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EasyJet: quarterly profit plunges 70%, Iran war impacts takeover battle
Herz — World Desk · · 30s summary · 4 min read
The essentials
EasyJet, low-cost British airline and Europe's second-largest carrier by passengers, reported July 23, 2026, pre-tax profit of £85m for April–June 2026, down 70% from £286m the year before. Iran's conflict, erupting late February 2026, increased fuel costs by £105m. The board now recommends Apollo Global Management's £5.7bn takeover bid, topping Castlelake's £5.5bn offer. However, EU rules requiring 51% local ownership threaten both bids' viability. Ryanair also posted a 34% profit decline to €538m (£457m) for the same quarter.
- EasyJet's quarterly profit drops 70% to £85m, down from £286m year-over-year.
- Iran war from late February 2026 increased fuel costs by £105m in the quarter.
- Board recommends Apollo's £5.7bn bid, outbidding Castlelake's £5.5bn offer.
- EU ownership rule (51% local capital) threatens viability of both takeover bids.
- Ryanair reports 34% profit decline to €538m for the same period.
What we know
EasyJet, low-cost British airline and Europe's second-largest airline by passenger numbers, reported on July 23, 2026, pre-tax profit of £85m for the quarter April–June 2026. This represents a 70% decline compared to £286m in the same quarter of 2025, according to The Guardian.
The main cause: a £105m surge in fuel costs over the period. The spike in energy prices followed the outbreak of hostilities in Iran in late February 2026.
April–June 2025286
April–June 202685
Bidding war for EasyJet takeover
EasyJet's board initially accepted Castlelake's fifth offer — an American investment fund specializing in private credit and aircraft financing — at £5.5bn. Apollo Global Management, an American alternative asset management firm, then outbid at £5.7bn (over £7 per share), and the board now recommends this offer.
Garry White, chief investment commentator at Raymond James, believes that this overbid confirms the board's long-held view: the market has severely undervalued easyJet for years.
The very existence of a bidding war illustrates what easyJet's board has long argued: that the market undervalues the company and its growth prospects.
— Garry White, Chief Investment Commentator, Raymond James
EU rules create obstacle for both bidders
European single aviation market regulations require that 51% of an airline operating in the EU be held by EU citizens or entities — a condition necessary to maintain intra-European traffic rights. Castlelake has proposed appointing European citizen co-investors to satisfy this. Apollo has not clarified how it intends to comply with this obligation.
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