Air France-KLM is reportedly considering buying up to 20% of Air Europa. The news comes three months after the International Airlines Group (IAG), which owns British Airways and Iberia, among others, abandoned plans to acquire Spain's third-largest airline , citing regulatory obstacles. Even though the takeover did not go through, Air France-KLM's rival IAG already owns a 20% stake in Air Europa.
According to a report by El Economista , the Hidalgo family, which owns 80% of Air Europa through its holding company Globalia, has been in negotiations with Air France-KLM for several weeks. In a statement to Reuters , Globalia confirmed that Air France-KLM was interested. Simple Flying has asked Air France-KLM for a comment.
Exploring avenues for capital increase Air Europa appears to be exploring new avenues for capital expansion in order to repay its debt. While not finalized, the potential transaction with Air France-KLM will far exceed the $100 million paid by IAG for its 20% stake back in August 2022, according to El Economista. In May 2020, the airline secured a €141 million ($148 million) loan from a consortium of banks in collaboration with the Official Credit Institute (ICO).
Air Europa has already repaid more than half of the loan. Although the loan was initially set to mature in 2028, the airline has announced plans to fully repay it by August 2025. In 2023, the airline improved its financial results by 18%, posting a net income of €165 million ($173 million).
IAG te.