Air Europa Seeks Investors to Raise Capital and Repay State Loans

Air Europa is seeking to raise fresh capital to repay substantial COVID-era state aid loans maturing in 2026. The airline has engaged investment bank PJT Partners to assist in securing new investors, as reported by El País.

The capital raise aims to attract a new investor who would inject equity in exchange for up to a 20% stake in the airline, according to El Confidencial. PJT Partners is reportedly in discussions with venture capital funds and major industry players, including Air France-KLM, Lufthansa Group, Etihad Airways, and Delta Air Lines.

Current shareholders, Globalia (80%) and IAG International Airlines Group (20%), recently participated in a private capital raise to support Air Europa despite IAG’s earlier uncertainty about the move.

The airline faces significant financial obligations, including EUR475 million (USD495 million) in loans from Spain’s sovereign wealth fund (SEPI) and EUR88 million (USD92 million) from a EUR141 million (USD147 million) credit granted by Spain’s state-run credit bank (ICO). These loans are due in November 2026 and 2028, respectively.

By raising capital and attracting new stakeholders, Air Europa aims to strengthen its financial position while navigating recovery from the challenges posed by the pandemic.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com