Air Europa has reached a major milestone in its post-pandemic financial recovery and operational growth, securing a €300 million investment from Turkish Airlines and repaying its €475 million SEPI loan a year ahead of schedule. The deal reinforces the airline’s financial stability while maintaining its role as a key link between Europe and Latin America.
Turkish Airlines Acquires 26% Stake
Under the agreement, Turkish Airlines will take a 26% stake in Air Europa through a convertible investment once regulatory approvals are completed.
The deal, which values the airline at around €1.175 billion, also keeps IAG’s 20% share intact. Negotiations, led by Javier Hidalgo and his team, began before summer 2025, with Turkish Airlines accepting a binding offer during the summer.
The agreement provides immediate funding while regulatory approvals are finalised and represents a landmark moment for the European aviation sector.
Early Repayment of SEPI Loans
The capital injection, combined with the airline’s own resources, allowed Air Europa to repay SEPI’s ordinary and participative loans and accrued interest, totalling nearly €500 million, a year earlier than scheduled.
This repayment follows the May 2025 settlement of a €141 million bank loan backed by the Instituto de Crédito Oficial (ICO), marking the successful completion of a significant phase of financial restructuring and deleveraging.
Preserving Jobs and Driving Transformation
The SEPI loans were crucial in safeguarding Air Europa’s operations during the pandemic, preserving nearly 4,000 jobs and creating over 600 new positions, bringing total employment to approximately 4,600.
The airline has also paid more than €1.8 billion in interest, taxes, and airport fees over five years, transporting over 48 million passengers. The funding supported fleet growth, improved service quality, and strengthened connectivity at Madrid hub, reinforcing Air Europa as the only fully Spanish-flagged carrier linking Europe and Latin America.
What are your thoughts on this? Let us know in the comments below. To read more on this, click HERE.
