Budget airline easyJet has branded a possible takeover approach from Castlelake as “highly opportunistic” and said it had not held talks with the US investment fund. The carrier said the takeover interest comes at a time when its share price has been pushed lower by concerns about the impact of the Iran war on jet fuel prices and passenger demand.

Castlelake revealed late on Friday, after the stock market closed in London, that it was in the early stages of considering an offer for easyJet. easyJet said on Monday: “The board of easyJet has not had any discussions with, nor received any approach or proposal from Castlelake.”

It added: “The board notes the highly opportunistic timing when easyJet’s share price is temporarily depressed due to the current situation in the Middle East and its impact on customer confidence and jet fuel prices.”

Luton-based easyJet said it also “notes the considerable regulatory, financial and other execution challenges associated with a potential takeover of easyJet”.

In the first half of the year, Easyjet made a £552million loss.

Castlelake confirmed that, while it was considering a bid, it hadn't yet approached easyJet about it.

The investor firm based in Minneapolis said: "There can be no certainty that any offer will be made, nor as to the terms of any offer".

Shares in the package holiday provider are down some 20% since the beginning of the year to 396.10p, after the travel industry took a major knock on the back of global disruptions from the conflict.

The closure of the Strait of Hormuz, a retaliatory measure from Iran following the initial attacks launched by Israel and the US on the Middle Eastern regime, prompted fears of a global energy crisis, as the waterway is key in the oil and gas trade.