London, June 15, 2026, 11:01 BST
- easyJet was up 6.00p at 506.00p, a rise of 1.20%. The latest market cap figure came in close to £3.78 billion on delayed data. London South East
- European travel stocks moved higher as markets gained and Brent crude fell close to 5% on news of a preliminary U.S.-Iran peace deal. Reuters
- All eyes are on June 26. Castlelake needs to say by then if it will put in a firm bid for easyJet or walk away, following U.K. takeover rules. Reuters
easyJet shares were higher Monday as traders looked at cheaper oil and possible takeover interest. Any potential deal is still uncertain. Market bets on rising earnings, better cash flow, or takeover premiums can lift stocks, while the opposite can send them lower. Airlines see profits move most with fuel prices. Reuters said the STOXX 600 hit a new record after the U.S. and Iran reached a first-step deal, which could open the Strait of Hormuz. The travel and leisure index also made a record. “If oil flows return sustainably, then it will give European markets a real boost,” IG’s Chris Beauchamp told Reuters. Reuters
Takeover talk is still circling the stock. Air France-KLM CEO Ben Smith told Reuters that Castlelake hasn’t approached his airline about a joint bid and said Air France-KLM isn’t looking at easyJet. Asked whether he’d be open to an offer, Smith replied, “Perhaps,” and praised easyJet’s assets as “amazing.” Castlelake says it’s weighing a possible offer above 403.23p a share. easyJet has called the move “highly opportunistic.” The shares are trading near 506p, already above that floor, leaving the deal story without a firm downside anchor for investors. Reuters
easyJet reported its first-half headline loss before tax widened to £552 million from £394 million last year. The airline uses this measure to show pre-tax performance before non-headline charges. The latest number takes in £25 million in extra fuel costs linked to Middle East conflict and a £32 million net increase in legal provisions. Revenue still rose, hitting £3.95 billion against £3.53 billion a year ago. Passenger numbers climbed 6%, and the load factor hit 90%. CEO Kenton Jarvis said easyJet is “well placed to manage the current environment.”
easyJet’s supporters are focused on the carrier’s strong balance sheet and its holidays business. The company reported £4.7 billion in liquidity at the end of March, adjusted net cash of £434 million, and said it owns £5.0 billion in assets. The holidays unit increased customers by 22%, saw revenue jump 30%, and headline EBIT climbed 50% to £48 million for the first half. Low oil prices and fewer cancellations could set up a stronger summer if bookings hold up.
easyJet’s bear case still lingers. The airline reported that second-half visibility is softer than normal, and capacity is 58% sold, 2 points lower than last year. Booked RASK is down 4%. RASK, or revenue per available seat kilometre, is how airlines compare revenue to capacity. If Castlelake exits, oil moves higher, or there’s a need for deep last-minute discounts, shares could fall further. Valuation isn’t high—about 7.5 times earnings and a 2.6% dividend—but airline stocks often look cheap because fuel, demand, and geopolitics change fast. For now, easyJet’s numbers are fair to almost attractive for investors who can handle some turbulence, but this is not a low-risk value buy.
