Fitch: Turkish Airlines’ stake in Air Europa strengthens access to Latin America

International

The international rating agency Fitch sees Turkish Airlines’ (THY) investment in Air Europa as a strategic expansion of its route network

The stake purchase is expected to enhance passenger and cargo connections between Spain and Turkey while opening new opportunities on the fast-growing routes between Latin America and Europe.

Advantages through Madrid hub

“Although Air Europa is significantly smaller than Turkish Airlines, it holds a strong position on South American routes and benefits from being the second-largest carrier at Madrid-Barajas Airport,” Fitch noted in its statement.

Details of the transaction

Turkish Airlines will acquire a minority stake in Air Europa for €300 million. Subject to regulatory approval, the transaction is expected to close within six to twelve months.

Consolidation trend in Europe

Fitch also pointed out that major European carriers such as Air France-KLM and Lufthansa are pursuing minority stakes and complementary acquisitions. In this context, TAP Air Portugal could become the next candidate for consolidation among European, Middle Eastern, and African airlines.

On 19 August, Turkish Airlines had already announced that Air Europa accepted its binding offer to acquire the minority shares.