Air Europa has finalised an agreement with Turkish Airlines, paving the way for the Turkish carrier to acquire an estimated 26% stake in the Spanish airline through a €300 million convertible loan. The deal, which values Air Europa at €1.175 billion, will also allow the company to cancel its €475 million SEPI loan one year ahead of schedule.
The partnership marks a major milestone in Air Europa’s post-pandemic recovery and brings together three aviation giants: Air Europa, Turkish Airlines, and IAG, which will maintain its 20% shareholding.
The early repayment concludes the public financial support Air Europa received during the COVID-19 crisis, when SEPI’s loans were crucial in preserving the company’s operations and workforce. Since then, the airline has generated strong returns for the Spanish economy, paying more than €1.8 billion in taxes, fees, and interest over the past five years, while transporting 48 million passengers on nearly 290,000 flights.
Air Europa’s €475 million SEPI loan — along with accrued interest — is being repaid using the Turkish Airlines investment and the airline’s own funds. The company also fully settled a €141 million ICO-backed bank loan earlier this year.
The Hidalgo family, through Globalia, will remain the majority shareholder, ensuring the airline retains its Spanish identity and leadership in Europe–Latin America connectivity.
According to the airline, SEPI’s support helped protect around 4,000 jobs and create more than 600 new positions, bringing Air Europa’s total workforce to nearly 4,600 employees.
CEO Javier Hidalgo and his team led negotiations with Turkish Airlines, which began earlier in 2025. The transaction is now pending regulatory and competition approval.
The agreement also highlights Air Europa’s transformation into a stronger, more sustainable carrier with a modernised fleet and an enhanced presence at Madrid-Barajas Airport, where it remains the only major airline flying under a fully Spanish flag.
This post was published on 6 November 2025 20:55
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