What EasyJet’s £5.7bn takeover will mean for everyday passengers

How the £5.7 billion takeover could drastically impact passengers

The budget carrier, which launched in 1995 with just two routes between London and Glasgow, has since grown into the UK's largest airline, operating more than 927 routes across 34 countries. 

But while the deal will eventually bring an end to easyJet's time as a London-listed company, many passengers are asking a much simpler question: what will it actually mean for them?

Apollo said it wants to help the carrier grow and does not intend to cut any jobs in the first 12 months after completion, implying passengers can expect largely the same service. 

As BBC News reported, the agreement follows months of uncertainty for a business that carries more travelers than many rival UK airlines, employing more than 19,000 people across around 1,200 routes in 35 European countries.

The short answer is not much, at least for now. Looking further ahead, however, the picture becomes less certain.

Ticket prices aren't expected to get cheaper

Although Apollo has said it intends to back easyJet's existing low-cost strategy, analysts believe passengers shouldn't expect cheaper fares once the deal is complete.

The airline had already warned that higher jet fuel costs, driven by conflict in the Middle East, would likely push fares up.

It also revealed earlier this year that summer bookings were trailing behind where they were at the same point last year.

Susannah Streeter, chief investment strategist at Wealth Club, said private equity firms generally focus on improving efficiency while growing businesses.

Streeter adds that Apollo appears to support easyJet's current direction rather than planning a major overhaul.

However, industry experts say the new owners will still be looking for ways to improve returns, making further price increases a possibility.

That said, Apollo is unlikely to price easyJet out of the budget airline market, with competition from Ryanair and Wizz Air continuing to put pressure on fares.

What about the extra charges?

One area passengers may want to keep an eye on is ancillary revenue, the money airlines make from optional extras such as checked baggage, seat selection and priority boarding.

These add-ons already make up a significant part of easyJet's business, generating £2.6 billion over its last full financial year, around a quarter of the airline's total revenue.

Travel experts believe these services could become even more important under new ownership.

Rhys Jones, travel expert at Go.Compare, said passengers are unlikely to notice immediate changes.

He also suggested that areas where easyJet has traditionally been seen as slightly more customer-friendly than some of its low-cost rivals could come under pressure.

The airline currently offers slightly more generous cabin baggage allowances than some competitors, while families are generally more likely to be seated together without paying extra.

If Apollo looks to increase profits, charges for luggage, seat selection or priority boarding could become an obvious area to target.