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Turkish Airlines announced Tuesday that its 300-million-euro ($350M~) bid to acquire a 26% stake in debt-laden Spanish carrier Air Europa has been accepted, marking a significant expansion into the Latin American aviation market.
The Turkish flag carrier disclosed to the Istanbul Stock Exchange that Air Europa's parent company Globalia had accepted its binding offer, with completion procedures now underway. The transaction, valued at approximately $350 million, will be structured primarily as a capital increase that converts into roughly a quarter ownership of the Spanish airline.
"The transaction involves an investment of 300 million euros, the majority of which is in the form of a capital increase," Turkish Airlines said in its regulatory filing. The deal requires approval from Spanish authorities and other regulators, with completion expected within six to 12 months.
Deal positions Turkish Airlines as second-largest shareholder
The acquisition would make Turkish Airlines the second-largest shareholder in Air Europa, surpassing the 20% stake currently held by International Airlines Group (IAG), owner of British Airways and Iberia. Tourism conglomerate Globalia retains an 80% majority stake in the Madrid-based carrier.
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Turkish Airlines' successful bid comes after German airline Lufthansa and Air France-KLM withdrew from negotiations earlier this month, opting instead to focus on consolidating their positions in Italy's ITA Airways and Scandinavian carrier SAS respectively.
Strategic focus on Latin American market expansion
The Turkish carrier first announced its intention to pursue Air Europa on August 7, citing strategic alignment between its global network and the Spanish airline's strong presence in the Iberian Peninsula and Latin America. Turkish Airlines said the partnership would "contribute to achieving scaled and rapid growth in the Latin American market" while creating new revenue streams.
The deal comes as Turkish Airlines' latest international expansion effort as it strengthens its position as a connecting hub between Europe, Asia and the Americas through its Istanbul base.
Air Europa shows strong recovery from pandemic losses
Air Europa has been recovering from pandemic-related financial strain that left the airline heavily indebted. The carrier reported 2024 revenues of 2.93 billion euros with pre-tax profits of 116 million euros—triple its 2019 performance. The airline continues expanding its long-haul fleet with new Boeing 787 Dreamliners and 737 MAX aircraft as part of its 2025-2027 strategic plan.
The capital injection from Turkish Airlines is expected to help reduce Air Europa's debt burden accumulated during the COVID-19 crisis, providing financial stability as the Spanish carrier continues its recovery trajectory.
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