On 19 August 2025 Air Europa, the Spanish airline with a strong transatlantic presence, accepted Turkish Airlines’ binding offer to purchase a minority stake worth 26 per cent of its share capital. The 300 million euro deal marks the Turkish company’s first acquisition of this scale. After talks with International Airlines Group collapsed and Lufthansa and Air France KLM withdrew, Turkish Airlines emerged as the only player able to provide Air Europa with the financial stability it needed to overcome post pandemic difficulties. The move not only offers fresh oxygen to the Spanish carrier’s accounts but also opens up new growth prospects in markets that are strategic for both.
The investment plan foresees 275 million euros initially provided in the form of a convertible loan, subject to regulatory approval, and a further 25 million euros for the immediate purchase of shares. Turkish Airlines’ exact stake will range between 26 and 27 per cent and will be finalised at the closing, expected within six to twelve months. The urgency of the deal stems from Air Europa’s need to reduce its debt. The company must repay by November 2026 a 475 million euro loan granted by the Strategic Enterprises Support Fund during the pandemic. Chairman Juan José Hidalgo has announced plans to bring forward repayment to 2025, using funds from Turkish Airlines alongside internal liquidity.
The shareholding structure will change significantly. Globalia, which currently holds 80 per cent, will fall to 54 per cent, Turkish Airlines will become the second largest shareholder with more than a quarter of the stock, while IAG, which already owns 20 per cent, will shrink to between 16 and 20 per cent depending on whether it takes part in the capital increase.
The path leading Air Europa to this outcome originates in the pandemic crisis of 2020. State aid ensured its survival but left behind heavy debt. Even so, the airline has shown recovery over the past two years, posting profits of 165 million euros in 2023 and 205 million in 2024, results that attracted international investors. At the start of 2025 the company entered into talks with funds and major industry groups, but no satisfactory agreement was reached. Offers from Lufthansa and Air France KLM, both below 240 million euros, failed to convince the Hidalgo family, which valued the airline at over one billion euros.
Turkish Airlines has stepped in at a decisive moment with a proposal that brings not only capital but also industrial prospects. The investment is part of the Turkish group’s 2033 expansion strategy, which focuses on the Latin American market. With a network of more than 350 destinations in 129 countries, Turkish Airlines already has the broadest geographical coverage of any airline worldwide. Air Europa, for its part, maintains a strong presence in the Iberian Peninsula and Latin America with a fleet of 53 aircraft. The integration promises operational synergies, from optimising connections between Madrid and Istanbul – bolstered by a new direct flight launched in 2025 – to technical cooperation on maintenance, loyalty programmes and new aircraft.
The question of airline alliances remains open. Air Europa is a member of SkyTeam, while Turkish Airlines belongs to Star Alliance. The possibility of a shift in allegiance or even a dual role for Madrid Barajas introduces unprecedented scenarios in European aviation. Approval from the Spanish government and competition authorities is still required, but the minority nature of the investment makes a green light by the end of 2025 appear likely.
