Air Europa (UX, Palma de Mallorca) is seeking to raise fresh capital to repay its weighty COVID-era state aid loans that are set to mature in 2026. It has hired PJT Partners, an investment bank, to assist in finding new investors, according to the Spanish newspaper El País.
A new investor is expected to take a stake in the airline by injecting fresh equity. As reported by El Confidencial, PJT Partners has held discussions with potential investors about taking a maximum share of 20% of the capital in the form of new shares. These reportedly include several venture capital funds, Air France-KLM, Lufthansa Group, Etihad Airways, and Delta Air Lines.
Current shareholders Globalia (80%) and IAG International Airlines Group (20%) recently participated in a private capital raise for Air Europa, even though IAG had previously been undecided on the matter.
The airline faces significant financial obligations, including repayment of a EUR475 million (USD495 million) loan from Spain’s sovereign wealth fund (Sociedad Estatal de Participaciones Industriales - SEPI) and EUR88 million (USD92 million) from a EUR141 million (USD147 million) loan granted by Spain’s state-run credit bank (Instituto de Crédito Oficial - ICO). These loans are due in November 2026 and 2028, respectively.
ch-aviation reached out to Air Europa for comment but it was not immediately available.
