Lufthansa takes the lead in the race to acquire a 20% stake in Air Europa
The Hidalgo family seeks a strategic partner to strengthen Air Europa's financial position and ensure its expansion.
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Lufthansa Group gained an advantage in the negotiations to acquire a 20% stake in Air Europa, surpassing other interested parties such as Air France-KLM. The Hidalgo family, which owns 80% of the airline through Globalia, is seeking a strategic partner to strengthen the company's financial position and enable its international expansion without relinquishing operational control.
In November 2024, Air France-KLM appeared to be leading the negotiations after two previous attempts to acquire a stake in Air Europa. However, recent discussions have favored Lufthansa, which had already completed the purchase of 41% of ITA Airways in 2023 for 325 million euros, reinforcing its presence in Southern Europe.
According to reports from the Spanish newspaper El Economista, the deal would allow Lufthansa to consolidate its position in key markets for German tourism, such as the Balearic Islands, where 42% of German tourists visiting Spain choose this archipelago as their main destination. Additionally, Air Europa serves as a strategic bridge for expanding routes to Latin America, focusing on markets like Brazil and Colombia, complementing the Rome-Fiumicino hub established after the acquisition of ITA Airways.
Financial restructuring plan
The sale of 20% of Air Europa would include a capital increase, allowing the airline to repay a 235-million-euro loan from SEPI, which is due before the end of 2026, and refinance another 240 million euros in debt with the Instituto de Crédito Oficial (ICO). These loans were granted during the pandemic to mitigate the company’s financial crisis, but they carry interest rates above the market average, prompting the Hidalgo family to seek alternatives, such as bringing in a new strategic partner.
In December 2024, Air Europa stabilized its immediate financial situation through an extraordinary injection of 81 million euros. Of this amount, 65 million came from the Hidalgo family in the form of real estate assets, while IAG, the minority shareholder holding 20% of the airline, contributed 16 million to prevent its stake from being diluted.
Air Europa closed 2024 with positive results, reaching revenues of 2.9 billion euros, a 6% increase compared to the previous year, and a net profit of nearly 200 million euros. Its market valuation grew by 30% between late 2022 and mid-2024, rising from 500 million to 650 million euros, driven by increasing demand and the recovery of strategic routes.
For 2025, the company expects to surpass 3 billion euros in revenue, setting a historic record. These figures enhance Air Europa's appeal as a strategic asset for any airline interested in the Iberian and Latin American markets.
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