Reuters
• Oliver Taslic
easyJet’s £5.7bn takeover battle, ultimately won by Apollo, has focused attention on airline assets trading below book value. Jet2’s roughly £3bn valuation, IAG’s Avios loyalty business and Lufthansa’s repairs arm may also be undervalued, while stake sales could unlock value.
Aircraft Demand: Airline Distress & Consolidation
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easyJet’s £5.7bn takeover battle, ultimately won by Apollo, has focused attention on airline assets trading below book value. Jet2’s roughly £3bn valuation, IAG’s Avios loyalty business and Lufthansa’s repairs arm may also be undervalued, while stake sales could unlock value.
Turkish Airlines is targeting European Commission approval by the end of 2026 for its planned investment in Air Europa, while Korean Air and Asiana shareholders have approved a merger scheduled to launch in December 2026. Higher fuel costs sharply reduced quarterly profits at Turkish and Thai Airways.
High activity
Latvia’s state-owned airBaltic is pivoting from expansion to financial stabilization, reducing its Airbus A220-300 fleet from 54 aircraft to 36. The restructuring includes cost reductions and a proposed debt-for-equity swap as the carrier seeks to restore profitability and strengthen its balance sheet.
Alternative investment firm 777 Partners has filed for bankruptcy weeks after creditors moved to liquidate the company. The filing follows more than a year of asset sales, marking a significant escalation in the firm’s financial deterioration and the disposition of its remaining holdings.
The parent company of Kenya-based airline Fly540 has been placed in receivership, putting the operator’s ownership and financial position under formal administration. The development adds to the list of airline distress events requiring close attention from creditors, lessors, employees and other industry stakeholders.
Argentina has approved a plan allowing Flybondi to continue operating, providing the airline with a path to maintain its services. The decision underscores the importance of regulatory approval to the carrier’s near-term operational continuity.
The planned sale of Russian regional airline Izhavia will proceed despite the carrier losing its air operator certificate, creating uncertainty around the transaction’s structure, operating continuity and value. The development highlights the regulatory and operational risks facing airline ownership deals in Russia’s aviation market.
A decade-old Argentine low-cost carrier is nearing collapse after cutting three-quarters of its flights, just eight months after an ally of President Javier Milei pledged $1.7 billion to fund a turnaround. The retrenchment highlights the gap between promised investment and near-term operating viability.
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