Turkish Airlines is preparing a binding offer for a minority stake in Air Europa, pending board approval, airline executives confirmed this week during an earnings call.
In a public disclosure statement on Thursday, the carrier said the decision follows a feasibility study that deemed the investment to be “in line” with the company’s long-term growth strategy.
Turkish Airlines pointed to Air Europa's presence in the Iberian Peninsula and Latin American market as “enabling scaled and accelerated growth”, as well as the potential to create “a leverage effect” through subsidiaries and joint ventures.
The Turkish carrier first expressed interest in Air Europa in June after holding non-binding talks.
The move comes after European aviation giants Lufthansa and Air France-KLM both abandoned plans for a stake in the Spanish carrier. British Airways parent IAG, which has an existing 20 per cent stake in Air Europa, also backed out of plans to take a majority share in the carrier last year after multiple failed attempts.
Turkish Airlines reported a 7.4 per cent year-on-year increase in passenger revenue for the year’s second quarter, while total revenues rose by 5.6 per cent year-on-year to reach $5.9 billion. The carrier reported an operating profit of $706 million for the quarter, up 19.5 per cent compared to the same period a year prior.