Turkish Airlines Buys 25% Stake in Spain’s Air Europa for $355 Million
Turkish Airlines has signed a major investment deal to acquire a minority stake in Spanish carrier Air Europa, marking one of the few instances of a non-European airline taking ownership in a European carrier. The agreement, finalized on November 6, involves a €300 million ($355 million) investment in convertible debt that will later be exchanged for a 25–27% equity stake once regulatory approvals are secured.
The deal values Air Europa at approximately €1.2 billion ($1.4 billion) and is expected to close within six to twelve months, pending clearance from European and Spanish authorities. Under the agreement, Spain’s Hidalgo family — through its holding company Globalia — will remain the majority shareholder, while International Airlines Group (IAG), parent company of British Airways and Iberia, will keep its current 20% stake.
Turkish Airlines, which has confirmed it has no intention of increasing its ownership beyond the minority level, beat out rivals Lufthansa and Air France-KLM for the opportunity to partner with Air Europa. The deal represents a strategic move for Turkey’s national carrier to strengthen its presence in the European and Latin American markets by gaining access to Air Europa’s Madrid hub, a key gateway for transatlantic routes to South America and the Caribbean.
Air Europa, a full-service carrier based in Spain, has been working to stabilize its finances after facing significant pandemic-related challenges. The airline announced that it has already repaid nearly €500 million in loans from Spain’s state-owned SEPI (Sociedad Estatal de Participaciones Industriales) one year ahead of schedule — a move signaling renewed financial health ahead of the Turkish Airlines investment.
For Turkish Airlines, the transaction aligns with its long-term expansion strategy to build global connectivity through partnerships and equity stakes, complementing its vast network that already spans more than 120 countries. Industry analysts view the investment as a potential stepping stone toward deeper cooperation between the two carriers, including code-sharing agreements and enhanced network integration between Istanbul and Madrid.
This deal also underscores the accelerating consolidation trend across Europe’s aviation sector, as major players seek to expand their market reach by acquiring or partnering with smaller regional airlines. The Turkish Airlines–Air Europa partnership could further reshape competition among Europe’s traditional network carriers, particularly in the lucrative Europe–Latin America corridor.
Related News: https://airguide.info/?s=Turkish+Airlines, https://airguide.info/?s=Air+Europa
Sources: AirGuide Business airguide.info, bing.com, reuters.com