Turkish Airline on track to seal Air Europa partnership following withdrawal of agreement proposals from Lufthansa and Air France
Turkish Airlines is moving forward with its plans to acquire a significant minority stake in Spanish carrier Air Europa. The airline has reached a binding agreement to provide a €275 million convertible loan, subject to regulatory approvals [1][3][4].
The deal, announced on August 8, 2025, follows initial non-binding discussions that started in June 2025 [1][5]. This strategic alliance aims to strengthen Air Europa's financial position and support Turkish Airlines' growth in the Iberian and Latin American markets.
Air Europa will primarily use the €275 million injection to repay a €475 million government loan early, improving its financial health [4]. This comes after the airline repaid another €150 million loan in May 2025.
Turkish Airlines sees this investment as aligned with its long-term 2033 growth strategy, leveraging complementary networks in Spain, Latin America, passenger, and cargo segments [1][3].
Notably, Air France-KLM has withdrawn from the bidding process, while German airline Lufthansa has abandoned its bid for a stake in Air Europa [2]. Turkish Airlines has emerged as the frontrunner in the race.
As of now, Turkish Airlines operates flights to 352 destinations across 131 countries, more than any other carrier globally [6]. The airline recently added new destinations during the second quarter, including Benghazi, Damascus, Port Sudan, and Phnom Penh.
Despite the growth, Turkish Airlines' net profit dropped by 26.7% during the second quarter, falling to €691 million. However, the airline generated a total revenue of $5.98 billion, representing a 5.6% increase compared to the same quarter last year [7].
Turkish Airlines is set to make the offer public once finalized, according to Reuters [8]. The airline was named the best airline in Europe for the 10th time at the 2025 Skytrax Awards, further solidifying its position in the industry.
The acquisition of Air Europa's stake marks a significant step in Turkish Airlines' expansion plans, aiming to expand its fleet to between 520 and 525 aircraft by the end of the year [9]. The airline's current fleet comprises 485 aircraft, with 36% being new-generation models [10].
References:
- Reuters
- Bloomberg
- Air Transport World
- Airline Ratings
- Simple Flying
- World Atlas
- Turkish Airlines Financial Results
- Reuters
- Anadolu Agency
- Airline Ratings
- The Turkish government might closely monitor the acquisition of Air Europa's stake by Turkish Airlines, as the deal could potentially influence the overall health of the Turkish aviation industry.
- The success of the Turkish Airlines and Air Europa alliance could have a ripple effect on the Turkish lira, as the growth in the Turkish airline sector could boost the country's economy and currency.
- The growing Turkish Airlines' presence in the Spanish and Latin American markets through the Air Europa investment could provide new opportunities for Turkish businesses to expand their operations in these regions.
- One of the key focuses for Turkish Airlines, post the Air Europa acquisition, might be increasing collaboration in sectors like transportation and logistics, to further strengthen the Turkish industry's competitive edge in the global finance market.
