Lufthansa, the German airline giant, has formally withdrawn from negotiations to acquire a stake in Spain’s Air Europa, leaving Turkish Airlines as the sole remaining bidder for the Spanish carrier. The decision, confirmed by a Lufthansa spokesperson, follows a week after Air France-KLM also abandoned its pursuit of a share in the airline, citing complex negotiations and structural challenges. This double withdrawal has reshaped the landscape for Air Europa, a key player in transatlantic and Latin American routes, and raised questions about its future ownership and financial stability.
Lufthansa’s exit from the talks was announced after what the company described as “thorough analyses and intense negotiations,” with the spokesperson stating that the airline group had decided against further engaging in a capital contribution or shareholding in Air Europa at this stage. The decision was influenced by several factors, including the complexity of the deal due to the existing 20pc stake held by International Airlines Group (IAG), the parent company of Aer Lingus, British Airways and Iberia. IAG’s prior attempt to fully acquire Air Europa in 2024 was blocked by regulatory authorities, adding to the intricate dynamics of the current negotiations. Additionally, internal disagreements within the Hidalgo family, who control 80pc of Air Europa through their company Globalia, have further complicated the process.
The withdrawal of both Lufthansa and Air France-KLM has left Turkish Airlines in a strong position as the only known contender for a stake in Air Europa. Turkish Airlines, which confirmed non-binding talks with Air Europa in June 2025, is seen as a strategic player aiming to expand its footprint in the European and Latin American markets. A successful bid could grant Turkish Airlines access to Air Europa’s valuable network, including 14 long-haul routes connecting Madrid to destinations such as Miami, Buenos Aires, and São Paulo. This move aligns with the Turkish carrier’s broader ambition to strengthen its global presence and compete with major players in the consolidating European aviation sector.
However, the path forward for Turkish Airlines is not without challenges. The Hidalgo family is reportedly seeking to limit external investment to a maximum of 25pc to maintain operational control, while IAG’s 20pc stake gives it significant influence over any potential deal. Regulatory hurdles, which have previously derailed acquisition attempts, remain a critical concern. Air Europa’s financial pressures also add urgency to the situation, as the airline seeks fresh capital to repay a €475m government loan secured during the COVID-19 pandemic, with repayment due by November 2026. The loan, comprising a €235m ordinary credit and a €240m participatory loan, carries a 9pc interest rate, placing a substantial burden on Air Europa’s finances despite its reported €2.932bn in revenue and €116m in pre-tax profit for 2024.
The aviation industry is watching closely as Air Europa navigates this turbulent period. A potential partnership with Turkish Airlines could reshape transatlantic travel and bolster competition in Europe, potentially leading to more options and competitive fares for passengers. However, the deal’s success hinges on Turkish Airlines’ ability to navigate the complex ownership structure, secure regulatory approval, and align with Air Europa’s financial and operational goals. As of 7 August 2025, Globalia has declined to comment, and Turkish Airlines has not responded to requests for updates, leaving the outcome uncertain but with significant implications for the European aviation market.
