easyJet combines scarce primary-airport slots, a scaling high-margin holidays platform and a £7.15 Apollo cash floor, but completion risk and cyclical fuel exposure cap near-term upside.
Overview
easyJet is a European point-to-point airline serving 38 countries and more than 160 airports, with a differentiated primary-airport footprint and a rapidly scaling, capital-light holidays division. Its model combines moderate ticket pricing with high-margin baggage, seating and retail revenues, while easyJet holidays bundles flights with accommodation from approximately 13,000 hotels. **The strategic assets are difficult to replicate:** 73% of operations use congested primary airports and the company controls 46% of London Gatwick capacity. FY25 revenue rose 9% to £10,106 million, headline EBIT increased 18% to £703 million, PBT rose 9% to £665 million and ROCE reached 18%. However, Q3 FY26 exposed earnings cyclicality: revenue rose 2% to £2.983 billion but PBT fell 70% to £85 million as fuel costs increased 17% to £732 million. **The £7.15 per-share Apollo offer creates a near-term cash floor**, valuing equity at approximately £5.7 billion and implying 4.7x EV/EBITDA. Completion is targeted for end-Q1 2027; failure would restore standalone volatility but preserve substantial holidays and fleet-upgauge upside.