The budget airline's stock rose more than 12% after Castlelake said it was considering a possible offer. Prior to the rally, easyJet shares had fallen by around 23% over the past year against a backdrop of higher fuel costs and uncertainty linked to tensions in the Middle East.

US-based investment firm Castlelake confirmed it is in the 'early stages' of weighing up a potential takeover offer for budget airline easyJet following recent speculation

Budget airline carrier Easyjet has drawn takeover interest from private credit firm Castlelake.

The budget airline said it is in a strong financial position