EasyJet faces a potential takeover from American private equity giant Castlelake as the budget carrier struggles with the consequences of the Iran conflict.Castlelake announced on Friday evening that it is in the “early stages of considering a possible offer” for the FTSE 250 airline.The firm stressed that “no approach has been made to the board of easyJet” and emphasised there was no guarantee it would proceed with a formal bid.British takeover regulations give Castlelake until June 26 to either submit an offer or withdraw from the process.The potential acquisition interest follows a sharp decline in easyJet’s stock, which has dropped 22.9 per cent since January amid turmoil caused by the Middle East crisis.Rising jet fuel prices have hammered the airline after the closure of the Strait of Hormuz disrupted a fifth of global oil supplies.Despite securing fixed prices for more than 70 per cent of its fuel requirements through September, easyJet’s kerosene costs still climbed by £25million in March alone.This leaves the carrier among the least protected London-listed airlines against fuel price volatility.Rising jet fuel prices have hammered the airline | GETTYOver five years, the share price has tumbled 53 per cent, positioning easyJet as the smallest among Europe’s five major airlines and an attractive target for bargain-hunting buyers.Chief executive Kenton Jarvis has warned the airline could face fuel-related costs of up to £175million during the summer months.The carrier is increasing its minimum fares to pass on some of these expenses to passengers should oil prices stay elevated throughout the year.Summer bookings have weakened compared to the same period last year, with households postponing flight purchases amid the uncertain climate.The Strait of Hormuz is a key shipping lane | GETTYEasyJet has locked in more than 70 per cent of its fuel costs until September, yet this hedging strategy has proved insufficient to shield it entirely from the market turbulence.The airline’s vulnerability to oil price swings makes it one of the riskier investments among British-listed carriers.Any successful bid would likely need the backing of Sir Stelios Haji-Ioannou, who founded the airline in 1995 and whose family retains a 15 per cent shareholding.Sir Stelios departed from the board in 2010 after disagreements over the company’s strategic direction, though he remains the largest individual investor.In 2021, easyJet turned down an unsolicited approach, claiming it undervalued the business | GETTYCastlelake is not the first suitor to eye the budget carrier.Mediterranean Shipping Company reportedly explored a potential offer in October 2025, though the shipping giant subsequently denied any involvement.In 2021, easyJet turned down an unsolicited approach, claiming it undervalued the business. The bidder was never officially confirmed but was widely believed to be rival Wizz Air.The low-cost carrier, currently valued at £3billion, has declined to comment on the development.