer against a potential premium that could lift the deal to a higher total value in the mid‑2025 transaction and shareholder returns.

If the dispute stalls, EasyJet could pursue a public listing, forcing Castlelake to reassess its bid. A higher valuation would benefit the airline’s long‑term shareholders and could signal a broader shift in private‑credit involvement in distressed airlines. The outcome will influence future deals in the aviation sector for major investors and regulators in 2025 and beyond.

Castlelake has already committed £600 mn to fund its expansion, but the current impasse may delay its investment timeline. EasyJet’s insistence on a higher price underscores the airline’s confidence in its recovery trajectory. The resolution will set a precedent for how private‑credit firms negotiate stakes in post‑pandemic airlines for future acquisitions and deal structures in the aviation sector.