Frankfurt, August 7 - On August 5, 2025, Deutsche Lufthansa AG, one of Europe’s largest airline groups, announced its decision to abandon negotiations to acquire a stake in Spanish airline Air Europa, marking a significant shift in the competitive landscape of European aviation. This move follows closely on Air France-KLM’s withdrawal from the same process just a week earlier, leaving Turkish Airlines as the sole remaining bidder for a stake in the Spanish carrier. The decision, confirmed by a Lufthansa spokesperson, comes after months of complex and intensive negotiations with Globalia, the family-owned company that controls Air Europa. The spokesperson stated, “After thorough analysis and intensive negotiations, we have decided against taking a stake in Air Europa at this time.” Globalia, controlled by the Hidalgo family, declined to comment on the development, while Turkish Airlines did not respond to inquiries regarding its ongoing interest.
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The pursuit of a stake in Air Europa was driven by the broader trend of consolidation within the European airline industry, as carriers seek to strengthen their market positions to compete with global rivals from the United States and the Middle East. Air Europa, Spain’s third-largest airline, operates an extensive network of domestic flights and connects Madrid to major cities in Europe and Latin America. The airline has been seeking capital to repay approximately $546 million in loans borrowed from the Spanish government during the COVID-19 pandemic. This financial pressure made Air Europa an attractive target for larger carriers looking to expand their footprint in southern Europe, a region with high-demand routes. Lufthansa’s withdrawal from the bidding process was not entirely unexpected. Chief Executive Carsten Spohr had previously indicated that negotiations were challenging, citing the complexity introduced by International Airlines Group (IAG), which holds a 20% stake in Air Europa.
IAG, the parent company of British Airways and Iberia, had attempted a full takeover of Air Europa in 2024 but failed to secure regulatory approval after years of discussions. The existing stake held by IAG created structural and regulatory hurdles that complicated potential deals for other bidders. Sources familiar with the process noted that disagreements within the Hidalgo family, which owns the remaining 80% of Air Europa, further delayed negotiations and added to the deal’s complexity. The withdrawal of both Lufthansa and Air France-KLM leaves Turkish Airlines in a strong position to potentially secure a stake in Air Europa. Turkish Airlines entered the bidding process in June 2025, engaging in what it described as “non-binding discussions” with Globalia.
If successful, Turkish Airlines would become one of the few non-European carriers to hold a significant stake in a European airline, a move that could reshape competitive dynamics in the region. Meanwhile, Lufthansa has signaled its continued interest in other consolidation opportunities, notably a 19.9% stake in Portugal’s TAP Air Portugal, indicating that the German carrier remains committed to strategic expansion despite stepping back from the Air Europa deal. The outcome of Turkish Airlines’ negotiations with Globalia remains uncertain, with IAG’s existing stake and potential regulatory scrutiny posing ongoing challenges. For Air Europa, securing a new investor is critical to addressing its financial obligations and maintaining its competitive position in the European market. As the airline industry continues to navigate post-pandemic recovery and intensifying global competition, the resolution of Air Europa’s ownership structure will likely have far-reaching implications for the region’s aviation landscape.