The race for a minority stake in Air Europa has taken a sharp turn after two of Europe’s largest airline groups, Lufthansa and Air France-KLM, withdrew from talks to invest in the Spanish carrier. Their exit leaves Turkish Airlines as the only active bidder, with a binding offer now on the table.
According to company statements and local media reports, Turkish Airlines has proposed a €275 million convertible loan to Air Europa. If approved by regulators and the airline’s board, the loan would convert into roughly 26–27% of the company’s equity, altering the carrier’s shareholder mix but leaving its main owner, Globalia Corporación Empresarial, in control. The stake would come from Globalia’s current 80% holding, reducing the Hidalgo family’s control to just over half. IAG, parent of British Airways, would retain its existing 20% stake.
Air Europa’s president, Juan José Hidalgo, has welcomed the proposal, calling it a “strategic partnership” that preserves the airline’s Spanish identity while strengthening its global connections. The proceeds from Turkish Airlines’ investment are expected to go toward repaying a €475 million loan from Spain’s SEPI state aid fund, granted during the pandemic.
European Giants Step Aside
Lufthansa and Air France-KLM cited valuation differences, regulatory hurdles, and shifting strategic priorities as reasons for stepping away from the minority stake sale. Both groups faced potential antitrust scrutiny from the European Commission due to overlapping routes in Europe and Latin America, an obstacle that previously derailed IAG’s attempts to acquire Air Europa outright in 2024.
Industry analysts note that Turkish Airlines, headquartered outside the EU, is less constrained by European competition rules, giving it a smoother path to securing a minority position. The Istanbul-based carrier has described Air Europa as a “natural fit,” pointing to its strong Iberian and Latin American networks, which complement Turkish Airlines’ extensive global reach.
A New Flight Path for Air Europa
If the deal is finalized, Air Europa’s ownership would shift to: Globalia ~53–54%, IAG 20%, and Turkish Airlines ~26–27%. The move could give the Spanish carrier fresh capital for fleet renewal and route expansion, while opening new connection opportunities for Turkish Airlines passengers across Spain and Latin America.
Regulatory reviews are expected to begin in the coming months, with the transaction potentially closing in early 2026.
