Istanbul, August 21 - Turkish Airlines has successfully secured an agreement to acquire a minority stake in Spanish carrier Air Europa, marking a significant step in its global expansion strategy. On August 19, 2025, Turkish Airlines announced that its binding offer of €300 million ($349 million) was accepted by Air Europa’s owners, primarily the Hidalgo family’s Globalia travel consortium, which holds an 80% stake in the airline. The remaining 20% is owned by International Airlines Group (IAG), the parent company of British Airways, Iberia, and Vueling. The transaction, which involves a capital increase for the majority of the investment, aims to bolster Air Europa’s financial position while providing Turkish Airlines with a strategic foothold in the lucrative Latin American and Iberian markets. The deal is expected to be finalized within six to twelve months, pending regulatory approvals from Spanish and European Union authorities, with the exact percentage of the minority stake estimated at around 26% to 27%, to be determined after technical and financial adjustments at closing.
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The acquisition comes at a time when Air Europa has been grappling with significant financial challenges, including a €475 million debt from a loan provided by Spain’s Strategic Business Support Fund (SEPI) during the pandemic. Turkish Airlines’ investment, structured as a €275 million convertible loan and a €25 million direct purchase of securities, is designed to help Air Europa prepay this debt by late 2025, a year ahead of schedule. This financial lifeline will strengthen Air Europa’s balance sheet, enabling improvements in fleet reliability, route planning, and operational efficiency. The deal follows the withdrawal of competing bids from Lufthansa and Air France-KLM, which had also expressed interest in acquiring a stake in Air Europa but abandoned negotiations in recent weeks. IAG’s earlier attempt to acquire Globalia’s 80% stake was blocked by the European Commission in 2024 due to concerns over reduced competition, given IAG’s ownership of Iberia, leaving Turkish Airlines as the sole bidder.
Turkish Airlines’ interest in Air Europa is driven by the Spanish carrier’s robust network, particularly its strong presence in Latin America and the Caribbean, which complements Turkish Airlines’ extensive global reach spanning over 120 countries. Air Europa operates a fleet of 57 Boeing aircraft, including 737NGs, 737 MAXs, and 787s, with an additional 18 737 MAXs on order, serving over 55 destinations worldwide. The partnership is expected to enhance connectivity between Spain, Türkiye, and Latin America, creating new revenue streams through potential codeshare agreements and operational synergies. For Turkish Airlines, a member of Star Alliance, this investment aligns with its 2033 growth strategy, aiming to increase passenger and cargo traffic while tapping into new tourism markets. The deal also positions Turkish Airlines to compete more effectively in the Europe-Latin America corridor, challenging rivals like Iberia and LATAM.
The transaction reflects broader trends in the aviation industry, where carriers are increasingly pursuing strategic partnerships to navigate economic uncertainties and regulatory constraints without the complexities of full acquisitions. For Air Europa, the capital infusion provides stability and growth potential, particularly in transatlantic routes where it holds a competitive edge. Turkish Airlines benefits from enhanced market access without triggering the intense regulatory scrutiny faced by the majority of acquisitions. As the process moves to the preparation of transaction documentation and regulatory approvals, industry observers anticipate a relatively smooth path forward due to the minority nature of the stake. This partnership could reshape competition in key markets, offering passengers improved connectivity, more travel options, and potentially competitive fares between Europe, Latin America, and beyond.
