Air Europa Explores Strategic Partnerships with Air France-KLM, Lufthansa, and Etihad

Globalia, the business group that owns Air Europa, has signed a capital increase worth €65 million to help the airline overcome financial difficulties that threatened to lead to its dissolution. This operation, which falls under the corporate moratorium set to expire at the end of 2024, aims to clean up the company’s balance sheet and ensure its long-term viability.

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The airline, which ended 2023 with a negative net equity of €500 million despite generating profits of €150 million, is now in a stronger position thanks to this capital injection. According to a statement issued by Globalia, the measure will enable Air Europa to strengthen its expansion plans and meet its financial commitments in the future.

In parallel, the airline is exploring strategic options for its future, including a potential collaboration with the Air France-KLM group. Through this partnership, the French airline could acquire a minority stake in Air Europa’s capital, allowing it to establish a presence at Barajas Airport, one of Iberia’s major hubs and a competitor of IAG, Iberia’s parent company. However, according to Juan José Hidalgo, President of Globalia, speaking to the Mallorcan newspaper Última Hora, discussions are also ongoing with Lufthansa and Etihad Airways.

“It’s true that we have three companies interested in acquiring 20% of Air Europa, and we are listening to their proposals. It is also true that we do not need to sell any share packages. In any case, Globalia would always retain 51% of the shares,” the group’s head told the media outlet.

Uncertainty remains regarding the role of IAG in this process. The parent company of Iberia has owned 20% of Air Europa since 2023, when it executed a €100 million convertible loan. However, its attempt to acquire 100% of the airline failed last August due to obstacles posed by the European Commission. Despite this, IAG has yet to decide whether to maintain its stake or sell its shares in the long term.

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The capital increase and financial rescue also include loans totaling €475 million, which, along with 2024 profits, should allow the company to regain balance and avoid dissolution. Jesús Nuño de la Rosa, CEO of Air Europa, stated last May that if the airline continued its positive trend, it would be able to meet its commitments independently.

Hidalgo emphasized that the capital increase gives the airline greater security to face an unstable market, expressing confidence that there is still room for growth.