EasyJet has rejected a potential acquisition offer from a prominent US investment firm, denouncing it as “highly opportunistic” and clarifying that no formal talks had occurred between the two entities.

The low-cost airline disclosed that Castlelake’s interest surfaced amid concerns over the impact of the Iran conflict on fuel prices and travel demand, leading to a decline in its share value.

Castlelake disclosed its preliminary contemplation of an offer for easyJet after market hours in London, emphasizing that no direct communication had been initiated with easyJet’s Board and cautioning about the uncertainty of a bid materializing.

According to takeover regulations, Castlelake has until June 26 to declare a firm intention to bid or withdraw its interest.

In response, easyJet stated on Monday that there had been no discussions or proposals from Castlelake and highlighted the opportunistic timing coinciding with the airline’s stock slump due to Middle East tensions affecting customer confidence and fuel costs.

The Luton-based carrier acknowledged the complex challenges associated with a potential takeover. Despite reporting £552 million in losses for the first half of the financial year, a 40% increase from the previous year, easyJet remains optimistic about robust summer holiday demand, with a trend of last-minute bookings noted.

CEO Mr. Jarvis remarked on the strong demand in the late booking market, observing a cautious approach for future bookings but anticipating a sustained surge in late bookings throughout the summer season.