Turkish Airlines May Acquire Minority Stake in Air Europa

The debt-laden Spanish carrier Air Europa on Tuesday announced that it has accepted an offer from Turkish Airlines, which has expressed its intention to acquire a minority stake of 26% for $350 million.

In a statement to the Istanbul Stock Exchange regulator (KAP), the Turkish flag carrier confirmed that the binding offer submitted has been accepted by Air Europa and procedures to close the deal had started.

The transaction involves an investment of $350 million, the majority of which is in the form of a capital increase which would then be converted into a stake whose share would be finalised in the coming months. “The minority shareholding ratio to be acquired will be finalised following technical and financial adjustments to be made at the closing,” Turkish Airlines said in the bourse filing.

Turkish Airlines first disclosed in June that it had entered non-binding talks over a possible Air Europa investment and earlier this month has confirmed that it was preparing a binding offer.

“As stated in our public disclosure dated 7 August 2025, our Board of Directors had resolved to submit a binding offer for the acquisition of a minority stake in Air Europa Holding with the objectives of strengthening our strategic position in the global aviation industry and increasing the number of tourists visiting Turkiye along with the related economic contribution by opening new tourism markets in Latin America and expanding passenger and cargo flight network between Spain and Turkiye, the Turkish Airlines said.

Turkish Airlines said the process was due to be completed within six to 12 months, subject to approval by the relevant regulatory authorities, including the Spanish government.

The airline submitted its binding offer on Tuesday to Globalia, the Spanish tourism group which holds an 80% stake in Air Europa. The other 20% is held by British Airways owner IAG, which has dropped a bid for a full takeover of the Spanish carrier last year owing to regulatory constraints.

Turkish Airlines is looking to gain from Air Europa’s presence in the Iberian Peninsula and Latin America across both passenger and cargo segments, adding new revenue streams and regional operational diversity.

Heavy Debt

Air Europa has faced heavy debt in recent years and has made several attempts to secure new investment.

Multiple European airline groups expressed interest in taking a stake, but each attempt collapsed. That allowed Turkish Airlines to move forward alone with the goal of expanding its reach across Latin America and the Iberian Peninsula.

The bidders include Lufthansa and Air France-KLM, which have dropped out of talks to take a stake in the Spanish airline. Turkish Airlines had on August 7 informed KAP it had decided to submit a binding offer to acquire a minority stake in Air Europa.

It said that the complementary nature of its own global passenger and cargo network and Air Europa’s strong position in the Iberian Peninsula and Latin America would contribute to achieving scaled and rapid growth in the Latin American market and create new revenue channels.