Turkish Airlines becomes Air Europa’s second-largest shareholder with €300m deal
Turkish Airlines has confirmed that Air Europa has accepted a binding offer for a minority stake, valued at €300 million ( $349 million).
Most of the investment will…
August 20, 2025
Turkish Airlines has confirmed that Air Europa has accepted a binding offer for a minority stake, valued at €300 million ( $349 million).
Most of the investment will come via a capital increase, leaving Turkish with a 25–27% holding once technical and financial adjustments are completed. The process is expected to close within six to twelve months, subject to regulatory approvals.
“The process is expected to be completed within approximately 6 to 12 months, subject to obtaining the necessary permits and approvals from the relevant regulatory authorities,” Turkish Airlines said.
This will make Turkish Airlines the second-largest shareholder in Air Europa, behind owner Globalia but with a larger stake than rival airline group IAG, which currently holds 20%.
A 25% capital increase to accommodate the new partner would dilute Globalia’s share to 64% and IAG’s to 16%. IAG may be offered the opportunity to participate in the recapitalisation of the airline to maintain its shareholding, but as this was acquired as part of the failed attempt to take over Air Europa, IAG may not want to inject more cash.
Why is Turkish Airlines buying Air Europa?
In a statement sent to the Turkish stock market regulator, the buyer stated that its goal is to “strengthen our strategic position in the global aviation industry and increase the number of tourists visiting Turkey, along with the related economic contribution, by opening new tourism markets in Latin America and expanding the passenger and cargo flight network between Spain and Turkey.”
The airline is keen to bolster its footprint, particularly in Latin America and Spain, where Air Europa already has a strong presence.
However, the deal is not without its complexity. Turkish Airlines is a core Star Alliance member, while Air Europa is part of SkyTeam with Delta, Air France-KLM and others.
Having a Star carrier with equity in a SkyTeam airline is awkward but not without precedent. In 2017, China Eastern, a SkyTeam member, acquired a minority stake in Cathay Pacific, a oneworld carrier.
Cross-alliance stakes tend to happen when one of the parties is financially distressed, or when the investor is more concerned about hub access than alliance purity.
A fresh start for Air Europa
Air Europa has been burdened with significant pandemic-era debt, including a €475 million ($553 million) loan from Spain’s sovereign wealth fund SEPI. The repayment could be made early, as the expiration of this public aid comes in November 2026.
The airline already repaid a €141 million ($164 million) loan guaranteed by the ICO in May 2024, taking advantage of its return to profit in 2023 to clear the loan four years early.
In 2024, the airline finished the year with a turnover of €2.9 billion ($3.38 bn), up 6.4% on 2023. Its profit before tax was €116 million ($135 million), 7% higher than in 2023 and three times what it earned in 2019.
Already in 2025, the airline has gone from strength to strength. Earnings before tax in the first four months of the year were €8 million, 159% higher than the same period in 2024.
By the end of the first half of 2025, Air Europa had received three new Boeing 787 Dreamliners as well as its first 737 MAX. Another 11 MAX are due to arrive in 2026.
While this new partnership could unsettle alliance dynamics in Europe, it signals a pragmatic move by both airlines to secure growth in an increasingly competitive market.
