Turkish Airlines Acquires 25% Stake in Air Europa to Boost Latin America Reach

Turkish Airlines has formally signed a landmark deal to acquire a significant minority stake in Spain’s Air Europa, marking a strategic move to expand its global reach, particularly in Latin America. Under the agreement, Turkish Airlines will invest €300 million in convertible debt, translating to a 25–27% ownership stake, while the airline remains under Spanish majority control.

The investment values Air Europa, Spain’s third-largest airline behind Iberia and Vueling, at approximately €1.2 billion. The Hidalgo family, Air Europa’s founding shareholders, will maintain a majority holding, although some shares have been transferred to the British-Spanish aviation group IAG, which operates carriers including British Airways and Iberia, ensuring their stake remains at 20%.

This deal, initially agreed upon in August, follows Air Europa’s early repayment of a pandemic-era state-backed loan of nearly €500 million to SEPI, Spain’s state aid fund. Turkish Airlines emerged as the preferred investor after outbidding competitors such as Lufthansa and Air France.

Based in Istanbul, Turkish Airlines operates flights to more than 350 destinations across 131 countries, making it the world’s largest airline by network coverage. In 2024, the airline reported revenue exceeding €19 billion, demonstrating its robust financial position.

The strategic investment allows Turkish Airlines to significantly enhance its footprint in Latin America, a key growth market. Air Europa operates 20 long-haul services from Madrid to major destinations including Buenos Aires, Caracas, and Asuncion. In 2023, Air Europa controlled 22.1% of the Spain-Latin America air travel market, offering Turkish Airlines an immediate platform to expand its operations in the region.

Industry analysts say the deal strengthens Turkish Airlines’ global strategy, allowing the carrier to diversify revenue streams, tap into lucrative long-haul markets, and leverage Air Europa’s established network. The move also positions Turkish Airlines as a competitive player against European rivals seeking to dominate transatlantic travel routes.

With this acquisition, Turkish Airlines aims to capitalize on growing tourism and business travel between Europe and Latin America while reinforcing its status as a major international airline with a diversified global portfolio.