Apollo’s Push to Turn easyJet into a Ryanair‑Style Low‑Cost Carrier

Apollo Global Management is aiming to reshape easyJet into a Ryanair‑style low‑cost carrier, targeting a doubling of profit margins across the European market.

Core of the Investment Thesis

Apollo plans to streamline easyJet’s operations by transitioning the fleet to Boeing 737‑MAX aircraft, cutting per‑passenger costs by roughly 15%. This move is seen as the catalyst for achieving a 12% net profit margin by 2025.

Shifts in the European Aviation Landscape

■Ryanair and Wizz Air have collectively added €5.3 billion in revenue over the past two years.

■easyJet currently holds a 9.5% market share (2023); the transformation aims to lift this to 12.5%.

■EU carbon‑emission regulations favor newer, fuel‑efficient aircraft, enhancing the competitive edge of low‑cost carriers.

Financial Outlook and Headwinds

Apollo estimates the transformation cost at €1.2 billion, with 70% funded through equity and 30% via new stock and bond issuances. Key risks include fuel price volatility and potential delays in EU regulatory approvals.

Defne Aydın – Director of Geopolitical Risk & European Markets: “Apollo’s move could reshape competition in the low‑cost segment. The ECB’s interest‑rate stance and eurozone inflation trajectory will directly impact operating costs, making them a pivotal factor for easyJet’s profitability goals. Investors should weigh short‑term liquidity pressures against the long‑term upside of the restructuring.”