Air Europa: Latin America remains key strength, but Iberia is re-awakening

Air Europa's seat capacity will be 13% higher in 2014 than in 2013, according to OAG data. In spite of strong recent growth, however, it is still only the sixth biggest airline in Spain by seat numbers, with a share of just over 5%. Its strongest network region is Latin America, where its 23% share puts it second only to Iberia and where it is growing most rapidly.

As we highlighted in our 5-Aug-2014 analysis of Air Europa, a number of key financial indicators improved in 2013. Although its profit recovery may be a little ahead of that of its rival Iberia, the latter is also moving into a more confident phase after years of losses and restructuring.

With competition between Air Europa and Iberia intensifying on long-haul and LCCs continuing to increase their share of the Spanish market on short-haul, we take an analytical look at Air Europa's network and strategic positioning.

See related report: Air Europa will need its lower costs and higher growth to face renewed competition from Iberia