Turkish Airlines sign deal to buy up to 27% stake in Air Europa for €300 million

Turkish Airlines signed an agreement to acquire a minority stake of up to 27% in Air Europa on Thursday, November 6. The deal, valued at €300 million through a convertible debt instrument, positions Turkish Airlines as a significant new shareholder in the Spanish carrier.

The investment is part of ongoing efforts to consolidate a fragmented European airline market. Air Europa’s enterprise value is estimated at around €1.2 billion, with the deal contingent on regulatory approvals and expected to close within six to twelve months.

Globalia, the holding company controlled by the Hidalgo family, will remain the majority shareholder of Air Europa following the transaction. International Airlines Group (IAG), which owns British Airways, will retain its 20% stake in Air Europa through shares acquired from Globalia.

Air Europa announced it had fully repaid a nearly €500 million loan one year ahead of schedule after the agreement was disclosed. This early repayment strengthens the carrier’s financial position ahead of the change in shareholder structure.

Lufthansa and Air France-KLM previously engaged in negotiations with the Hidalgo family but ended talks without reaching an agreement.

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