The easyJet Apollo takeover has crystallised a debate that has run through the City for years: whether UK-listed equities are systematically underpriced relative to their international peers. Apollo’s cash offer of 715p per share values the budget carrier at £5.7 billion, roughly double where the shares changed hands in May.
As of 24 September 2026, easyJet (EZJ) traded at 670p, some 6.3% below the proposed consideration, reflecting the residual deal risk ahead of a firm closing date. The 52-week low was 332.60p, recorded on 18 May 2026.
easyJet Apollo Takeover: The Numbers Behind the Deal
Earlier this year, easyJet’s shares traded on a price-to-earnings ratio below 6, among the lowest on the London Stock Exchange (LSE). That compressed valuation drew Apollo to the table, but the private equity firm was not alone. Castlelake had also been weighing a bid, with reports indicating it was exploring a possible partnership with MSC, the world’s largest shipping group, before Apollo’s offer prevailed.
The scheme document deadline has since been extended to 15 October 2026, according to a Financial News report dated 25 August 2026, cited by Ad-hoc News. The easyJet Apollo takeover is therefore not yet over the line.
The airline’s own financials complicate the picture. easyJet reported an H1 2026 pre-tax loss of £552 million, up from a £394 million loss in the prior year period, driven by elevated fuel costs and fleet expansion spending, according to Investing.com’s earnings summary. Its Holidays division offered a brighter read: EBIT rose 50% to £48 million on 6% passenger growth, with load factors reaching 90%.
Management has also disclosed plans to expand the fleet to 389 aircraft by FY2028, replacing older A319s by 2029 and opening new bases at Newcastle and Marrakech. Reuters company data puts the current network at roughly 355 aircraft across 1,207 routes in 38 countries.
The broader sector faced headwinds this year. The International Air Transport Association (IATA) halved its 2026 profit outlook in June, hitting European airline shares broadly, according to Investing.com. That pressure made low valuations across the sector more persistent, and more visible to acquirers.
IAG as the Next Low-Valuation Candidate
With the easyJet Apollo takeover awaiting completion, attention has turned to what comparable value remains on the LSE. The most obvious candidate in the aviation space is IAG (LSE: IAG), the British Airways and Iberia parent.
IAG’s trailing twelve-month P/E ratio stood at 7.98 as of 22 September 2026, per Yahoo Finance. (The original source article cited 8.26; the Yahoo Finance TTM figure is used here as the more recent measure.) The group’s market capitalisation was approximately £19.2 billion on the same date.
IAG’s underlying performance justifies a closer look. The group posted FY2025 revenue of €33,213 million, up 3.5% year-on-year, with operating profit before exceptional items rising 13.1% to €5,024 million and an operating margin of 15.1%. Free cash flow reached €3,146 million.
Capital returns accompanied those results. IAG completed a €1.0 billion share buyback in 2025 and paid a full-year dividend of €0.098 per share, an increase of 8.9% year-on-year, according to the IAG Annual Report and Accounts 2025. The group employed 75,786 people at year-end 2025, up 2% from 74,378 in 2024.
On the share price, Yahoo Finance calculates a 3-year total return of 189% to 22 September 2026, outpacing the FTSE 100’s 39% over the same period. IAG trades in London as a CDI and also on the Spanish Stock Exchanges through the Mercado Continuo Español.
The risks are real. IAG is not a budget carrier, and any resurgence in inflation that crimps consumer spending could weigh on premium long-haul demand more quickly than it would on short-haul point-to-point travel. The IATA profit warning earlier this year is a reminder that airline earnings can deteriorate fast.
The scheme document deadline for the easyJet Apollo takeover on 15 October 2026 is the next concrete event to watch. Whether the deal closes on the current terms, or faces a further extension, will set the tone for how the market prices the remaining low-multiple names on the LSE.
