Turkish Airlines to build Spanish and Latin American presence with Air Europa stake

Turkish Airlines (THY) is investing EUR300 million in Air Europa, a small to medium sized Spanish airline whose fleet is little more than a tenth of that of the Istanbul-based global super-connector. In the week of 25-Aug-2025 THY ranks as Europe's number three airline by seats, whereas Air Europa is 36th.

THY announced on 19-Aug-2025 that its binding offer for a minority stake in Air Europa had been accepted. The "vast majority" of THY's investment will be by way of a capital increase, and its exact percentage stake will be determined at closing. The transaction, which requires regulatory approval, is expected to complete in six to 12 months.

The rationale is based on the complementary nature of the two networks. THY's short haul network is underweight in Spain, which is one of Europe's biggest markets. In long haul, Latin America is THY's smallest market, while Air Europa is third by seats and first by number of destinations between Europe and Latin America.

There are still some uncertainties - not the least, the future for IAG's 20% shareholding in Air Europa.

Nevertheless, THY's investment should pave the way to a close commercial partnership with Air Europa and benefits for both.